Self-funded retirees

A Labor Government on Tax & Super

Dividend imputation and the impact on self-funded retirees

retireesOne of the more controversial measures announced by the ALP is the reforms to the dividend imputation credit system to remove refundable franking credits from shares. 

The measure, as announced, would apply to individuals and superannuation funds, and exclude Australian Government pension and allowance recipients, and tax-exempt bodies such as charities and universities. SMSFs with at least one pensioner or allowance recipient before 28 March 2018 will also be exempt from the changes. The policy is intended to apply from 1 July 2019.  Read more…

Super and Tax Policy

The Major Parties' Superannuation and Tax Policies

The federal election has been called for May 18 and both major parties have outlined their superannuation and tax policies.

federal electionWith the federal election only weeks away many of our clients have been asking what the major political parties' policies are that may impact their SMSF, individual taxation circumstances or personal investments. 

If you would like more information on a particular policy announcement, please do not hesitate to contact our office to set up a time to discuss any requirements you may have.

Liberal-National Coalition
Superannuation

  • Australians aged 65 and 66 will be able to make voluntary superannuation contributions without needing to work a minimum amount. Previously, this was only available to individuals below 65. Read more…

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…