Sent: 09-02-2010 14:02:03
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Three Issues This Week
This week I want to concentrate on three issues:
1. Substantial change
You've no doubt heard about the Prime Minister's comment that the 50% reduction in the Concessional Contribution Caps was not "substantive" but "fine-tuning at the edges".
Many of you are flabbergasted by this comment, I presume. Some of the comments I have heard have been interesting and colourful!
There's actually two sides to this super change.
Firstly, the change itself, in terms of the amendment to the law was quite simple. In fact it was no more than a couple of pages. In other words the change is relatively small from a legislation size perspective.
And it is also true that at present, the basic design of super remains unchanged.
The Government estimated that the reduction in the Concessional Contribution Caps would impact only 2% of people making concessional contributions..
Out of more than 10 million employees and several hundred thousand personal contribution deductions this is a small number.
But none of this hides the fact that this policy has only penalised savers who are free of commitments and can now turn their attention to saving for retirement.
The problem these people have is that they aren't a big enough voting block.
Interestingly the transcript of this radio interview is still not on the PM's website.
2. New ATO Interpretative Decisions on Small Business CGT Concessions
In late January the ATO withdrawn several Interpretative Decisions about the Small Business CGT Concessions. Some of these are of interest given some legislative amendments that were made last year.
If you use these concession you will want to be familiar with the withdrawn IDs.
Check out the ATO's legal website: http://law.ato.gov.au/atolaw/index.htm
3. New investment return graphs
Last year I published some graphs showing investment returns for the sharemarket, residential property and term deposits.
Some of you have asked how you might be able to access and use these graphs.
This is quite easy to organise. On our website is an option to purchase access to our content so you can reuse it.
Please click on this link for further information: https://www.atcbiz.com.au/store.php
I will be updating these graphs in the next few weeks, taking into account recent ABS house price data as well as sharemarket movements.
Finally please consider purchasing a copy of my book. You can look at the contents page at the following link: http://www.atcbiz.com.au/smsfbooktoc.pdf
Two options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST).
The book can be purchased at the following link: http://www.atcbiz.com.au/smsfstore.php
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.