Register for my FREE Why Work Till You Drop Webinar

FREE online webinar with tips and strategies you can action today to get off the treadmill of working till you drop – plus time for your questions

Media / Media Kit

Wayne Wanders, The Wealth Navigator in the Media

Who really wins if the $450 monthly earnings threshold for superannuation is removed?   – 29 October 2017

Analysis by Sydney Author and Chartered Accountant Wayne Wanders shows that unless regressive fees charged by superannuation funds like administration and exit fees are removed, it will be the superfund, not the low income earner who wins.

Mr Wanders said there has been a lot of talk lately about removing the $450 monthly earnings threshold for superannuation.

“Fundamentally, there are a lot of reasons why it makes sense to remove this threshold and have all employees get paid superannuation irrespective of what they earn.  But this change has to be made properly, or the only real winners from this change will be the superannuation funds themselves” said Mr Wanders.

Why?  Mr Wanders said most superannuation funds, whether they are retail or industry funds, charge regressive administration and exit fees.    These fees are the same whether you have $500 or $50,000 in superannuation.

“And what’s worse, these regressive fees eat away quickly at the superannuation balances of low income earners” said Mr Wanders.

To demonstrate this, Mr Wanders provided the example of three people who are just about to start working part time at a local pool teaching people to swim.  They are Mike and Jenny, both 18 and just about to start their first year of university and want some party money, and Paula, a 35 year mother, wanting some part time work whilst her kids are at school.

threshold for superannuation

“So if we really have low income earners superannuation balances at heart, not only should we remove the $450 monthly earnings threshold for superannuation, but we should also remove the regressive fees such as administration and exit fees, charged by retail and industry super funds alike” said Mr Wanders.

Click below to see a full copy of the Media Release

And Money Management has now published part of this release.  Click below to see what was published in Money Management.

Despite 25 years of Compulsory Superannuation in Australia, most people remain on the Treadmill to Work Till They Drop.

 – 18 October 2017

The Retirement Readiness Report, by the American Academy of Actuaries, the Australian Actuaries Institute, and the Institute and Faculty of Actuaries in the United Kingdom issued this week, concludes that inertia and procrastination are driving a lack of preparation for retirement.

Author and Chartered Accountant Wayne Wanders, said that the overall effectiveness of the superannuation system in Australia needs to be reconsidered in the light of the Retirement Readiness Report’s Australian findings, summarised in the infographic, which include:

  • the average age of retirement is increasing;
  • many people are planning not to retire at all;
  • most are planning to retire gradually rather than fully;
  • many are planning to retire after they turn 70; and,
  • relatively few are expecting a comfortable lifestyle in retirement.

“Despite 25 years of compulsory superannuation, most Australians remain on the treadmill to work till they drop” said Mr Wanders.

“This lack of engagement through inertia and procrastination, means that the compulsory superannuation system is failing in its efforts to get the majority of Australians off the pension.”

Click below to see the full version of the media release.

And Money Management has now published part of this release.  Click below to see what was published in Money Management.

I’ve Done The Math And Have Finally Worked Out When First-Home Buyers Had It Toughest  – 12 October 2017

Click on the images or link below to see where my blog about Sydney Housing Affordability released on 12 October  2017, has been picked up in the online publication Huffington Post Australia.

The Wealth Navigator

Ordinary workers to shoulder the tax load  – 17 May 2017

Click on the images or link below to see where my comments about Bracket Creep, taxman’s silent and insidious tax collector released on 16 May 2017, have been picked up in the online publication Macro Business.

The Wealth Navigator
The Wealth Navigator

Bracket Creep, the taxman’s silent and insidious tax collector  – 16 May 2017

Australian Low and Middle Income Earners should be more worried about the taxman’s silent and insidious tax collector, “Bracket Creep”, than about the extra Medicare levy they may soon face.

Analysis by Sydney Author and Chartered Accountant Wayne Wanders shows that the bracket creep hurts low and middle income earners more than the proposed increase in Medicare levy included in the recent Budget.

Mr Wanders said that bracket creep has meant that Australian taxpayers have paid billions of dollars in more tax than they realise.

For example, using data recently released by the Australian Taxation Office, Mr Wanders estimates that because of bracket creep, in 2014 – 2015 Australian taxpayers paid:

  • An extra $16.2 billion dollars in tax than they paid in the 2008 – 2009 year.
  • An extra $8.9 billion dollars in tax than they paid in the 2012 – 2013 year.
Bracket Creep

“This is substantially more than the $8.0 billion dollars in extra tax revenue that the increase in the Medicare levy is budgeted to raise in its first two full years” said Mr Wanders.

