Monthly Archives: December 2012

Merry Christmas from the McMahon Osborne Group

Merry Christmas

The Directors and Staff at McMahon Osborne Group would like to take this opportunity to wish all our valued clients and their families and Very Merry Christmas and a safe and Happy New Year.

Our commitment to you to provide you with easy to understand advice, that works, will continue into 2013. We have been working on a number of new and exciting programs, to ensure we create lasting financial security, with a balanced lifestyle through education.

Our staff will continue to offer you the very best in professional service and advice, to achieve our cores values of congruency, honesty, commitment, balance and passion.

Once again, thank-you for your support and we look forward to 2013.

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Make sure you’re eligible for our competition!

Don’t forget! To be eligible for our competition for 50 chances to win $30 million, you have to like us on Facebook as well!

If you haven’t already done so, the good news is that you’re only two clicks away!

Click here to go to our Facebook, and then all you have to do is click the ‘Like’ button.

The competition ends tomorrow, so make sure you do it today!

30MillionMegadraw

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What happens when I pass away – SMSF?

As we mentioned last week there are many benefits to creating a SMSF, one of the questions we often get is “that’s great but happens when I pass away?”

Superannuation Estate Planning:

When we ask “Do you have a will?” either people will say yes or no. “When we ask “Do you have a Super Will or nominations in your Super Fund?” most people say it’s covered in my will.  Unfortunately a Super Fund is not covered nor controlled by your will. It needs its own Super Will or nominations to be put in place to ensure that the money in your Super Fund goes to the people that you want it to go to.

It is especially important to dictate the terms of your Super on your passing when you have blended families or warring siblings. Many “No Win-No Fee” lawyers are willing to challenge any and all estates.

It is always best to draft this documentation with a lawyer who is conversant/specialises in the area of superannuation to ensure that you accomplish exactly what you are after, with superior tax outcomes. If you have SIS dependants (Spouse/Partner, child under 18) you may be able to leave a “taxable” pension which is TAX FREE in their hands.  Likewise you can setup “pensions” that only allow income to be given to the spouse while they are alive with the capital reverting back to your children.

Tax Benefits to your beneficiaries that can be obtained on your passing:

Under certain circumstances the Super Fund can make Anti-Detriment Payments to your family members, which can also benefit the remaining member’s in the Super Fund by allowing large tax deductions in the fund rendering the fund tax-free for many years after the death of a member.

Now that you have seen all of the benefits over the last 2 weeks you are probably wondering if it is still right for you:

Our team at McMahon Osborne Group are happy to sit with you and discuss your own personal circumstances in an obligation free 45 minute appointment.  If you would like to take up this offer please call our office to make an appointment.

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Want 50 chances to win *$30 million?

McMahon Osborne Group would like to give you 50 chances to win *$30 million for simply liking us!

That’s right, it’s that simple.

Just register to receive our Blog, then like us on Facebook and you will have the chance to win a 50 game Maxi-quick pick forTattslotto’s $30 million Mega draw*, drawn on 29th December, 2012.

30MillionMegadraw

Simply like us on Facebook and register to receive our blogs to go into the draw to win*!

*Only 1 Tattslotto Maxi quick pick in total to be given away.Winner will be notified.Competition closes 20.12.12

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Congratulations to our Blog Competition winner!

Last month we ran a Blog Competition to celebrate the creation of our blog.

Bill Ellerton won $200 worth of wine from Galli Estate, just by signing up to receive our blogs and liking our Facebook page.

competition winner

Congratulations again Bill, from all the team at McMahon Osborne Group.

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What are the benefits of a Self Managed Superannuation Fund – SMSF?

As we mentioned last week, SMSF’s are the fastest growing sector in Australia. More than 478,000 SMSF’s have been established to date and they contain assets of over $439 Billon and rising every day.

It all begins with Investment choice:

A major benefit of SMSF’s is investment control and choice.  SMSF’s can invest in a wider range of assets that the Retail and Industry sector cannot. Small business owners can benefit from purchasing their commercial premises in a SMSF, this frees up the capital of the business to use in its everyday trading. The SMSF benefits form having assets with potential major capital growth and a steady income stream from the tenant.  Capital Gains can be minimised or completely obliterated when using a SMSF to purchase property.

If you can’t purchase outright then borrow:

In 2007 the rules changed to allow SMSF’s to borrow under strict conditions to purchase property in the fund.  The SMSF can now enjoy the advantages of leveraging a larger property to significantly increase the retirement savings of the member.  Baby boomers and Gen X’s are keen to bump up their retirement savings so there has been a large interest in this area by them.

You cannot avoid tax but you can control and minimise it:

An SMSF allows you to take a pension (as do all Superannuation Funds) or a transition to retirement pension. If you are over 60 this pension is tax free to you.  The SMSF enjoys the benefit of paying 0% tax on the earnings of each pension member, thus increasing the amount left for retirement of the member.  As with all sound investment strategies you may not have all of your money in a Superannuation Structure but the money you do have is taxed concessionally.  This can open up a world of opportunities and benefits that you may have thought were out of your reach, including Commonwealth Seniors Healthcare Card or even some Aged Pension.  Planning for this requires great care and teamwork with your advisors and Centrelink.

Being able to structure and time the pensions can create an amount of control over the tax position of the SMSF.  When in pension phase the structure may weight more heavily towards franked dividend entities in order to reap the benefits of the franking credits (franking credits give you a 30% offset that is used against any tax payable by the fund and the remainder is returned to the fund).  This can significantly boost the retirement savings of a member in pension phase.

Beginning a pension can cut the tax rate down to 0%, being in a SMSF the accumulation account automatically changes to a pension once the correct documents are signed and a minimum pension is withdrawn, there are no buying and selling of the assets to move them from one phase to another it is all seamless, and can be used as a retirement boost by moving to pension when the assets values are low and then selling the assets further down the track when they are high and you are still in pension phase.

Asset Protection is a must for all people:

A Superannuation Structure provides ample asset protection in the event litigation and bankruptcy, the assets in the SMSF are protected from bankruptcy creditors and ligation settlements (with a few rare exceptions).  This leaves the retirement monies free for when you retire.

Enough about the benefits while you are around to enjoy them, in the next issue we will discuss what happens to the money when you pass away – Estate Planning for Superannuation.

Our team at McMahon Osborne Group can assist you in this matter, if you are interested in setting up a SMSF please contact our office to make an obligation free 45 minute appointment to discuss the potential of you owning a SMSF.

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