Start planning now before new superannuation rules kick in on July 1, 2017.

budget-image-830x466

Superannuation bills have now been passed and will become law, are you ready?
The key measures which have a commencement date of 1 July 2017 include:

High Impact Planning required NOW.
  • The concessional contributions cap is reduced to $25,000. This can be made as employer or personal tax deductible contributions (or a mix of both – subject to the 10% rule.)
  • The non-concessional contribution cap is reduced to $100,000 pa (or $300,000 under the bring forward provisions). While you are also prohibited from making further non-concessional contributions where a member’s total superannuation balance is more than $1.6 million.
  • Introducing a $1.6 million ‘transfer balance cap’ – the limit of the amount that can be transferred to the pension phase, where earnings are tax-free. This $1.6 million cap applies also the death benefit income streams and defined benefit income streams.
  • Transition to Retirement Income Streams will no longer be eligible for income tax concessions (at the superannuation fund level.)
Moderate Impact Ongoing Planning required.
  • Continuation of the low income superannuation tax offset for member’s whose income level is less than $37,000.
  • Eligibility for spouse contribution rebates are extended, by increasing the annual income threshold to $37,000.
  • Lowering the income threshold for Division 293 tax to $250,000.
  • Abolishing the anti-detriment payment.
  • The new concessional contributions catch-up regime, providing your total super balances are less than $500,000 commences from 1 July 2018

6 FREE 45 MINUTE SESSIONS

dci_5033-website

If you would like to find out how these changes may affect your Superannuation Plans, we have 6 FREE 45 minutes sessions to be held in December only with Tim McCarthy.
Only available to the first 6 people to book online.

Book Now

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.

Leave a comment

Filed under Uncategorized

Is your business holiday ready?

closed-for-business

How do you cope with running your business, while still being able to take a well needed break this Christmas.  Many business owners forgo holidays in order to keep their businesses running smoothly.  While there may never be a good time to take a holiday when you’re the boss, time out can definitely benefit your business.  We share some quick tips for you to consider;

  1. TIME TO REFLECT – Taking time out will give you a much-needed opportunity to plan and reflect on the business.  Down time is crucial not just for family life but for fuelling business growth –  some of the best ideas come from lying on a beach somewhere and not thinking about work.  Taking a break allows you to shift the way you think from ‘problem-solving’ to ‘dream-building’, focusing energy and resources on what we want instead of putting out fires.

  2. BOOSTING YOUR TEAMS CONFIDENCE – Handing over the reigns to take a holiday can also boost your team, and it’s a mistake to assume they can’t cope without you.  If, after years of operation, you can’t leave your business alone then you’re doing something wrong.  It’s empowering for your team to know that they’re trusted to make the right decisions – without you ringing in every day to see what everyone’s up to – and it’s great to see the business carry on as normal when you’re not there. That’s a good measure of a successful business.

  3. PLANNING IS THE KEY – Do you have documented systems in place that your team can refer to?  A system is the process that ensures an outcome can be replicated at the highest standard by anyone, at anytime, in the easiest and quickest way consistently.  Systems run a business , while people run the systems, so make sure your team are all on the same page.

  4. THE USE OF AUTOMATION – Automating key tasks gives you the confidence to step away from your desk without worrying about work piling up while you’re away.  Set up automatic email responders, schedule social media posts to keep your marketing on track. You can also set up email reminders to chase outstanding invoices while you’re away.

family-holidays-trip

Inspiration often strikes when we give our minds time to think about nothing, so a holiday is a vital opportunity to break the ties to your working life.

Contact our team of professionals on (03) 9744 7144 to get your business holiday ready.

 

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.
Talk to our team of professionals to get your business holiday ready.

Leave a comment

Filed under Uncategorized

An opportunity for you to control your financial future.

retirement1

Did you know that according to the most recent statistics released by the Australian Taxation Office indicate that in Australia there are close to 600,000 self-managed super funds (SMSFs) now in operation.
This alone may not be very interesting but what many people will find interesting is that in December 2015 the exact number of SMSFs was 566,735, and thousands of new SMSFs are being established every quarter.  That’s interesting but the real question is WHY?

