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Plan to tax bank deposits

Posted on March 30, 2015 by admin


The federal government has announced that it is planning to place a tax on bank deposits in its next budget, which will be handed down in May. According to media reports, the tax will take the form of an insurance levy; the government offers consumers a savings guarantee of up to $250 000 to protect them in the event of a bank collapsing. To support this insurance guarantee, accounts holding more than $250 000 will incur a 0.05% levy. Banking representatives are warning that the cost of the tax may be passed on to consumers. Further criticism of the scheme comes from assertations that the likelihood of an Australian bank collapsing is extraordinarily remote. The new banking tax is expected to raise $500 000 each year.


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ATO Releases New Blueprint: Reinventing the ATO

Posted on March 19, 2015 by admin


Yesterday, the Australian Tax Office released a blueprint containing information on a new unit for wealthy taxpayers, as well as a new design to guide future proceedings with taxpayers. Entitled ‘Reinventing the ATO’, the blueprint outlines an exclusive unit to deal with wealthy individuals in Australia and at least one million privately owned businesses. The announcement of this new unit comes in response to the government being forced to defend exempting Australia’s biggest private companies from tax disclosure requirements. Beginning in late April, the taxpayers who make over $1 billion or have $500 million in assets will be personally contacted by the ATO to discuss assessments of tax risks or issues. Other taxpayers in this segment who attract attention from the ATO, will also be provided with a report outlining any risk assessments or concerns. For thousands of small businesses, the ability to pay all their employee super contributions at once to the Small Business Superannuation Clearing House will be possible by July, and there will also be enhancements made to the ATO’s small business newsroom. The blueprint is available today on the ATO website, and contains information for both the community and ATO staff.


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Tips for cutting your tax bill

Posted on March 13, 2015 by admin


1. Put more into your mortgage offset account: Mortgage offset accounts are usually considered to be a mechanism for protecting yourself from interest rate rises. However, another advantage is that if you direct more money here and less to your savings account, you will save on tax earned on interest. With interest rates at record lows, this strategy may be particularly beneficial to some individuals. 2. Don’t forget about non-concessional super contributions: There is a lot of hype surrounding the massive tax benefits of concessional (before tax) superannuation contributions, but don’t forget about your non-concessional (after tax) options! By making after-tax contributions, you will save tax on the returns earned by your investments. 3. Discretionary family trusts: Family trusts allow you to direct the income earned towards lower income earners, thereby reducing the amount of tax you pay. If you are interested in starting a family trust, feel free to call our office to discuss your situation.


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Superannuation and life insurance

Posted on March 12, 2015 by admin


A lot of Australians are unaware of the fact that they probably have life insurance provided by their superannuation fund. Due to economies of scale, you are most likely getting a very good deal on your cover, and as such it pays to be aware of a few things that can impact your life insurance. 1. SMSFs need to consider the life insurance needs of their members. However, this does not necessarily mean that the SMSF needs to provide the insurance. A lot of SMSF trustees choose to keep some of their super invested in public funds in order to take advantage of the cheap life insurance. 2. You need to specify who you would like to receive your life insurance payout in the event that you pass away (you need to do the same for your superannuation). It pays to be aware that life insurance payouts to non-dependents tend to attract a hefty tax bill, whereas payouts to dependents are typically tax-free. 3. You can also access income protection insurance in your SMSF. Income protection insurance is especially important for people who have families or large debts (i.e. a mortgage).


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Australia and Switzerland enter into tax information exchange

Posted on March 5, 2015 by admin


Switzerland and Australia have entered into an unprecedented agreement that will see the two countries automatically exchange tax information. The move is intended to prevent tax evasion through income earned and held in offshore bank accounts. Tax avoidance has been increasingly prominent on the international agenda recently, and Switzerland is striving to shake its reputation as a haven for tax dodgers and criminal organisation. Swiss authorities have even gone so far as to criticise the James Bond film franchise for the unsavoury image it has cast on the alpine nation. Authorities from both countries have indicated that they expect the information exchange to be in full swing by 2018. While this is the first time that Switzerland has entered into such an agreement, negotiations for similar arrangements are underway with a number of OECD countries.


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Secrets to a savvy SMSF

January 17, 2018

Opting for a self-managed super fund (SMSF) can be a clever financial decision, but it’s not for everyone.

If you aren’t prepared to adhere to the following tips, your SMSF will most likely fail to perform as well as you would of hoped it to.

Stay informed
You can’t expect your SMSF balance to be the most profitable for you in your retirement phase if you don’t remain educated on the vastly changing compliance laws. Remaining up-to-date with these changes, and how they impact upon your nest egg is an essential aspect of making your SMSF work for you, your spouse and your children.

Strategy
The ultimate long-term goal of your SMSF is to allow you to retire comfortably, maintaining the life you have become accustomed to throughout your working years. To do this, you need to have a strategy; the decisions you make regarding your SMSF should be part of this strategy, not just transfers here and there because your financial advisor told you to. Your strategy should be reviewed at least annually. You need to be aware of how each decision will impact upon and ultimately lead you towards the financial security you work so hard to achieve for your later years.

Seek advice
Running a self-managed super fund doesn’t involve having all the answers, but it does require understanding when it’s time to talk to a professional to get the best advice on your SMSF. You can never ask too many questions when it comes to your future financial security.