We all get bombarded with information from every source possible and frankly, it's too much. Even if you haven't already flicked it into spam you probably don't have time to read it. We call it Information Overload. So, on this page we've selected big picture news items we think are relevant and of interest to our clients.
Your superannuation trust deed along with the superannuation laws form the governing rules that self-managed super funds (SMSFs) need to operate by. The introduction of the $1.6 million transfer balance cap (TBC) and new transition to retirement income stream (TRIS) rules are a ‘game changer’ for SMSFs when discussing benefit payments and estate planning. With the new super rules in effect as of 1 July 2017, now is the right time to review if your trust deed needs to be enhanced or amended to deal with the new approaches and strategies you may need to implement.
Where a member’s Total Super balance is in excess of $1 million, a SMSF will be required to report to the ATO quarterly from 28 October 2018.
TBAR requires commutations and establishments of super pensions to be reported in the month and quarter after they occur. This is a dramatic tightening of the current rules, where pension transactions are often reported nearly two years after the SMSF annual return is lodged.
In one of the most dramatic changes to property depreciation legislation in more than 15 years, Parliament passed the Treasury Laws Amendment (Housing Tax Integrity) Bill 2017.
The new legislation means owners of second-hand residential properties (where contracts exchanged after 7:30pm on the 9th of May 2017) will be ineligible to claim depreciation on plant and equipment assets, such as air conditioning units, solar panels or carpet.
In the space of a few years, the phenomenal rise of the ‘sharing economy’ has had a significant impact in Australia. But beware the social security and tax implications for people receiving a pension.
With the rise in popularity of services such as Uber, Airbnb and Stayz, it’s easy to see why older Australians are signing up to become providers and help give their retirement funds a little boost.
To understand this business model, we must look at what the sharing economy is.
From 1 July 2017, travel expenses relating to inspecting, maintaining, or collecting rent for a residential rental property cannot be claimed as deductions by investors or SMSFs. The changes are now law. The travel expenditure is also not recognized in the cost base of the property for CGT purposes.
A new alternative for first home deposit savings are now available via the First Home Super Saver Scheme (FHSSS).
Individuals will be able to access certain superannuation benefits to assist with the purchase of their first home. Those who take advantage of the scheme may have a greater amount available as a first home deposit.
Substantial Employers are those who have 20 or more employees and from 1 July 2018 will be required to report to ATO as they pay.
All employers will need to count the number of employees on their payroll on 1 April 2018 to find out if they are a ‘substantial employer’. They need to do a headcount, not a count of full time equivalent (FTE).
WLM is pleased to welcome our new Associate Director, Stephen Buhlman. Stephen grew up in Perth and, after travelling to the UK to work, he found Perth a bit slow so he packed hisbags and moved to Sydney in 1998. His love of investing and client interaction made financial planning the perfect career path. Prior to joining WLM this year, Stephen has run his own boutique financial planning business as well as worked as a financial planner at one of the major four banks.
Many of the world’s leading investors will tell you that nothing is more important to long-term investment success than a clear investment philosophy.
An investment philosophy is based on the intractable belief you have in the principles and practices that guide your decision-making. In times of market upheaval and through the dark of uncertainty, your investment philosophy enables you to control your emotions, shut out the noise and focus on the things that really matter over the long term. Your investment philosophy keeps you focused on the process, which is your investment strategy.
In the 1500s, people cooked in the kitchen using a big kettle that always hung over the fire. Every day they lit the fire and added things to the pot.
They ate mostly vegetables and did not get much meat. They would eat the stew for dinner, leaving leftovers in the pot to get cold overnight, then start over the next day.