super funds Archives - Newcastle Financial Planners & Financial Advisors https://financialplanner-newcastle.com.au/tag/super-funds/ Financial Services and Advisory Firm Newcastle Sun, 26 Dec 2010 01:15:48 +0000 en-AU hourly 1 https://wordpress.org/?v=6.9.4 https://financialplanner-newcastle.com.au/wp-content/uploads/2019/11/favicon.png super funds Archives - Newcastle Financial Planners & Financial Advisors https://financialplanner-newcastle.com.au/tag/super-funds/ 32 32 Retiree Costs Down – But Only Slightly https://financialplanner-newcastle.com.au/retiree-costs-down-but-only-slightly/ Sun, 26 Dec 2010 01:15:48 +0000 http://financialplanner-newcastle.com.au/?p=307   According to the latest Westpac ASFA Retirement Standard the annual budget needed by Australians to fund either a comfortable or modest standards of living in the post-work years has fallen by 0.2%in the June 2010 quarter.  The benchmark findings have indicated that a couple looking to achieve a comfortable retirement will require $53,456 pa; whilst those seeking a modest lifestyle will require $30,399.  Theses figures assume that the retirees own their own home.   A modest lifestyle in retirement is described as better than the Age Pension, but still only able to afford fairly basic activities.  A comfortable retirement lifestyle enables an older , healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, good clothes, electronic equipment and occasional travel, both domestic and international.   Always speak with your financial planner when making decisions about your financial future.   Come and talk with Leenane Templeton Chartered Accountants & Financial planners call 02 4926 230 DISCLAIMER Newcastle Financial Planner Newcastle Chartered Accountant Self Managed Super Fund

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According to the latest Westpac ASFA Retirement Standard the annual budget needed by Australians to fund either a comfortable or modest standards of living in the post-work years has fallen by 0.2%in the June 2010 quarter.  The benchmark findings have indicated that a couple looking to achieve a comfortable retirement will require $53,456 pa; whilst those seeking a modest lifestyle will require $30,399.  Theses figures assume that the retirees own their own home.
 
A modest lifestyle in retirement is described as better than the Age Pension, but still only able to afford fairly basic activities.  A comfortable retirement lifestyle enables an older , healthy retiree to be involved in a broad range of leisure and recreational activities and to have a good standard of living through the purchase of such things as household goods, private health insurance, a reasonable car, good clothes, electronic equipment and occasional travel, both domestic and international.
 
Always speak with your financial planner when making decisions about your financial future.
 

Come and talk with Leenane Templeton Chartered Accountants & Financial planners call 02 4926 230

DISCLAIMER

Newcastle Financial Planner



Newcastle Chartered Accountant



Self Managed Super Fund

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]]> 93% Tax Rate on Super Contributions! https://financialplanner-newcastle.com.au/93-tax-rate-on-super-contributions/ Fri, 03 Dec 2010 01:58:49 +0000 http://financialplanner-newcastle.com.au/?p=291   Did you realise that some unfortunate super fund members face a 93 percent tax rate on certain super contributions?  This breathtaking rate is triggered when fund members exceed the annual caps on both concessional and non-concessional contributions.  Super Contributions that exceed the cap on concessional contributions count towards the cap on non-concessional contributions – and could push a member’s non-concessional contributions over the limit.  Here’s how that hefty tax figure is calculated: Super Contributions that overshoot the concessional cap are taxed at 31.5 percent, in addition to the 15 percent standard contributions tax – bringing the tax take, so far, to 46.5 percent. Super Contributions that overshoot the non-concessional cap are taxed at 46.5 percent, bringing the possible tax total to 93 percent. Excess contributions are, of course, highly topical at this time with many taxpayers now completing their 2009-10 tax returns, the Government’s halving of the cap on concessional contributions from 2009-10, and with the tax office’s recent updating of its online information regarding excess contributions. 1 The tax office can, in “special circumstances”, disregard excess contributions or reallocate them to another financial year. But the ATO warns: “It isn’t enough that your circumstances were unusual for you.” And the ATO […]

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Did you realise that some unfortunate super fund members face a 93 percent tax rate on certain super contributions? 

This breathtaking rate is triggered when fund members exceed the annual caps on both concessional and non-concessional contributions. 

Super Contributions that exceed the cap on concessional contributions count towards the cap on non-concessional contributions – and could push a member’s non-concessional contributions over the limit. 

Here’s how that hefty tax figure is calculated:

  • Super Contributions that overshoot the concessional cap are taxed at 31.5 percent, in addition to the 15 percent standard contributions tax – bringing the tax take, so far, to 46.5 percent.
  • Super Contributions that overshoot the non-concessional cap are taxed at 46.5 percent, bringing the possible tax total to 93 percent.

Excess contributions are, of course, highly topical at this time with many taxpayers now completing their 2009-10 tax returns, the Government’s halving of the cap on concessional contributions from 2009-10, and with the tax office’s recent updating of its online information regarding excess contributions. 1

The tax office can, in “special circumstances”, disregard excess contributions or reallocate them to another financial year. But the ATO warns: “It isn’t enough that your circumstances were unusual for you.”

And the ATO explains that unintentionally exceeding the caps, misunderstanding the law or facts, or being given incorrect information does not “amount to special circumstances on their own”. 

Particularly as the amounts involved in excess contributions tax are potentially so large, any members who have overshot their caps might well consider gaining specialist professional advice. 

Come and talk with Leenane Templeton Chartered Accountants & Financial planners call 02 4926 230

Newcastle Financial Planner

Newcastle Chartered Accountant

Self Managed Super Fund

PLEASE READ OUR FULL  DISCLAIMER

 

Source:  Robin Bowerman, Head of Retail, Vanguard Investments Australia (September 2010)

1 http://www.ato.gov.au/individuals/content.asp?doc=/content/00119316.htm

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