Superannuation Discussion + market volatility

Most folks have not realized that there are many retired folks who rely on franking credits to supplement their pensions. They will be hoping their children can help them if they lose this money and that affects the next generation who are probably in an age range of 40 to 65. This cascading problem has not been thought out too well. I think of this as a mean thought bubble and needs to be fought off sooner rather than later.
For clarification, I gather you mean superannuation pension as distinct to Government Age Pension ?

I do note super is considered accounting income for determining eligibility to Govt Age Pension (less some concessions for example public servants where 10% of the super stream isn’t included (until Jan 2016, it was 50%))

While I’m supportive of capital from super not being taxed. Like we don’t tax withdrawals from a bank account, it is pretty generous all the same to have super including the ongoing earnings completely taken off the table for tax purposes. So for those on tax-free super AND tax-free dividend streams wow what a great wicket !

Franking credits were designed to avoid double taxation not create zero taxation. In the tax system, most credits and offsets are non-refundable. Franking credits were made refundable when super income was still taxed and the excess was small. It was only in 2006, that the excesses started to be significant. Until today.

What Australia won’t discuss is the the spending beyond what you earn. It’s cslled progressive taxation for a reason, you got more you share with those in need, and because we got a pile of people who need. Most legitimately but some dubiously and the more who ask for govt money, the more cash needed.

One solution is to raise taxes on capital gains instead of income. Especially to tackle obscene profits on founders shareholdings and property subdivisions. Another is what’s proposed by the govt where the biggest spenders of free govt money are also the smallest contributors. Ah, you might say, but that’s the progressive tax system at work. And when you’re no longer working, you’re no longer earning anywhere near as much income. The charts prove that as your wealth holdings go backwards ....

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I agree that the present system is generous and rortable. (new word)
I don't agree with cutting careful planners off at the knees in one fell swoop.
Grandfathering the changes is a sensible compromise.
Persecuting the hard working and thrifty majority to prop up the noisy unemployed minority buys some votes.. how many is moot.
 
I don’t agree with changing the rules for those already in pension phase especially when politicians refuse to do any fiddling with their own super jollies.
 
I don’t agree with changing the rules for those already in pension phase especially when politicians refuse to do any fiddling with their own super jollies.
I don't agree with changes for someone like me who is not ready for pension but is not far away. I don't have a SMSF but hate politicians with obscene super entitlements grabbing what they can from those not so fortunate.
 
I don't agree with changes for someone like me who is not ready for pension but is not far away. I don't have a SMSF but hate politicians with obscene super entitlements grabbing what they can from those not so fortunate.

With another heading for the hefty annual superannuation. ..... Pynes
 
Which Defence industry Board do we think he will get?

After the announcements over the last few days I predict a company whose name starts with B and ends with G.

Of course a company dealing with the bottom of the harbour, perhaps in the form of submarines, might also be a hot tip.
 
After the announcements over the last few days I predict a company whose name starts with B and ends with G.

Of course a company dealing with the bottom of the harbour, perhaps in the form of submarines, might also be a hot tip.

I saw what you did there BAE
 
After the announcements over the last few days I predict a company whose name starts with B and ends with G.

Of course a company dealing with the bottom of the harbour, perhaps in the form of submarines, might also be a hot tip.
And based in Adelaide no less! Although he does live a fair distance away from Osborne. And it gets a bit dry and dusty in summer.
 
No Commonwealth Govt superannuation funds have funded contributions paid to them like all private sector ones. Instead, they come from consolidated revenue and as such are an untaxed element (no 15% tax deducted from the contributions - that would be a bit weird).

If (able to be) taken in the form of a lump sum (unlikely) they would be taxed at that point and be treated like any taxed element of a super fund.

Most elect the incime (pension) option, so again it needs to be taxed on payment. But that is the distinct difference between public and private sector super. Give me tax free at any time after age 60.

My previous discussion with a Senator about his super makes me think that they are jumping because of the different treatment depending on whether they leave voluntarily or being defeated at an election. It has been many years but I might just contact him again to check it out.
 
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Invest that franked dividend wisely.....
 

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