rECENT NEWS

A huge thank you to our investment team at Akambo Financial Group for running a client update last night. We've had great feedback and very much appreciate your insights! Ready to invest?

With annual superannuation statements now being issued for the 2023 financial year, it's a great time for a review. Always happy to help!

Have a spouse with a low income? Did you know that you can get a tax offset of up to $540 in your own tax return if you contribute $3,000 to their super? Conditions apply - check with us!

Got a capital gain during 2023 that you want to minimise the tax on? Super is an amazing option. Just saved one client over $20,000 in tax when she happened to mention a large super contribution that she hadn't realised she could claim part of as a tax deduction!

Legislation to increase the cut off income limits for the Seniors Health Card has now been enacted. Singles now $90,000 and couples now $144,000. This is a significant increase so worth checking if you're eligible as a result. And, no assets test!

Our offering with Akambo has now extended to insurances! Delighted to be able to provide this service. Get in touch if you're ready to review your personal insurances. Learn more...here, and contact us today if you are interested!

Do you have your director identification number (DIN)? It's estimated 1 million directors that should have one, don't - are you one of them? Fines are $13,000. There's only one week to go.

Thanks to our investment team at Akambo Financial Group for finally making it to Perth from Melbourne to present an investment education update last night to our clients. The feedback has been positive and we can't wait for the next one!

We're excited to announce our investment team from Akambo Financial Group in Melbourne will be presenting an exclusive investment seminar on Wednesday 19th October. We'd love you to come along and bring your family and friends! Please email me direct at lynda@slf.com.au and let me know names of attendees and if there are any dietary requirements and I'll book you in. Drinks and canapes providing before and after the event.

Are you keeping an eye on the performance of your super fund? Five super funds have failed MySuper performance tests, four of them for the second time including BTs MySuper option and Australian Catholic Super - large, popular funds! Read your statements, check their performance.

An important issue in estate planning is dealing with your digital assets - you online life, social media, internet banking etc etc. Make sure you have important passwords and online account information up to date and available for those having to deal with it when you no longer can.

WA defacto couples are now subject to the same super splitting rules as the rest of the country. Prior to the passage of the new laws the WA Family Court was unable to make a super splitting order where the couple wasn't married.

Just a reminder that the deadline for getting your director identification number (DIN) is fast approaching. If you are a director of any company, including a corporate trustee of a super fund or family trust, you must have a DIN by 30 November. Details on how to apply are on the ABRS website. If you need assistance please get in touch.

It looks like the downsizer contribution allowing a super contribution of up to $300,000 from the sale of the family home is set to apply to those 55 years and older (bill waiting on royal assent)! It may apply from as early as 1 October 2022. Plenty of form filling and box ticking to do to ensure your contribution is successful so seek advice.

If the Commonwealth Seniors Health Card is of interest you may want to check out your entitlement now as income thresholds are set for a fairly hefty increase! The singles rate is proposed to increase to $90,000 (from $57,761) and for couples $144,000 (from $92,416).

Some super changes coming up for employers from 1 July 2022. The super guarantee rate increases to 10.5%. The $450 per month eligibility threshold for super is removed for all but under 18s working less than 30 hours per week.

It's that time of year again when you should review your super contributions before the end of the financial year to see if a top up is possible/a good idea! Need help? Email us for assistance.

From next Monday 9th of May you'll find us at our new office located at Unit 1, 43 Oxford Close, West Leederville!

Interested in using the downsizer superannuation contribution to increase your super balance? If you sell your home after 1 July 2022, meet all the eligibility criteria and you're aged 60 years plus this may be for you. Get in touch for more details.

Did you withdraw money from super under the COVID early release scheme? You are now able to recontribute monies withdrawn without impacting superannuation contributions caps. The catch is, there's an approved form that must be completed at the time of recontributing. Get in touch if you need assistance.

Wishing everyone a lovely Christmas and a happy, healthy and successful 2022!

From 1st November 2021 when you take on a new employee you will need to offer a choice of super fund for their super contributions OR if they don't choose one you'll need to request details of their stapled super fund (the active super fund they have that follows them from job to job). You'll need to submit a tax file number declaration or create a single touch payroll event to establish the employment relationship first.

