Winter 2017 Newsletter
Welcome to the latest edition of our client newsletter…
In this edition we share news from the Coastline community, provide you with information about adding to your Super and share some ideas on tax deductions.
The lead up to the new financial year sees several legislative changes to Superannuation – if you have any questions surrounding the changes, speak to a Coastline adviser today. We aim to keep you informed of changes as they happen, but we also want to provide ideas to help you live the life you want – now and in the future.
On May 9th the Treasurer handed down the Federal Budget 2017-18, if you are concerned about how the new Budget may affect you please call and speak to a Coastline adviser – you can also learn more at the Budget website.
If you would like to discuss any of the issues raised in this newsletter, learn more about the budget or legislative changes, please don’t hesitate to contact us on 03 52 647700. In the meantime stay warm and we hope you enjoy the read.
Darryn Jacobs, Director
NEWS FROM THE COASTLINE COMMUNITY…
Surf Coast Trek 2017
After our success in last year’s Surf Coast Trek, eight members of the Coastline team participated in the Surf Coast Trek again this year. On Saturday April 29th, they walked 40kms from Airey’s Inlet to Torquay raising money for two great local charities – Give Where You Live and the Kids Plus Foundation.
The Surf Coast Trek takes trekkers through a diverse range of landscapes including cliff tops, scenic Ironbark bushland, and long sandy beaches. The team spent six and half hours completing the walk, with Mike Brussel (pictured above) finishing with energy to spare! The Trek is a great day, bringing together fitness, fun and fundraising to support our local communities.
We would like to thank our friends, family and clients who generously contributed towards the funds raised.
Coastline in Wonthaggi
Our first Educational Presentation in Wonthaggi was held last month. Clients and their guests were invited to the Coffee Collective and enjoyed an evening of fingerfood and drinks whilst our financial experts provided an overview of upcoming legislative changes as well as useful home loan information, and economic updates.
It was great to spend some time in a social setting with our clients. Our local Adviser, Tim Price was there to welcome guests and introduce Adviser’s from our Torquay and Ocean Grove Offices, Mark Tatulashwili, Chris Kelly and Mike Brussel, along with Practice Principal, Darryn Jacobs and Operations Manager, Daniel Walsh.
We look forward to seeing you at the next presentation.
Pictured (L-R): Practice Principal – Darryn Jacobs, Operations Manager – Daniel Walsh, Advisers – Tim Price, Mark Tatulaschwili, Michael Brussel
Five, four, three… it’s not too late to get more in super
There’s a small window left before new rules stop you from adding as much to super as you can right now. It’s crunch time. Time to get advice before super as we know it changes.
From 1 July 2017, new laws will limit the amount that goes into super across the board. And that means you need to be prepared and you need to act before 30 June. After 1 July, the non-concessional contributions (NCC) you’ll be allowed to make into super will be significantly less.
- What to consider You still have time to explore any opportunities you may have to boost your super and benefit from the concessional tax environment the super system provides.
After 30 June 2017, you’ll be restricted to adding up to $100,000 in after-tax dollars in any given year (or $300,000 if you use the bring-forward rule and add three years’ worth in one). On the other hand, you may be eligible to add up to $180,000 now or $540,000 if you add three years’ worth.
If you haven’t made an NCC within the last three years you may be able to boost your super by up to $540,000. And even if you have made an NCC recently, you could still be eligible to add an adjusted amount which may be more than you think. Remember, you need to be under 65 to take advantage of the current rules and of course, you need to act before 1 July.
- Should you convert other assets into super? The answer to this question will be different for everyone. There’s a lot to weigh up. For example, your money may benefit from super’s concessional tax environment which means you ultimately end up with more in your hand. But super is a long-term investment and you need to consider whether it’s the best place for you to invest.
Whichever way you’re leaning, it pays to speak with us before you decide what to do. We can help you understand the ins and outs of the changing rules and how they’ll affect you down the track. We can show you how much money you could accumulate by investing in super now while the higher contributions rules still apply.
After 1 July, super will change quite dramatically so it’s worth looking at the opportunities you may have now. If you’re wondering how you could take advantage of the current rules it could be a good time to think about how you may structure your investments so you can meet your current needs and be better off down the track too.
- It’s the final countdown… As we’ve highlighted before, there are other changes coming to super on 1 July 2017. The rules will place new restrictions on transition-to-retirement pensions, super account balances and concessional contributions caps. The good news is there’s still time to make use of strategies that may help you. Make sure you’re aware of all that’s changing and how it will affect you. We’re here to help and to simplify the jargon so you’ll understand exactly what the impact will be for you. Get in touch with us today. We’re looking forward to helping you wherever we can.
Five Tax Deductions You Should Know About…
You’re probably well aware you can claim a tax deduction for general work-related expenses. But did you know you may be able to claim if:
- You take a course or study. You may be able to claim a portion of self-education expenses if it’s related to your ability to earn an income.
- You travel to inspect your investment property. You may be able to claim for expenses like pest control fees, body corporate, rates, utility bills, advertising and marketing costs.
- You belong to a union. You may be able to claim your union fees as a deduction.
- You wear a uniform for work. You may be able to claim for buying and cleaning a uniform that you need to wear for work.
- You work from home. You may be able to claim for running costs such as heating, cooling, lighting and cleaning, and even interest on any loans for work equipment, like a home computer. But you must keep detailed records—check out the ATO’s guide to home office expenses.
Working out your tax deductions can be complex. Your tax accountant can help you work out what you can and cannot claim.
Five ways to boost your super at tax time
There are plenty of ways to benefit from super’s favourable tax treatment, regardless of how much you earn and how old you are.
1. You can claim up to $500 in government co-contributions if you’re a low to middle income earner and you make after-tax contributions of up to $1,000 to your super.
2. You can receive a tax offset of up to $540 if your spouse is a low income earner and you contribute up to $3,000 in after-tax contributions towards their super.
3. You can contribute up to $30,000 in before-tax contributions to your super at the ‘concessional’ tax rate of 15%i —or $35,000 if you’re aged 50 or over.
4. You can contribute up to $180,000 a year (or up to $540,000 before 1 July 2017 if you’re eligible to use the ‘bring-forward’ rules) in after tax-contributions. Since this is from your after-tax income the full contribution reaches your super account, and no tax is deducted when the contribution reaches your super fund.
5. You can start a transition to retirement strategy once you’ve reached your super preservation age (the age at which you can access your super)—this can allow you to draw up to 10% of your super as a pension.
So, as the end of the financial year approaches, now is the time to ensure you are fully aware of all the tax deductions you can claim, as well as taking advantage of investing in super, before major changes take affect.
Contact us before 1 July so we can help with strategies to make your money work for you.
i Or 30% tax if you earn more than $300,000 pa in 2016-17.