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Penny Wise

This Month

Shifting money from a spouse with a higher super balance to one with a lower balance can help manage your super tax bill.

How can we split our super to stay under the new $3m tax threshold?

If you have a partner with a lower superannuation balance, there are strategies that can help you sidestep Division 296 tax.

November

It’s a common misconception that downsizer contributions are only available when people move into a smaller or cheaper home.

We’re buying a bigger home. Can we still use the downsizer perk?

People over 55 can add up to $300,000 each to super from the sale of their main residence, even if they are upsizing to a new home.

High-earning employees and business part-owners can be assessed differently when using a family trust.

How can we cut ‘inheritance’ tax on a large super balance?

The upfront capital gains tax on withdrawing the money now needs to be weighed against the potential super death benefits tax if the funds are inherited later.

October

There are several ways to deposit lump sums into your retirement savings.

How much of my divorce payout can I put away in super?

Using the downsizer and bring-forward non-concessional contribution rules, you may be able to deposit large lump sums into super.

Blended families create complications when it comes to estate planning, especially if wishes are not made clear and wills are not properly structured.

Will we still inherit the family home if dad remarries?

Blended families create complications when it comes to estate planning, especially if wishes are not made clear and wills are not properly structured.

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I gave money to my son, and now I’ve lost my home

Becoming the bank of mum and dad is not without its risks, especially if the arrangement isn’t formalised, experts warn.

August

A financial adviser will consider your budget and life expectancy.

My retirement budget is $120,000 a year. How much super do I need?

A mix of super withdrawals, age pension and home equity release could fund an annual retirement income of $120,000, experts say.

Should you tell the kids what’s in your will?

Many parents worry that revealing too much about their estate might discourage their children from building their own financial futures.

Concessional (or pre-tax) contributions are capped at $30,000 a year.

How much tax will I save by salary sacrificing into super?

Putting more of your pre-tax dollars into superannuation is a powerful way to increase your retirement savings, but the strategy doesn’t suit everybody.

A term deposit rate of 4.35 per cent is competitive.

A neobank is offering a great SMSF term deposit rate. Can I trust it?

Digital banks are governed by the same licensing arrangements and protections as regular banks.

July

The $300,000 inheritance is not taxable.

I’m inheriting $300,000 from my father. Will I have to pay tax?

Sometimes it’s better to distribute shares among beneficiaries rather than selling them and passing on the cash.

You can combine the first home super scheme with a high-interest savings account to generate a good deposit.

We’re saving $30k a year for a deposit. Where should we keep it?

Combining a high-interest savings account and the First Home Super Saver Scheme is a powerful way to amass a deposit.

AFR

Can I take charge of mum’s shares from my feckless brother?

Siblings can challenge a power of attorney if they suspect a parent’s best interests are not being served.

Courts will take into account the wishes of the deceased but may override them.

My father left me out of his will. What can I do?

A court will not consider what is “fair” but whether your father had a moral obligation to provide for you.

June

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.

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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.

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.

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