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“Just keep swimming(working)”, As a mum and part time worker it’s very hard to have a healthy superannuation balance. I need to go back full time once my kids have finished high school.
Why wait until they finish high school? My mother worked all our life, she was a single mother. Yet she paid off her house in 10 years at 18% interest. Needless to say, she taught us valuable lessons about the value of money. She scrimped and saved every penny she could. We didn’t have silly luxuries like soft drink or junk foods in the house, instead she put those dollars into the house. Your kids learn from what they see…I saw that money was important & so I’ve never been frivolous with it. And now as an adult, I also don’t buy crap. I am very conscious of balancing a need with a want. The only difference is I went and got an education so I have more money, and I’m able to travel etc. but I still save and don’t spend on “wants”. Show your kids how to do it, you’ll be doing them a favour 😊
@@ConstructionHoney and have your money tied up (illiquidity - for which you get nothing) and gain a return which has an historically 2% p.a. long term return lower than the stock and financial markets.
If you are in the unfortunate position of inheriting form a parent, then this is the way to supercharge your superannuation. Apart from that, yes, it's unlikely you have this sort of cash rolling around in your pocket.
@@someoneunknown1609 Incorrect. The medium gross wage in Australia is around $68,000. This means that the maximum an average person can save each is much less than $5,000 per year.
This changing the goal posts constantly is exactly why I've never been a fan of retirement funds, my mum started selling retirement fund plans when it first kicked off and the big government sell promise was "it will never be taxed" how we have fallen since then !!!
The issue with the way superannuation has been implemented in Australia is its complexity. IN order to maximise its benefits you need to expend a lot of effort understanding the rules and keeping up with the changes. As a result I understand why people do not like it. If you do understand it and make the correct decisions, it can assist in significantly reducing the tax you pay. This savings can go to your retirement. Most countries have complex taxation and social security rules, the German system is very complex, but I personally feel it provides a very good outcome. The Australian system is good as well, but if you are lazy or not very smart you will be screwed. At least in Germany that does not occur as much.
@@peterfmodel I'd agree it is a little complicated, but the virtue of having large sums of money generating income and that income not being taxed cannot be overstated. Any income from investments in housing or shares is taxed (admittedly share income has the imputation credits) but it is still taxed. Super is not txed at all when you start your pension.
@@Talyessin63 we are paying for that you realise. In concessions for super. If they stopped the concessions and paid that into pensions, the pension would double tomorrow. I’m sure most would be happy with that.
Yep! That age old rule…don’t trust someone else with your money. Gotta have 100% control of all financial decisions. That way if you F it up, it’s on you. But chances are you won’t F it up, coz it’s on you 😂
Is this guide for millionaires only? Because most normal working people are struggling to even pay for their food let alone pay thousands of $ to their super account
Life is harsh and unfair. I’m not a millionaire but find this guide useful. I never eat out, flat share, own a property I can’t afford to live in but rent it out to those who can, have a cheap ass economical 10 year old car, I’ve put off having kids until I’m better off and can give them a good life. You can get by most people just don’t want to live weird and make real sacrifices because they don’t think they ought to have to.
@@precisi0n86 thats the point, look at what you are having to do just to get by. The other day i brought 2 Mandarins and they were $3, 1 onion was $1.70. I certainly can't afford to put extra money towards super. Because i have to eat.
@@robinkhaira1 I concede that you're 100% correct, so what now? The situation doesn't go away. I don't know your personal circumstances but I think many people can get by ok if they get weird, as most other people arent prepared to. Mandarins are out of season, same with most fruits especially berries, do not buy. Look at what's cheap and eat that rather than what you want. I can get a whole cooked bbq chicken near closing time at 9:30 pm at woolies thats been marked down for quick sale for like $3-$6. What's actually on special AND a good deal? Aldi is great for many things too if one is nearby. Good luck friend, chin up.
@@precisi0n86 bud nothing is cheap anymore. I had been craving citrus fruit for almost 6 months and had been waiting for prices to drop all that time. I finally had to bite the bullet and get them. I am very much like you, i don't go out drink or smoke, i share house, i am a vegetarian so can't buy marked down meat. Can't remember last time i brought a barista cofee, probably over a year ago. My point is i am a very sensible spender and still struggle with full time job. Most people i know in my circle are in the same boat. Its all by design by the governments, every single country is in debt, but big question is to whom? Who the hell do we owe all this money to? Where are our ridiculous taxes going? There is no more bulk billing to even see a doctor, heck we don't even have free ambulance service unlike some developing countries. What is govt doing with all of our money?
Some of these numbers are just depressing. I was dismayed at my own situation thinking about someone doing so well they have 330k sitting around that could be a non-concessional contribution, and then there was talk of those same people having 1.6+ million already in super as well....
My situation was also not very healthy until I downsized my house and moved from NSW to QLD to somewhere much cheaper. I was able to put the difference into a combination of downsizer-allowance ($300,000) and non-concessional rollover contributions of $330,000 and have been able to retire early. There are some really useful options to increase your super if you are a homeowner and don’t mind moving.
