Superannuation Discussion + market volatility

[mrsterryn]

https://www.servicesaustralia.gov.a...d-income-limits-increase-from-4-november-2022

There will be a lot of applications I suspect

 

[CaptJCool]

Commonwealth Seniors Health Card income limits increase from 4 November 2022

There will be a lot of applications I suspect

Sept 2022 figures are 456,453.

dec 22 figures will be out around end Feb 2023

 

[CaptJCool]

Sept 2022 Age pension figures have arrived...
in the past year 260,000 have become eligible yet there’s been a net reduction of 15,000 (eg deaths (about 130,000), surviving spouses getting caught on the reduced assets thresholds, others cancelled as result higher asset values or deemed income)

roughly
117,000 of 260,000 going onto age pension 45%

Search

data.gov.au

 

[cove]

That is quite a lot of folks dropping off the perch in a year.
Hopefully the compulsory superannuation keeps building the numbers of folks who won’t need the age pension.
2022 has been nasty for the rising cost of living.

 

[mrsterryn]

Sept 2022 Age pension figures have arrived...
in the past year 260,000 have become eligible yet there’s been a net reduction of 15,000 (eg deaths (about 130,000), surviving spouses getting caught on the reduced assets thresholds, others cancelled as result higher asset values or deemed income)

roughly
117,000 of 260,000 going onto age pension 45%

View attachment 309519

Search

data.gov.au

Does this include the part pension ones as well as full rate ?
I wonder if along with less pensioners ,there is less full rate pensioners.
I am aware many structure (as far as possible ) to receive the infamous $1.
I know in many states the Pensioner Concession Card give significant discounts

 

[pangwen]

Does this include the part pension ones as well as full rate ?
I wonder if along with less pensioners ,there is less full rate pensioners.
I am aware many structure (as far as possible ) to receive the infamous $1.
I know in many states the Pensioner Concession Card give significant discounts

Looking at the underlying data:
- Yes, the figures @CaptJCool is presenting (the roughly ~2.5mil number in particular) includes part and full rate pensioners
- Surprisingly, no, the drop in the total number of people receiving pensions (full or part) is entirely driven by a drop in the number receiving a part pension. The number of people receiving the full pension increased between Sept 2021 and Sept 2022

Full pension: Increased from 1,722,338 (Sep 21) to 1,745,064 (Sep 22)
Part pension: Decreased from 840,540 (Sep 21) to 800,954 (Sep 22)

 

[CaptJCool]

This is the Surviving Spouse problem ....

 

[CaptJCool]

And this is the ageing and inbound volume change we are seeing too...

 

[CaptJCool]

Sept 2022 figures are 456,453.

dec 22 figures will be out around end Feb 2023

Dec 22 seniors health care card

473,065

my uncle mentioned while they now qualify, the online form still said Nyet

 

[CaptJCool]

Dec 2022 age pension figures have risen

note the drop off of “old migrant groups”

 

[JohnK]

There's an interesting situation that may develop at work. I have ~8 weeks long service and due for another ~4 weeks in a few months. I've heard some people say they've been forced to take some of their long service. I do not want to take ~6 weeks off work to sit in BNE apartment doing nothing. I actually fear for my health as I'd be bored and need to work.

I suspect they may offer to pay out long service but that means paying close to 50% tax which is ludicrous and not an option in my mind. I've been planning/hoping to save long service leave as a ~16 week payout almost tax free after 20 years service as I'd be retiring on 07th July in new tax year.

What are my options? I think I can take them to tribunal citing hardship? If offered to cash out long service can I contribute to superannuation? I have about $12000 available that I can contribute to superannuation each year. Contributions tax is much better option than 50% tax.

Not looking for free advice but have been checking my options in case this becomes an issue. Will check with HR first and I think we can consult ANZ free of charge for superannuation advice.

 

[Quickstatus]

@JohnK
An employer can only direct an employee to take annual leave during company shutdown periods and if the employee has excess annual leave.

You should check with Fair Work to see if your employment is covered by an award and if the award stipulates what "excess" annual leave means. Generally excess annual leave is more than 8 weeks

Long service leave is different in that an employer can direct an employee to take long service leave if the stipulated notice is given. In NSW it is 1 calendar month. It should also be stipulated in your award if there is one. Look in Business Queensland or similar for the general rules in QLD for long service leave

For super advice speak to your super fund. They should give you free advice - as least if you are in an industry super fund. It really depends on your super /financial circumstances

 

[Catweazle]

There's an interesting situation that may develop at work. I have ~8 weeks long service and due for another ~4 weeks in a few months. I've heard some people say they've been forced to take some of their long service. I do not want to take ~6 weeks off work to sit in BNE apartment doing nothing. I actually fear for my health as I'd be bored and need to work.