A new requirement for directors has been introduced - a director identification number (DIN). If you're an existing director you have until 30 November 2022 to apply. If you are appointed as a director after 1 November 2021 you have only 28 days to get your DIN! Our suggestion to all directors is to get this sorted sooner rather than later in case there are any complications.

Presented the first investment, tax, super seminar today aimed at school leavers. My first successful graduates! Happy to run these regularly - let me know if you have a small group that would be interested lynda@slf.com.au

In a couple of weeks I am running my first seminar aimed at those turning 18 (or older) to introduce them to the exciting world of ETF investing, tax considerations around this and how to look after their super, right from the word go! I am taking expressions of interest to continue these regularly in the coming weeks. Email me if you're interested - no cost, just great education! lynda@slf.com.au

A timely reminder - I am working with the family of a deceased super fund member. There are blended family fights going on. I am watching the super balance drop by thousands of dollars as the fights continue and the money transfers from the family super fund to the lawyers. This could all have been avoided with proper paperwork. If you are 18 or over, have a valid will, an Enduring Power of Attorney, a Medical Power of Attorney and a binding death benefit nomination inside your super fund. Need help getting this sorted? Email me lynda@slf.com.au

Late 50's - 64 years of age and thinking about selling the family home? From 1/7/22 the downsizer contribution is available to those 60 and above (currently 65 plus only). May be a great way to top your super up by up to $300,000 each. Just might be worth hanging off selling for another 12 months. Conditions apply as always!

The change to allow self managed super funds to have 6 members isn't too far off (possibly as early as 1st July 2021). This is potentially a massive cost saving for families adding flexibility and more choice. There are disadvantages and risks though so you should only consider this after seeking advice.

IMPORTANT! People who receive Child Care Subsidy or Family Tax Benefits need to have lodged their 2020 income tax return by 30 June 2021. If you don't, you may lose your entitlements or be made to pay back amounts you have received during the year.

Have a large capital gain this year? There's plenty of superannuation contribution strategies you may like to consider to reduce the tax you would otherwise pay. Get in touch soon!

For the first time since 1/7/17 the superannuation contributions caps are rising! From 1/7/21 the concessional contributions cap will increase to $27,500 per annum and the non-concessional cap to $110,000 per annum. A great time to check your super balance and increase your contributions!

If you ever had a business overdraft with the Commonwealth Bank now is a good time to check it! More than 1,500 business banking customers have been charged up to 34% interest (max should have been 16%).

Some scary information from the Tax Office - there have been over 63,000 scam calls, emails and text messages indicating the recipient will be jailed for hoax tax debts AND Australians have handed out nearly $1m to scammers!! If you get contacted and have any doubts call the Tax Office scam line 1800 008 540 before doing anything else.

Just a reminder - the amnesty on overdue employee superannuation ends on 7th September. The Tax Office has given generous allowances with regards to penalties and fees. Payment plans are allowed, the super does not all have to be paid immediately. If your an employer owing super or an employee owed super, it's time to act now!

Just a reminder that you can pay your company ASIC fees 10 years in advance. Gives you a pretty good discount and you're not subject to the yearly increases. You can utilise this with a trading company, a corporate trustee, your SMSF corporate trustee, among others!

When assessing home loan products it's important to understand the comparison rate and what it means. The comparison rate includes other costs associated with the loan - establishment/set up fees and ongoing fees charged by the bank. It does not include early payout fees or government fees but still gives more information than just the interest rate.

Looking to top up your super? This is the first year that you can utilise the new catch up contribution rules. That simply means that if you didn't use the full concessional contributions cap of $25,000 during 2019 you can use it this year. For example if your total employer and personal super contributions for the year were $12,000 you can add an additional $13,000 to your contributions this year (in addition to the 2020 cap of $25,000). Paperwork is vital - ask us how!

ASIC has warned consumers about recent advertising of fixed income products as being alternatives or substitutes to term deposits with the unspoken assumption they are as safe. These types of products are often higher risk. If you need investment advice our team at Akambo Financial Group are ready to help! Ask us how.

