superannuation tagged posts

NZ Retirement Savings Overtaxed, Claims Expert

October 11, 2017 Taxation in New Zealand

Kiwisaver taxationWELLINGTON – Property investors in New Zealand are seeing tax liabilities which are only a fraction of those paid by people saving for their retirement.

In a statement issued on October 10th, Peter Neilson, the former chief executive of the Financial Services Council of New Zealand, called for a rethink of the taxation of the country’s retirement savings system, KiwiSaver.

KiwiSaver is a nationwide retirement savings system, whereby a percentage of an employee’s pay is deducted from their wages and invested into a managed fund.

Over the previous financial year, approximately NZD 25.4 million was invested in the default funds assigned to taxpayers upon entry into KiwiSaver, and a further NZD 140.8 million was deposited into funds which were specifically chosen by the saver.

Currently,...

Read More

Australia Urged to Drop Tax Breaks for Retirees

November 21, 2016 Taxation in Australia

Tax breaks for elderly in AustraliaAustralia could be AUD 1 billion better off each year if it dropped a number of tax breaks aimed exclusively at retirement-aged Australians.

New research released by the Australian think-tank the Grattan Institute has called for a wind-back of the tax breaks offered to older Australians.

Currently, senior Australians are eligible to enjoy high levels of rebates on private medical insurance, Seniors and Pensioners Tax Offsets (SAPTO), and a higher Medicare levy income threshold than the one faced by younger taxpayers.

The think-tank called the offsets and tax breaks “unduly generous” and without any economic rationale.

It was noted that the age-based tax policies are becoming increasingly misaligned, due to the rising levels of workforce participation by those aged 65 and over, and ...

Read More

ATO Cracks Down on Tax-Dodging Retirement Funds

July 28, 2016 Taxation in Australia

CANBERRA – Taxpayers and tax advisers in Australia are being told to stop using self-managed retirement funds to evade taxes.

The Australian tax Office is cracking down on tax evasion committed via self-managed superannuation funds.

Under current regulations in Australia, taxpayers saving for retirement are able to manage their own retirement savings account via self-managed superannuation funds.

The ATO claims that a growing number of tax advisers are now helping individuals bypass their tax obligations by abusing the SMSF schemes.

Specifically, the ATO says that tax are being dodged by dividend stripping, Non-arm’s length limited recourse borrowing arrangements, and by shifting personal service incomes to an SMSF.

Taxpayers who are found to be using an illegitimate SMSF scheme to evade...

Read More

1.5 Million UK Retirees to Pay 55% Tax

January 21, 2016 Taxation in UK

Family in UKLONDON – Millions of UK retirees could see their savings taxed at a rate of 55 percent, because they saved too much over their lifetimes.

New research conducted by the UK insurance provider Aviva indicates that as many as 1.5 million UK taxpayers will face a tax rate of 55 percent on any withdrawals they make from their retirement savings.

Currently, any taxpayers who save more than GBP 1.25 million for their retirement over their entire lifetime will face a penalty tax of 55 percent.

However, in April this year, the threshold will be lowered from GBP 1.25 million to GBP 1 million.

At the time that the change was first announced, the government claimed that the decrease would only effect an extra 55 000 savers, but according to the results of the new research, taxpayers who are earning a...

Read More

Taxes are Key to Good Retirement

October 18, 2013 Taxation in Asia-PacificTaxation in New Zealand

MoneyWELLINGTON – The New Zealand government is being urged to evaluate the tax treatment retirement savings in order to ensure that taxpayers do not meet a cash shortfall with age.

In a statement issued on October 14th the New Zealand Financial Services Council (FSC) released a set of recommended tax changes, which could greatly encourage New Zealanders to make more use of KiwiSaver, the national retirement saving system.

According to the Council, in order to have a comfortable retirement, the average New Zealander needs to save at least 10 percent of their income for a period of 40 years from the age of 25.

However it was suggested that the contribution level could be reduced to 7 percent if the government implements sensible tax and investment policies.

The FSC is calling for the government...

Read More