Death and taxes to enjoy a closer relationship

Published 06-NOV-2015 12:47 P.M.

|

2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

The federal government is thought to be looking at removing the so-called ‘death bonus’ on self-managed superannuation funds.

Giving a speech in Sydney yesterday, new Treasurer Scott Morrison re-iterated that changes to the superannuation system were still on the table.

“The PM has made it clear other areas of commonwealth taxes such as generous superannuation concessions are also under the microscope as well as broader tax integrity measures,” he said.

According to the Australian Financial Review, one of the government plans to close superannuation tax loop holes would be to get rid of the “anti-detriment payment” on SMSF funds.

The way the system currently works, 15% of the contributions made by a member of an SMSF during the accumulation phase of the fund can be refunded to a person’s next of kin or spouse.

The proposed changes would not stop beneficiaries from receiving this, but would open this payment up to taxation.

The federal government reportedly misses out on $100 million a year by not taxing the anti-detriment payment.

The AFR quoted Liberal MP Michael Sukkar who is fronting the changes.

“Imagine a system whereby, after paying taxes throughout our lifetime, our dependant spouse, former spouse or children, could get a refund of those taxes when we die?” he was quoted as saying.

“A little known quirk in our superannuation system enables just that.

During a wide-ranging speech yesterday, Morrison said Australia’s tax system is outdated and was in sore need of reform.

“Australia’s tax system was designed in a different era, and a different economy. It was not designed to deal with multinational trade, increasing global competition for investment, the internet, the digital economy and an ageing population,” Morrison said.

Many features of the existing system will, over time, limit jobs growth and make it less attractive to invest in Australia, affecting Australia’s continuing prosperity.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.

 

Discover Small Cap
Biotech Stocks

Join thousands of other Investors following our stock commentary for Free

X