Search results

From the Treasurer's press release: Special arrangements will apply for capital gains on assets purchased before 1 July 2014: For assets that were purchased before 5 April 2013, the reform will only apply to capital gains that accrue after 1 July 2024; For assets that are purchased from 5...

Your complaining about it when you don't even know how it works???:confused:

This is the problem we now have as a country. One minor change to superannuation, which probably won't affect Greedy at all, and we get a reaction like this. We have become a nation of whingers and lobby groups. We would be a lot better off if we a) think before we spoke (or typed) b)...

Again, it's not a tax on the pension itself, it's a tax on EARNINGS in pension phase. What you are forgetting is that the superannuation contribution, if taxed in the fund at 15%, has provided a tax DEDUCTION outside of superannuation. The deduction is almost always at a higher rate than...

One correction, super funds only receive 1/3 discount, not 1/2. So the taxable gain would 2/3 of $900k, or 600k, using Alex's figures.

Great word, by the way.

I'm not sure about that. I think rational people would like the tax deduction that contributing to super offers. And they would also like to live a comfortable retirement, rather than one reliant on the aged pension. A rational person wouild also think there are worse things to be called...

I agree. But the risk of negative growth is just the same outside of superannuation as well. If you instead invest your $25k in shares outside of super, they also may reduce in value. That's quite often the decision factor to invest in super, especially for younger people. I will get a nice...

It's NOT a tax on withdrawals. It's a tax on earnings, in pension phase. Previously, the 15% tax on earnings ceased when the fund went into pension phase. Now, if those earnings are over $100,000, there is a 15% tax on the earnings over $100,000. So it is not a 45% tax, it is not a...

Let's say you are self employed, earning $80,000 a year. You decide to put in $25,000 to superannuation. The Superannuation contribution is taxed at 15%, or $3750, in the fund. You get a tax deduction of $25,000 for the contribution, saving you $8500 in personal tax. So you are ahead...

It's not taxed on the way out. There is a tax on fund earnings. Fund earnings are currently taxed while the fund is in a accumulation phase, but not pension phase. This change will tax earnings in pension phase, over $100,000 per year. It's not a tax on what is withdrawn, and those over 60 can...

No it doesn't. It means that under 50's can contribute $25,000 and claim a tax deduction. That is the 'enticement'. What other enticement were you after? Any amount over that is an excess contribution. If the excess contribution is less than $10,000, you can apply to have it refunded, without...

As someone else said previously, there are no guarantees in life. I work in taxation, and know first hand the tax rules are always changing. Just last year the tax free thresholds changed for all taxpayers, and the amount people could contribute to super also changed. And this changed again for...

No, I perfectly understand the slippery slope argument. It's just that I think the slippery slope argument is garbage. It's not about debating the merits of what's proposed, but what MIGHT happen in the future. Rather than say, "If we allow 'A', then 'B' and 'C' will surely follow", I think...

It's not based on market returns, or asset appreciation, it's based on earnings. So if the interest or dividends or rent you earn goes over $100,000, you pay 15% on that amount over $100,000. If you have $500,000 and you somehow magically earn 25% interest or dividends, you would pay a grand...

Does he have more than $2m of super? If not, it won't affect him at all.

China, this is rubbish. Super earnings are taxed at a concessional rate. There is no tax on any withdrawals once you turn 60, and no limits on how much you can withdraw. Putting a tax on SF earnings while in pension phase is a sensible idea, and re-balances super after the overly generous...

Apparently yes, it will. The change is to all funds, including defined benefit funds (which effects politicians and public servants.)

Yes it does. Because they have paid no (or very minimal) tax on the sale of their business, no tax on earnings on this money once the fund is in pension phase, and no tax on the withdrawals from the fund. Originally, pension phase was tax free in the fund, because the pension payments were...