While reported new coronavirus cases in China have slowed, the pickup in cases outside China has led to a renewed sharp fall in share markets and bond yields.
We are nearing the end of another financial year which closely follows the May Budget announcements relating to superannuation. In this bulletin, we are specifically drawing attention to those individuals who are eligible to make contributions to superannuation as there is a definite 2 year opportunity to contribute at the current maximum levels of $30,000 or $35,000 per annum depending on your age (refer table below).
If current proposed legislation in the Budget is successfully passed, the maximum contribution for 2017/18 tax year is being reduced to $25,000 per annum. Hence there is an opportunity which should not be missed to effectively build your superannuation balances.
As such, should you wish to take advantage of current limits by 30 June we would encourage you to act now.
| Type of Super Contribution and Limit (Cap) | 2015/16 |
| a) Standard concessional contribution cap (per annum) | $30,000 |
| b) Temporary (higher) concessional contribution cap (per annum) for people age 49 and over on 30 June 2015 | $35,000 |
| c) Non concessional contribution cap | |
| - Standard (per annum) | $180,000 |
| - Bring forward (over 3 years) if triggered under age 65 | $540,000 |
Concessional contributions include employer contributions (such as the Super Guarantee and salary sacrifice), as well as personal contributions claimed as a tax deduction (persons self-employed or not employed).
Non-concessional contributions include personal contributions from after-tax money.
Given proposed legislation surrounding non concessional contribution caps and the suggestion that the lifetime limit of $500,000 will be backdated to 2007 from the 2016 Budget night, the $500,000 expected limitation should not be breached. Ie if no non concessional contributions have been made previously, no more than $500,000 should be contributed. Before making any new non-concessional contributions (NCC), please contact us to discuss.
Review your salary sacrifice super contributions for 2016/17
The Super Guarantee (SGC) rate will again be 9.50% for 2016/17. Note that some employers pay more than the statutory SGC rate, so it is worth checking this with your employer. If you make salary sacrifice super contributions and your salary increases for 2016/17, you will need to make allowance for the increased SGC and may need to change your salary sacrifice amount to stay within your Concessional Contributions (CC) cap for 2016/17.
Other year end strategies
Please refer to the attached flyer (click here) for other strategies that may apply to you.
If you require any assistance or wish to review your position, please do not hesitate to contact us on 9239 0000.
Recent articles
Shares are vulnerable to a short-term correction - Key things to watch out for are recession and much higher inflation.
From bushfires to coronavirus - five ways to turn down the noise around investing
The China coronavirus outbreak has led to concerns of a global pandemic triggering an economic downturn. Our base case is that the outbreak will be contained allowing share markets and bond yields to rebound. However, uncertainty is high given that the coronavirus is more contagious than SARS albeit with lower mortality. Key to watch for is a peak in new cases and contained transmission in developed countries.
Shares are at risk of a short-term correction or consolidation after a strong run over the last year and with sentiment now very bullish. However, this year should still see good returns for investors as global growth edges up and interest rates remain low. > Five key global charts to watch are: global business conditions PMIs; global inflation; the US yield curve; the US dollar; and global trade growth. > So far so good, with PMIs improving a bit, inflation remaining low, the yield curve steepening, the $US showing signs of topping and the US/China trade truce auguring well for some pick up in world trade growth.
The Australian bushfire season that began in September has been horrific with more than 7 million hectares of bush destroyed, more than 25 deaths, significant loss of livestock, estimates of more than a billion wildlife animals killed and more than 1800 homes destroyed. More than 200 fires are still burning. Following the intensification of the bushfires over the Christmas/New Year period attention has now turned to the impact on the economy. This note looks at the key impacts.
Even if you secured a competitive package when you first took out your home loan, it’s worth reviewing each year1 to ensure the interest rates, fees and features continue to meet your needs. By refinancing you may be able to pay off your home loan sooner.
In this month’s issue we discuss how: James Maydew believes that having culture and strategy on the same blueprint is an absolute imperative climate change is impacting the real estate sector, and how leaders and businesses are standing up to the task of tackling it Julie-Anne Mizzi uses her innate passion for investing in infrastructure for those who need it, and the familiar airport retail experience is set for a makeover.
2019 saw growth slow, recession fears increase and the US trade wars ramp up, but solid investment returns as monetary policy eased, bond yields fell and demand for unlisted assets remained strong. 2020 is likely to see global growth pick up with monetary policy remaining easy. Expect the RBA to cut the cash rate to 0.25% and to undertake quantitative easing. Against this backdrop, share markets are likely to see reasonable but more constrained & volatile returns, and bond yields are likely to back up resulting in good but more modest returns from a diversified mix of assets. The main things to keep an eye on are: the trade wars; the US election; global growth; Chinese growth; and fiscal versus monetary stimulus in Australia.
Here's a roundup of some of the key proposals put forward in last night's Federal Budget. We take a look at how they might affect your financial goals -- whether you're starting out in your working life, building a career, having a family, or moving toward or living in retirement.
Welcome to the latest edition of our client newsletter. Australians buying their first home or downsizing in retirement are about to receive a helping hand thanks to new superannuation rules which come into effect on 1 July 2018. In this edition we briefly explain these new rules. As with any rules to do with superannuation, it can be complicated so please contact us if you would like to know more.
From all of us at GFS we would like to wish you a Wonderful New Year and trust that you had an enjoyable festive season. In this edition we have included two articles by Paul Clitheroe AM, which we felt would be of interest to you, your family and your friends. New Year is a time that many of us make various resolutions and our third topic in this edition relates to reflecting on 2017 and thoughts of the Year ahead which we wanted to share with you.
Welcome to the Final newsletter for 2017 as the holiday season approaches. Given investment market performance for the year, one can only conclude that the markets have been kind to us as outlined in Paul Clitheroe’s article. We have also included two additional articles addressing the issue of property prices and ways to enjoy summer without spending a fortune.
Over 4.6 Million people have viewed this concise educational video. A must view for anyone who would like a greater INSIGHT into how an Economy Works.
Welcome to the Spring edition of our newsletter. Our articles cover a range of topics which we hope you will find of interest. These articles may not impact on you directly but from previous feedback many of you have found these to be of benefit for family members and friends. We would encourage you to forward any relevant articles on to them as you see fit.
We are nearing the end of another financial year which closely follows the May Budget announcements relating to superannuation. In this bulletin, we are specifically drawing attention to those individuals who are eligible to make contributions to superannuation as there is a definite 2 year opportunity to contribute at the current maximum levels of $30,000 or $35,000 per annum depending on your age (refer table below).