My son is now at Uni and I am worried about fees eroding his super savings
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Q. My son worked at Macdonalds for 4 years and has a superannuation with employer contributions. He is now doing full time study at uni. Should he do something with this superannuation before it is eaten away with fees?
A: I just love it when people are conscious of fees within their superannuation fund. As you know there are far too many people who simply don’t care and then years later wonder what happened.
Just wish they understood that if you are in the wrong super fund, fees can easily strip 20% of your final retirement benefit (just imagine a slow drip from a tap - very soon the bucket is full and in this case the bucket belongs to the financial institution and in some cases, the financial planner). Read more
Do I get a refund of tax when my super is negative?
May 9, 2008 by Josie Kay · 2 Comments
Q. Investment earnings in superannuation are taxed at 15%. What happens when your super fund makes a loss? (as may well be for me again this year). Is there no tax? Is there a credit (I wish) or is the loss offset in future years within the fund?
Josie’s answer: This is a really good question and one I am sure lots of visitors to www.askjosiekay.com and listeners of Money Matters will have similar thoughts.
I am also assuming that your superannuation contributions are invested in an industry or retail superannuation fund (in other words, they are managed funds). You are right in stating that investment earnings in superannuation funds are taxed at 15%, however, this the maximum they pay.
In reality, they are probably paying a lot less, particularly if they are invested in shares as they can offset imputation credits attached to shares (in simple terms, they get a refund of any company tax, up to 30%, that may have been paid on the dividend when it is passed on to superannuation fund).
Therefore, you are probably paying a lot less than 15% and may even get a rebate of excess franking credits. I know a bit technical, but this is a good thing. Read more
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