from Andrew Harris principal of Minerds Bell Consultancy Group
Hi and welcome to my first bulletin for the year.
2020 is behind us and while we can’t know exactly what is ahead with Covid, we are really looking forward to 2021 and working with you again.
Over the last few months we have had 4 changes.
We said goodbye to Senior Adviser, Adrian Loader who retired after a wonderful career. We believe he is settling into his new lifestyle well, catching up on overdue gardening and of course fishing! Congratulations again Adrian on a stellar career.
We also said goodbye to Tao Finlay, who supported Adrian, then William Nicodin and Jim Herman. Tao has decided to move to Queensland to be closer to her family. We wish Tao good luck and a big thank you for your support and hard work.
We also welcome 2 new team members.
Emily Bridgland has joined us on reception. This allows George, who many of you know and has been outstanding in this role over the past few years, to become an Adviser Assistant to Will Nicodin and Jim Herman, the role vacated by Tao.
Our second new team member is Buddhini Dona in a technical paraplanning role working behind the scenes in our “engine room”. Buddhini along with Erin, will work closely with our Planners researching and putting together the strategies and advice we recommend to you to keep your financial plans on track.
A big welcome to both Emily and Buddhini.
Important recent and upcoming changes to super
There is now no work test required to contribute to super up to age 67, making it easier to get more money into super.
Super Guarantee contributions will increase from 9.5% to 10% effective 1/07/2021. This increases the amount an employer needs to contribute on behalf of employees
Superannuation contribution caps have been tabled (but not yet legislated) to increase on 1st July 2021. The concessional cap is set to increase from $100,000 to $110,000 p.a. and the non-concessional cap to increase from $25,000 to $27,500 p.a.
The pension cap is also set to increase from $1.6m to $1.7m from 1st July 2021.
Remember the super “catch up rules” that apply if your super balance is less than $500,000. They allow you to “catch up” any unused concessional contributions from 1/07/2018, i.e. $25,000 p.a. This can be a good way to reduce personal tax.
If you want to know more about how you might take advantage of these changes, please contact Will, Daran, Nat or me.
Did you know? Under the Covid early access to super arrangements that finished on 31st of December 2020, about $36 billion was paid out to members.
Providing you with advice is important and the compliance related activity we need to do in the background continues to change. For those of you with an Annual Advice Agreement whereby fees are deducted through your super or pension we will need to get annual Trustee Annual Fee Authority each year, just another document to get signed. Please bear with us as we adapt to this additional requirement.
Covid QR code check in
While the Covid 19 vaccine is being rolled out across the globe, it will be with us for a while and so we will continue to operate as “Covid safely” as possible, maintaining social distancing and where it makes sense, conducting meetings via phone or over the internet. When you do come in you will notice we now have a QR code displayed to help with contact tracing, should it ever be necessary. Please take a moment to use it.
With financial markets slowly recovering from early pandemic lows, it’s good to know Australia remains in good shape and has retained its AAA credit rating. See the article “Australia remains one of only 9 nations to hold a AAA credit rating”.
Also, for those of you who may be interested, an article from Dr. Shane Oliver, head of investment strategy and economics at AMP Capital “…. Seven things for investors to consider”.
That’s all for now.
Principal – Minerds Bell Consultancy Group