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Penny Wise

This Month

Dual citizenship can create tax problems.

Costly tax traps for dual Australia-US citizens

Most American citizens working Down Under never have to pay tax in the United States, but they can face big penalties for failing to file a US tax return each year.

May

You can consolidate the two pensions into one fund.

How do I bring a UK pension back to Australia?

A UK pension can only be moved to Australia once you turn 57, but there are things you can do in the meantime.

April

Sticking to a disciplined contributions strategy remains compelling even when markets are moving against you.

Am I foolish to invest in shares when markets are so volatile?

Donald Trump’s erratic policy statements have markets in a spin. Is the best response to stop salary sacrificing into superannuation?

You will need to re-serve each waiting period included in the higher level of cover.

How can I get around health insurance waiting periods?

Many couples are tempted to cut back on private health insurance as they get older to save money, but it can backfire if you need a knee or hip replacement.

Watch out for cash amounts that include dividends or rental income.

Will we have to pay tax on an inheritance from family overseas?

You will be eligible for the 50 per cent capital gains tax discount once you’ve held the asset for more than a year.

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To make the downsizer contribution, you’ve got to be 55 or older selling a property that you’ve owned for at least 10 years.

How can I add a downsizer contribution and inheritance to super?

There is the potential to contribute a combined $1.32 million to your super fund and that of your spouse.

March

Make sure the loan is interest-free and repayable upon the sale of the property.

Will a loan from the bank of mum and dad cruel our mortgage plans?

A few lenders are willing to exclude a parental loan from serviceability assessments.

Shouldn’t childcare costs come from “family money”?

Should mum or dad pay for childcare?

Having a baby is a pivotal point in moving from casually pooled finances to a family money system.

Helping kids onto the property ladder can be tricky.

We’re helping our son buy a home with his girlfriend. What if they split?

Giving your kids a hand to get on the property ladder can be complicated if there’s another party involved.

The rules for professional services partners and high-earning employees are different when it comes to using family trusts for income.

I’m a high earner. Can I use a family trust to lower my income tax?

The rules for professional services partners and high-earning employees are different when it comes to using family trusts for income.

February

At your age, you must draw a minimum of 5 per cent of your balance, and that will increase as you get older.

We have $4m in super. How much can we safely spend each year?

Nobody knows how long they will live, which is what makes budgeting in retirement so tricky.

The fairest approach is to increase the $80,000 in line with the consumer price index.

What’s the fairest way to give my kids money for a house deposit?

Gifting equally is likely to reduce the risk of resentment and family conflict.

November 2024

“I have yet to meet any individual who has the wish to leave their hard-earned assets to the state,” lawyer Suzie Willis says.

My brother died without a will. Will the government take his money?

Intestacy laws direct that the estate is to be distributed among family members, starting with partners and children.

October 2024

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Financial advice is expensive – is it tax-deductible?

A change from the ATO has broadened the tax-deductibility of some financial advice fees, which should make seeing an adviser for the first time a bit cheaper.

Australia and New Zealand have very different rules for capital gains tax.

How will the ATO view an inheritance from New Zealand?

Estate planning can be difficult for those with family ties on both sides of the Tasman.

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If the goal is also financial education, a low-limit credit card may be best.

My son is off to uni. Should I give him a credit card for emergencies?

Set clear guidelines around what constitutes an emergency. Does a late-night taxi ride home from the pub qualify?

September 2024

Accessing your super early to save your business is probably illegal.

Can I access my super to save my business?

Using your superannuation for anything other than its intended purpose – your retirement – can be a legal minefield.

Running an SMSF takes time and commitment.

We have $360,000 in super. Are we wealthy enough for an SMSF?

There has been much debate about the appropriate dollar threshold for do-it-yourself super.

August 2024

The absence of a credit score is not an automatic dealbreaker.

Can I get a mortgage without a credit score?

Credit scores are a shortcut used by credit providers to assess your history in repaying debt. But what happens if you don’t have one?

Help! My parents want to invite 20 of their friends to our wedding

What to do when mum and dad help out financially but expand the guest list beyond your comfort zone.

Original URL: https://www.afr.com/topic/penny-wise-6gar