Another impact for those not in retirement accessing super under the current special arrangements.
It may be helping those who have super to survive the current crisis, but at a very high price for the future in retirement. It costs the Govt nothing in the short term, against future aged care costs. Perhaps offering a low interest long term loan with super as a nominal security, similar to a Hex debt may have been a simple alternative. Although it is then on the Govt bottom line?
Some bright accountant might offer some numbers to show how that works out.
I always suggest speaking to an accredited and honest FA before any decisions are made. I advised this above as my thoughts are just that just thoughts. Has the market/returns bottomed out, I personally don’t think they have.
Putting money into a SMSF to preserve value until the market returns and normal managed funds pick up can be very worthwhile, but again getting professional advice is paramount before any decision is made.
Didn’t we just have a Royal Commission into the dodgy practices of these types? I hear not a lot has changed!
Thanks for the advice, but I will be sitting tight- it isn’t TEOTWAWKI Well it might be a bit different, but no doubt capitalism and the share market with its main influencers- fear and greed, will carry on. We can live quite inexpensively until things improve and being off-grid and partially self-sufficient means we can last quite some time.
I’m quite confident the professionals at Australian Ethical will do a better job than bankers and an SMSF.
While topical re COVID-19 it is a long standing problem that some businesses have never made their super deposits. From the linked article
An Australian Taxation Office spokesperson says the non-payment of superannuation is taken very seriously.
“In the first six months of 2019–20, we contacted over 9,000 employers and raised $406.5 million in liabilities as a result of our compliance action,” they said.
9,000 eh? The employers must be running scared with such tight oversight?
Adding a liability in the ATO’s books surely must make it right, especially in the near term. Not counting theoretical growth that gets missed.
What the ATO has to say
and to question or dob in an employer who may not be doing the right thing, a tool.
Well it might be a bit different, but no doubt capitalism and the share market with its main influencers- fear and greed, will carry on. We can live quite inexpensively until things improve and being off-grid and partially self-sufficient means we can last quite some time.