CALL US: (07) 3367 0999 | EMAIL US:

ATO warning on aggressive tax planning

Posted on April 20, 2015 by admin


The ATO is warning taxpayers of aggressive tax planning strategies will attract a significant amount of scrutiny. A number of specific strategies have been flagged as aggressive in a video named ‘Tax Tricks That Will Get You In Trouble’. When it comes to tax avoidance schemes, it is not uncommon for individuals to be duped by a fraudulent investment opportunity or given bad advice from an unqualified financial planner. The advice that the ATO give is fairly straightforward: if a tax planning strategy seems too good to be true then it probably is. This is also advice that should be applied to investment returns that seem unrealistically high. Multiple research studies have proven that people with higher rates of education and investment experience are actually more likely to fall for fraudulent investment scams because they are less likely to seek an outside opinion.


Keep Reading...


Australians warned that $1 million superannuation may be insufficient

Posted on by admin


For some time now, superannuation experts have been warning Australians not to be distracted by the seemingly large size of their retirement nest eggs. While the total balance of many super accounts may sound impressive, it can distract from the reality of the income stream it is likely to deliver. Between longer life expectancies, inflation, and low interest rates, retirement savings are not always delivering the expected retirement income. Obviously, a range individual circumstances will dictate how much an individual will need to cover their expenses in retirement. In particular, single retirees will tend to have significantly higher living expenses than those who are co-habitating. Furthermore, the trajectory of interest rates is a determining factor in how a nest egg  will perform in pension phase. And, as we all know, accurately predicting the future of interest rates is an impossible undertaking.


Keep Reading...


Australians set to hit by ‘bracket creep’

Posted on April 7, 2015 by admin


The government’s tax white paper has revealed that in the next twelve months the average Australian will be pushed into the second highest tax bracket. As average wages become higher due to inflation, but do not actually rise in real terms, many taxpayers will be pushed up into a higher tax bracket. This phenomenon is known as bracket creep. Currently, the average Australian wage is around $75 000, meaning that a majority of the population sits in the third highest tax bracket ($3572 plus 32.5c for every dollar over $32 000. However, by 2016-17 the average wage will be around $80 000, pushing people into the second highest marginal tax bracket. Some experts are claiming that concerns surrounding bracket creep are overstated and that the government is most likely adjust marginal tax rates in response to wage inflation.


Keep Reading...


Business
advice

taxation
planning

compliance
services

News

How to catch out an illegal super scheme

April 18, 2018

When a super scheme seems too good to be true, it often is. Many illegal super schemes are operating in Australia, so it is crucial to understand the characteristics of such schemes.

A popular illegal scheme is one whereby an individual is enticed by being told they can access their super early to pay off a credit card debt, go on a holiday, buy a car and so on. Generally, such schemes are illegal as superannuation can only be accessed early by meeting a condition of release.

Those promoting such schemes usually:
– Encourage individuals to transfer super from an existing super fund to an SMSF to access super before they are legally entitled to;
– Target those under financial pressure or who do not understand the super laws;
– Claim you can use your super for anything you want;
– Charge high fees and commissions, and risk losing some or all of the individuals super to them.

Unfortunately, participating in these schemes subject the affected individual to identity theft from the promoter of the scheme. Identity theft is when someone uses another person’s details to commit fraud or other crimes.

Individuals need to be aware that super is usually only accessible once the preservation age is reached and they stop working. The preservation age is currently 55 years old for those born before 1 July 1960 and 60 years old for those born after 30 June 1964.

Superannuation can only be accessed early in special circumstances such as severe financial hardship and for specific medical conditions. There are severe penalties for illegally accessing your super early.