AFF Member Stock Discussion

[prozac]

Do you have a link to this? everything I find says it doesn't come into effect until July 26

Post automatically merged: Friday at 2:04 PM

Or longer for those who only have to pay quarterly

You are right that it is not in effect yet. I was being loose with my English because I did not write down the exact dates, but knowing it will be in effect soon. I was of the thought it would commence on 1st July as the super guarantee increases to 11.5% after 30 June 2024.

Edit: Found it. 1 July 2026

Note regards taxing unrealised gains in super. There is no claw-back of the tax paid if it turns out you did not make the amount you paid tax on after all.
Proposed start date for this is 1 July 2025.

 

[Freq Flier 2013]

The theory of paying super at the same time as wages is good but in practice it will not work very well. Business income is lumpy and can’t always be offset ate same time.
The outcome will be more business going into liquidation and much higher prices to the consumer.
All this is great In theory.
Everyone will say, if business's can’t afford to pay super each week then close down. This is exactly what will happen.

 

[serfty]

Everyone will say, if business's can’t afford to pay super each week then close down. This is exactly what will happen.

I'm relatively conservative, but these days superannuation should be treated and paid as part of the payroll. It has been around long enough.

 

[Freq Flier 2013]

I'm relatively conservative, but these days superannuation should be treated and paid as part of the payroll. It has been around long enough.

Agree but a lot of small business owners are not very business minded unfortunately when it comes to budgeting or running their business. There is a good reason most small businesses fail in the first few years. This super changes will just accelerate failure.

 

[burmans]

Agree but a lot of small business owners are not very business minded unfortunately when it comes to budgeting or running their business. There is a good reason most small businesses fail in the first few years. This super changes will just accelerate failure.

Badly managed businesses will almost always fail anyway, if they can’t actually afford to pay their bills then delaying payments is just delaying/extending the pain. Accelerating the failure is in my view possibly not such a bad thing for a business that’s probably going to fail anyway!

 

[cove]

The failure rate of businesses has been increasing quite sharply as cash flow gets crimped by their customers paying too slowly.Forecasts are expecting a jump in unemployment and wages running at around 3% this next year.
In PERth we have noticed that younger folks have slowed down their spending as they struggle with high mortgage payments.
Now I read the recent article by Propel Funeral which is PFP who are expecting a surge in business as the first post war baby boomers are now 78 years old. This company is in an acquisition phase and now has about 9% of the Australian funeral market.