Letters of the Week

Super limits, the problem with low rates, and French language barriers.

Where’s the limit?

Bruce Brammall’s June 27 article about the 50/50/500 rule says this stays in place until 2014. So if you are over 50 can you still contribute $50,000 to super?

D Blasko

Editor’s response: Bruce’s article explains that the federal government deferred the 50/50/500 rule in the most recent budget. This means the rule will not take effect until at least July 1, 2014. This means that the concessional contribution limit for everyone, no matter what age or balance, is $25,000.

Rates reversal

I am a new (trial) subscriber to Eureka Report. I don’t hear much coverage of the “other side” of RBA rate cuts from most commentators. Practically all the coverage focuses on mortgage owners who only represent a minority relative to others who are relying on interest rates to stay reasonably high to ensure SMSF investments in term and bank deposits stay well ahead of inflation. Why do you think all the media and government focus is on driving the cash rate down for the benefit of mortgage holders, when they only represent about one-third of the marketplace? Do you think the RBA take non-mortgage holders adequately into account?

M Smith

Editor’s response: Good to have you with us. Several of our writers have looked at the double-edged sword that is the cash rate. It may interest you to read back on some articles such as Robert Gottliebsen on term deposits or Elizabeth Moran’s recent article on how to stay ahead of inflation, as you mention, with inflation-linked bonds.

Barrière de la langue

As one who is currently in Paris I must disagree with M Clugston (Letters of the Week, June 27). Everywhere you go in Paris at present there are soldes, offering up to more than 50% off. Perhaps the inability to read French led to this misunderstanding.

J Simmonds

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