“And what’s worse is that whist the largest share in dollar terms of the extra $8.0 billion in revenue from the Medicare levy increase will come from high income earners, the bulk of the extra revenue from bracket creep in dollar terms comes from low and middle income earners.”

What is Bracket Creep?

To understand what bracket creep is, Mr Wanders provided the following example of Fred who is on a base salary of $75,000.

In the 2014-15 year Fred got an annual bonus above his base salary of $5,000.  On that $5,000 Fred paid tax and Medicare levy of $1,725.  So he pocketed $3,275 of the bonus or 65.5% of his gross bonus.

In the 2015-2016 year Fred’s salary did not change, but his bonus was $10,000.  On this bonus, Fred now pays $3,675 in tax and Medicare levy.   So out of the $10,000 bonus, Fred pockets $6,325, which is now only 63.25% of his gross bonus.

Now tax rates did not change between 2014-2015 and 2015-2016 but the effective rate of tax on Fred’s bonus went from 34.5% to 36.75%.

And that is what bracket creep is, said Mr Wanders.  “It is where a person pays a higher rate of tax as their income increases but the tax thresholds where tax rates change do not move”.

“And until tax thresholds are indexed with wage increases, bracket creep is the taxman’s silent and insidious tax collector.”

Click below to see a full copy of the Media Release

The Real Cost of Negative Gearing  – 12 April 2017

A new report released today by Sydney Author and Chartered Accountant Wayne Wanders shows that the real cost of Negative Gearing by “mum and dad” property investors is significantly less than other benefits provided by the Federal Government.

Mr Wanders said that the impact on the Federal Government’s budget of nearly 1.3 million individual “mum and dad” taxpayers who had negatively geared properties in the 2014- 2015 tax year was $1.6 billion dollars.

“This is substantially lower than the $5.0 billion dollar cost to the Federal Government’s budget of the 8.6 million taxpayers who claimed nearly $21.9 billion dollars in work related expenses in the 2014-2015 tax year” said Mr Wanders.

“And this is also significantly lower than spending in the 2015-2016 year on welfare items like the $7.4 billion dollars spent on the Child Care Rebate; the $20.9 billion dollars spent on the Family Tax Benefit; the $2.0 billion dollars spent on Parental Leave or the $6.2 billion dollar Private Health Care Rebate.”

“And this pails into insignificance when you realise that the Federal Government in 2014-2015 pocketed nearly an extra $5.5 billion dollars in income tax from individual taxpayers through bracket creep.”

Mr Wanders was able to use the Australian Tax Office’s own data from its recent release of the 2014-2015 Taxation Statistics, to determine in excess of $9.0 billion dollars of economic benefit to the Australian economy from these nearly 1.3 million individual “mum and dad” taxpayers.

“So for every dollar the Federal Government “assists” these taxpayers, they contribute over five dollars to the Australian economy.”

“All of which leads to the conclusion, that the 1.277 individual “mum and dad” taxpayers who negatively gear investment properties, are not costing the Australian economy and in fact are significantly contributing.”

Click below to see the full version of the media release and report “The Real cost of Negative Gearing

Why Most Women Will Be Financially Dead Before They Are Physically Dead –  7 March 2017

Why most women will be financially dead before they are physically dead

A new report released today by Author and Chartered Accountant Wayne Wanders, shows due to the collision of a perfect storm with a tsunami, women are at risk of having a twice as long retirement than men, on around half the money. 

Mr Wanders said that “As a result, women are more likely than men to face a future where they are financially dead well before they will be physically dead.”

“And between this period of financial death and physical death, women are a great risk of experiencing significant stress from living in poverty.”

Watch the video below to not only understand why most women will be financially dead before they are physically dead, but more importantly, learn how to avoid being caught in this gender gap.

Alternatively, click below the video to see the full version of the media release and the full copy of the report.

The Wealth Navigator

More Fake News About Self-Managed Super Funds (SMSF’S) –  27 February 2017

More Fake News About Self-Managed Super Funds (SMSF’S)

Sydney Author and Chartered Accountant Wayne Wanders, has stated that the report “ATO SMSF Annual Briefing 2016” and the associated media release recently issued by Industry Super Australia shows that it is not just America which suffers from Fake News. 

Mr Wanders said that “the Industry Super Australia (ISA) economists are comparing apples with oranges when they compare the 2015 performance of Self-Managed Superannuation Funds (SMSF’s) with the performance of Australian Prudential Regulation Authority (APRA) regulated funds.”

“The ISA economists are using SMSF return data provided by the Australian Taxation Office (ATO) to substantiate their claims that APRA regulated funds, and industry funds in particular perform better than SMSF’s, including asserting that SMSF’s with less than $2 million in assets is unviable.”

