Latest news with #UniSuper
Bloomberg
6 days ago
- Business
- Bloomberg
UniSuper Turns to Cash to Navigate Market Ructions
Hello, Rich Henderson in Bloomberg's Melbourne bureau with the latest headlines... Today's must-reads: • UniSuper ramps up cash holdings • Demand for Aussie bonds falls • Australia cracks down on crypto ATMs UniSuper is ramping up its holdings of cash to navigate market uncertainty. John Pearce, chief investment officer of the A$149 billion fund, said its cash holdings were approaching Covid 19-era levels as Donald Trump's trade war roils global markets.
Bloomberg
6 days ago
- Business
- Bloomberg
Cash Is Key Trump Trade for $96 Billion Australian Pension Fund
One of Australia's largest pension funds, UniSuper, is ramping up its cash holdings to near Covid 19-era levels as President Donald Trump's trade war roils global markets. John Pearce, chief investment officer of the A$149 billion ($96 billion) fund, called cash the 'only risk-free investment' and said his firm was wary of the risk that a rise in US inflation could hit both stocks and bonds simultaneously.
Yahoo
22-05-2025
- Business
- Yahoo
$500 ATO cash boost that Aussies have weeks to claim: ‘Hard to beat'
Millions of Australians have just weeks left to secure a free $500 from the government. The cash boost is from the government's superannuation co-contribution scheme and needs to be done before the end of the financial year. The government scheme allows eligible lower and middle-income Australians to top up their retirement savings by partially matching individual after-tax contributions. The government can give you up to $500 if you add in $1,000 yourself, making it a 50 per cent return. UniSuper state manager of advice Derek Gascoigne told Yahoo Finance that Aussies needed to leave enough time for their personal contribution to go into their super fund before June 30. RELATED Superannuation change to give Aussie workers pay rise in weeks: '$29,000 boost' Forgotten ATO deductions that can boost your tax refund by $974 Common $358 a day expense the ATO lets you claim on tax without receipts 'Doing it on the 30th of June doesn't guarantee that the contribution will register in their account on that day to qualify them for the co-contribution,' he said. 'Definitely not leaving it until the last minute is probably the best advice I can give. Deadlines vary from fund to fund, but doing it at least a week or two beforehand should ensure that the contribution will fall safely into the bucket for this financial year.' Gascoigne said the 50 per cent return was 'pretty hard to beat' anywhere else. When compounding is taken into account, the move could make a 'significant' difference to your retirement savings. If you are an eligible low or middle-income earner and make a personal non-concessional after-tax contribution to your super fund, the government will make a 50 per cent co-contribution of up to $500. The co-contribution you receive depends on your income and how much you contribute to your super. You need to earn $45,400 or less for the 2024-25 financial year to be eligible to claim the full $500 amount and contribute $1,000 to your super. You can still get a contribution if you earn up to $60,400, but the amount you can claim will progressively reduce as your income increases. 'The contribution itself slowly diminishes once that person's income reaches $60,400, where it cuts out altogether,' Gascoigne told Yahoo Finance. 'So there's less benefit for someone to do this when they are a lot closer to $60,000 than $45,000.' For example, someone earning $50,000 would be eligible for a maximum co-contribution of $347. That means they would only need to contribute $694, double the $347 co-contribution, to get the maximum benefit. You can use the ATO's calculator to estimate your entitlement and eligibility. To get the government co-contribution for this financial year, you need to make a personal non-concessional contribution to your super fund by June 30. That's contributions from your take-home pay, not contributions made by your employer, salary sacrifice contributions or contributions that have been claimed as a tax deduction. When you lodge your tax return, the ATO will automatically work out if you are eligible and pay the amount directly into your super fund. The ATO said it makes most super contributions between November and January each year for personal contributions made in the previous financial year. Gascoigne said the super co-contribution was an 'attractive' scheme, particularly for younger people. However, it's worth remembering that once you put money into your superannuation, you won't be able to access it until you hit retirement age. 'If you're a 30-year-old and the earliest age at which you can access your super under normal circumstances is 60 if you cease employment, that's 30 years that you're putting that money away,' Gascoigne said. 'From a saving and investment perspective it's amazing, but from a liquidity and funds point of view it obviously has a few knobs on it for some people because there's so many other things that might demand that they have that money ready.' If you are worried about making a big upfront contribution, Gascoigne said you could consider making automated smaller contributions. For example, you may not miss smaller $20 contributions made on a regular basis and this could add up to $1,000 by the end of the year. 'You can get that $500 and rinse and repeat for the following year, hopefully,' he while retrieving data Sign in to access your portfolio Error while retrieving data
AU Financial Review
19-05-2025
- Business
- AU Financial Review
How this VC fund landed $100m from UniSuper
One of Australia's largest industry funds UniSuper has lifted its venture capital allocation to $100 million, ignoring fears Labor's super tax reforms could remove the incentive for retirement savings to be invested in technology start-ups by increasing its stake in CSIRO-owned Uniseed. The super giant made its foray into venture investing in 2022 with $75 million into Uniseed – a fund co-owned by the nation's research agency, CSIRO, and nine major Australian universities – and has now increased this with a further $25 million.