I suspect they may offer to pay out long service but that means paying close to 50% tax which is ludicrous and not an option in my mind. I've been planning/hoping to save long service leave as a ~16 week payout almost tax free after 20 years service as I'd be retiring on 07th July in new tax year.

What are my options? I think I can take them to tribunal citing hardship? If offered to cash out long service can I contribute to superannuation? I have about $12000 available that I can contribute to superannuation each year. Contributions tax is much better option than 50% tax.

Not looking for free advice but have been checking my options in case this becomes an issue. Will check with HR first and I think we can consult ANZ free of charge for superannuation advice.

Just a crazy thought: is renting a villa / apartment somewhere – France, Vanuatu, Azores, wherever – for a longer ~6+ weeks vacation an idea? Two or three weeks exploring the local area, sucking up the sights and culture then going for long, interesting, meandering walks followed by day trips to places further afield here or there?

 

[potm]

You can also use unused concessional limits from prior few years as well.

 

[JohnK]

Just a crazy thought: is renting a villa / apartment somewhere – France, Vanuatu, Azores, wherever – for a longer ~6+ weeks vacation an idea? Two or three weeks exploring the local area, sucking up the sights and culture then going for long, interesting, meandering walks followed by day trips to places further afield here or there?

The problem is 6 year old daughter going to school. Then there's trip money for 3 people.

 

[dec540]

You can also use unused concessional limits from prior few years as well.

Assuming the closing balance as at June 30 in the year prior was <$500,000.

 

[ellen10]

I know of people with excess leave being asked to take some leave to reduce the business’s liability. It all depends on your award of employment. Excess accumulation of employees leave is a debt for the businesses. In the public sector it was not uncommon for employees to accumulate 12 months of leave entitlement and then retire at the end. Whilst on leave you accumulate more leave and also have superannuation contributions. As previously advised best talk to your HR.

 

[cove]

In some States of Australia employees can request a cash payout of their long service leave. In inflationery times for wages this would not be the smartest move. Several States do not permit this cashing out.
It is always a good idea for staff to take annual leave as it tests the cross training that should have happened.
Getting staff to read their superannuation report is made difficult by employers not being allowed to offer financial advice.Many don’t bother to read their superannuation reports.

 

[Brissy1]

If you get paid out the lsl on retirement check that you get your compulsory employer super added to the lsl payment. Some employers, inc gov, were "forgetting". And this will be in 23/24 I gather.

 

[CaptJCool]

There's an interesting situation that may develop at work. I have ~8 weeks long service and due for another ~4 weeks in a few months. I've heard some people say they've been forced to take some of their long service. I do not want to take ~6 weeks off work to sit in BNE apartment doing nothing. I actually fear for my health as I'd be bored and need to work.

I suspect they may offer to pay out long service but that means paying close to 50% tax which is ludicrous and not an option in my mind. I've been planning/hoping to save long service leave as a ~16 week payout almost tax free after 20 years service as I'd be retiring on 07th July in new tax year.

What are my options? I think I can take them to tribunal citing hardship? If offered to cash out long service can I contribute to superannuation? I have about $12000 available that I can contribute to superannuation each year. Contributions tax is much better option than 50% tax.

Not looking for free advice but have been checking my options in case this becomes an issue. Will check with HR first and I think we can consult ANZ free of charge for superannuation advice.

Hey John
LSL on finishing your employment has “different tax rules”

Unused long service leave | Australian Taxation Office

www.ato.gov.au

Example 8 covers most situations

Examples | Australian Taxation Office

www.ato.gov.au

Depending on the amount it could take you into Medicare levy surcharge territory if you’ve not got private health insurance
Had someone else get so much he hit excess contributions tax plus of course the 30% tax going in with over $250,000 in the one financial year

As to compelled to take it

Transferring, taking and cashing in long service leave in Queensland | Business Queensland

www.business.qld.gov.au

Apparently if no agreement can be reached, it requires 3 months written notice in QLD

Payment of long service leave - Fair Work Ombudsman

Information on the payment of long service leave for full time, part time and casual employees.

www.fairwork.gov.au

Do they offer LSL at half pay ?