Using super to save for your first home

Using super to save for your first home

Saving for a first home is hard. From 1 July 2018, the first home savers scheme will enable first-home buyers to save for a deposit inside their superannuation account, attracting the tax incentives and some of the earnings benefits of superannuation.

Home savers can make voluntary concessional contributions (for example by salary sacrificing) or non-concessional contributions (voluntary after tax contributions) of $15,000 a year within existing caps, up to a total of $30,000.

When you are ready to buy a house, you can withdraw those contributions along with any deemed earnings in order to help fund a deposit on your first home. To extract the money from super, home savers apply to the Commissioner of Taxation for a first home super saver determination. The Commissioner then determines the maximum amount that can be released from the super fund. When the amount is released from super, it is taxed at your marginal tax rate less a 30% offset.  Read more…

Super concessions for downsizers

Super concessions for downsizers

If you are over 65, have held your home for 10 years or more and are looking to sell, from 1 July 2018 you might be able to contribute some of the proceeds of the sale of your home to superannuation.

The benefit of this measure is that you can contribute a lump sum of up to $300,000 per person to superannuation without being restricted by the existing non-concessional contribution caps - $100,000 subject to your total superannuation balance - or age restrictions. It's a way of building your superannuation quickly and taking advantage of superannuation's concessional tax rates. 

The $1.6 million transfer balance cap will continue to apply so your pension interests cannot exceed this amount. And, the Age Pension means test will continue to apply. If you are considering using this initiative, it will be important to get our advice to ensure that you are eligible to use this measure and the contribution does not adversely affect your overall financial position.  Read more…

More Attractive Products/Services

Make Your Products/Services More Attractive

The real economic growth in the Australian economy for the decade since 2007 was 2.4%. 

This was one-third lower than the performance in the previous decade which was 3.7%.

Growth in the Australian economy has fallen below real economic growth in many other advanced countries.

Businesses need to be more conscious of the need for innovation to develop new products and services. Without innovation, businesses need to gear up for continual slow growth. The expectation now is that, whilst interest rate rises are still probable, rate rises will probably not happen during 2017.  Read more…

CH Board of Advice services

Board of Advice/Board of Directors

If you are wanting to grow your business an important step is to form a Board of Advice or a Board of Directors.

The benefit you will get will be that you will have the benefit of being able to gain input from other experienced business people on issues and problems that are confronting you, because most businesses encounter similar problems.

Around 80 to 90% of business problems generally apply to other businesses as well as the problems that you are experiencing.

The formation of a board can also play a significant part in assisting you and your colleagues with a better understanding of corporate governance and director's duties.  Read more…

Selling property valued at $750k+

Selling a property valued at $750k or more - what you need know

Every vendor selling a property needs to prove that they are a resident of Australia for tax purposes unless they are happy for the purchaser to withhold a 12.5% withholding tax. 

From 1 July 2017, every individual selling a property with a sale value of $750,000 or more is affected.

To prove you are a resident, you can apply online to the Tax Commissioner for a clearance certificate, which will remain valid for 12 months.

While these rules have been in place since 1 July 2016, on 1 July 2017 the threshold for properties reduced from $2 million to $750,000 and the withholding tax level increased from 10% to 12.5%.  Read more…