BT Financial Group says transfer to retirement strategy remains a valid option for people reaching preservation age despite change to tax status
A transfer to retirement strategy remains a valid option as people reach their preservation age even if the 2016 Budget proposal to change its tax status became law. It is proposed that from 1 July 2017 earnings on assets that support a TTR strategy would have the same tax treatment as funds in the accumulation phase.
Read MoreWhat the Productivity Commission needs to do to make sense of Australia’s super system, Grattan Institute
The Productivity Commission has released its draft report setting out criteria for assessing the competitiveness and efficiency of the superannuation system. The challenge is to make sense of the system’s jargon and its maze of products, sales channels, governance structures, and performance metrics.
Read MoreSuperRatings data reports not-for-profit industry funds continue to outperform their bank-owned competitors
SuperRatings monthly data: Not-for-profit industry super funds continue to outperform their bank-owned competitors in the short, medium and long-term. Long-term performance results should raise genuine questions about whether bank-owned funds can manage their conflict between generating profits for shareholders and maximising returns for fund members.
Read MoreWhy women have significantly small super balances in retirement, KPMG
The great super imbalance: Women earn less, often for the same work, have additional responsibilities which result in career and superannuation contribution breaks, and live longer in retirement. It is then not surprising that women have, on average, significantly smaller super balances to rely on in retirement, according to KPMG’s Paul Howes.
Read MoreTreasury financial institutions supervisory levies not much chop, AIST
The Australian Institute of Superannuation Trustees has labelled Treasury’s consultation paper on proposed financial institutions supervisory levies as insufficient and non-compliant with government guidelines. It also said cost recovery proposals for SuperStream do not detail who should contribute to the levies – ie SMSFs.
Read MoreSMSF trustees need to review minimum pension requirements for EOFY now, RSM
Super year-end planning and pensions: A key feature of a superannuation fund paying pensions is that the earnings on the assets supporting the pensions are not subject to income tax. This can result in the interest, dividends, rent, capital gains and other income of the fund being tax-free. A fund is also eligible for a refund of any excess franking credits on dividends received.
Read MoreWhy more than digital disruption is changing the insurance industry, KPMG
Why insurance sector faces unprecedented change: Insurers are no strangers to change. Even so, the past decade has been fairly tumultuous: new and more stringent regulatory requirements, changing customer demands and expectations, increasing competitive pressures and disruptive technologies and business models are all combining to create an era of unprecedented change for the insurance sector.
Read MoreFederal Government’s $1.6 m super policy ‘doesn’t add up’ for retirees, SMSF Owners Alliance
Super policy doesn’t add up: There is serious doubt of federal government’s claims that a superannuation account of $1.6 million will generate a pension of four times the age pension is accurate. Modelling shows that a retiree aged 60 with $1.6 million in their account would run out of superannuation savings after 20 years.
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Why government’s superannuation changes won’t help retirees, CPA
Super changes won’t help retirement: The Government’s insistence that its superannuation changes will only affect a small percentage of Australians is wrong according to a new poll by CPA Australia. The proposed changes are retrospective and far reaching, and will deliver neither certainty nor security for people planning their retirement.
Read MoreGrant Thornton asks whether Robo automated advice is possible in Australia’s financial services industry?
Is Robo advice possible in Australia? Robo advice driven by algorithmic routines has captured the imagination of the wealth management industry. However, ASIC has sought to temper the development of automated advice by imposing conditions on financial services industry participants to have a responsible person overseeing the provision of advice and managing the technology.
Read MoreBanks need to help Australian companies expand offshore, East & Partners
Foreign exchange volatility for SMEs: The falling Australian dollar offers excellent opportunities for businesses wanting to diversify into new offshore markets. Yet the overwhelming majority of SMEs are acutely unaware of the significant downside risk posed by a marginal rise in foreign exchange volatility. This can negatively affect a company’s bottom line much more severely than expected. With margins aggressively tightening in most industries, managing foreign exchange exposures appropriately is often the critical factor in successfully achieving sustainable growth. This challenge presents an opportunity for banks, brokers and new entrants alike to address the yawning knowledge and experience gap preventing broader adoption of fit-for-purpose hedging strategies to better support and protect those Australian businesses expanding abroad. Martin Smith is head of markets analysis at East & Partners
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