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Federal Budget 2020 Key Initiatives and Impact on Your Finances –

The 2020 Federal Budget is all about job creation, spending to make more jobs, and financial support. It creates one of the largest stimulus packages on record to promote economic growth and recovery. Below is a summary of the key measures that impact you depending whether you are still working and accumulating assets, or a retiree.   Taxation Initiatives for Employees, Investors, and Small Business   Personal Income Tax Measures From 1 July 2020, the Low Income Tax Offset (LITO) and the thresholds for the 19% and 32.5% personal income tax brackets are proposed to increase. This means the tax …

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Death and Taxes on Your Own Terms Via Good Estate Planning

Benjamin Franklin’s statement that nothing in life is certain but death and taxes remains relevant after 200 years. As a result of an ageing population and increasing household wealth for older generations, Australia faces the largest intergenerational wealth transfer in history in the coming decades. This has significant policy implications, but at a personal level, raises many challenges also. How do we prepare for the inevitable, and do the best for our loved ones?   Facing one’s mortality is rarely an enjoyable or engaging experience. Many would prefer to believe they will live forever, or at least long enough to …

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Spend Your Age, and a Little More, for a Happy Retirement

A group of Australian actuaries have devised a simple ‘rule of thumb’ to help retirees work out how much money they should draw out of their savings in retirement.   The five actuaries ran a range of complicated equations and dynamic programming calculations to help single retirees who have reached Age Pension eligibility age, and who are receiving a part or full Age Pension but who choose not to seek financial advice at retirement.   Actuaries Institute President Nicolette Rubinsztein said many people can have a better retirement if they have higher confidence that they are able to draw down …

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Take Care This Year When Preparing Your Tax Return

As many Australians begin pulling together their records for tax time, the Australian Taxation Office (ATO) is warning people to take care with the details and evidence used in your tax return.   The ATO says it will closely monitor unsubstantiated, or higher-than-expected, work-related expense tax deductions, and claims on rental properties: https://www.ato.gov.au/Individuals/Income-and-deductions/   In addition, the ATO has given notice to members who took money out of their superannuation accounts under the COVID-19 early super access scheme that they will need to have met the eligibility requirements or could face fines and prosecution: https://www.ato.gov.au/Individuals/Super/In-detail/Withdrawing-and-using-your-super/COVID-19-early-release-of-super—integrity-and-compliance/   The ATO’s has also …

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Superannuation Measures Included in Government’s July Economic Update

The Government released the Economic and Fiscal update on 23 July which included previously announced measures that were amended or reconfirmed.     Extension of Early Release of Super (Corona virus) Application Period   Access to superannuation for eligible individuals under the financial hardship – Coronavirus condition of release will be extended. Currently, applications to have an amount released in 2020/21 need to be made by 24 September 2020. However, the application period will be extended to 31 December 2020.   An amount up to $10,000 may be accessed up until this date by eligible Australian and New Zealand citizens and permanent residents.   …

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Superannuation Rule Changes From 1 July

The start of a financial year always brings new rules for superannuation fund members.  The following article looks at some new (and not-so-new) rules in more detail.   Abolition of the work test to age 67   Until 30 June 2020 there was no need for a member to satisfy a work test for personal concessional contributions and non-concession contributions (NCC) before reaching age 65. However, once they reached 65 in the financial year a work test of 40 hours in 30 consecutive days was required to be met at some time during that year and prior to the contribution …

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Investment Market Outlook and Impact on Portfolios

With share markets and economic data dramatically diverging during the past three months due to the impact of the Corona virus pandemic (COVID-19) and government stimulus support, investors are naturally scratching their heads and asking where to from here?   We expect both investment markets and the economic outlook to remain in a state of flux for the remainder of the year given the uncertainties that lie ahead.  Members of the Accumulate Wealth Management Investment Committee recently discussed investment strategies and portfolio positioning.  For more confidence about the future pathway, the key milestones and questions to be clarified can be …

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Six Step COVID-19 Emergency Response Plan For Companies And Small Businesses

Below is a good article we saw from law firm Foulsham & Geddes guiding businesses and directors of corporations to take steps now to deal with COVID-19 restrictions and incorporate government policy into their planning.   The firms says this is important because even though the government has announced a moratorium on personal action against directors for insolvent trading, they may still face some kind of personal liability for their company’s debts if they do not act in accordance with their duties under the Corporations Act over the coming months.   Read the full article HERE

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