Yahoo
16-05-2025
- Business
- Yahoo
$25,500 superannuation ‘hack' that could save Aussies thousands: ‘Clock ticking'
Aussie couples have until June 30 if they want to take advantage of a superannuation "hack" that could help them save tax, boost their Centrelink age pension eligibility and potentially give them access to a bigger retirement nest egg sooner. Super contribution splitting allows couples to transfer up to 85 per cent of concessional super contributions made in the previous financial year from one partner to another. The application can usually only be made once the financial year is over. UniSuper state manager of advice Derek Gascoigne told Yahoo Finance this meant couples keen to take advantage of the strategy for the last financial year only had a limited window of time to act, with the "clock ticking". RELATED Retirement warning as controversial $3 million superannuation tax change looms: 'Be proactive' Coles shopper 'stunned' after getting $50 item free due to little-known rule: 'Insane' Dad with no savings reveals surprising money message for struggling Aussies: 'Living pay to pay' 'Once the clock ticks over onto the 1st of July 2025, then an individual can only go back and split what they made during the 2024 and 2025 financial year,' he said. 'The window to go back and split the 2023-24 financial year is closing rapidly, hence the sense of urgency.' Importantly, couples can only split concessional contributions, which include contributions made by your employer, or any personal contributions you've made contribution splitting can be made to a spouse's super account, which includes de facto spouses. There is no age limit for the splitting partner, but the receiving partner must be under the age of 65, or between 60 and 65 and not retired. Gascoigne said contribution splitting had to be done 'manually' each year and you had to put in an application with your super fund before June 30. 'It's rare, but not all super funds offer it; it's not compulsory for super funds to offer it,' he said. 'So it's always a case of people checking their super funds to make sure they can do this and there's a form to fill out.' Gascoigne gave the example of a person who made $30,000 worth of gross concessional contributions, which is the current concessional contributions cap, last financial year. This then gets taxed at 15 per cent, so the person can split up to 85 per cent of the amount with their partner. That means they can transfer $25,500 into their partner's account. Aussies can also take advantage of carry forward rules, which allow eligible people to carry forward any unused concessional contributions cap amounts from up to five previous years. So if one partner made $60,000 of concessional contributions last financial year, they could still transfer 85 per cent of that amount ($51,000) to their partner's super this year before June 30. The amount transferred does not count towards the partner's contributions cap and is treated more like a transfer or rollover. Gascoigne said there are a few 'strategic' reasons why couples may want to consider contribution splitting, with UniSuper noting it could potentially save couples thousands of dollars. Firstly, there could be tax benefits to equalising the two super balances. 'So often you've got Partner A with most of the super in their name and Partner B has less,' he told Yahoo Finance. '[Contribution splitting] can lead to, for example, both partners being able to potentially hold more money in the tax-free investment environment of the retirement pension phase later on because Partner A is subject to transfer balance cap limits.' The government has announced plans to increase the tax rate for super earnings from 15 to 30 per cent for balances over $3 million. Contribution splitting could help you avoid hitting this limit. Secondly, couples who have an age difference may benefit from the strategy. 'They might split some of the super on a regular annual basis from the younger spouse to the older spouse,' he said. 'Aggregating the super wealth into the name of the person who's likely to be in a position to access that money earlier, they could use it for potentially starting income streams, or it might be accessible as a lump sum to pay down debt.' Likewise, splitting super from an older to a younger spouse could help reduce assessable assets for Centrelink age pension benefits. The younger spouse's superannuation won't be counted by Centrelink while they are under the age pension age. Gascoigne said it's worth considering your partner's super fund, including fees and investments, before you split. 'Are you going from a lower fee fund to a higher fee fund, which would take a bit of the shine off?' he said. 'If you are moving from Partner A's account, which is invested at a particular level of risk, and investing in Partner B's account, which is at a different level of risk, is that what you want?' Gascoigne said it was worth checking with your individual super fund to see if any administrative deadlines applied. It can also be worth seeking financial advice to ensure the strategy is right for your circumstances.