SMSFs offer a vast number of opportunities to help Australians increase their retirement benefit.  This comes in the form of reduced fees paid on superannuation investments and by allowing investors the opportunity to take control of their money.  Over recent years many people have experienced diminished returns from funds held within superannuation while the fund managers still receive commissions.  SMSFs allow you to take back control of your retirement savings.

SMSFs provide the same significant tax advantages offered to larger retail and industry super funds with one key difference – you have the flexibility to determine where your money will be invested.  It may be a particular property or share portfolio that you would like to purchase but you do not have the funds – a SMSF may make it possible to take advantage of the opportunity.  Clearly you cannot direct your retail or industry super fund to purchase that particular asset but with a SMSF you are in control and can therefore look to make asset purchases better suited to your needs.

Of course, as with any asset or investment strategy SMSFs are not suited to everyone.   They are available to both self-employed and employed Australian residents.  While most Australian residents are eligible to be part of a SMSF the decision to establish a SMSF is one that should be considered carefully.  A poor choice to establish a SMSF can in fact be a very expensive choice.  Therefore it is imperative that you speak to an advisor or accountant who has experience in this area before you enter into any SMSF strategy.  You should always consider a cost/benefit analysis when making the decision to establish a SMSF or to remain with a retail or industry fund.

FREE 1 HOUR CONSULTATION

dci_4682-websiteTo assist in making these very personal and important decisions, Angela Reissis from McMahon Osborne Group is offering a free one hour information session to outline the costs and benefits of a SMSF arrangement and some of the key matters you should consider.  The team at McMahon Osborne Group assists in the management and administration of in excess of 250 SMSFs and is experienced in helping decide if a SMSF is suitable for your personal circumstances.

register-now-button-pilll-red-hi

General advice disclaimer – General advice warning: The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product.]

Leave a comment

Filed under Uncategorized

How to not lose your family wealth.

family-wealth

Family wealth can take a lifetime to accrue, but can also disappear in an instant through poorly considered generosity.

This 3 minute read may be one of the most important articles you have ever read!

Many parents and grandparents are often willing to help younger generations with funds toward a house or education. It’s a wonderful gift – but there can also be some serious traps.  The person who receives the funds (called the “beneficiary”) needs to ensure that any early inheritance isn’t later caught up in a matrimonial or estate planning dispute, just because it hasn’t been thought through.

Here are two strategies to help you avoid losing your accrued family wealth, and still be generous.

Strategy 1 – Family Friendly Loan

One way of safeguarding the transfer of assets and protecting family wealth is through a family friendly loan rather than a straight gift. These types of loans are preferred by parents who are looking to help their children but at the same time are unsure of their own future financial requirements.

Here’s the big advantage…

If a child has a failed relationship, the funds given to the child would in most circumstances end up in the pool of funds that are split. So, your family money could very quickly end up with another family.

Instead of a gift, a properly documented loan to a child could protect the assets from becoming part of a child’s divorce settlement. In the event of a child’s divorce, the loan could be recalled to avoid it becoming part of a settlement.

Strategy 2 – Gift or Sell Assets before Death

You may find that you save a lot of tax if you deal with your assets before death, rather than leaving them in your name to be distributed by your Will.

An example is assets held within a Self-Managed Superannuation Fund (SMSF) that are left to a non-dependent who may end up incurring a tax liability on the taxable component of the death benefit at a rate of 15% or 30% (plus the 2% Medicare Levy).

With proper estate planning, the money could be withdrawn in some circumstances before death tax free.

There could also be tax benefits in selling certain assets acquired before 20 September 1985 (pre-CGT) and distributing the proceeds before death without incurring capital gains tax.

Talk with us TODAY about how we can assist you with your estate planning.  Call us on (03) 9744 7144.

[Source: Australian Financial Review – 30 Sep 2016]

Leave a comment

Filed under Uncategorized

Do you know where the holes are in your financial bucket list?

leaky-bucket

Are you financially prepared or do you have some major holes in your retirement bucket?

There is a lot of uncertainty surrounding the proposed changes to Superannuation and it is easy to become confused.  Superannuation still remains a highly tax effective saving system.  Are you making the most of the tax changes?