The better an Australian does financially, the bigger cut the government takes. Super compounding over 40 years will do really well for the individual, especially if they contribute more when they are younger, and are in a low cost fund that allows index tracking investment options. The non concessional amounts are usually someone downsizing the family home and already with 45-50 years working life and investing. Can I ask your rough age?
I don’t understand how increasing the amounts you can pay into super as of 1st July is limiting people’s ability to gain wealth or how it is corrupt! Can you explain your comment?
@catrionaharvey7371 Sorry, it's in reference to how much you can put in depending on how much you already have in there. That's what pisses me off. The government wants to limit everything we do to gain wealth. Even when it comes to super.
@kevingould6725 does everyone have to have the same amount, do they Mr Genius? You're an idiot. If I sacrifice more of my money than you do for my retirement, I shouldn't be penalised for it.
@@Beanie7371 The problem is the fact that THERE IS A CAP. The cap was introduced because millionaires like Gina Rinehart would salary sacrifice her salary into the tax free bracket. She would then take out a loan against her property to live on. They used salary sacrifice as a tax dodge. They had to increase the cap because they're increasing the employer contributions. Employer contributions should not be included in any cap.
How old are you ? Typically withdrawing all your super isn’t a good idea because you would be moving it into a higher tax environment. Unless of course you were going to spend it all on something but then again, is that a good idea too?
Super! Great Job! Your presentation is both clear and visually engaging. Useful information on the changes particularly, the bring forward rules on the non-concessional and the limitations.
Or if your willing to put in the time and log in to your super account, the amount invested in the share market is what you want to invest in the share market.
With the SG increase watch out that your employer doesn't reduce your take home pay to compensate for the extra 0.5% they have to contribute. Some employers calculate on 'total remuneration' so effectively you are paying the extra contribution not them
Depends on how your contract is written. If your compensation package is "$100,000 inclusive" or something similar then your take home will be reduced. If it's "$100,000 + super" then your take home pay should not be reduced.
This is a good overview, however if my memory serves me, the maximum contribution limit does include the employers concessional contributions. Thus if the total concessional amount exceeds $27,500 (past) $30,000 (future) the ATO will ask you to pay back the concessional amount exceeding the limit. Still its good the concessional limit has increased to $30,000. The tax benefits of super is significant.
I'm an oversea worker and want to know more about super but it sound all very complicated, even with the explanation it's hard to understand all the term when you don't know the jargon
Unfortunately my employment remuneration contract is “Total Employment Cost”. I’ll be getting 0.5% less take home pay to pay the 0.5% super😢. But I’ll be chipping in up to the full $30k anyway. Here’s hoping for a measly pay rise
I dont think its legal to reduce your current take home to meet new increased super payments. They can hire you as a package but not reduce your current pay due to a raise of super. I'm not 100% but go check it out.
All these are changes to superannuation accounts in accumulation phase. I take it there’s no changes to those already struggling on an income phase account, yet.
Great summaries, thank you Chris. Two questions: If aged 60 & have your super in Pension Phase (Simple Account Based Pension), can you still add 'concessional contributions" to it?
Yes, you can. You'll need a SMSF accountant. They'll set up a SMSF & a Bare Trust (if you are going to borrow to buy the property.) Try C2 financial n talk with John Colligon
Thank you valuable information - The government should allow individuals 55 and over to contribute more than 30k a year to their super in order to self fund their retirement
If discussing topping up your concessional contribution it would be good if you covered how to do this ie you contribute post tax, inform your super provider and then claim the delta in your tax return to get the marginal vs. concessional tax?
Hi Chris, was watching another of your videos where I'm sure you said that after you convert your super account from an accumulation to pension account you can still make contributions into your super account. Did I hear this correctly?
In my opinion, they should have employer contributions - uncapped, personal contribution - uncapped, salary sacrifice - capped at $15,000. They keep increasing the employer contributions every year, but don't increase the cap every year.
They just increased the cap to 30,000 from 27,500... Your employer contributions are part of your concessional If it was unlimited, imagine the tax loop for the high income earners. Person making 900k can easily contribute a large chunk and claim a tax deduction, that would be nuts.
@@venturingfinance9171 They should make the employer contribution what the government sets it to be, which will be 11.5% 1st July 2024. No more, no less. Some companies offer 12% as a perk, but that should be removed. Contribute as much as you want after tax. Salary sacrifice max $15,000. We want people to have some super when they retire.
I think there is what's called a Transfer Balance Cap. This is the limit applied to the amount of your superannuation that can be transferred into your "pension" account. Currently that is sitting at 1.9m, assuming this is the first time you are starting such an account.
Obviously this doesn’t apply to me. My wife has been paying into the same super for more than 30 years and she has about 150k. Mine is about 100k give or take. I cant afford to pay rent, get anywhere near those caps, and eat at the same time.
Im a new Aussie(ex Indian). What I realised is, in Australia people who pay taxes are punished harder than those who evade. Get rid of cash, move digital and avoid tax leaks. Tax money is going down drains through inefficient free payments.
Superannuation is your account. It's yours. Your employers are obligated to pay superannuation if they employ you, which is the Superannuation Guarantee. Otherwise you are just bound to the standard limits of your concessional and non concessional contribution
I think I would like to know how my novedded.Leasing pretext car payments will be effected? I have been considering putting more into the pretext car payment.
