Australia and the U.S. Debt Crisis
AUSTRALIAN government borrowing costs have fallen to their lowest level in nearly 16 months while the dollar has surged to reach a three
-month high.
The dollar is seen as a safe haven as the US inches closer to having its credit rating downgraded amid the debt crisis deadlock in Washington. With just a week to go before the August 2 deadline when the US government hits its debt ceiling - in effect the point where it runs out of cash - the US President, Barack Obama, warned Republicans they were playing a ''dangerous game''. In the past nine days the Australian dollar has risen US3¢ against the greenback - a sign that traders are increasingly unsettled. Yesterday it rose US1.2¢ to close at US109.3¢.
On the local stock market, the benchmark S&P/ASX200 index gained 42.9 points to 4573.3, while gold eased to $US1614 an ounce. Economists at ANZ said there was a slim chance of a default by the US government, with the odds favouring a short-term muddle-through approach. This may or may not come with a downgrade of the US's triple-A credit rating
Minimum pension payment relief extended to 2011/12
In this year's Federal Budget, the Government announced the minimum pension payment requirements for the 2011/12 financial year will be reduced by 25 per cent. This means that you will only need to take 75 per cent of your calculated minimum pension payment requirements for 2011/12.
New Super Thresholds
Each year a number of superannuation thresholds are changed to reflect movements in full-time Average Weekly Ordinary Time Earnings (AWOTE). Thresholds for the 2011/12 financial year have recently been updated.
Contributions caps
The concessional contributions cap remains unchanged at $25,000 for the 2011/12 financial year. The transitional cap of $50,000 is still available for individuals aged 50 or over any time in the 2011/12 financial year.
From 1 July 2012 the Government has proposed to continue the $50,000 cap for individuals aged 50 or over but only whose total superannuation balance is less than $500,000. This proposal is not yet law.
Note that the concessional contributions cap is indexed only when AWOTE indexation would increase the cap by at least $5,000 and the increase in the cap is rounded to $5,000 amounts.
The non-concessional contributions cap is calculated as six times the concessional contributions cap and it remains unchanged at $150,000 for the 2011/12 financial year. Accordingly, the bring-forward amount will remain at $450,000 if triggered in the 2011/12 financial year.
One issue to consider is the most effective time for a client looking to make large non-concessional contributions to trigger the bring-forward provisions. The bring-forward provisions lock in a client's non-concessional cap for a 3-year period. Any indexation of thresholds cannot be used until expiry of the bring-forward period. The timing of triggering the bring-forward provisions could be significant.
For example, if there was a $5,000 indexation of the concessional contributions cap, the non-concessional cap would increase by $30,000 (6 x $5,000). This would increase the ability to bring forward non-concessional contributions by $90,000 (3 x $30,000).
DO I NEED TRAUMA INSURANCE COVER?
Being able to focus on your recovery after suffering a trauma event is going to be your primary
concern. Having trauma insurance can relieve your financial worries and allow you to do this.
You probably have some questions about this type of insurance you'd like answer
ed.
What is Trauma cover?
Trauma cover pays an agreed lump sum if you suffer a serious illness or injury that is covered in the plan you take out. The lump sum payment can help you make the adjustments to your lifestyle that you may either want, or need, to make after suffering a trauma event.
Why do I need it?
Nobody likes to think about the possibility of suffering a serious illness or injury in the future. You can't foresee this happening, but you can make plans to help support yourself should the unexpected happen. Having Trauma cover can provide you with some comfort to know that if something does happen at least you don't have to worry about money. As advances in medicine and technology continue, more people are surviving trauma events where in the past they may not have. And with people living longer, your chance of suffering a trauma event is increased.
As the chances of something unexpected happening are increased, along with the likelihood of your survival, you will want to have a plan in place to maintain your lifestyle and financial independence.
Do not hesitate to email/call us for further advice.
DON'T FORGET IT HAPPENED TO ME!!!
