SMSF Goverment to Tax ...Who will this affect

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xkfalcon
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@xkfalcon
Join Date: 2013
Post Count: 6
April 5, 2013 - 5:08 am
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.
Jpcashflow
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@jpcashflow
Join Date: 2007
Post Count: 575
April 5, 2013 - 5:44 am
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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Jacqui Middleton
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@jacm
Join Date: 2009
Post Count: 2,539
April 5, 2013 - 7:22 am
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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jmsrachel
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@jmsrachel
Join Date: 2012
Post Count: 711
April 5, 2013 - 11:58 am
Bring on September! Can’t come sooner enough!
Freckle
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@freckle
Join Date: 2012
Post Count: 1,680
April 5, 2013 - 2:26 pm
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.
Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
April 6, 2013 - 10:50 am
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%.
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Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
April 6, 2013 - 1:23 pm
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 | Australia's leading private lender
Freckle
Blocked
@freckle
Join Date: 2012
Post Count: 1,680
April 7, 2013 - 8:13 am
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.
kong71286
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@kong71286
Join Date: 2009
Post Count: 261
April 7, 2013 - 8:26 am
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
Probably just need to setup my account to allow purchase of global shares and I'll be very happy
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
April 7, 2013 - 8:55 am
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 | Australia's leading private lender