Tax (financial) advice, five years on…

It’s now more than five years since the commencement of the tax (financial) advice regime. The Tax Agent Services Act 2009 (TASA) was amended, generally with effect from 1 July 2014, to bring individuals and corporate bodies that provide tax advice in the course of giving advice that is usually provided by financial services licensees, or their representatives, within the regulatory regime administered by the Tax Practitioners Board (TPB).

Planning for co-investment owners and partnerships

It’s not commonly understood that co-owners of passive investments are partners in a partnership for tax law purposes, and therefore any associated financial planning considerations are often overlooked or misunderstood.

Securing consistent returns amid new world order

Buy-write overlay strategies are well-placed to capitalise on these tumultous conditions by adding a consistent and diversified source of real return to investor portfolios. It’s one of the most basic forms of derivative overlay strategy, where equity is owned, and a corresponding call option is sold over the underlying position. A buy-write strategy effectively replaces ‘expected but uncertain’ capital gains with far more consistent income streams, while still receiving all dividends (and franking credits on the ASX 200).

Benefitting from changes to lifetime income streams

The changes to the means testing of lifetime income streams from 1 July, 2019 presents a significant opportunity for retirement advice. The means testing changes provide an immediate exemption under the assets test where the lifetime income stream meets a capital access schedule. This means an asset-tested retiree can immediately increase their Age Pension entitlement by investing in a lifetime income stream. In this article we look at the retirement advice opportunity and the immediate benefits for asset-tested retirees.

When super’s not so super

Australia’s mandatory superannuation system is among the best in the world – and the most tax-effective long-term savings plan for most Australians. But that doesn’t mean it’s the most flexible investment for all Australians. In fact, the rules governing tax, contributions, and thresholds change over time – and rarely become more generous to contributors.

Preparing for an SMSF audit

Many self-managed superannuation funds (SMSFs) hold unlisted assets, particularly unlisted trusts and companies which may include any loans the SMSF has made to them.

These assets are likely to invite more scrutiny from auditors and the regulator, and don’t be surprised if your client’s SMSF is required to provide further information to them.

Complying with pension drawdown requirements

At the start of each new financial year self-managed superannuation fund (SMSF) trustees will re-calculate the minimum pension payment requirements for each income stream. Members may desire an amount higher than the minimum pension and so it is important to consider how and when to make payments from the SMSF to ensure the minimum pension standards are met, transfer balance account reporting (TBAR) requirements are met, and tax efficiencies are considered.

MEETING THE MINIMUM PENSION STANDARDS

Super’s ‘special’ status in bankruptcy

One of the aims of bankruptcy law is to provide a ‘fresh start’ for the person after being discharged from bankruptcy. The concept of a fresh start is embodied in laws which release the person from the future liability to pay existing debts upon discharge. Consequently, the individual can start afresh in rebuilding financial security.

Understanding the reality of ETFs

The future of super contribution strategies

The legislative trend since 2007 towards lower super contribution caps means financial services professionals must be even more vigilant about maximising their clients’ super contribution opportunities. Although several Federal governments have attempted to simplify the superannuation system, the contribution rules remain complicated, and may become even more so in future years.

CONCESSIONAL CONTRIBUTIONS