Latest news with #PeterHogg
Yahoo
17-06-2025
- Business
- Yahoo
Devastating superannuation tax reality hitting 50,000 Australians in growing trend
Australians are being warned about the tax implications of withdrawing their superannuation early, as thousands jump on the growing trend. While you might think you can't access your nest egg until you reach retirement age, you are able to crack open that fund for compassionate reasons. Rose Charles did that when she was diagnosed with cancer in 2020. She had dozens of treatments to beat the illness, but used her super for just one procedure that cost $35,000. But what she didn't realise was how much she lost because of the way superannuation is set up. Superannuation payment boost for 10 million Australian workers $1,000 ATO school fees tax deduction that Aussies don't realise they can claim Centrelink age pension changes coming into effect from July 1 When money goes into your super account, it gets taxed at 15 per cent. However, if you access your retirement savings on compassionate grounds, it's taxed on the way out, but this time as a normal super lump sum. This means it will usually get hit with whatever is lower out of your marginal tax rate or 22 per told 9News the tax office got a "fair chunk" of her money before she was able to use it for her cancer treatment. More than $1 billion in compassionate superannuation withdrawals were actioned last year alone by at least 50,000 people. Aware Super general manager Peter Hogg told the news programme he had seen a 10 per cent increase in the number of people withdrawing their super early to tackle tough life situations in just the last 12 months. The Australian Taxation Office (ATO) has certain circumstances for when you can take out money before you fully retire or hit 60. You can use your super if you need: Medical treatment for you or your dependant Medical transport for you or your dependant To modify your home or vehicle to accommodate special needs arising from your or your dependant's severe disability Palliative care for you or your dependant's terminal illness Death, funeral or burial expenses for your dependant To prevent foreclosure or forced sale of your home The ATO said people needed to be wary of accessing their super early as it can impact their future retirement income, their income protection insurance, and certain social security payments or benefits. The ATO said the tax on early accessed super will depend on a bunch of factors like age, your preservation age (which is generally the earliest age you can access your super), and the components of the super lump sum. If you draw on your super early, it can usually count towards your assessable income for income tax purposes. That means you will need to include that in your tax return for that financial year. However, you might be able to request a refund of any tax withheld from your super lump sum payment. That only applies if your medical condition was terminal at the time you accessed the money or within 90 days of receiving the payment. You first need to check if you're eligible to withdraw your money early, and there are different criteria if it's for yourself or someone else, which you can find out more about here. Then, you'll need to gather evidence to provide to the ATO. Before submitting a request to the tax office, you have to contact your super fund and check whether they will release your money for compassionate grounds. They will assess whether there is enough money in your account to cover the expenses you need, as well as the tax. There could also be certain fees you have to pay to crack open your nest egg, even if it's for compassionate in retrieving data Sign in to access your portfolio Error in retrieving data
The Australian
04-06-2025
- Business
- The Australian
Tax return: Super fund tips to avoid costly end-of-financial-year mistakes
Investors are making mistakes costing them thousands of dollars by rushing to beat the June 30 end of financial year deadline. While it pays off to tidy up financial affairs before this month comes to a close, a knee-jerk reaction can prove costly. Aware Super general manager guidance and advice Peter Hogg said June was a peak time for superannuation mistakes. The fast-approaching June 30 deadline created a 'perfect storm of rushed decision-making,' Mr Hogg said. 'People suddenly realise they haven't optimised their super contributions and scramble to make last-minute moves, often without proper planning or advice,' he said. 'Most often, it simply comes down to not understanding the rules.' Most super contributions, tax incentives and government schemes generally have June 30 deadlines, and missing them can translate to thousands of dollars of lost opportunities. Super specialists say errors include voluntary contributions, co-contributions, spouse contributions, exceeding caps and other limits and failing to take advantage of the carry-forward rules. Vanguard's Renae Smith. Picture: Supplied Aware Super's Peter Hogg. Picture: Supplied Mr Hogg said thinking June 30 was the deadline for super fund contribution deadlines was a common error. 'You may think transferring funds on June 30 means you're safe,' he said. 'However, contributions must be received by the fund before its cut-off date, which may fall days earlier depending on our method of payment.' A majority of major super funds say members must make their contributions by June 23 to ensure the fund processes the money in time. Vanguard Australia says this month is a good time to make voluntary super contributions, and calculated that a single $1,000 contribution at age 30 could grow more than eight times in value by age 67 to $8,438. Someone earning $80,000 who injects $1,000 into super as a concessional contribution gets a tax deduction for it and a $320 tax refund, it says. Vanguard Australia chief of personal investor Renae Smith said it was best to make additional contributions at least a week before June 30. 'For higher-income earners, a key issue is exceeding the concessional contributions cap,' she said. 'For this financial year, the cap is $30,000. Going over this limit can result in additional tax, so it's important to keep track of all contributions, including those made by your employer.' Colonial First State head of technical services Craig Day said another common mistake was people failing to check that all contributions reached their account, so they missed out on their entitlements. 'The best way to check is to log in to your super account,' Mr Day said. 'You can also use the ATO's Super Guarantee estimator to check your entitlements, and if you believe there's been a mistake, talk to your employer. There are ways to follow up super payments from past employers as well.' Mr Day said for couples where one partner earned below $40,000 there was an easy mistake to be made by failing to take advantage of spouse contributions incentives, which provided a tax offset to the contributing spouse. 'To get the full tax offset of $540, you must contribute at least $3,000 and your spouse must earn less than $37,000,' he said. 'The offset phases out at $40,000.' Aware Super's Mr Hogg said other incentives benefiting from pre-June 30 contributions included the $500 co-contribution scheme for low and middle income earners, First Home Super Saver Scheme and carry-forward contributions. 'If your total super balance was under $500,000 on June 30 last year, you may be able to contribute more than the usual cap by using unused limits from the past five years,' he said. Mr Hogg said the impact on retirement savings of June superannuation mistakes could include higher tax bills, missed government payments and reduced benefits of compounding returns. 'Even small delays in getting contributions into your account can reduce the long-term growth of your super due to lost investment time,' he said.
