All Topics / Help Needed! / SMSF Goverment to Tax …Who will this affect

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  • Profile photo of xkfalconxkfalcon
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    @xkfalcon
    Join Date: 2013
    Post Count: 6

    Hello all, 

                       Just found an article about the government are now going to tax SMSF's. Who will this affect as i don't quite understand it.

    http://www.propertyobserver.com.au/self-managed-super-funds/government-threatens-capital-gains-tax-on-property-held-in-smsfs?utm_source=Property+Observer+List&utm_campaign=fd27c00c53-April_5_1_29_2013&utm_medium=email

    Thanks paul.

    Profile photo of JpcashflowJpcashflow
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    @jpcashflow
    Join Date: 2007
    Post Count: 575

    Hi,

    Very good question, This government is a joke beyond belief, its main purpose is to punish people who work more or harder.

    Also the government believe they have the right to punish people who are wealthy.

    People dont become wealthy because of luck just simply hard work..

    Unless you win the lotto of course…

    Oh if your a junkie thought your centerlink payments will increase lol

    Jpcashflow | JP Financial Group
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    Your first port of call in finance :)

    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
    Post Count: 2,539

    It means you should vote in a manner that boots the Labor Government out of power in the next federal election, which is around September I believe :-)

    Jacqui Middleton | Middleton Buyers Advocates
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of jmsracheljmsrachel
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    @jmsrachel
    Join Date: 2012
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    Bring on September! Can’t come sooner enough!

    Profile photo of FreckleFreckle
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    @freckle
    Join Date: 2012
    Post Count: 1,681

    Be careful what you wish for. The Libs will do you no favors. In fact you may well be worse off if they go with their proposed austerity measures to pull the the budget deficits back into surplus at virtually any cost.

    The moves on super are attempts at accessing sources of income the govt currently relinquishes in the form of tax breaks. They're narrowing the field in terms of tax deductibility like the 15% on super. It is widely abused by the 1% who receive massive advantages compared to the 99%. 

    The tightening of property in SMSF was to be expected. Too much room for speculation which is not what super is about given that the vast majority of PI's are less than successful at building real wealth.

    I wouldn't have enough coin in super to keep the dog in biscuits for 12 months. To me its always been a place money goes to die.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,190

    This will only effect a small minority of people who have been getting good tax free income from their super. A superfund can earn up to $100,000 and still pay no tax, thereafter it is just 15%. So if the fund as a $200,000 profit it will pay just 7.5% just. Outside of super if a person earned $100,000 this would be taxed at 37%. A company would be taxed at 30%.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Actually it is each members account that can earn $100,000 per annum without paying any Tax at all and then only 15% thereafter.

    A husband and wife could earn a 100K each and pay no Tax.

    Personally i don't have a problem with it at all and can't see it making any real difference to the average person.

    Remember a fund value of $2M earning 5% would not have too pay Tax. Also it only affects people in Pension phase.

    Of course in saying all of this it has to legislated yet and that might be easier that it sounds.

    The increased Contribution Tax payable on salaries over 300K which was in last years budget is still to become Law. 

    Tell me where you can invest and pay a lesser rate than inside a SMSF and i will stop my contributions tomorrow.

    Cheers

    Yours in Finance

     

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of FreckleFreckle
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    @freckle
    Join Date: 2012
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    Qlds007 wrote:
    Tell me where you can invest and pay a lesser rate than inside a SMSF and i will stop my contributions tomorrow.

    For me it's the opportunity cost. When I can literally get returns in the 300%+ on capital invested and pay bugger all tax the opportunity cost far outweighs the few tax dollars saved. I have a natural antipathy towards super. Governments have a tendency to keep moving the goal posts to suit their own interests. 

    Profile photo of kong71286kong71286
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    @kong71286
    Join Date: 2009
    Post Count: 261

    I'm salary sacrificing into my super right now; 15% tax is much better than paying 37% tax

    No lost opportunity cost either as SMSF provides the freedom for me to invest in Steve's USA Commercial Property Fund as well as in Silver smiley

    Probably just need to setup my account to allow purchase of global shares and I'll be very happy

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,018

    Kong no correct structure needed.

    I use Interactive Brokers and have the Account in the name of my SMSF with the nominated currency in AUD.

    Works very well and their service and brokerage costs are second to none.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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