Hi Chris, great video! What about transferring the insurances to your new fund (perhaps in addition to auto insurance in your new fund)? This is a possibility isn't it?
It depends on your super fund. Industry super funds will generally not accept insurance from another provider and each retail super fund will usually only accept a transfer of cover from a few providers.
Excellent point Angela. With an Industry Super Fund CGT is not usually a consideration because tax is already accounted for in your balance at any given time. But yes, if you have a retail fund or SMSF, CGT is most certainly a consideration before rolling over. Thank you.
@@SuperGuyAu Hi Chris, If you ever need an idea for a video, I'd love to see how Industry funds and SMSFs account for CGT differently. It seems that you get a much larger benefit when a SMSF becomes pension phase and erases any unrealised CGT compared to an industry fund.
@@SuperGuyAu This whole area is an absolute mess. The ATO says you DO NOT pay CGT on their website while numerous other articles from tax advisors and financial planners and journalists say that you DO pay CGT. Something this important should be widely publicised and crystal clear. If CGT does indeed apply to rollovers then imagine the tax that people have unknowingly incurred while rolling over large super balances! The whole industry is full of marketing encouraging rollovers with barely a mention of the costs. And why on earth is the ATO telling people there is no tax to pay if there is? That is pure negligence.
I've left Australia but have my super of 18 years with AMP. I hear they are pretty much the worst these days. So "chasing" a better return with one of the top super funds would probably be warranted in this instance, do you think? :)
It's important to keep in mind that a super fund is not an investment. A super fund is merely a platform. Each super fund has a list of available investment options - sometimes hundreds. When it comes to returns, the investment option you choose within that super fund is what you should be analysing, not the super fund itself. Also, "top" super funds are rarely consistently top.
@@clientbounty Be careful of how this is interpreted. It hasn't been the best every year for 10 years - it has been the best on average for the past 10 years, as of this year. Next year will likely be a different super fund that has the "best return over the past 10 years". Consistently achieving the best return over the past 10 years every year would be impressive. Also, check the fine print of the month they decided to stop counting - the figures could be up to 6 months old in some cases.
Hi Chris,
Thank you so much for this greatly informative video series. You answered all of my questions completely in plain and simple language.
You're welcome, Eddie! Thanks for taking the time to comment.
Better than I was expecting. Thank you.
All good! Glad it was helpful.
Hi Chris, great video! What about transferring the insurances to your new fund (perhaps in addition to auto insurance in your new fund)? This is a possibility isn't it?
It depends on your super fund. Industry super funds will generally not accept insurance from another provider and each retail super fund will usually only accept a transfer of cover from a few providers.
Thanks Chris, great insights
You're welcome!
👍👍
Good job mate
Thanks Javad!
can you please do a comparison video MLC my super vs Australian super & Hostplus
Hi Chris. Just wondering if there is also capital gains tax to be paid when rolling over.
Excellent point Angela. With an Industry Super Fund CGT is not usually a consideration because tax is already accounted for in your balance at any given time. But yes, if you have a retail fund or SMSF, CGT is most certainly a consideration before rolling over. Thank you.
yes this one is my biggest concern.
@@SuperGuyAu Hi Chris,
If you ever need an idea for a video, I'd love to see how Industry funds and SMSFs account for CGT differently. It seems that you get a much larger benefit when a SMSF becomes pension phase and erases any unrealised CGT compared to an industry fund.
@@12345xfire Thanks for the idea! Yes, there is a major difference.
@@SuperGuyAu This whole area is an absolute mess. The ATO says you DO NOT pay CGT on their website while numerous other articles from tax advisors and financial planners and journalists say that you DO pay CGT. Something this important should be widely publicised and crystal clear. If CGT does indeed apply to rollovers then imagine the tax that people have unknowingly incurred while rolling over large super balances! The whole industry is full of marketing encouraging rollovers with barely a mention of the costs. And why on earth is the ATO telling people there is no tax to pay if there is? That is pure negligence.
I've left Australia but have my super of 18 years with AMP. I hear they are pretty much the worst these days. So "chasing" a better return with one of the top super funds would probably be warranted in this instance, do you think? :)
It's important to keep in mind that a super fund is not an investment. A super fund is merely a platform. Each super fund has a list of available investment options - sometimes hundreds. When it comes to returns, the investment option you choose within that super fund is what you should be analysing, not the super fund itself. Also, "top" super funds are rarely consistently top.
@@SuperGuyAu Thanks very much! I would think a 10 year average is a good indicator no? I'll look into it!
@@clientbounty Be careful of how this is interpreted. It hasn't been the best every year for 10 years - it has been the best on average for the past 10 years, as of this year. Next year will likely be a different super fund that has the "best return over the past 10 years". Consistently achieving the best return over the past 10 years every year would be impressive. Also, check the fine print of the month they decided to stop counting - the figures could be up to 6 months old in some cases.
TPD tax implications if a claim is made.
Are you referring to the TPD uplift? Certainly something to consider.
@@SuperGuyAu no I'm referring to rolling over an old super to a new plan and then having a TPD claim. The impact on eligible service days.