Register now for our Financial Freedom Seminar where we can show you-

  • What you need to be doing now to be ready for the changes on both Jan 1, 2017 and July 1, 2017
  • How to create the right investment model for you in the current economic environment, where interest rates are so low
  • The 3 most important things you need to make sure your finances for estate planning are in order

This is what you will walk away with;

  1. A clear plan of the actions you need to take NOW
  2. The top 3 actions you need to implement for successful financial estate planning
  3. The key tool that will identify holes in your existing financial bucket

Financial Freedom Seminar

When: Thursday 27th October, 2016

Time:   10.30am

Where: Romsey Bowling Club –  Park Lane  Romsey

Light Refreshments Supplied

R.S.V.P  Lynda on (03) 9744 7144 or click on the link below to book online

booknow

REGISTER BY FRIDAY 21ST OCTOBER AND GO INTO

THE DRAW TO WIN A GOLF & WINE PACKAGE

Leave a comment

Filed under Uncategorized

SMSF allows further property investment

bigstock-Hands-Holding-A-Piggy-Bank-An-AG-article

Case Study

Matt and Kath are both in their 40’s and are keen investors who love property. They have one residential investment property as well as their home. They would like to buy another investment property but they do not have available equity at the moment and they believe their bank won’t lend them any more money.

They wish to purchase as they feel there will be some good opportunities to buy and are confident that over time property prices will continue to grow.

After considering their options with their advisors, they decide to set up a Self Managed Superannuation Fund and acquire a property. They have existing superannuation funds of approx $180,000 for Geoff and $70,000 for Sally which they roll over into their new SMSF.

They are employed and arrange with their employers for their super contributions to go into the SMSF. Of the total assets in the SMSF they invest $100,000 in blue chip shares which pay dividends with franking credits, which then leaves $150,000 to put towards a property.

Matt and Kath are excited and find a property to buy for $320,000 which they can easily afford through their super fund. They borrow $208,000 (60% of the purchase price) and contribute $112,000 from the cash in their super fund to complete the purchase with $38,000 still remaining in the fund to cover stamp duty, legal fees, etc on the property purchase.

The fund now receives rent from the property, dividends from the share portfolio and the regular super contributions from their employers.  This more than covers the loan payments and running costs of the property.

After completing these transactions, Matt and Kath:

  • have purchased an investment property portfolio without having to use equity in their existing portfolio or contribute any cash from outside the super
  • own a property that is funding itself without impacting on their existing lifestyle
  • created a share portfolio that they can build upon as they continue to add to their superannuation
  • taken complete control of their future by acquiring assets that they are comfortable with and understand
  • put a collection of growth assets in the most favourable tax environment under Australian Law (superannuation) thereby reducing any capital gains tax payable on the sale of these assets

If you would like to learn more about achieving your property investment goals, register now for one of our FREE property investment information sessions.  Visit http://www.mcmahonosborne.com.au to book online.

Leave a comment

Filed under Uncategorized

Confused about the property investment puzzle? Try beginning with the end in mind.

 

property puzzle

Buying a property to rent out is a popular form of investment, however many people get overwhelmed by the process and quit before they even start.  There are many factors to consider when investing in property.  What are the fears and factors that have prevented you from taking this step?  Some of the feedback we have received include;

  • Will I get tenants – will I get good or bad tenants?
  • Fear of debt.
  • Not the right time/when is the right time?
  • Don’t know where to start.
  • Where do I get information?
  • What sort of deposit do I need?
  • What will it cost me to invest?

While fears and concerns are different for everyone, the most important thing to consider before taking the next step in your financial journey, is having solid goals.

Take the time to document these goals – you must “begin with the end in mind”. What do you want to achieve in 3 years, 5 years, 10 years+? Write it down!

Why is it important to do so? If you have a target it is far easier to picture where you are in relation to your goals.

Use the following analogy – imagine your “end goal” as a completed jigsaw puzzle and the individual pieces are all the necessary steps & processes required for you to achieve your goals.

How much easier is it to complete the “puzzle” when you have a picture of the completed “goal or result” on the outside of the box?  Without it we could possibly put a few pieces around the edge, but we would struggle and possibly lose interest if we didn’t have anything to reference our progress to. In real life, this could mean your financial goals take significantly longer to achieve or worse yet, are never achieved.

Let us help you piece together your financial puzzle. If you would like to learn more about starting your property investment goals, register now for one of our FREE property investment information sessions.

Visit http://www.mcmahonosborne.com.au

 

 

 

 

Leave a comment

Filed under Uncategorized