Lets taxx the gold medal winners because we can

Lets taxx the gold medal winners because we can

Yes we read in W/E Australian 4/08/12 that “Athletes could be required to pay up to $US9000

 ($ 8565) in taxx for each gold medal”.

The USA might be close to 14 trillion in debt but surely that suggestion is bankrupt but it is an indication of what governments are willing & able to do.

What scares us the most is in superannuation regulations & how hard it is to get your own money out of there.

The concept of superannuation when we first advised [& sold]in 1984  was that you couldn’t get it out & thus it would be there when you needed it. Fair enough & ideally that is still the simple concept today.

However the devil is in the detail that has been generated since then.

E.g.  ATO bans tax breaks for kids who stay at home | The Australian 31/07/12

We have had occasions when clients due to challenges such as floods or the pink slip or cashflow have asked how they can access their super. Good luck we say unless you suffer from ‘Severe Financial hardship’

In general there are Two tests

1.       Written evidence from a government department or agency stating continuous income support for at least 26 weeks

                And unable to meet reasonable & immediate family living expenses.  [APRA has produced guidelines for this subjective test].

2.       Otherwise a person has reached preservation age [from 55 to 65 depending if you are not gainfully employed] PLUS Written evidence from a government department or agency stating continuous income support for at least 39 weeks .

There are other ways

·         such as a lost & lazy smaller than $200 in  a lost & lazy super account which is better than visiting a payday lender

·         or even Unrestricted non preserved UNP amounts which is as it says

·         departing temporary residents

·         compassionate grounds

·         temporary incapacity

As Mark wrote we ‘because we can’

The government has legislated that they WILL take super monies if temporary workers or public servants or lost individuals left their super lost & unloved for more than 5 years.

Every person we meet we meet cannot waste money as much as the government. Yes sure advisers have tracked down a billion + in lost super for clients & the ATO has a tool to help you do so yourself.

However as another Big Brother advt said ‘ be alert & be alarmed’.

We would be remiss if we were not to mention the taxx on death benefits from your super.

Its fine if the payment is to your spouse but as link above suggests even your hard to move on family member may not be a dependant.  The taxx on super benefits could be as high as 30% + Medicare.

Would this help your grandchildren?

Your estate could be increased with your cover outside super. Dont you expect to expire after you retire?

Be alert & alarmed & advice is wise.

We also read in the W/E Australian 4/08/12 where Industry funds management suggests super funds could be used to fund infrastructure. This has been suggested before . Surely they should be used for your retirement & not some government pork barreling as we frequently witness in ‘independent’ electorates.

Be alert & alarmed & advice is wise.

We are suggesting in general that contributing to super more than legislated  may NOT be in your own best interest. As we have said before ‘Daughters tell fibs & the big boys tell lies’.

What if as is suggested  a Call to lift super age to ease pension pressure | to age 62. What if ill health occurs?

Let’s not forget that the government has your TFN & knows where your super & other monies are. If it doesn’t then the taxx rate you pay in your super is close to 50%. Because they can.

An alternative strategy  PCMS*is to build a portfolio outside super for all the reasons that you may need it. The income from it could be used to switch your mortgage into deductible debt so that the taxx man subsidizes your interest payments.  Of course you need to qualify for this strategy PCMS* such has being able to save $10+ per day & have the right risk profile.

The gold medal table at least suggests that Australia  is behind even Korea  or NZL.  I.e. lets not always believe our own press.

As every person has a different financial  challenge then checking out our menu on our website & dining Monday to Saturday is a great way to have confidence in your financial future.

You are Welcome to call on 07 3848 1088 or email as Treasury isn’t going to make life easy for you.

Strategies & concepts to move you financially forward are Not found online.

John  McAuliffe