With many of the banks offering home loan repayment holidays for up to 6 months for those impacted by COVID-19 there is a common question that I've been fielding regarding the impact on your credit rating. The Australian Banking Association have confirmed that your credit report will NOT be impacted providing you were up to date with loan repayments prior to this health crisis.

The Tax Office have announced a series of concessions for those impacted by COVID-19 including deferring tax, varying tax instalments to nil for the March 2020 quarter and having September and December 2019 tax instalments refunded, amongst other offerings. This is NOT an automatic concession - you must call the Tax Office Emergency Support Infoline 1800 806 218 for a personally tailored support plan.

Are you aware that your superannuation is not covered by your will unless you specifically nominate your estate/legal personal representative as your beneficiary? It's also really important that your will is compatible with your nomination. Check, you may be surprised!

We've all heard how amazing compounding is but do you REALLY understand it? Have a play with MoneySmart's compound interest calculator If a young adult contributes just $30 a week to super for 40 years at a 5% return that becomes $198,603 (from an investment of $62,400). You can get a better result from a better return and we can help you with that thanks to our awesome investment team at Akambo - just ask!

We've just increased the tax refund of a client by $3,600 - how? He dropped his super statement in with his tax records and made a voluntary contribution to super, some of which (in his circumstances) we were able to claim as a tax deduction! Don't forget to include your super statement so you don't miss out on these valuable opportunities - if we don't know, we can't claim it!

We regularly see clients where one spouse deals with all things related to the family finances and the other is totally uninvolved. This is problematic when one spouse suddenly dies, leaves or loses capacity. Next week we offer some tips to ensure this doesn't happen in your family or, if it already has, how to rectify the situation going forward before your financial world implodes.

Over 18 and have yet to get around to having a will prepared? Dying without one is costly from the perspective of both money and emotion. If you have no will the court appoints an administrator and it is most likely that the Public Trustee would step in to decide what happens to your assets - whilst charging a hefty fee in the process. Don't let this happen to you. It really is a simple process that we can help guide you through with backup from our legal team.

What do you do when your annual superannuation statement arrives? Get excited - it's a really important document! Check your balance, your insurance, the return you've received, your risk profile, your beneficiaries... Don't understand it? Come and see us for a free meeting to help you. Limited offer - email lynda@slf.com.au now!

It's no secret women are left behind in the superannuation arena due mainly to lower wages and time out of the workforce to look after their families. You need a plan to take charge of your super as soon as possible! Make an appointment with us to see just how easy that is.

A new financial year and time to start looking after your super! You may be able to claim a tax deduction for contributions you make yourself AND the government may top up your super when you contribute but don't claim a tax deduction - doesn't get much more exciting than that right? Ask us for details/requirements - they're important! Never too young to start ...

If you have a large capital gain in the 2019 year and wish you could claim $50,000 as a tax deduction for a superannuation contribution to reduce the tax - good news - you can. Paperwork must be in place and this strategy is date critical - get in touch now to discuss.

It was good news for the superannuation sector on Saturday night - franking credit refunds remain, catch up contributions remain (important for those who have been out of the workforce for a period) and you can top up your super and claim a tax deduction even if your employer pays super for you (conditions apply - want to know more? message us now!)

Franking credit refund removal - strategy 3 - if your self-managed superannuation fund is 100% in pension phase consider transferring some back to accumulation. This results in part of the fund income being taxable and utilising the franking credits. It also means you need to pay less out of the fund as a minimum pension (planning and advice required).

Franking credit refund removal - strategy 2 - consider withdrawing some of the cash/investments held inside your self managed superannuation fund and use the franking credits to offset taxable income in your own name (again, planning and advice required!)

Franking credit refund removal - strategy 1 - consider adding additional members to your self managed superannuation fund from the younger generation. Their contributions will absorb some or all of the franking credits (proper planning and advice required!)

If you don't have a myGov account (particularly if you're an employee) you may need one in the not too distant future. They are quick and easy to set up at my.gov.au - click create account and away you go!

It's really important that kids have a reasonable amount of financial literacy. The ASIC Moneysmart website has games for kids from Year 2 to help them start their journey understanding and controlling their finances. Well worth a look.

