IMPORTANT: Effective from 20 September 2017, the government has again indexed the income test thresholds for the CSHC (see this article for latest thresholds). The next indexation of the CSHC income thresholds takes place on 20 September 2018. Note that since 1 January 2015, new applicants for CSHC need to include ... Read more
Property and super: What’s the deal? (15 popular Q & As)
We receive many questions from readers about investing in property using superannuation money. Questions range from: ‘Can I withdraw my super to buy a house to live in?’, right through to ‘How can I use my super fund to borrow money to invest in property?’.For the convenience of our 2.5 million-plus readers, we ... Read more
Accessing super to purchase first home
Q: I am 56 years of age. Can I use my super to purchase my first home in Australia?The answer is no, and yes.The general rule is that you must satisfy a condition of release to access super and wanting to buy a property to live in, is not considered a condition of release.The ‘yes’ bit starts now.If an ... Read more
Know your super limits: Reducing CGT via concessional contributions
Q: I am one of those people (and my wife) who made the decision years ago to invest in property rather than super. Now at 60, (wife 57) I am retired and live off my property investments. I would like to get rid of the properties at about age 65. Mainly because of the worry, and maintenance upkeep, and to give us more ... Read more
Co-contributions: Can I claim the tax-free bonus as a property investor?
Q: I am not working but I source my income from rents derived from my property investments. Am I able to participate in the Government co-contribution scheme?For an Australian to be eligible for the co-contribution scheme they need to be earning 10% or more of their total income from eligible employment, or from ... Read more
SMSF borrowing: Is a limited recourse borrowing arrangement the same as a non-recourse loan?
Q: Can you differentiate between a limited recourse borrowing arrangement and a non-recourse loan. Are they the same thing?The precise meaning of different terms will depend on the definitions contained in the contract that the loan provider requires a borrower to sign.Generally speaking, however, limited ... Read more
Accessing super for a home loan deposit?
Q: A few years back my wife and I owned six homes, before we were caught out by a marketeer over an investment. We lost it all. Not good when you consider we are in our 50s. Now 58, we are looking at trying to by a modest unit or home, within the next two years. Would we both be able to cash in our super funds toward a ... Read more
SMSFs: How do I calculate CGT on an asset sale?
Q: If I purchased a rental property in my SMSF for say $300,000 five years ago and the house is now valued at $400,000 in the SMSF what will be the capital base for the calculation of future capital gains tax (CGT) if I sell the flat? Will it be the original $300,000 or the $400,000?A: I am not permitted to provide ... Read more
Age Pension: Assets test thresholds applicable from September 2017
Note: This article explains the latest Age Pension assets thresholds, applicable from 20 September 2017, and also earlier thresholds (including from 1 July 2017 until 19 September 2017, and 20 March 2017 until 30 June 2017, and from 1 January 2017 until 19 March 2017). If you are seeking information on the latest Age ... Read more
Planning your retirement: 10 tips for choosing the right retirement income calculator
Anyone who’s ever spent a few minutes popping numbers into their super fund’s online retirement calculator to find out if their retirement savings are on track knows it’s a confusing process.Calculators ask lots of questions and produce some great charts, but they’re only as good as the information you put into ... Read more
Death benefits: Is a binding DBN different from a reversionary pension?
Q: What is the difference between a binding death benefit nomination and a reversionary pension? Should a retail fund offer a reversionary pension option? The forms for my fund only mention binding death nominations.The terminology surrounding superannuation and death can be confusing and intimidating.A ... Read more
Concessional contributions cap: 10 super facts you should know
We receive many questions about the concessional contributions caps. We regularly update readers on any changes to the contributions caps (and other super changes), and the implications of such changes on super strategies.The list of 10 Q&As set out below answer many of questions that we have received on the ... Read more