“But there are a couple of significant differences between how the ATO measures the return of a SMSF, verses how the returns of APRA regulated funds are measured” said Mr Wanders.

“Firstly, the ATO includes member’s insurance premiums as an expense when determining the return of a SMSF.  These are not included in the returns of APRA regulated funds.”

“And secondly, the returns quoted by APRA regulated funds do not include the administration fees APRA regulated funds typically charge their members outside of their investment earnings.”

Mr Wanders said “These differences have the effect of understating SMSF returns and overstating the returns provided by APRA regulated funds.  And because of this, the key conclusions drawn by the ISA economists about the viability or otherwise of SMSF’s are misleading to people who are considering setting up a SMSF.”

“A classic case of Fake News.”

Click below to see the full version of the media release.

The Real Reason for Sydney’s House Price Growth  – 30 January 2017

The Real Reason for Sydney’s House Price Growth – Is successive governments under investment in creating jobs in Regional Australia

A new report released today by Sydney Author and Chartered Accountant Wayne Wanders, shows that Mum and Dad negative geared property investors are not behind the rise in Sydney Property Prices. 

Mr Wanders said that “if the same negative gearing tax laws exist across Australia, why can Sydney house prices rise 94 per cent in the last 10 years, but Brisbane house prices only increase by 51 per cent and only 12 per cent in Perth.”

“Why can Sydney house prices go up significantly higher than regional NSW when the same rules are in place?”

“The facts show that negative geared Mum and Dad investors are not the prime reason behind the growth in Sydney house prices” said Mr Wanders.

Mr Wanders believes that the real cause of Sydney’s house price growth, is that successive governments have under invested in regional towns to drive jobs growth in those towns.

“And this lack of jobs is pushing people back into Sydney, placing pressure on Sydney’s housing stock and driving up house prices”.

Click below to see the full version of the media release and report “The Real Reason For Sydney’s House Price Growth

People Need to Realise That Superannuation Will Not be Enough for Retirement 4 October 2016

People Need to Realise That Superannuation Will Not be Enough for Retirement

All these promises about a golden retirement on the back of your current superannuation are lies. A fraud.  It will never happen.  9.5 per cent superannuation contribution will never get you there.

Author of the book Avoid the Poverty Trap and Chartered Accountant, Wayne Wanders said most Australians are on the treadmill to work hard all their life, just to retire poor.  Heading straight for what Mr Wanders calls the Poverty Trap.

Mr Wanders said the reason is fairly simple, a 9.5 per cent contributions level will never be enough!

Click below to see why your super will never be enough!

Superannuation’s importance to retirement savings is significantly understated by new Grattan Institute Research? 4 October 2016

Superannuation’s importance to retirement savings is significantly understand by new Grattan Institute research

The reality is that Superannuation continues to be one of the most important asset classes for retirement

Author of the book Avoid the Poverty Trap and Chartered Accountant, Wayne Wanders said that conclusions drawn by the Grattan Institute in its recently released report How Households Save for Retirement are flawed.

Click below to read the full media release

The Secret about Your Superannuation 3 August 2016

The Secret about your superannuation that the government, the banks and the unions do not want you to know!

 All these promises about a golden retirement on the back of your superannuation are lies. A fraud.  It will never happen.  The Retirement System in Australia is broken.

Mr Wanders said they want to keep it a secret “because between them, the Government, the banks and the unions have to be pulling over $15 billion dollars a year out of superannuation.  And if you knew the truth, you might put your money somewhere else.  Or you might want some accountability and we all know how much the government, the banks and the unions hate being held accountable for what they do.”

Click below to read the full media release.

Is Negative Gearing an Investment Property a Drain on the Australian Economy?  And should the tax rules be changed as a result? 19 April 2016

A new report released today (19 April 2016) by Sydney Author and Chartered Accountant Wayne Wanders shows that the economic benefit to the Australian economy by taxpayers who have negatively geared property is substantially higher than the income tax “subsidy” they receive.

Mr Wanders said that the 1.2 million individual taxpayers who had negatively geared properties in the 2013 – 2014 tax year contribute in excess of $10 billion dollars annually in economic benefit to the Australian economy.

“This is substantially higher than the estimated $2.6 billion dollar income tax “subsidy” these 1.2 million taxpayers received,” said Mr Wanders.

Northern District Times 22 July 2015

Register for my FREE Why Work Till You Drop Webinar

FREE online webinar with tips and strategies you can action today to get off the treadmill of working till you drop – plus time for your questions

Do you and your family a favour and start now.

Wayne Wanders The Wealth Navigator

wayne@thewealthnavigator.com.au

Password Reset
Please enter your e-mail address. You will receive a new password via e-mail.

Share This