New Year’s resolutions often fade away, but the commitment to pause, reflect and review your financial situation each year is one that should endure. At Synectic, we encourage you to make this your top priority early in 2024. To get started, consider the following:Read more
Tag Archive for: Superannuation
Our Superannuation system is getting more “1984” by the day.
The Government is trying to legislate a “shared purpose” for superannuation that introduces a requirement for “equity and sustainability” to the existing legal requirement to grow member benefits for retirement.Read more
There are significant benefits associated with taking an independent, individually managed approach to investments in Superannuation. This is particularly true as investment balances grow and retirement planning commences.
Australian Superannuation funds are under the spotlight as the retirement system adapts to ageing demographics and longer life expectancies, and the retirement savings pool grows to become an increasingly large asset on the Nation’s balance sheet. The Superannuation Guarantee (SG) was introduced over 30 years ago and the system has matured. Funds under management have since grown to $3.4 trillion (as at the end of December 2022).Read more
The Albanese government have announced plans which will see the earnings on super balances above $3 million taxed at a concessional rate of 30 per cent, from 1 July 2025 onwards. The current rate on these earnings is 15 per cent.Read more
Many Australian investors prefer to invest in Australian shares rather than international shares. It makes sense for a range of reasons:
- it’s a good rule of thumb to invest in what you know;
- franked dividends provide tax-effective income; and
- the Australian share market has performed strongly over the long-run, outperforming broad international share markets (MSCI World ex-Australia) by around 2% p.a. over the last 20 years.
“I don’t want my super going to zero,” said a prospective client during a recent risk profiling discussion. “I want conservative investment decisions that won’t lose money over time.”
In uncertain economic times it’s tempting to avoid investment decisions and hold onto cash. This is opposite to the temptation to chase investment returns while everyone else is making money hand over fist (think 12 months ago).Read more
A number of superannuation changes came into effect from 1 July 2022, including:
- Changes to the work test and bring forward rules for those aged 67-75 years
- Carry forward unused concessional contributions
- Changes to contributing to super from the sale of your home (‘downsizer contributions’)
- Government contributions for low-to-middle income earners
- Pay an increased super rate to employees
- Pay super to employees regardless of their earnings
- Increased contribution allowance for first home buyers
Learn about these changes to superannuation and what you need to do below.Read more
Recently I’ve had a number of clients enquire about the pros and cons of setting up a Self-Managed Super Fund (SMSF). They have an instinct to get more control over their investments in Super. But they’re hesitant about the additional work involved in running a SMSF and are unsure of the costs.
There’s no perfect answer to the question, assuming one has sufficient funds to make it cost-effective. Anecdotally, I have seen a broad range of SMSF outcomes.
It’s easy to assume that your Will would take care of your superannuation death benefit when you die. But that’s not the case – your super is dealt with separately from your Will.
In our last newsletter for the year, we offer simple ways to get your bookkeeping on track (with some great ideas for your New Year’s resolutions!), and discuss the risks of switching or consolidating super funds on your own. Danny shares his thoughts on the significance of your business’ purpose, and we check in on what #teamsynectic are up to in our community.