A recent report on employees and their super entitlements has shown many (and I mean MANY) are not receiving their proper entitlements from their employers. Do you know if your super is being paid? Don't ignore this - we can help you find out - email Lynda@slf.com.au for assistance!

In a disappointing development the legislation to allow high income earners with multiple employers to opt out of superannuation guarantee provisions has lapsed. A long time to wait for no outcome - sorry doctors - get ready to pay another penalty for unintentionally breaching the cap.

Did you know that as an employee you can pay money into super and claim a tax deduction for it in some cases? Caps and rules apply. This opportunity may be gone if Labor wins the next election so don't wait if this is something you're interested in.

The Protecting Your Super Package has now cleared the Senate. For those who have super of less than $6,000 the ATO now has greater powers to consolidate lost and inactive super, exit fees have been banned and there's a fee cap of 3%. What didn't get through though was the opt in provisions for life insurance for under 25s (and balance in super under $6,000). So, keep an eye on the kids' super (or your own if you're under 25) so you understand your super and insurances. Here to help anytime!

Q8 - are you under (or over) insured?

Q7 - do you understand your annual superannuation statement?

Q6 - what are the main financial concerns you have? What are you doing to address them?

Q5 - if you stopped work today, but choice or otherwise, how long would your money last?

Q4 - what does your desired retirement really look like?

Q3 - do you, and very importantly, your children who are over 18 have a will and Enduring Power of Attorney in place?

Q2 - are your current investments/super on track to giving you the life you desire in future?

Q1 - what would happen to your family and business if you passed away.... today?

Over my next few posts I am going to ask you some questions. They are REALLY important questions, first one coming up shortly.

Happy New Year everyone! Have a bit of spare time this month? A good time to take a look over your superannuation and estate documents including your will and Power of Attorney. We're back on board here and happy to help!

Like the appeal of paying off your purchases using facilities such as Afterpay? Whilst they certainly have their uses be aware that although Afterpay does not identify as a credit service this is how the banks see it if you're applying for a home (or any other type) loan. According to ASIC 60% of the buy now pay later facilities are used by those aged 18-34 which is prime home buying age.

A record number of home loans are set to revert to principal and interest from interest only in 2020 according to the Reserve Bank. That's just a little over a year away. Meeting future repayments can a bit of a shock initially so check the terms of your loan, know when the change will occur and get your cashflow organised over the next 12 months so that you can cover the often much larger loan repayments.

A recent study by the SMSF Association shows that self managed superannuation fund investments are not adequately diversified with many thinking that owning shares in 20 different companies protects them. Newsflash - it doesn't - do you need to revisit your investment holding either inside or outside of your super? We can now help you with this - get in touch now to protect your nestegg!

If you have an elderly relative or friend in aged care be aware that the removal of the medical expense tax offset after 30/6/19 may mean they have a tax bill that they've never had before. Cash flow management is the key to dealing with this as the liability can be significant depending on their circumstances.

A new but important consideration - digital assets/social media accounts - what happens to these when you die? Facebook accounts, cryptocurrency/bitcoin, Paypal accounts etc all need to be considered in your will. Make sure yours contains instructions on how to locate and access these platforms and accounts!

We are living longer, our super needs to join us on that journey. Does yours? It is vital to start thinking super a whole lot earlier due to the time it takes to get sufficient funds into super to sustain our lifestyle choices. We're happy to review your financial situation - call us today!

In your 20's or 30's and think super is for old people to worry about? It has never been so difficult to get money into super and trust me, the years go quickly! A salary sacrificed monthly contribution of just $100 from a young age will make a massive difference to the lifestyle you can lead in your retirement. If you would like to look into this or just run through your options, give us a call.

A recent study shows one in five parents will be unable to work due to illness or die before retirement age! Does your existing insurance protect your family? If your insurance needs a spring clean be proactive and get in touch with us now.

Life insurance inside your super fund - do you know what you are paying? If you have multiple funds you may have multiple policies as these have been automatically opened for you on joining each fund. This does not mean multiple cover! Just a complete waste of money. Read those super statements that you would have received in the last few weeks. Need any help interpreting them? Get in touch now!

