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General Transfer Balance Cap – Increase to $2 million
The maximum balance a superannuation member can move into the tax-free retirement (pension) phase is presently $1.9 million. This is due to a limit introduced in 2017 known as the Transfer Balance Cap (TBC). Indexation of the general TBC to $2 million will occur on 1 July 2025. We explore some of the implications below.
Testamentary Trusts
A testamentary trust is a type of trust that is created through a person’s Will and takes effect upon death. Depending on your financial circumstances, this structure can provide the beneficiaries certain advantages in addition to an inheritance
Episode 41: Your Questions Answered
Transition to Retirement Income Streams (TRIS)
Due to changes implemented in 2017 to limit the tax benefits of a transition to retirement pension, this strategy has received less attention in recent years. However, it remains a strategy that can assist those who have reached their ‘preservation age’ to have access to superannuation benefits without the requirement to leave a job or fully retire. Furthermore, a transition to retirement strategy can be used to manage ongoing cash flow, or to assist in executing extra tax-effective contributions to superannuation in the lead up to retirement.
Commonwealth Seniors Health Card
The Commonwealth Seniors Health Card (CSHC) is a federal government concession for self-funded retirees, allowing access to cheaper health care and other discounts. The card is income tested and valid for a 2 year period once granted.
Episode 40: What financial advice would you give your 18 year old self?
Super on Paid Parental Leave
Legislation enabling super to be paid on Commonwealth funded Paid Parental Leave has now passed. First announced earlier in the year (2024), the payment of superannuation aims to assist in reducing the impact of parental leave on retirement outcomes. This additional initiative expands on the improved Paid Parental Leave scheme and is summarised below.
Episode 39: What would you do if you won Lotto?
Investor alert: Reports of stolen shares due to identity theft on the rise
On 15 October 2024, the Australian Securities and Investment Commission (ASIC) released the following article. We believe it is important that all of our clients understand the increased risk of scams and fraud and the potential impact. Please click below to read this important article.