AUSTRALIAN government borrowing costs have fallen to their lowest level in nearly 16 months while the dollar has surged to reach a three
-month high.
The dollar is seen as a safe haven as the US inches closer to having its credit rating downgraded amid the debt crisis deadlock in Washington. With just a week to go before the August 2 deadline when the US government hits its debt ceiling - in effect the point where it runs out of cash - the US President, Barack Obama, warned Republicans they were playing a ''dangerous game''. In the past nine days the Australian dollar has risen US3¢ against the greenback - a sign that traders are increasingly unsettled. Yesterday it rose US1.2¢ to close at US109.3¢.
On the local stock market, the benchmark S&P/ASX200 index gained 42.9 points to 4573.3, while gold eased to $US1614 an ounce. Economists at ANZ said there was a slim chance of a default by the US government, with the odds favouring a short-term muddle-through approach. This may or may not come with a downgrade of the US's triple-A credit rating
Minimum pension payment relief extended to 2011/12
In this year's Federal Budget, the Government announced the minimum pension payment requirements for the 2011/12 financial year will be reduced by 25 per cent. This means that you will only need to take 75 per cent of your calculated minimum pension payment requirements for 2011/12.
New Super Thresholds
Each year a number of superannuation thresholds are changed to reflect movements in full-time Average Weekly Ordinary Time Earnings (AWOTE). Thresholds for the 2011/12 financial year have recently been updated.
Contributions caps
The concessional contributions cap remains unchanged at $25,000 for the 2011/12 financial year. The transitional cap of $50,000 is still available for individuals aged 50 or over any time in the 2011/12 financial year.
From 1 July 2012 the Government has proposed to continue the $50,000 cap for individuals aged 50 or over but only whose total superannuation balance is less than $500,000. This proposal is not yet law.
Note that the concessional contributions cap is indexed only when AWOTE indexation would increase the cap by at least $5,000 and the increase in the cap is rounded to $5,000 amounts.
The non-concessional contributions cap is calculated as six times the concessional contributions cap and it remains unchanged at $150,000 for the 2011/12 financial year. Accordingly, the bring-forward amount will remain at $450,000 if triggered in the 2011/12 financial year.
One issue to consider is the most effective time for a client looking to make large non-concessional contributions to trigger the bring-forward provisions. The bring-forward provisions lock in a client's non-concessional cap for a 3-year period. Any indexation of thresholds cannot be used until expiry of the bring-forward period. The timing of triggering the bring-forward provisions could be significant.
For example, if there was a $5,000 indexation of the concessional contributions cap, the non-concessional cap would increase by $30,000 (6 x $5,000). This would increase the ability to bring forward non-concessional contributions by $90,000 (3 x $30,000).
DO I NEED TRAUMA INSURANCE COVER?
Being able to focus on your recovery after suffering a trauma event is going to be your primary
concern. Having trauma insurance can relieve your financial worries and allow you to do this.
You probably have some questions about this type of insurance you'd like answer
ed.
What is Trauma cover?
Trauma cover pays an agreed lump sum if you suffer a serious illness or injury that is covered in the plan you take out. The lump sum payment can help you make the adjustments to your lifestyle that you may either want, or need, to make after suffering a trauma event.
Why do I need it?
Nobody likes to think about the possibility of suffering a serious illness or injury in the future. You can't foresee this happening, but you can make plans to help support yourself should the unexpected happen. Having Trauma cover can provide you with some comfort to know that if something does happen at least you don't have to worry about money. As advances in medicine and technology continue, more people are surviving trauma events where in the past they may not have. And with people living longer, your chance of suffering a trauma event is increased.
As the chances of something unexpected happening are increased, along with the likelihood of your survival, you will want to have a plan in place to maintain your lifestyle and financial independence.
Do not hesitate to email/call us for further advice.
DON'T FORGET IT HAPPENED TO ME!!!
No comments:
Post a Comment