2019-20 Federal Budget

Government delivers surplus election-friendly 2019-20 Federal Budget

Leaves superannuation largely untouched

parliamentA surplus election budget is the news coming out of the 2019-20 Federal Budget. With superannuation left largely untouched, the Government focused on further personal income tax cuts.

However, three key announcements include providing more flexibility for individuals to contribute at ages 65 and 66, the ability to choose their preferred exempt income tax method and increased funding for electronic super rollovers are welcomed.

This Federal Budget will provide much-needed stability and flexibility for SMSF members while looking to reduce red tape.

The key changes proposed for SMSFs and superannuation are:  Read more…

Planning your estate planning

What would happen if…

Life does not always go to plan. Whilst we logically know that, most of us don't plan for the worst – it's all a bit morbid and time-consuming. 

generationThe downside of not planning is the potential for hard-earned assets to be squandered, family fall-outs, and money handed to the Government that could have been distributed in accord with your wishes. If you are a business owner, then the stakes are even higher.

As a population, planning is more important than ever because: 

  • The ageing demographic – 1 in 7 of us are now aged 65 and over (3.8 M)
  • The baby boomer generation represents only 25% of the population but hold 55% of the wealth
  • We are entering a period of intergenerational wealth transfer from the baby boomer generation
  • Over the last 25 years there has been an explosion of wealth in Australia

Read more…

Financial Life Plans

Financial Life Planning instead of retirement planning
On average, we are living longer and that's creating a set of new financial challenges for individuals and couples who need to accumulate sufficient wealth throughout their lives to generate adequate income to ensure a quality lifestyle in later years.

Research by the Stanford Center in the US focused on Gen Xers born between 1961 and 1981 and concluded that having a financial life plan rather than just a retirement plan is more important than ever.

It may be worth making mid-life adjustments to give this generation the best chance of not just living long, but living well, the report notes, and that may mean looking beyond superannuation for sources of income.

Income for life
Savings outside of super – money in the bank or a term deposit, a share portfolio or property investments – is the term now coined as 'income for life'. However with more of us holding multiple jobs or contracting in the gig economy, super contributions could be overlooked. 

Read more…

Collins Hume is Accounting Practice of the Year

Collins Hume named Accounting Practice of the Year by GPS Wealth

GPS Wealth named Collins Hume Accounting Practice of the Year 2018 at their annual conference held in Vancouver over the weekend.

Accounting Practice of the Year The award recognises best-practice wealth advice solutions and marks Collins Hume association with GPS Wealth, which started when ASIC regulation compelled accounting firms to obtain accreditation in order to provide self-managed superannuation advice.

"There were a number of high-quality finalists however, Collins Hume demonstrated an unparalleled commitment to providing their clients with quality advice through their relationship with GPS Wealth," says GPS Wealth Conference Coordinator Cathy Evans. 

"They are a regular participator in GPS Wealth events and provide much assistance and input into the understanding of the important Adviser and Accountant relationship. This partnership provides a personalised, tailored approach to meet their clients' investment needs and objectives."

Read more…

Testamentary Trusts quick summary

Testamentary Trust Wills

A type of Will that establishes a Trust or Trusts upon the death of the testator. 

trustThey are designed to protect the deceased's assets because they belong to the Trust rather than any individual. This allows flexibility for how capital and income generated by those assets is distributed.

Testamentary trusts are created by a need to provide a greater level of control over the distribution of assets to beneficiaries. There are also tax advantages available through testamentary trusts, making them an effective estate planning tool. 

Read more…