Monthly Archives: November 2016

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

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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

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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.

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Is your business holiday ready?

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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.

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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.

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An opportunity for you to control your financial future.

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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.

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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.]

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How to not lose your family wealth.

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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]

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