Each year it is fascinating to observe how the Budget is received. Most commentators subjectively assess the Treasurer’s efforts by how they, or their interest group, is expected to be impacted. But is it possible to assess a budget more objectively? According to the stock market and rating agencies the Treasurer has done a reasonably good job. The ASX is... Read more
We are regularly surprised at the number of adults we meet who do not yet have a Will. If you have family, or any amount of wealth, or both, you should have a Will. Here we address some of the very common reasons why making a Will is avoided. Do you dislike lawyers? Many people do. We’re used to it.... Read more
Low bank valuations are a real risk, particularly for buyers with smaller deposits, and especially in a booming market. Consider the following scenario. Hollie and Sam are preparing to buy a new home in their popular suburb. The house they want is for auction, and they expect it will sell for around $1.8 million. They’ve saved enough for a 20%... Read more
Super Changes #1: New Cap on Tax-Free Super From 1 July 2017, the Government will introduce a $1.6 million cap on the total amount of superannuation that can be transferred into a tax-free retirement account. Superannuation Balance Greater than $1.6 million? If you are planning to retire after July 2017 and you have a superannuation balance greater than $1.6 million... Read more
Late last year a number of superannuation changes passed parliament and take effect from 1 July 2017. These changes are likely to significantly impact a number of our clients, particularly; Individuals in Transition-to-Retirement, Retirees with more than $1.6 million in superannuation already, Individuals under 65, with significant assets outside superannuation who have not triggered the 3-year NCC bring-forward rule in... Read more
This information about the new Backpacker Tax will be relevant for employers who currently employ holiday makers on 417 and 462 visas. The changes mean that these working holiday makers will no longer be classified as residents for tax purposes from 1 January 2017. Action Required by Employers Use Visa entitlement verification online to check if your worker has a... Read more
Employers are entitled to discipline employees for certain out-of-hours conduct. Social media has changed our communication norms. Whilst sometimes these communications resemble ‘word of mouth’ conversations, they are set out in written form, in many cases for the world (and employers) to see. Social media interactions made outside work on personal accounts can have a significant impact on the employment... Read more
There has been an increase in demand for investment bonds in Australia as clients are seeking tax-effective strategies besides superannuation and corporate structures. An investment bond (or insurance bond) is an efficient long-term savings vehicle which operates similarly to a managed fund, where investors can choose from a range of investment options to suit their risk appetite and objectives, but... Read more
Special Professional Income Averaging (SPIA) allows individuals in certain professions to average their income over a four-year rolling period. SPIA is likely to result in lower tax rates for special professionals whose income tends to rise and fall. This concessionary tax treatment ensures an individual is not paying additional tax due to the irregular nature of their work or income.... Read more
Core Logic RP Data recently published an article analysing Sydney’s property price premium. You can read the full article here and some key data from the article is below. Median House Prices Combined Capital Cities $600,000 Sydney $890,000 Melbourne $641,500 Brisbane $505,000 Adelaide $440,000 Perth $480,000 Hobart $349,500 Darwin $500,000 Canberra $625,000 The median house price in Sydney is 39%... Read more