With June 30 around the corner, Australian residents with a Self-Managed Superannuation Fund (SMSF) will need to ensure they are well-prepared for the End of Financial Year (EOFY), and it’s best to start thinking about it now before the year-end rush. To assist you in this process, the finance specialists at FMS Group have compiled a comprehensive guide with expert tips to help you navigate the complexities of SMSF management and compliance in 2024.   From record-keeping to investment strategies, these tips will empower you to get your SMSF ready for EOFY effectively. Maintain Up-to-Da ..read more

Ensuring you’ve structured your finances tax-effectively is always a concern, but with new tax rules for super on the horizon, many people with large balances are considering alternative vehicles to save for retirement. Unsurprisingly, this has sparked a renewed interest in an old favourite – trusts. Trusts have always been popular in Australia, with the government’s Tax Avoidance Taskforce (Trusts) estimating more than one million were in place in 2022. Separating ownership using a trust The popularity of trusts for business, investment and estate planning purposes is due t ..read more

If you’re lucky enough to have received a windfall, perhaps an inheritance or a retrenchment payout, your first decision will be what to do with it.   Assuming you have decided against a shopping splurge, finding the best place to invest a lump sum is all about the effect on your tax bill and how soon you will need access to the funds.   For those interested in investing their lump sum for a longer term, superannuation is one approach because of its tax benefits.   But be aware that, while super can be a tax-effective investment, there are limits on how much you can pay into yo ..read more

As digital tools continually evolve, it is more important than ever to make sure you understand your tax obligations and comply with them. The Australian Taxation Office has been expanding and improving its data matching programs. Data matching compares data from a range of private and government organisations with the information you have provided to the ATO. Today there are some 26 different data matching programs covering a wealth of transactions including various insurances (health, landlord, income protection); electoral rolls, bank accounts and credit cards, real estate, online ..read more

As our superannuation balances grow larger, it makes more sense than ever to keep track of the many rules changes that have recently happened or are coming up soon. So, check out these latest changes in case they affect you. Super bonus for workers For employees, the new financial year kicks off with an increase in the Superannuation Guarantee paid by employers. It is now 11 per cent of eligible wages. This rate will increase by 0.5 per cent each year until it reaches 12 per cent in 2025.i The Australian Tax Office will also be cracking down on employers who don’t pay on time or at all. Minimu ..read more

Since the Albanese Government announced its intention to double the tax on investment earnings for super account balances over $3 million, there has been lots of talk about taking money out of self managed superannuation funds (SMSFs) to avoid the tax hikes. As SMSF trustees have more control of their super assets compared to those invested in a large superannuation fund, accessing your money, and moving it out of the super system can sound like an attractive idea. But as good as it might sound, gaining early access to your super savings is illegal and it is an activity the Australian Taxation ..read more

The concept of retirement is changing, with fewer people working towards a final retirement date and then clocking off for good. Instead, those who have the flexibility to choose are often transitioning out of the workforce over several years, or even returning after a break. Whether you simply want to wind back your working hours to explore other interests, or don’t want to cut your ties with work completely, to make it work you need to plan. Choosing your retirement date There is no set retirement age in Australia, but most people will not be eligible to receive an Age Pension until they rea ..read more

The lure of greater control over your retirement savings with a self-managed super fund may be enticing but the freedom to chart your own destiny also comes with the responsibility to comply with the rules. Where super is concerned, these rules can be complex and subject to change. An SMSF is a private super fund regulated by the Australian Taxation Office that you manage yourself. You can have up to four members in your fund, each of whom has to be a trustee or, if a corporate trustee has been appointed, a director. It’s often seen as preferable to a public offer APRA-regulated fund becaus ..read more

Working out how much you need to save for retirement is a question that keeps many pre-retirees awake at night. Recent market volatility and fluctuating superannuation balances have only added to the uncertainty. So it’s timely that new research shows you may need less than you fear. For most people, it will certainly be less than the figure of $1 million or more that is often bandied around. For most people, the amount you need to save will depend on how much you wish to spend in retirement to maintain your current standard of living. When Super Consumers Australia (SCA) recently set about ..read more

As Australia’s system of compulsory superannuation celebrated its 30th anniversary in July, this is a good time to take a closer look at one of super’s biggest success stories – the number of people deciding to take control of their retirement savings with a self-managed super fund (SMSF). There are now almost 607,000 SMSFs worth a combined $894 million, with 1.1 million members. While one of the benefits of running your own fund is the flexibility to chart your own course, concerns have been raised over the years that SMSFs are too heavily invested in cash and shares and not as well diversi ..read more