Wealth Intelligence

  • Dec 16

    Mooted changes to superannuation

    The government has foreshadowed changes to the superannuation regime. Be prepared. Be intentional.

    The Federal budget is in deficit and it needs to be brought under control. Rightly or wrongly, superannuation is seen as ‘low-hanging fruit’. And the government has made it clear that changes will be made to the superannuation regime that both collect more tax and make it ‘fairer’.

    Much of the media commentary is on speculative positions presented by ‘think tanks’, industry experts or those with a ‘barrow’ to push. But it does appear that the government will make changes at next year’s budget and/or go to the election with a package of broader tax and welfare proposals. Read More
  • May 28

    It’s time to consider structural diversification

    Sound wealth management requires diversification of both structures and investments

    Key points:

    • Superannuation is extremely tax effective but its complex rules are constantly changing

    • A sound financial strategy for those still some way from retirement requires diversification by investing in both superannuation and non-superannuation structures

    The wrong investment structure(s) can mean too much tax is paid on investment income and gains, or the inability to access funds when required. Read More
  • May 6

    Set and forget (wealth strategies) at your own risk

    Gearing strategies funded by margin loans have changed over recent years. To ensure ongoing tax efficiencies and effective risk management it is critical that they be reviewed. And there may be better alternatives.

    The current combination of low interest rates, high (franked) dividend yields and, in some cases, lower loan-to-value ratios, means margin loan share portfolios may hold greater risk, be positively geared and no longer be tax effective in a high taxed entity. Read More
  • May 6

    Keeping intergenerational super fund payments tax-efficient

    ‘Nothing is certain in life, except death and taxes’. the task is to ensure that death doesn’t mean tax.

    Last year the government released regulations confirming the continuing tax-free status of a superannuation fund in pension phase following the member’s death.

    However, there is a second layer of tax that applies to superannuation death benefits received by non-tax dependent beneficiaries (such as independent adult children).

    If you are at least age 60 all superannuation withdrawals made by you are tax-free and if you die, your benefits can be paid to a tax dependent, such as your spouse, tax-free.
    Read More