Archive for July, 2013
Reducing super tax concessions for very high income earners
Legislation to reduce the tax concessions associated with certain concessional superannuation contributions (CCs) made by or on behalf of ‘very high income earners’ is now law. As these measures are effective from 1 July 2012 they may impact on the current remuneration and related financial plans of ‘very high income earning’ individuals.
The measures will impose an additional tax of 15% on certain CCs where the individual’s income plus relevant concessional contributions exceed $300,000.
Increased concessional contributions cap
The US Federal Reserve’s 19 June forecast for the US economy and statement on the tapering of its “QE” program has caused global market noise and panic.
The message that many investors missed was that the US Fed is unlikely to withdraw quantitative easing until there is a significant improvement in jobs growth – which is why the US Federal Reserve Chairman reiterated in a speech on 10 July that the US easy money policy is still necessary because the jobs market is not yet showing sufficient growth and inflation remains too low.
There is also no evidence behind the noise to suggest that the global economy is sinking.
Here are several reasons why.
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