News

MyGov Online Services Now Important For Financial Planning

 The ATO online services site, accessible through MyGov, has evolved over time to become a very useful tool for individuals in managing their superannuation and accessing superannuation information. Through MyGov, clients can now look up their superannuation information such as carry forward unused concessional contributions, total superannuation balance or transfer balance cap transactions, saving valuable time and minimising the risk of missing important information. Our friends at Colonial First State have put together this handy guide to get the most out of your MyGov account. Read it HERE

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Global Market Outlook Underpinned By The Great Reopening

Share markets have rallied on hopes for an economic recovery as coronavirus-imposed lockdowns are eased across the globe.  The market rebound means that value is no longer as compelling for global equities or credit investments.  On the other hand, the cyclical outlook has improved amid vast fiscal and monetary stimulus and economic reopening. The reopening trade can be dated from 6th November 2020, when Pfizer announced the first successful COVID-19 vaccine. Since then, the best performing asset classes have been small cap and non-U.S. equities, global real estate investment trusts (REITS), commodities and the value factor.  In summary, the asset …

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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. Employer Superannuation Guarantee Contributions (SGC) Increasing to 10% of Salary The SGC rate increases from 9.5% to 10% of salary for employees. Most employees will receive additional superannuation contributions. An exception is employees who are paid mandated employer contributions at a rate at or above 10% already, who will see no increase (for example certain government or university employees). Small business owners should review their systems to ensure that they are meeting their …

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Self-Funded Retirees Get Extension of Minimum Pension Relief for 2021-22 Financial Year

The Government has passed regulations to extend the temporary reduction in superannuation minimum drawdown rates through to the 2021-22 financial year. Minimum pensions will again be halved for all account-based and term allocated income streams as follows for the 2021-22 financial year. Your Age Normal Minimum Pension (% of 1 July balance) Reduced Minimum for 2021/22 Under 65 4% 2% 65–74 5% 2.5% 75–79 6% 3% 80–84 7% 3.5% 85–89 9% 4.5% 90–94 11% 5.5% 95 or older 14% 7% Your existing superannuation pension account will retain your existing arrangements and not make any changes without your instructions (i.e. keep pension …

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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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