Bad news for us retirees, the million dollar plus man at the RBA has decided to push the lever forwards and cut the cash rate by 25 basis points to 2.00% – bugger !!!
When I retired in July 2010 the cash rate was 4.5% and were getting 6.0% for the term deposit in our SMSF.
I retired in July 2010 and a couple of week ago we went to see the accountants with all the usual paperwork to do my last tax return. Arrived home today after tending to the horses and a bit of shopping and the first thing is to check the mail box. These days we don’t like to see anything in there but today was a pleasant surprise, a nice healthy cheque from the ATO!
So that’s it, for me personally no more tax returns – hooray.
But wait…tax returns have not disappeared completely, we have our own SMSF that requires an annual tax return around Feb of each year. Never mind next time around the tax return will be very straight forward, no contributions or any other stuff just a pension paid out from monthly interest earned on a term deposit with a regional bank. I don’t think we will need an actuary report will will reduce costs even further.
Super co-contributions payments were made in January 2010, and we temporarily suspended payments from February 2010. The payment process has now resumed, with some payments made in late April 2010.
The ATO is on track to return to usual processing in May 2010, and currently expects to bring things up to date over May and June 2010.
If your payment has been delayed, you do not need to do anything. Interest will be paid as an additional super co-contributions amount where we have delayed payment for more than 60 days.
Apparently they will pay interest on the payments that have been delayed at the rate specified by the RBA, which is currently at 3.16% - wow
