When David Morgan suggests (AFR 12/6/03) “…accelerating the phased increase in the preservation age for superannuation from 55 to 60…..” those of you currently aged less than 50 who are anticipating (semi)retirement at 55, should be re-assessing your plans. It’s most unlikely you’ll be able to access your super until you are at least 60, even then I suspect you won’t be able to take it as a lump sum.
With the demographics of employment fixed into an unalterable decrease in the number of workers, resulting in the inevitable decrease in income taxes; and the dominance of the ‘baby boomers’ who will not countenance any restrictions in health care, where will future governments find extra taxes ? From superannuation that’s where ! If you think that legislation governing super has altered a great deal in the last 10 years, you ain’t seen nothing yet!
UPDATE: to Down on the Farm.
Where it isn’t your main job, a business that can’t satisfy the commercial business rules can defer losses to a future date when one of the tests is passed. A detailed explanation of the non-commercial business losses rules, and the four tests and two special circumstance entitlements, is given in a tax ruling, TR 2001/14.