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Information You won’t get from Unlicensed Accountants #74

Along with a raft of legislative change, the Australian Securities and Investments Commission (ASIC) has also introduced new licensing requirements for accountants who work with and advise Self Managed Superannuation Fund (SMSF) Trustees. Only approx. 10% of accountants have complied with these changes to date.

As such if you, as many, consider your accountant would be your 1st port of call for Financial Advice, they will likely advise you, they are unable to provide the information you require & should consult a qualified Financial Adviser / Planner.

This is general advice only and you should seek expert financial advice from a qualified financial adviser before acting on any of the information covered in these topics.

Team up with your Spouse to get the most out of Super

With the $1.7 million tax free caps on super now, it is imperative that couples look at the strategies available to them to target equalizing their balances.

This will allow them to structure their superannuation in the most tax effective manner.

The more time couples give themselves to achieve this the easier it will be. For example, start looking at these strategies in your 30 or 40’s as opposed to your 50’s or 60’s where contribution limits can make it more difficult to achieve.

Under the tax free caps a couple at retirement could hold $3.4million (i.e. $1.7 million each) in the tax free pension phase of super.

As such a there are a number of strategies couples should explore with their Financial Advisor to target equal balances

These include:

1)Splitting / transfer on concessional contributions between spouses.

2)Catch up provisions for concessional contributions

3)Withdrawal & recontribution strategies

4) Allocating non concessional contributions appropriately

5) The elder spouse can commence a Transition to Retirement Pension or Account Based Pension and reinvest some or all of the pension payments, up to the allowable contribution limits, in their spouses superannuation account

Two thirds of Australian are in a marital relationship at retirement so its is important that some early planning goes into these strategies

There are basically 2 types of people: 1) People who accomplish things and 2) People who claim to have accomplished things. The 1st group is less crowded – Mark Twain.

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