Latest News

Hot Issues
spacer
Small businesses may ‘collapse under strain of payday super’, IPA warns
spacer
ATO’s hands tied with scrapping on-hold debts, expert says
spacer
What Drives Your Business Growth and Profits?
spacer
Australian Taxation Office (ATO) shifting to firmer debt collection activity
spacer
Why employee v contractor comes down to fine print
spacer
Sharing economy reporting regime for platform operators
spacer
Countries producing the most solar power by gigawatt hours
spacer
Illegal access nets $637 million
spacer
Accessing superannuation benefits.
spacer
Does your business have a company Power of Attorney?
spacer
Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
spacer
GrantConnect
spacer
2 in 3 SMEs benefit from instant asset write-off, survey reveals
spacer
Updated guidance on R&D claims
spacer
Do you know how to recover debts?
spacer
Wheat Production by Country
spacer
Types of small business benchmarks
spacer
What is a Commercial Lease?
spacer
ATO warns advisers against suspect R&D tax claims
spacer
The year of workplace law upheaval
spacer
How to Resolve Invoice Payment Disputes
spacer
Raft of revenue tweaks in MYEFO to raise millions
spacer
The Countries that Export the Most Wine in the World
Article archive
spacer
Quarter 4 October - December 2023
spacer
Quarter 3 July - September 2023
spacer
Quarter 2 April - June 2023
spacer
Quarter 1 January - March 2023
spacer
Quarter 4 October - December 2022
spacer
Quarter 3 July - September 2022
spacer
Quarter 2 April - June 2022
spacer
Quarter 1 January - March 2022
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2017 archive
spacer
‘Bank-like heists’ make way for new wave of cyber crime
spacer
ATO reports on key contraventions for 2016-17
spacer
ATO, mid-tiers warn on common expenses myths
spacer
SMSF trustees told to take action on contributions
spacer
Higher instant asset write-off threshold for small business extended
spacer
Australian population figures
spacer
New data points to spiralling retirement costs
spacer
Personal insolvency numbers spike across Australia
spacer
ATO cracking down on taxable fringe benefits
spacer
Intangible capital improvements made to a pre-CGT asset
spacer
The three core pillars of this year's budget
spacer
Federal Budget - 2017-18 - Overview
spacer
Does your business import or export goods and services?
spacer
Federal Budget - 2017-18 - Budget documents
spacer
When does an asset cost less than $20,000? Depreciating assets: composite items
spacer
ATO finalises guidance for capped defined income streams
spacer
Warning on trap with trust deed updates
spacer
2011 Census - what was the make up of your area?
spacer
It’s no secret that Australians have some of the largest houses in the world.
spacer
Resources on our site to help you and your family.
spacer
ATO defends approach to SG compliance
spacer
Essential steps for SMSF clients before 30 June
spacer
New tax incentives for early stage investors
spacer
FBT Reminder – Odometer Reading
spacer
ATO on 'aggressive' debt recovery hunt
spacer
More ATO downtime looms ahead of tax time
spacer
Tax debt release applications refused
spacer
Troublesome tax system overhaul picks up speed
spacer
Government to ‘put to bed’ uncertainties with TRIS
spacer
Travel expense and transport of bulky tools claim denied
spacer
New law sheds light on global tax issues
spacer
Report tips housing price spikes to wipe out super savings
Report tips housing price spikes to wipe out super savings

Declining outright home ownership will effectively wipe out superannuation savings of some Australians, leading to a higher reliance on the government and taxpayers in retirement, according to a recent report.

       

 

The AIST report shows the declining home ownership due to deteriorating affordability will expose the inadequacy of Australia’s retirement income system, should the trend continue. 

Economist Saul Eslake said there is little to suggest the trend will stop, leaving retirees in the next three or four decades in a precarious position.

“An increasing proportion of Australians will reach retirement age having either never attained home ownership or still having at least some mortgage debt outstanding on their homes, which they will then rationally pay off using some or all of their superannuation savings,” Mr Eslake said.

“Failure to address the ongoing deterioration in housing affordability will condemn future generations of Australians to poorer standards of living in retirement, and ultimately result in increased demands for higher levels of financial assistance to retirees, leading in turn to a higher burden of taxation on the diminishing proportion of the Australian population who will still be working.”

Statistics from the ABS show that overall home ownership rates have dipped by 5.5 points since 1966, with nearly half of the drop occurring from 2001.

A more disturbing trend follows those who have ‘outright’ home ownership – those who have paid off their mortgages – from a peak of 61.7 per cent in 1996 to 46.7 per cent in 2014, a drop of 15 points.

“These prospects should encourage Australia’s current generation of political leaders to give more thought to what can and should be done to ameliorate or reverse the long-term decline in home ownership rates among people currently aged between their mid-20s and their mid-50s,” Mr Eslake said.

 

JOTHAM LIAN
Thursday, 30 March 2017
www.smsfadviser.com

Liability limited by a Scheme approved under Professional Standards Legislation.
© O'Brien and Partners 2022 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922. Site by Acctweb