Financial Planning articles
8 Habits of Wealthy and Successful Individuals
It’s no secret that the wealthiest people enjoy a life of comfort, extravagance, and security. But why is it that only a few achieve this status while most are left struggling and vulnerable?
The key lies in the money management skills and practical behaviours that they adhere to throughout their lives....
A Mortgage Review Can Help You Get Lower Interest Rates
Australia is experiencing a weakening housing market and the Reserve Bank has no choice but to further reduce the already low-interest rates.
You may notice that while mortgage rates are nearing all-time lows, you’ll barely see any changes in your home loan rates. As a borrower, it’s your responsibility to do...
Stricter Terms for Availing Deductions on Vacant Land
Before the Treasury Laws Amendment Bill 2019 was enacted, the cost for holding a vacant property was largely deductible. According to the ATO’s guidelines, deductions can be applied on the vacant land that’s intended to be developed in the future for income-generating purposes.
Holding the vacant land can’t be regarded yet...
Changes in CGT Exemptions for Non-Residents in Australia
Special rules on the implementation of capital gains tax (CGT) for non-residents have been proposed in the 2017/18 Budget. These new rules will apply to foreign residents when selling their ‘main residence’ or property in Australia.
A property is considered a ‘main residence’ if:
- You and your family reside in it.
- ...
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...