Articles From Superfund.com.au

Tax wrangle perceived threat to increased super

Thu, 31 Mar 2011 00:00:00 EST

KEY super industry players have called on the government not to let the latest wrangling over its mining tax package derail plans to increase compulsory super contributions to 12per cent.Delegates at the Conference of Major Superannuation Funds on the Gold Coast responded with dismay to news the Greens opposed the planned cut to the company tax rate which would, in some part, compensate for the requirement to make higher super contributions."If the company tax cut is taken off the table it ...

12% super bid looks beached

Wed, 30 Mar 2011 00:00:00 EST

KEY superannuation industry members have called on the government not to let the latest wrangling over its mining tax package derail plans to increase compulsory super contributions to 12 per cent.Delegates at the Conference of Major Superannuation Funds on the Gold Coast responded with dismay to news the Greens opposed a key element of the package Ã¢Â€Â” the planned cut to the company tax rate, which would, in part, compensate for the requirement to make higher super ...

Super funds eye earnings from state construction

Sat, 26 Mar 2011 00:00:00 EST

THE retirement savings of NSW residents could be helping to rebuild state infrastructure if the Coalition wins today.Superannuation funds are hoping a change of government will result in opportunities for new public-private infrastructure partnerships, which the Labor government has largely shied away from following problems with projects such as the Cross City and Lane Cove tunnels.While most fund members are unaware of it, super funds have a significant stake in the country's infrastructure - ...

Numbers say it all on super

Wed, 23 Mar 2011 00:00:00 EST

New contribution rules help members with low account balances. Super fund members approaching retirement will be able to put more into their funds under new contribution rules announced by the government last month.From July 1 next year, people aged 50 and over with super balances of less than $500,000 will be allowed to make up to $50,000 of concessional contributions a year. The contribution cap for people younger than 50 is $25,000 a year.Currently there is a temporary arrangement in place th ...

ASK NOEL

Sat, 05 Feb 2011 00:00:00 EST

I could retire this year when I turn 65 and will have $390,000 in super. Once I've cleared the mortgage and debts, there should be $370,000 remaining. My wife, 59, wants to continue working part time for a couple more years. Given the poor performance of super funds and the fact I could get 7.25 per cent for a three-year term deposit, it seems I'd be better off taking a lump sum and investing in a term deposit rather than super, which, if history repeats, will only just keep up with inflation.Yo ...

Fresh Approach To Super

Wed, 14 Jan 2009 00:00:00 EST

The strategy To undertake a new year's spring-clean of my super.Super? I can't even bear to think about it, given how my fund has been going backwards. Most funds have and there are more losses to come. We don't have the December returns yet, but SuperRatings reported the average balanced fund lost 12.21 per cent in the financial year to November 30 and was down close to 20 per cent over the past 12 months. Given your latest statement probably showed the losses only to June 30, odds ...

Personal Finance

Thu, 08 Jan 2009 00:00:00 EST

Q I am more than 60 years of age, am not working, and have $110,000 from a super fund. I want to invest in a term deposit or some safe high-interest account and then return the money to super in say six to 12 months. Is this feasible? What type of accounts should I look at?A It is certainly possible to remove the money from super tax-free and recontribute it before you are 65. However, I wonder why you need to do it as you could switch the money to a cash option within super if you ...

Switching Funds Can Prove Costly For Many

Sat, 03 Jan 2009 00:00:00 EST

A RECORD number of Australians changed the way their superannuation was invested last year, as the super funds posted the worst returns on record, with the typical balanced option losing about 22.5 per cent. But the industry has warned that switching into conservative investments such as cash could exacerbate the already poor results, especially for younger members.That result, taken from figures on November 30, was undoubtedly poor, but it was only half as bad as the overall market ...

When A Little Knowledge Is A Cause For Super Concern

Sat, 03 Jan 2009 00:00:00 EST

ALEXANDER POPE observed in An Essay On Criticism that "a little knowledge is a dangerous thing". He was writing in 1711 but the adage aptly describes a conundrum faced by Australian superannuation funds today.For all the headlines, our super funds, particularly the not-for-profit industry funds, have not been hit nearly as hard by the global financial crisis as other financial institutions. The reason is liquidity. Many of last year's failed firms have been victims of a liquidity crisis; ...

Millions May Be Lost In Super Fund Blow

Thu, 04 Dec 2008 00:00:00 EST

VICTORIAN public servants' superannuation is under threat after the state's investment arm ploughed more than half a billion dollars into an obscure Gold Coast "death fund".The fund buys life insurance policies from elderly Americans in the hope they will die more quickly than expected.Up to $150million could be lost from a $600million investment - made by the Victorian Funds Management Corporation using public-sector superannuation savings - in the Life Settlements Wholesale Fund.< ...

