Issue: 330
Sent: 07-04-2009 11:51:01
In this issue:

Has the Sharemarket Bottomed?Email Newsletter Business Opportunity - Helen Bairstow The Easiest way to do a Client Newsletter. Reducing Debt, Good or Bad? How do I use ATC articles for my clients? In depth industry publication by ATC The pre-budget rumour mills whirr into action
Return to full article list
HomeFree weekly newsletterSelf Managed Super Fund ArticlesContact usLogin AllThingsConsidered.biz

The pre-budget rumour mills whirr into action

Click here to buy - A How To Book of SMSF's by Tony Negline

Tony Negline

Yes it's that time of year again ... both Federal Budget and 30 June tax planning are in full swing.

This year's Federal Budget will be handed down on 12 May.

Already the rumour mill about possible Budgetary superannuation changes are beginning to appear.

There's talk of a reduction in super tax concessions for the over 60s. Or perhaps there might be a reduction in the tax concessions for super contributions. Or even there might be an increase in the age pension assets test taper rate from the very generous $1.50 per $1,000 of assets.

These three seem to be the most popular.

A dark horse is the return of some sort of Reasonable Benefit Limit system. We've already had a defacto return to this system with the introduction of potential employment termination payments via changes to the Corporations Act.

And no one should forget Minister Sherry's review into small super funds. Will this find its way into the budgetary publications?

Of course the budget might not contain any of these. These are merely rumours.

Will it ever be any different? Probably not. These rumours are good for most players. For the politicians it allows them to float a possible change, assess its political impact and react accordingly. Federal budgets never seem quite so bad when they don't contain a particular nasty rumour floating around this time of year. For the media it gives them something to say or to write about. For some industry players it gives them a reason to lobby government or chat about possible changes with their colleagues or clients.

Of course these constant rumours do nothing for the investor's overall perception of the super industry as one where the rules change too frequently and no one has any idea how long a particular rule will last. Not a great way to build confidence.

Most importantly what should you do at a practical level? That's not for me to say. Whenever they take concessions away the change tends to be grandfathered. This is no hard and fast rule but many of us have seen this applied fairly consistently.

My suggestion therefore would be to consider the impact of the above potential changes and act accordingly.

Share this article
Click to share this article on Facebook Click to share this article on Twitter

Previous article         Next article

 
If you liked this article and would like more by email, subscribe! It's free.

[Bold fields are required]

Your details

Your alternate email address is used only if messages to your primary email address are returned to us.

Industry

Do you work in the financial services industry?

This email is general in nature only and does not constitute or convey specific or professional advice. Legislation changes may occur quickly. Formal advice should be sought before acting in any of the areas discussed. Be aware that the information in these articles may become innaccurate with time. Responsibility is disclaimed for any inaccuracies, errors or omissions. Particular investments are neither invited nor recommended and hence this publication is not "financial product advice" as defined in Section 766B of the above legislation. All expressions of opinion by contributors are published on the basis that they are not to be regarded as expressing the official opinion of any other person or entity unless expressly stated. No responsibility for the accuracy of the opinions or information contained in the contributor's articles is accepted by any other person or entity. Copyright: This publication is copyright. If you wish to reproduce this article you require a license, which can be purchased here, to do so.

 
 
Site design by Raycon