April 2019 newsletter

The 2019 Federal Election has been announced for 18 May, and the ALP are now presenting their campaign policies to the nation.

On 2 April 2019, Josh Frydenberg announced his first Federal Budget as Treasurer. There were only a handful of policies that directly relate to superannuation, but also tax cuts and a one-off energy payment for older Australians.

On Thursday April 4th Labor leader Bill Shorten delivered his reply to this week’s Federal Budget. In this article we’ll look at Labor’s reply in relation to tax and superannuation measures, as well as announcements that affect older Australians.

With all the announcements on tax over the past few days it’s hard to keep track. So here goes. A year ago the then treasurer Scott Morrison unveiled a “seven year personal tax”.

Low fees went even lower in 2019, as revealed in the top 10 super and pension funds with the lowest fees.

Investors are enjoying an explosion in the range of sustainable investment options in the market. Between 2016 and 2017 there was a 340% rise in funds that screen assets for their sustainability features, or lack thereof.

Making a tax-deductible super contribution can be a great way to boost your retirement savings. Find out whether they could be the right strategy for you.

Whatever your circumstances, it’s important to canvass all your options before you make your final selection. It’s also worth remembering that your choice of fund is not a life sentence. If you are unhappy with your fund for whatever reason, you are free to switch funds provided you have choice.

To legally access your super in Australia you must satisfy a condition of release. Different conditions of release have different payment conditions and tax implications.

We all have expectations about what our retirement will look like in terms of lifestyle, but how does retirement actually pan out for those living in retirement?

Most Australians prefer to die at home but few adequately plan for it. Consequently, just one in seven dies at home. Some say they will make plans “when the need arises”. But what if you have a heart attack, go into a coma, have a stroke, or develop dementia before having shared your thoughts?

You can receive a tax credit by buying shares in Australian companies that pay franked dividends. Dividends paid to shareholders by Australian resident companies are taxed under a system known as imputation.

One of the unique characteristics of self-managed superannuation funds (SMSFs), which make them attractive to some investors, is their ability to invest in direct property.

SMSF trustees are legally obliged to ensure their fund’s compliance with superannuation legislation in Australia. The ATO imposes a range of penalties for non-compliance, depending on the seriousness of the breach.

Which investments are most popular with SMSFs? A short and simplistic answer is that shares and cash and term deposits compete as the most popular investments across the board for SMSFs.

One of the benefits of having a self-managed superannuation fund (SMSF) is its ability to pay members an income stream, or account-based pension. Of course any superannuation fund can do this, but paying a pension from an SMSF offers members more control and flexibility.

How long does it take to double your investment? By applying The Rule of 72, you’ll be able to answer that question since it is an easy mathematical formula.

Planning for your retirement and working out how much you’ll need to enjoy a good standard of living after your working years can be a complex task, and one factor that needs to be considered is inflation.

Despite a partial rebound in April, all lifecycle fund age cohorts have had negative returns for the financial year to date. Younger members with higher exposure to risk assets have borne the brunt of the downturn, while older members with a more defensive asset allocation have been cushioned from the worst of the falls.