Keep Your Super Safe

Wed, 03 Dec 2008 00:00:00 EST

The strategy To protect my super in case I'm bankrupted.Do I need to do that? Hopefully not, but asset protection is one of those nasty issues that professionals, business owners and borrowers should all consider as part of their financial planning. No one sets out to go broke but it can happen and super is one of the few assets protected under our bankruptcy laws.How does that work? According to director of Partners Superannuation Services, Martin Murden, the simpler supe ...

Pros And Cons Of Early Access To Super If Serious Illness Strikes

Fri, 21 Nov 2008 00:00:00 EST

Permanent incapacity can allow super access before retirement age. THE main purpose of superannuation is to provide an income for people after they retire. As a result, superannuation cannot usually be accessed until a person reaches retirement/preservation age. For those born before 1960 preservation age is 55. This increases in yearly increments until preservation age is 60 for people born after June 30, 1964.There are limited circumstances in which superannuation can be accessed ...

With A Little Help From The Super Fund

Sat, 15 Nov 2008 00:00:00 EST

The investments watchdog clears the air on providing limited financial advice to members. Simon Hoyle reports.If you wanted a little advice on the best thing to do with your super - just your super, not on every aspect of your finances - until recently it was not clear where you could go for help. The most obvious place to turn - your super fund - may in fact be the place least able to give you the help you need. You end up phoning a fund's call centre, where you are told they cannot hel ...

Gearing Up For The Future

Sun, 26 Oct 2008 00:00:00 EST

Having your own super fund has a lot of positives, writes David PottsNEGATIVE gearing has always been seen as an alternative to super but with your own fund you can do both.There are the same tax breaks - although there's only a 15 per cent deduction on the interest, the tax on the rental income is only 15 per cent too - plus the ultimate prize of no capital gains tax if you sell your property when your DIY fund is in pension phase.Borrowing within a DIY fund is also a way arou ...

Industry Funds On Top In Super Great Debate

Sun, 19 Oct 2008 00:00:00 EST

THE industry versus retail super fund debate got another kick along last week when the Australian Prudential Regulation Authority released one of the most comprehensive studies done on superannuation returns ever.If you're not familiar with this debate, industry funds are not-for-profit superannuation funds, as are corporate and public-sector funds.Corporate funds are for a particular company, or group of companies, and have both member and employer control. Industry funds are indus ...

Tax Break Buried In Fine Print

Thu, 28 Aug 2008 00:00:00 EST

WE have all become used to the inevitability of death and taxes. But can you believe there is a little-known provision buried away in the superannuation regulations that often enables the estate of a deceased fund member to get back all the contributions taxes that have been paid while the deceased was a member of the fund.To understand how this unusual burst of generosity came about, you need to cast your mind back to July, 1988 when federal treasurer Paul Keating introduced t ...

Get Super Savvy And Take A Lead

Wed, 06 Aug 2008 00:00:00 EST

The strategy To take charge of my super in challenging times.How do I do that? Most people's attention is understandably focused on negative investment returns. However, HLB Mann Judd Sydney wealth management partner Michael Hutton says investors should be looking at the bigger picture - whether they're making the most of their opportunities to ensure their super provides the retirement income they want. He says investment losses have even created opportunities for investors who are prep ...

Super Savings Savaged

Tue, 29 Jul 2008 00:00:00 EST

AUSTRALIA's major super funds have suffered their biggest monthly fall in value since the arrival of compulsory superannuation 16 years ago, dragged down by battered local and international sharemarkets.And returns on Australia's 30 million super accounts may not improve in the first months of the financial year, with shares taking another dive amid warnings of billion-dollar losses at two of Australia's biggest banks.In the latest bad news bulletin from the banking sector, ANZ said ...

Fed Up With Your Fund Manager? At Least You Don't Live With Him

Sat, 26 Jul 2008 00:00:00 EST

A batch of letters is about to hit your doormat - letters from your managed fund managers telling you that you lost a bunch of money last financial year. For the next 12 months you will bore your dinner party guests with stories of useless BMW-driving fund managers and their incompetence and fees. It will prompt a lot of you to think about "taking control" through a self-managed super fund. Nothing quite like losing money in the short term to jolt you out of your trust in the long term. ...

Switching After A Fall Locks In Your Losses

Sat, 05 Jul 2008 00:00:00 EST

It would seem like the easiest decision in the world. If your super fund isn't performing, ditch it for one that is. But what do we mean by not performing?Thanks to a lousy day on the sharemarket on Monday, super funds will report their worst financial year since the 1980s. Researcher SuperRatings reckons the average balanced fund will be down about 6.4 per cent and the more growth-oriented funds down as much as 10 per cent.If we went on short-term performance alone, you'd be hard p ...