Super fund returns stabilise in April

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As markets saw less volatility in April, super funds saw some of March’s losses reversed, although the memories of the March falls remain fresh. Members enjoyed a positive result in April, recovering some of the value that was lost in March, but account balances remain down since the start of 2020. According to estimates from... Read more continue reading

Colonial First State data reveals surge in super switches

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New data from Colonial First State (CFS) reveals switches by super members were three times the usual rate in March as a number of Australians moved their superannuation to cash in the midst of the coronavirus impact on markets. Thirty nine per cent of members who switched their super, switched to cash. Against this trend,... Read more continue reading

Early super release and job subsidies lead advice enquiries

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Early release of super was the topic most frequently asked about by advisers’ clients during March and April as the government sought to limit the fallout from the Coronavirus, according to new figures from AMP’s technical adviser support team. The next most asked about issue was minimum pension drawdowns as the government relaxed the rules... Read more continue reading

COVID-19: Summary on early release of superannuation

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The Coronavirus Economic Response Package Omnibus Act 2020 (“the Act”) received assent on 24 March 2020.  Schedule 13 of the Act amends the SIS regulations to make provision for COVID-19 temporarily early release of superannuation.  Application for this early release must be made within the period of 6 months starting on the day the new regulation... Read more continue reading

Super splitting is more than agreement between the parties

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When the Family Court orders are finalised, the parties might think that it’s all over, but when it comes to super-splitting there’s considerably more to do. With one in three marriages in Australia likely to end in divorce, the splitting of interests in a Self-Managed Super Fund has raised a number of questions. Under the... Read more continue reading

Government needs to refine super access — fast

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The Government is getting most things right. But no one is perfect in the face of a crisis. For some of the most vulnerable people in society the Government’s message is effectively saying, “Use your own super to tide yourselves over and by the way, you’ll need to take it out at a massive loss,... Read more continue reading

Market fragility reminds us why risk is so important in super

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History has taught us that share market falls are inevitable. What is harder to predict is when they’ll occur. 9/11, the dot-com bubble and, more recently, the GFC, triggered significant declines. Just like Coronavirus, few, if any, saw those events coming and their impact on global markets. The full impact of Coronavirus remains to be... Read more continue reading

Do bushfires + financial hardship = early access to your super?

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Given all the talk about the dreadful bush fires you’d be forgiven for thinking victims could access their super to help with their recovery.  Think again, as Elizabeth Wang reports. Robert and Mary have been affected by the devastating bushfires. They are struggling financially and are wondering whether it is possible to withdraw some of... Read more continue reading

ATO steps up its documentation requirements

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ATO investment strategy guidelines update The ATO has recently issued new guidelines in relation to SMSF investment strategy compliance.  The rules or legislation in this regard have not changed but the ATO has stepped up its documentation requirements. The adoption of a tailor-made investment strategy approach by the ATO will necessitate changes in some industry... Read more continue reading

Buybacks show why you can’t trust the numbers

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Australia’s recent spate of off-market share buybacks highlights the misalignment between super funds’ pre-tax investment focus and what matters to fund members – after-tax returns. This is the view of global implementation manager Parametric in new research that graphically illustrates that funds participating in these share buybacks must ‘step backwards’ in pre-tax returns to ‘step... Read more continue reading