Anything and Everything about Superannuation

Soooo, if there is $1.6m in "savings" at $20k pa that is 80 years. Assuming a person retires at age 65. I suppose they'll just have to make it to 145 to get all the funds back at that rate. Doable?

 

And spend a chunk of it on overseas airfares, cruises etc which add nothing to our economy. And retirees would suck the life from the economy and unfunded pensions would make the future fund look small. He skipped that bit.

Try telling wealthier retirees that they can give up their $50kpa tax free super for $20K a year. And its assessable. So he just reinvented shortens plan to stop refundable franking....A commie ALP puppet ?

Oh and death benefits are now Commonwealth property ....Fork. Tell the family and your wife that one. A 100% death duty.

 

Very fair as everybody gets the same regardless of any effort exerted. Gives you all the more reason to live to 145.

 

That sort of policy should also consider taxing all incomes above $100K say at 100%. And capital gains at 100%....How dare people make choices about producing above average income.

Close the uni's too. Such a waste of Government money to encourage people to be educated. Better still close schools. Nobody needs any skills. Lets just end schooling at year 9.

Title = The Cambodian Wealth Strategy.

Seriously the Government should cut funding to Sydney Uni.

 

Nobody is saying people shouldn't be allowed to accumulate wealth. They are saying that we shouldn't pay less tax because we have more income or wealth. The present system of having much lower tax rates for money going into super and no tax on money coming out of super after retirement means that wealthy people who can afford to put a lot of money into super pay less marginal tax than less wealthy people. It's not "people shouldn't be wealthy" but "wealthy people should pay their way like everyone else".

 

Will be receiving my first pension phase draw down payment in a weeks time.
Now life really begins!!! All tax free.

 

Dividend payments, rent payments and Super pension payments.
Might be able to buy myself a cold beer and some prawns this Friday.

 

Sounds like a tax rort to me.

Only One cold beer.

 

Been getting mine since 55 but it only became totally tax free on 7 Jan this year when I hit the magic 60. My wife will kick off her Super pension June 2021 when she turns 58.

Definitely cause for celebration. I’m genuinely thrilled for you.

 

Enjoy to the max @TAJ. From what you have said in regard to your personal history you are definitely one person who deserves it in my view.

 

I turn 60 on the 9th of Feb.
Still unsure how to react really. Happy to be able to receive payments tax free, but don't like the thought of getting older (not that anyone does).
Thanks for your help earlier on re : LIC'S and continual investment, it made a substantial difference to the position I now find myself in.
Might just have to have a beer for you too next week. Maybe more than one!!!

My son and daughter-in-law are looking to purchase around Cooroy area.
Would be interested to hear your thoughts. I know you are in the hinterland, but thought you might travel through the area on your way to the coast.

Cheers.

 

Thankyou very much. Very kind of you.
Hope you weren't too badly affected by the bushfires.

 

The opportunity is open to all to contribute to their super. It's more of an impediment not to be able to contribute larger amounts thus avoiding the need for the pension.

 

It’s not entirely a free ride.
Taxpayers save paying us the pension, presently around $35K a year for couples.
Also no subsidised prescriptions - our chemist bill is close to $200 a month as opposed to around $30 if we had the concession card. Plus no other benefits/rebates of the card.

 

Sure, but if you had managed to invest for your retirement without the tax breaks, they still wouldn’t have to pay for a pension for you or a concession card. Are you saying that without support you wouldn’t have invested for retirement?

 

If you are scraping by on $30k/year (as some people do), you don’t have the opportunity to contribute to super. Even on the average weekly full time wage earnings of about $84k/year, it’s going to be more difficult to take advantage than it is for a high income earner, especially if you are supporting a family on that.

 

Incentives are just that, an inducement to do away with income in the present for a future benefit.

And these people don't qualify for benefits which will supplement their income?

That goes without saying however in the vast majority of households there are 2 incomes, even 2 average incomes, there is no excuse other than one's own motivation to SACRIFICE, CHANGE LIFE STYLE, EXPECTATIONS & LIVE WITHIN YOUR MEANS, basic life skills IMHO. As income rises so does the expectation that you will spend more on 'luxuries' or to keep up with the Jones' etc.

I don't buy into the argument that it is not possible to save (but then I live in the lucky country).

 

Not all of all of them, no. Benefits are highly contact-specific.

 

We would have still invested, but certainly would not have been able to invest anywhere near the same amount.

 

Exactly. So the rich would have still reached financial independence for retirement, without the massive tax break subsidy. Those a rung below would have invested and saved something for retirement. A few more pensions would be needed, but would that cost as much as all these decades of tax gifts? And the poor would be on pensions either way.