Teaching your kids about money is vital! You can teach them about income, saving, spending and setting goals (and going without to achieve them) from a relatively young age. This can continue through to adulthood. Being financially literate removes one of the most common stresses in adult life. Need help? Get in touch with us now.

Three rules of gold for investing (and tax):
1. The underlying investment needs to be a quality asset - tax effectiveness is merely a bonus, never a reason to invest:
2. If you're getting in debt to purchase, that's fine, just understand the implications of what you are doing. Again, tax deductibility should not be a driver to borrow to invest;
3. Before you purchase anything check the name your investment is best to be in (own, super fund, trust, company etc).

We're here to help - don't buy without the phone call to us first!

If you have a self-managed super fund (and even if you don't!) it is vital that you consider both expected and unexpected life events. These include death, divorce and incapacity. We can help you prepare - call now, don't leave it until it's too late!

Do you know your total superannuation balance (TSB)? Until this year it's never really been that important. However, your TSB now determines your ability to make non-concessional contributions, the new catch up contributions, spouse contributions and tax exemption on pension income (to name but a few). So, it's vital you know your TSB and that you share it with us!

Wanting to get the maximum amount into super? It's worth considering regular monthly payments rather than relying on a lump sum possibly being available at the end of June each year. Given the lower contributions cap, regular contributions over many years really are the way to go.

Just a final reminder as the end of the financial year fast approaches - if you wish to claim a tax deduction for your superannuation contributions they need to be received by your superannuation fund by close of business on Friday 29th June 2018!

It's often overlooked but superannuation contribution splitting can help even things up between spouses and assists in keeping some level of control over superannuation balances. The maximum split is 85% of concessional contributions (up to the yearly cap). The split is made in the year after the contribution.

Interested in making a superannuation contribution for your spouse? A tax offset of 18% on non-concessional contributions up to $3,000 is claimable if your spouse's income is below $37,000.

If you earn less than $51,813 for the 2018 financial year (and meet the relevant work tests) you may be able to take advantage of the Government superannuation co-contribution (where they actually make a contribution for you!)

Do you pay a pension from your self managed superannuation fund? Make sure you pay the minimum payment by close of business 29th June 2018 or you'll lose the fund tax exemption!

Word has it that if Labor have their way not only will they be removing the refund of excess dividend imputation credits but that they may reduce the non concessional contributions cap to $75,000 per annum. So, if you have been thinking about making a non concessional contribution into super, now may be the time to act on it! If you were looking at taking full advantage of the caps, a $100,000 contribution late June 2018 and a $300,000 contribution early July 2018 is currently possible.

We've talked about concessional contributions into super (paid by your employer or those you pay yourself and claim as a tax deduction). The other type of super contribution is non-concessional (comes from after tax money held outside of super that you wish to contribute to your fund). The new cap for the 2018 year is $100,000 (or up to $300,000 using the cap for this year, 2019 and 2020 all at once). For the first time, this year your total super balance helps determine whether you can contribute any non concessional contributions at all. Check your eligibility with us prior to making any contributions - but do it before 30 June 2018!

We've talked about concessional contributions into super (paid by your employer or those you pay yourself and claim as a tax deduction). The other type of super contribution is non-concessional (comes from after tax money held outside of super that you wish to contribute to your fund). The new cap for the 2018 year is $100,000 (or up to $300,000 using the cap for this year, 2019 and 2020 all at once). For the first time, this year your total super balance helps determine whether you can contribute any non concessional contributions at all. Check your eligibility with us prior to making any contributions - but do it before 30 June 2018!

So interesting are the superannuation updates, even the kitten is reading them! Stay tuned for another one a little later this week.

The concessional contributions cap is $25,000 for this current (and future) financial years. This includes all employer superannuation contributions and any deductible superannuation contributions you make yourself. Remember - the money must be received by the super fund by close of business 29th of June to be deductible and (if claiming deductions yourself) the paperwork completion is vital to the deduction!

Well, it's been an unusual week here at Simmonds Le-Fevre - we have taken in a mummy cat and her kitten to help out Perth Rescue Angels! Um, that's my desk ...

