Superannuation Discussion + market volatility

[cove]

I keep working.

 

[OATEK]

Well, I'm confused, as are many others I speak to. So, which type of funds are actually going to be affected?
I thought it wasn't all SFRs in general, just those getting a cash tax refund for tax that has not actually been paid, a scheme that came in in 2001 and which is stated to cost $100m a week.
Some clarification will be coming soon I'm sure once we get an election date and will find out some more during the govt's 10 days of sitting in 8 months.

The link provided by QFWP argues that "about 33% of cash refunds go to individuals, 60% to SMSFs (mostly in pension phase) and 7% to APRA regulated funds". I assume that the individuals affected may be SFRs or just those with incomes below the tax free threshhold.

 

[QF WP]

Further details here in Dr Don Hampson's (Plato) presentation video here (up to 9 mins 15 secs):

and copies of his presentation:

 

[QF WP]

Final 5

 

[Pushka]

So an SMSF with one person on the pension by 28 March will receive the IC, except - subject to provisions?

 

[QF WP]

For those interested, particularly SYD-based AFF'ers:

Plato appears at Franking Credit Inquiry
Plato Investment Management’s Managing Director Dr Don Hamson and Senior Portfolio Manager Dr Peter Gardner will be appearing at the Standing Committee for Economics Inquiry into the implications of removing refundable franking credits on February 8th at the Bondi Junction RSL (1/9 Gray St) at 1.30pm. As this is a public hearing, interested parties are welcome to attend and may also be able to make public statements from 2pm.

There is a further public hearing being held at Chatswood Club, Chatswood at 9am on February 8th.

Plato has provided a detailed submission to the Inquiry.

Time and Date
February 8th at 1:30pm

Location
Bondi Junction RSL - 1/9 Gray St, Bondi Junction NSW 2022

 

[I love to travel]

Is cross bench support also required for proposed negative gearing changes? Will Labour get it?

 

[QF WP]

Will depend on both the make-up of the Lower House and Senate cross benches, assuming they win the election. Nothing surer than there will be some changes before they even get to table any Bill (pun intended)

 

[cove]

The current opposition want to raise about $200 billion off the 50% of the population who pay a net amount of tax. That is a ridiculous amount and needs to be stopped before they start their spendathon with your money. The last lot of idiots did us for about $500 billion and this lot are just as stupid.

 

[Pushka]

The current opposition want to raise about $200 billion off the 50% of the population who pay a net amount of tax. That is a ridiculous amount and needs to be stopped before they start their spendathon with your money. The last lot of idiots did us for about $500 billion and this lot are just as stupid.

Well, people who get capital gains are very rich cove.

 

[love_the_life]

The current opposition want to raise about $200 billion off the 50% of the population who pay a net amount of tax. That is a ridiculous amount and needs to be stopped before they start their spendathon with your money. The last lot of idiots did us for about $500 billion and this lot are just as stupid.

Very much depends on your political persuasion. Not getting involved.

 

[QF WP]

Yes, best this thread doesn't go off topic an into a political dissertation. We want to stick to the subject matter

 

[JohnK]

Well, people who get capital gains are very rich cove.

And don't have any debt and are ready to retire now.

 

[cove]

There will be a switch into interest bearing bonds to negate these changes on franked dividends. Bell Potter have started spruiking this strategy.

 

[tgh]

Allowing credits in pension phase gets us off the hook , guess I will rescind that contract I had arranged for the new pm…...

 

[tgh]

Jumping into IBB's won't ameliorate the absence of franking credits.
If there was a better way we would all be doing it already.
As usual this presents the brokers with a wonderful opportunity to earn fees for rearranging the deckchairs.

 

[cove]

If I have to do some deckchair moving I think I would use CommSec at 0.1% transaction fee.

 

[tgh]

Brokerage via traditional brokers is expensive these days and I wonder how the Bell Potters of the world survive against the lcc's

 

[cove]

I would think it would be harder now. Bell Potter has Bell Direct as their no advice internet broker.
I looked up Cromwell and their quarterly distributions are unfranked but you have to believe commercial property is not going to fall like residential property.

 

[RB]

Well, people who get capital gains are very rich cove.

Rather a sweeping statement? Isn't it possible to have a capital gain on one transaction that is a small part of an overall nest egg?