On 1 January, 2015, the income test assessment of account-based pensions changed for income support payments and also for the Commonwealth Seniors Health Card (CSHC).

Account-based pensions commenced on or after 1 January, 2015 are deemed for income test purposes for both, income support payments and CSHC assessment. Account-based pensions established prior to 1 January, 2015 may be grandfathered if certain requirements are met.

For income support payments, account-based pensions are classed as grandfathered if all of the following requirements are met:

Self-managed super fund (SMSF) trustees are ultimately required to take on many responsibilities. From being the decision point for all fund actions, to managing the fund prudently for the benefit of all fund members – all while being aware that they, as members, will not have access to any special compensation schemes or access to the Australian Financial Complaints Authority (AFCA) if something goes wrong. It’s a lot to take on, and a financial adviser can help trustees understand how both superannuation and tax law may apply in their circumstances.

Investment bonds are often considered an old fashioned investment option, and as a savings vehicle they can be overlooked by financial advisers and their clients. But the reality is that investment bonds have a number of advantages that make them well worth a closer look.

The Government’s Quality of Advice Review is one of the most important financial services policy reviews to be held in recent years. It will consider improvements to the regulatory framework to reduce complexity and better enable accessible and affordable advice for consumers, so they can access quality advice when they need it and in a form they want. 

Included in the Review’s terms of reference is consideration of the opportunities for digital advice to address some of the industry’s impediments to delivering scaled and affordable advice. 

• The cash out re-contribution strategy;
• Potential benefits; and
• Important points to consider before recommending the strategy. 

A person’s superannuation savings are accumulated at the individual level. While you can own an investment property, shares, or have a joint bank account with another person, your superannuation is unique in a sense that it is your benefit only, even if you can ultimately pass it on, in some cases tax-free, to a dependant beneficiary.

Global credit can be a useful diversifying asset class for Australian investors. It can offer higher income than cash, with less risk than shares, while bringing diversification benefits that can reduce overall portfolio risk.

The long-term performance of different asset classes' historical risk and return trade-off is shown in Chart 1. Global credit sectors have an intermediate risk-return profile through different investment cycles.

Chart 1: Historical Annualised Return vs. Historical Risk