How does CGT relief under the new super reform work in practice?
June 8, 2017 · Published by RJS Wealth Management Pty Ltd
The federal government has persistently justified its super reforms by telling us that many of the changes to super coming up on 1 July 2017 don’t affect too many people. This may be true, but those who are impacted have some major decisions ahead of them. The truth is, the numbers of Australians who need to review their super situation isn’t exactly tiny. It’s estimated that of 580,000 Australian SMSFs, up to 1 in 3 could be materially affected by the new $1.6m transfer balance cap rule1. That’s about 200,000 people who should be making appointments with their financial adviser.
How the new Transfer Balance Cap affects your super
· Published by RJS Wealth Management Pty Ltd
One of the new super reforms getting a decent amount of attention from industry experts and media is the new transfer balance cap. It limits the total balance that any individual can roll into a tax-free income stream to $1.6m. From 1 July 2017, every time any Australian rolls accumulated super into a pension, the transfer balance will be recorded. There’s no limit on the number of times you can transfer accumulated super into pension phase, as long as the $1.6m cap is not exceeded.
Federal Budget 2017: Social security
May 11, 2017 · Published by RJS Wealth Management Pty Ltd
Pensioners who lost their Pensioner Concession Card entitlement due to the assets test changes on 1 January 2017 will have their card reinstated. Those who lost their entitlement were instead issued with both a Health Care Card and a Commonwealth Seniors Health Card. However these cards provided access to fewer concessions than the Pensioner Concession Card.
Federal Budget 2017: Superannuation
· Published by RJS Wealth Management Pty Ltd
From 1 July 2018, people aged 65+ will be able to contribute up to $300,000 into super from the sale of their principal home, if they’ve owned their home for at least 10 years. The existing restrictions for contributions over age 65 won’t apply for these non-concessional contributions.
Federal Budget 2017: Tax (investors)
· Published by RJS Wealth Management Pty Ltd
From 1 January 2018, resident individuals who invest in qualifying affordable housing will be eligible for an increase in the capital gains tax (CGT) discount from 50{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} to 60{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357}. This increased discount will also apply to eligible Managed Investment Trusts (MITs) as of 1 July 2017.
Federal Budget 2017: Tax (businesses)
· Published by R J Sanderson And Associates Pty Ltd
The government will extend the existing accelerated depreciation allowance for small businesses by 12 months to 30 June 2018. If your small business has aggregated annual turnover below $10 million, you’ll be able to immediately deduct the purchase of eligible assets costing less than $20,000 where they are first used or installed ready for use by 30 June 2018. After that date, the immediate deductibility threshold will revert back to $1,000.
Federal Budget 2017: Tax (individuals)
· Published by R J Sanderson And Associates Pty Ltd
From 1 July 2019, the Medicare levy will increase by half a percentage point from 2{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} to 2.5{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} of an individual’s taxable income. The Medicare levy low-income thresholds for singles, families, seniors and pensioners will increase from the 2016–17 financial year.
Federal Budget 2017: Other Proposals
· Published by RJS Wealth Management Pty Ltd
A new Jobseeker Payment will replace 7 existing working age payments from 20 March 2020.
Job seekers and parents who receive working age income support will have increased activity test
requirements from 20 September 2018.
Set some SMART financial goals for your business in 2017
February 17, 2017 · Published by R J Sanderson And Associates Pty Ltd
It’s a New Year, and a new opportunity to inject new energy and enthusiasm into your business by setting some financial goals. It’s easy to dash off a few ideas on the back of an envelope, but we want you take the idea of goal setting a little more seriously. We suggest you spend some quality time creating achievable goals that tie in with the overall strategy of your business.
When was the last time you updated your SMSF trust deed?
· Published by RJS Wealth Management Pty Ltd
An SMSF, as well as being an excellent way to safeguard your retirement on your own terms, is a type of trust. Setting up an SMSF requires lots of documentation, and the trust deed is crucial, because it sets out the rules for establishing and operating your SMSF. It’s a legally binding document, and it should reflect the current Superannuation rules.