Another strategy was to do a combination of all or part of the money for those who started their funds before 1983, the 1st of July. The set one million as a limit was also supposed to be utilized by people if they were to get advantage in the new changes. According to Betamann (2006) a person was supposed to make sure that they had effectively quoted the number on the tax file (TFN) to make good use of the new rules on their superannuation funds.
Co-contributions were to be appropriately made to the government for the people whose contributions on the super is non-concessional, all these were recommended to be done before 1st July 2007. People were also advised to review their arrangements on salary contributions and confirm that the contributions they made did not go above the set limits. The set one million as a limit should be utilized by people if they are to get advantage in the new changes.
A recommendation was also made that one should make sure that they have effectively quoted the TFN to make good use of the new rules on their superannuation funds. Co-contributions should be appropriately made to the government for the people whose contributions on the super is non-concessional. Annette (2006) advised people to make a review on minimum payments allocated on pension and be careful about the amount of money they withdraw, because if one withdraws a lot of money, then it means their accounts would soon run out.
There was an advice to people to make applications for the health card of the seniors if they were legible for that. Checking whether one would suitably fit in the non-commutable to be able to enjoy the benefit of exception on the asset test which is on a 50% limit. Conclusion By and large the, the changes made on the 2007 simplified superannuation Act as Gnckenzie (2007) stated, have had a great improvement on the lives of the employees who were approaching retirement period.
The exemption of tax, tax deduction, reduction of tax on death penalties and tax free death benefits upon the immediate dependents are among the benefits the seniors have enjoyed. However, the limitations introduced in the Act may have negative effects on the retirees who may not be able to comply. If a retiree takes action on the advice offered by the scholars, then they stand a great chance to take advantage of the 1st of July simplified superannuation Act.
Annette, N. (2006).Choices of Individual Investment and Retirement Enhancement: The Subcommittee Hearing. New York: McGraw Publishers. Batemann, H. (2006). Retirement Provision in Scary Markets (3rd ed. ). Cambridge: Cambridge University Press. Clare, S. (2005). Retirement in Australia and Superannuation: The Government Fund. Cambridge: Anderson Publishers. Cohen, P. (1998). Superannuation and Retirement (2nd ed. ). Chicago: Moody Press Gnckenzie, R. (2007). The Book That talks On Money: How to Manage Your Money Well. Cambridge: Cambridge University Press.