From 1 July 2018 you can use up to $30,000 of your superannuation monies to help your purchase your first home. How cool is that?? As always lots of rules but potentially a great way to start the home ownership journey!

Sick of paying excess contributions tax (you know, that annoying extra tax if your super contributions exceed the $25,000 cap) - well, the budget has a solution for you from 1 July 2018. Get in touch for more details.

And this - more focused on super and retirement

SuperGuide.com.au

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2018 Federal Budget summary: Superannuation and retirement measures

2018 Federal Budget summary: Superannuation and retirement measures

On 8 May 2018, Treasurer Scott Morrison released his third federal budget. His budget speech was titled ‘A plan for a stronger economy.’ He says:…

SUPERGUIDE.COM.AU

Sums it up ...

Tax & Super Australia

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Easy-to-read summary of last night's Budget announcement - https://mailchi.mp/taxandsuperaustralia.…/weeklyenews-244165

Superannuation update #5 - from 1 July 2018 (the 2019 financial year and going forward) catch up superannuation contributions will be allowed. This concession will be particularly helpful for those of us who took some time out of the workforce raising the next generation. Catch up contributions will allow you to ultilise unused concessional caps (up to $25,000 pa). Your total super balance must be below $500,000.

Claiming car expenses in your 2018 income tax return? Read on ...

Tax & Super Australia

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The ATO is particularly concerned about taxpayers either making mistakes or deliberately lodging false claims in relation to work-related car expenses over tax time 2018.

Car expenses claims to get the blowtorch treatment

Assistant Commissioner Kath Anderson has announced that the ATO is particularly concerned about taxpayers either making mistakes or…

TAXANDSUPERNEWSROOM.COM.AU

Superannuation update #4 - the government has proposed an increase in the number of members a self-managed superannuation fund can have - from 4 to 6. Adds a whole world of possibilities for inter-generational wealth creation and estate planning!

We'd add our voice to this discussion - the current debate regarding the corporate tax rate does nothing to address the underlying problems with our confused (and confusing) tax system.

Meaningful tax reform in high demand, says mid-tier

Comprehensive tax reform continues to dominate wish lists for the upcoming federal budget’s, with more than nine in 10 participants in support, according to a new survey.

ACCOUNTANTSDAILY.COM.AU

Superannuation update #3 - new rules are expected regarding the calculation of total superannuation balance (TSB) for superannuation funds that have a limited recourse borrowing used to purchase a property. Anyone considering this type of arrangement is urged to seek advice as soon as possible regarding the all important settlement date and the impact of the property settling before or after 30 June 2018.

Superannuation update # 2 - the Tax Office will allow downsizer contributions to super (for property sales after 1 July 2018 only). Potentially a great opportunity to get money into the concessionally taxed superannuation environment when all other opportunities to do so may have gone. These contributions are in addition to existing contribution caps and allow up to $300,000 per person to be contributed into super from the sale of the family home. No work test, no upper age limit and is allowed even if you have more than $1.6m in super. Lots of conditions of course but a new opportunity that may be of interest.

Here’s a little snippet from our investment team. Want to know more (and why wouldn’t you?!), get in touch with us today!

Akambo Private Wealth - Information Night

Akambo Private Wealth - Information Night

YOUTUBE.COM

As we approach the end of this and the beginning of the next financial year I wanted to share some changes in the dynamic superannuation environment with you (I know, I'm excited too!!). I will post these weekly until we have them covered.

From 1 July 2017 you can claim a tax deduction for contributions made to a complying superannuation fund even if you are an employee (you could never do this before!). These are called concessional contributions. The maximum amount per annum is $25,000 which includes any employer contributions (under SGC and salary sacrifice agreements). Conditions apply though - check with us before making any contributions.

If you missed last night's broadcast of the Four Corners investigation it's worth chasing on iView so you can decide for yourself.

Mark

ATO denies alleged unethical cash grabs

The ATO denies reports of a toxic workplace culture where staff are pressured to meet revenue-raising targets and aggressively pursue small businesses.

ABC.NET.AU

Lovely way to spend Easter - a little wine tasting at the beautiful Stormflower Vineyard