Superannuation Discussion + market volatility

[Quickstatus]

The question of whether or not fines can be contested was, and remains, irrelevant to the discussion at hand and I don't understand why you're making such a big thing about it...

Because Infringent notices are generally only small amounts and contestable. If you want civil penalties (call it fines if you want), that have significance they have to be court approved.

 

[MELso]

Because Infringent notices are generally only small amounts and contestable. If you want civil penalties (call it fines if you want), that have significance they have to be court approved.

The question of the quantum of fines is also irrelevant to the matter at hand.

The question is who should be fined.

 

[Brissy1]

The question of the quantum of fines is also irrelevant to the matter at hand.

The question is who should be fined.

All fines are penalties but just because all penalties are not fines, penalties have nevertheless been deemed to be fines by the courts and therefore thrown out (private car parking penalties deemed to be fines). One could dispute ASICs "penalties" in court as being a fine, but who would bother. (IMO, not a lawyer but took statutory interpretation for interest (which convinced me not to become a lawyer ), ah the days of free Uni.).

Agree, question is who should be fined (or suffer a penalty). Unfortunately even if Directors themselves are individually targeted, Director's insurance probably covers monetary penalties. The penalty needs to be them being banned from holding directorships, even if just for a small period, which I believe ASIC can do.

 

[Quickstatus]

Anyone here in TTR?

 

[QF WP]

Got lots of clients who hit 60 and found the TTR gravy train. Gave them a new lease in life, significantly reducing their taxable income and thus tax payable. 60 is definitely the new 65.

 

[Quickstatus]

Gave them a new lease in life, significantly reducing their taxable income and thus tax payable. 60 is definitely the new 65.

TTR income streams are tax free
Plus any other income earned through work is taxed through normal process?

 

[QF WP]

That’s right. TTR income is used to replace taxable income, which is then salary sacrificed or made as deductible personal contributions utilizing the max contribution caps, or catch up contributions. ,

 

[Pushka]

Got lots of clients who hit 60 and found the TTR gravy train. Gave them a new lease in life, significantly reducing their taxable income and thus tax payable. 60 is definitely the new 65.

I'm loving the reduced Medicare levy.

We are still receiving PAYG but much of that is salary sacrificed back to super, and the pension part also provides tax free income.

 

[Quickstatus]

Under 65 minimum drawdown is 4%
Ive decided ill work less from this year.

 

[Pushka]

Under 65 minimum drawdown is 4%
Ive decided ill work less from this year.

The draw down requirement is what stopped us from putting pretty much everything from our Super into pension phase. We worked out the $ amount we could salary sacrifice, then the $ amount the pension would have to pay us and went from there.

 

[Quickstatus]

Can I stop TTR at anytime?

Max drawdown is 10% so I could use some of that and recontribute to a separate accumulation account to reduce the super concessional contribution %.

 

[Pushka]

Can I stop TTR at anytime?

Max drawdown is 10% so I could use some of that and recontribute to a separate accumulation account to reduce the super concessional contribution %.

If you have money sitting in your pension account then that will be subject to drawdown. You can take it all out and I think up to age 75 you can put it back into super. Not sure how that 75 years applies just yet. Or just withdraw it and keep it personally and have some fun. At any age.

 

[Quickstatus]

If you have money sitting in your pension account then that will be subject to drawdown.

No pension accout just accumulation accounts

So I can't TTR drawdown from one anccumulation account and recontribute as non concessional to another accumulation account?.

 

[Pushka]

No pension accout just accumulation accounts

So I can't TTR drawdown from one anccumulation account and recontribute as non concessional to another accumulation account?.

I don't know why you'd do that within the accumulation account unless trying to minimise the taxable components on death.

When receiving a pension from the industry funds a separate pension account is created. That pension account can't be added to by contributions. It can only grow. There's no tax on that growth.

You can take a lump sum from that account to form that 4 - 5% compulsory drawdown and put that money back into the accumulation account if you want to. There are age limits and $ limits. 75 is a key one.

If you want to transfer more money into the pension fund then the industry fund will create a second pension fund, or, create a new combined pension account.

SMSF do similar but it's not as obvious as the Accountant handles all that process.

 

[Quickstatus]

G

receiving a pension from the industry funds a separate pension account is created.

Wait a TTR means a pension account is generated?

 

[Pushka]

Wait a TTR means a pension account is generated?

We did. But maybe it can be taken from the accumulation account but the creation of a separate pension account gives huge tax advantages on growth.

A quick google suggests it needs a separate pension fund. Even for just TTR. I remember now we had our SMSF when under 65 and the accountant did all the account creation. With an industry super fund it's much more obvious as you access two separate accounts.

 

[Quickstatus]

Ah so the TTR drawdown account is called a TTR account which in reality is a pension account

 

[Pushka]

Ah so the TTR drawdown account is called a TTR account which in reality is a pension account

That sounds about right. In Australian Super, the accumulation account is called 'super' and the pension account 'choice'