Financial Planning articles
What Happens When You Contribute Past the Super Limit?
Miscalculating or mistiming the payment to your super can be costly. This can be caused by your employer, your tax agent, your super accountant, or yourself due to the lack of information regarding contribution limits.
Contribution Limits
The annual cap for concessional contributions is $25,000. The unused amount on your cap can...
Factors to Consider in Purchasing Equipment for Your Business Through SMSF
People often ask if it’s possible to use the SMSF to buy or lease a plant, equipment, or vehicle for a business run by a member or someone related to them. Technically, this is possible, but practically, it’s not advisable due to the numerous provisions you may violate in...
How Much Can You Earn Tax-free Outside Super Contributions?
The amount of income you can earn tax-free outside your SMSF contributions primarily depends on your age.
Residents Below 65
If you’re under 65, the tax-free threshold is $18,200. This means the first $18,200 you’ll receive won’t be taxed, saving you more money annually because your total taxable income has been reduced....
Limitation and Exemptions on Centrelink/DVA Gifting Rules
You’re feeling generous, so you decided to give an asset to a family member as a gift. Before gifting assets that have enormous value, you must understand the impact the act can have on your Centrelink/DVA entitlements.
When you make a gift, the value of your assessable assets is reduced. This,...
Costs and Fees on Running an SMSF
A report from the Australian Securities and Investments Commission (ASIC) says that 32% of Self-managed Superannuation Fund (SMSF) members found that setting up their SMSF is costlier than expected. Also, 38% of SMSF owners said that it was time-consuming to set up than anticipated.
But because of the significant benefits of...
Government Guarantee on Bank Deposits
Before 2012, under the Financial Claims Scheme (FCS), deposits in Authorised Deposit-taking Institutions (ADIs) such as banks, buildings societies, and credit unions were guaranteed by the government up to an amount of $1 million. Under the revised Scheme, the updated permanent cap was reduced to $250,000.
The Australian government guarantees bank...
Tax Treatment on Australian Employee Stock Options
Employee Share Schemes (ESS) enable employees to buy shares of the company they’re working for at a discounted price. Alternatively, employees may choose to buy stock options which give them the right to buy or sell shares at an agreed price and date. Regardless of the scheme offered, employees are...
Facts on Holding Critical Illness Insurance in Super
Critical illness insurance, also commonly known as trauma insurance or major illness insurance, is designed to protect an individual in the advent of a serious illness. A lump sum is paid to cover medical expenses for treating severe health issues such as cancer, heart attack, stroke, and coronary bypass. These...
Greater Bank Offers Home Loan Rates Below 3%
The average interest rate of home loan rates offered by lenders in Australia ranges from 3.09% to 3.99. There are a few institutions which offer lower, with only 2.99% interest, and only a handful provide even lower than this. One of the lowest is from Greater Bank who presents only...
Basics of the New 5-Year Concessional Contribution Catch-Up Rules
This new rule can be a bit confusing to some, but it’s really simple and it offers a lot of advantage to those who want to maximize their concessional contributions toward their super.
Concessional contribution is the amount you put into your super before any tax is applied. This includes your...