Sydney Morning Herald
03-06-2025
- Business
- Sydney Morning Herald
How one simple switch can supercharge your super
We're often encouraged to put money into superannuation, but contributions aren't the only thing that can help set you up for a comfortable retirement. In fact, says Peter Hogg, general manager of guidance & advice at Aware Super, 'as much as 50 per cent of your super balance at retirement may be determined by your investment returns'. Those investment returns come down, in large part, to the portfolio type you select. Because whether you know it or not, every Australian's super is placed in an investment strategy that's typically either conservative, balanced or higher risk, often known as 'high growth'. Loading Higher-risk strategies are more susceptible to market fluctuations but yield a better return in the long term. Conservative or balanced are less exposed to that short-term risk, but typically won't make as much money over multiple decades. And done right, choosing that high-risk strategy – especially when you're younger – can make a huge difference down the line. 'Obviously, contributing to super is great and really important as well,' says Hogg.
The Age
03-06-2025
- Business
- The Age
How one simple switch can supercharge your super
We're often encouraged to put money into superannuation, but contributions aren't the only thing that can help set you up for a comfortable retirement. In fact, says Peter Hogg, general manager of guidance & advice at Aware Super, 'as much as 50 per cent of your super balance at retirement may be determined by your investment returns'. Those investment returns come down, in large part, to the portfolio type you select. Because whether you know it or not, every Australian's super is placed in an investment strategy that's typically either conservative, balanced or higher risk, often known as 'high growth'. Loading Higher-risk strategies are more susceptible to market fluctuations but yield a better return in the long term. Conservative or balanced are less exposed to that short-term risk, but typically won't make as much money over multiple decades. And done right, choosing that high-risk strategy – especially when you're younger – can make a huge difference down the line. 'Obviously, contributing to super is great and really important as well,' says Hogg.
Yahoo
14-05-2025
- Automotive
- Yahoo
Transdiagnostics introduces new digital solution to enhance freight rail safety
Transdiagnostics has introduced Transend, a digital solution aimed at enhancing safety and efficiency in freight rail operations. This system, which has undergone a successful four-year trial, replaces traditional monitoring technologies with predictive diagnostics, thereby aiming to lower the risk of derailments and improve operational performance. Transend marks an advancement in the freight rail sector, which has lagged behind other transport industries, such as trucking, in adopting digital technologies, according to the company. The system utilises Internet of Things (IoT) technology, sensors, and cloud computing to provide stakeholders, including shippers, car owners, regulators, and shareholders, with insights that enhance network reliability, logistics coordination, and supply chain resilience. The platform delivers insights every ten seconds, offering operators immediate access to critical performance metrics such as wheel and bearing temperatures, brake status, rail car handling, and any acoustic or vibration irregularities. Designed to function effectively in high-traffic areas and extreme weather conditions, Transend's cloud-based framework integrates with existing control systems, facilitating safety improvements without disrupting operations. The system enables operators to identify and replace underperforming equipment while also reducing overall fuel consumption. With the implementation of Transend, freight rail operators can modernise their systems, gain insights into daily operations and long-term performance, and enhance their competitiveness and efficiency in a rapidly evolving industry, stated Transdiagnostics. This need for efficiency is underscored by increasing regulatory pressures, including the proposed Railroad Safety Enhancement Act of 2024 (H.R.8996) in the US, which was introduced in response to recent derailments, such as the incident in East Palestine, Ohio. Transdiagnostics co-founder Peter Hogg said: 'The freight rail industry has long relied on outdated systems and reactive safety measures, such as wayside detectors that offer fragmented and delayed data. 'Transend delivers real-time intelligence to control and maintenance teams, enabling operators to prevent failures before they occur.' "Transdiagnostics introduces new digital solution to enhance freight rail safety" was originally created and published by Railway Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
