One of the most significant changes to superannuation – the introduction of the $1.6 million transfer balance cap – became effective on 1 July 2017. The Australian Taxation Office (ATO) estimates the changes will impact only 1% of Australian superannuants, however that 1% needs to be clearly across the Treasury Laws ... Read more
Beginner’s guide to making super contributions
Building a sizeable retirement nest egg can take some effort, but a recent study by Roy Morgan found only 18% of employees with super currently have more than the compulsory 9.5% of their salary or wages going into their super fund account. This is a significant drop from 2009, when nearly a quarter (23%) of workers ... Read more
5-step guide to the different types of financial advice on offer
With politicians continuing to tinker with the rules around super and retirement income, many of us find we need some help to make a decision about these important financial issues. But while knowing you need advice is one thing, figuring out what’s on offer and where to obtain it is another matter. To ... Read more
SMSFs: What advice can your accountant provide?
Being the trustee of an SMSF can be challenging. But while many SMSF trustees turn to their accountant for assistance, they can only provide advice on some SMSF-related matters. To keep your fund compliant, you need to ensure you are getting assistance from someone licenced and qualified to do so. But what matters can ... Read more
How to grow your super: Know your risk profile
Want to add thousands to the account balance of your super when you retire? Then make sure the investment option you have selected for your super account matches your risk profile, as that single decision can make thousands of dollars difference to your eventual retirement savings. Don’t know what a risk profile is? ... Read more
Is a bucket strategy the solution for your retirement income plan?
When you retire, how you put your investment portfolio together is more important than ever if you want your retirement savings to last as long as you do. Your investments need to not only keep pace with inflation, they also need to grow to pay for your lifestyle and to be protected from investment risk. Balancing all ... Read more
Guide to transition to retirement pensions (TTRs or TRISs)
If you’re on the final stretch to retirement and would love to start winding back your working hours but you don’t think you can afford it, listen up. Ditto if you plan to keep working full-time for a while longer and want to boost your super but haven’t got the ready cash to make extra contributions. Help could be at ... Read more
Strategies for making the most of your super in the gig economy
About 2.5 million Australians are now employed on a casual basis, according to The Australian Bureau of Statistics. That’s more than a quarter of the workforce. And the gig economy – like it or not - is growing fast. Changing work landscape The gig economy has come about in part, to meet the changing labour needs of ... Read more
A simple guide to what tax is payable on super death benefits
When you die, the tax man can be pretty quick to put his hand out to take his cut, and this also applies to the balance of your super account. But working out just how much of your super death benefit will be paid to your nominated beneficiaries and how much will go to the ATO isn’t straightforward. ... Read more
The rules of superannuation: Your guide for 2019/2020
When you mention super, most people shake their head and mutter about the constant rule changes. Looking back over the past few years it’s a fair comment, with many significant changes occurring – and many more proposed but never legislated. If you are wondering how those changes have affected your super and ... Read more
What is included in my Total Superannuation Balance, and when does it apply?
The concept of total superannuation balance, or TSB, was introduced on 1 July 2017 as part of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 as a means to measure your total superannuation interests at any point in time. It is used to determine eligibility for a number of new superannuation ... Read more
TBAR: Transfer balance account reporting for SMSFs
From 1 July 2017 the Federal government introduced the transfer balance cap, which currently sits at $1.6 million and which will be indexed periodically in $100,000 increments. The transfer balance cap is the limit on the amount that can be used to commence a pension in retirement phase. It is the total amount that can ... Read more
Super’s rulebook: What rules apply to you at different ages?
Australia’s super system has lots of rules – many of which have significant penalties if you breach them – but not every rule applies to everybody at every age. There are different rules at different ages on how much and when you can contribute to super, when you can get your hands on your savings, and how much tax ... Read more
What are the asset valuation guidelines for SMSFs?
SMSF trustees are required to regularly value their fund’s assets as a part of ensuring compliance with Australia’s super legislation. Assets must be valued at market value, based on appropriate evidence and data. The Australian Taxation Office (ATO) can review these asset valuations as a part of their ongoing SMSF ... Read more
Re-contribution strategy: What is it and how can I use it with my super?
Using a re-contribution strategy with your super sounds complex and mysterious, but in reality the name says it all – you withdraw some of the savings in your super account and then you re-contribute them back into the super system. Which raises an obvious question. Why take money out of super and then put it straight ... Read more