Thanks for another unformative video ... Quick wuestion for temporary visa holdrr , when they leave Aus and claim super , how much is tax deducted and tax is deducted on profit or total super contribution? thanks
How do you contribute to your fund using the carry forward rule...can you do it as a lump sum? And do you need to notify anyone that you're doing this beforehand eg ATO etc or just deposit $x'000 directly into your super fund?
@@TheSuperdodgy I don't think that's what he is asking.If you already paid tax on that amount of money what's the point of putting it into super fund when you can do whatever you like with it.
@@mehmettemel8725 100%. You can do whatever. But if you are looking to invest it elsewhere, any profit and you'll pay your marginal tax rate on it 30% from 24/25. It's all about tax minimisation. Super is 15% . I mean if you have a lazy $120K laying around to invest I'd want to halve the tax I pay on any earnings. Then there's the AUDI S8 560hp for $120K. Enjoy it while you can.
You can post-tax do the extra contribution, then notify the super fund you are going to claim it before doing your tax return, and then wait for their confirmation before doing your tax return then you will get the tax you paid on the amount you put in back.
After little to no research my super merged with another super to create host plus. We all got taxed on the merge but my payments still go to the same abn so the only thing that changed was the name not where my money went so why would we all get charged a % of our total for a name change?
I was hoping for information on the Co contributions, is that changing? As in the gov gives you up to $500 for your after tax contribution of $1000. Have those amounts remained the same?
When is the SG payment period changing? I believe at the moment employers only have to pay your SG payment quarterly. I heard something somewhere about SG payments changing to each pay period. Is this correct and if so when does it come into effect?
Really love the way you present your videos matem really easy to understand. I was wondering if there is the ability to invest a percentage of super into Bitcoin. Call be crazy yeah but I'm young and see a long-term future in it.
Easiest would be if you have a member direct option and then invest in one of the Aus ETFs same as you would with any other ETF. Just watch the volatility though as BTC can have prolonged bear markets with around 80% drawdown, but if you're dollar cost averaging for the long-term then take advantage of those.
At this stage a SMSF is your only option to own BTC (and will probably only ever be your real option), because if it is owned through an intermediary it's not truly owned by you. If it's not your key, it's not your crypto.
Hi Chris, If we want to use up the Unused cap from 2018/19- do we need to submit the Notice of Intent to claim form BEFORE 1 July 2024? Or just make the contributions before the end of FY and then submit the form before the tax return is done? I would hate to miss out on this just from not having submit the form. Thank you!
Ideally you want to submit the form ASAP, but it's not essential. The form can be submitted after 30 June, but must be done before you submit your tax return, before the end of the next financial year, before any withdrawals are made, before any rollovers are completed and before any income streams are commenced.
How strange it is that you can claim a tax deduction for the money you put into your real estate and the losses therein, but you cannot do it for Superannuation. There's the rub. You can offset the costs of owning real estate, (mortgage payments, State taxes, Federal GST Tax, Stamp Duty, Local Government rates), and the loss between income and rental returns. You cannot do that with Super.
But it already is… It’s only taxed at 15% , instead of 30-50% So there’s a deduction straight away… Putting $100 into super costs you $15 Putting it into real estate costs you $100 less whatever your tax bracket is… So realistically, you put at most $70 into real estate
i'm a noob but what's the advantage of non-concessional contribution? Is the interest return better than term deposits? ...after all term deposit and non-concessional super's interests are taxed anyway 🤔
The earnings in your super are taxed at 15%. The interest in your term deposit is taxed at your marginal tax rate. So depending on what your marginal tax rate is, and when you need the money putting it in your super could be advantageous.
I think locking away my money until retirement right now is foolish. I will never be able to put away enough to retire on. Not with an income barely above award, especially given current inflation (real inflation.... Not the inflation rate the government feeds us). Far better to buy the things now that will improve quality of life at retirement. Be proactive about retirement planning rather than passive in trusting others with it. Super was spectacular for previous generations but now it's dead weight and should be voluntary. Most people don't have money to make extra contributions yet alone afford to exist. People starving week to week should not be forced to give up precious earnings on the assumption of reaching retirement age. But you watch... If people suddenly are able to access that extra income all the landlords will increase rents because the tenants have "extra cash".
The super balance cap was recently increased from 1.7 to 1.9 million to account for inflation. My question is do you know when it will be reviewed again and by how much.
As I understand it, a corporate employer will be able to make salary sacrifice contributions in a fairly straight forward manner for you. A small employer probably can’t. In the latter case you’ll need to make post tax contributions to super, but put in a form with your super company that you will be claiming a tax deduction - this amount will be equivalent to having made salary sacrifice contributions and be subject to the max salary sacrifice cap.
Most employers should be able to do that for you, though I would suggest you ensure your employer has an impeccable record in remitting contributions on time before doing so.
I run a small business. All my employee has to ask is what they want salary sacrificed and i pay the difference into their super instead of their bank account. Make sure you log regularly into your super to make sure your boss has not mucked anything up.