Nice video. Since you asked for questions. My question is: Say if I do voluntary super contribution to my partner say $20K (and I am eligible to do so). Then will $20K be deducted from the Div 293 income?
Thanks for this video. I scrolled through your existing videos as I just found your channel, but didn’t see anything on the Family Tax Benefit (A and B?) and the Parenting Payment. When I am looking at them on the Centrelink website the income limits and asset test amounts are not very easy to find. If you ever make a video on them, it would be great. Especially the partnered Parenting Payment, as most of the information online seems to be for single parents.
My wife is an Australian citizen. She left Australia for the US in 2003. We got married in 2005. She has not been back since then. Does she have anything she can do to access her Superannuation or is she out of luck?
Depends on the amount of non-cash deductions (depreciation). There are instances where the property can be negatively geared, but cash flow can be positive due to claiming depreciation. However, like I eluded to in my video, just because depreciation is high, doesn't make it a good investment. You have typically forked out high upfront capital costs for a depreciating asset (the building), I prefer to focus on land value as this is the scarce asset that will typically grow in value over time
Great explanation as usual, cutting through the smoke and mirrors of some of those slick campaigns. Love the sneaky thumbnail of Luke you snuck in there too, fight club style haha.
Hey, are you able to answer a question. We are a single income family, I work full time, I’m under the income limit, am I as the only working parent still able to claim any paid parental leave?
Hi Brad. Thanks for explaining what a Trust is. How much do you need to hold in a Trust to make it worthwhile and would an Accountant or Solicitor help set this up?
I got an offer from an NFP and your video cleared a lot of my questions RE: salary packaging. Does the novated lease comes into the salary packaging as well? I loved the table comparison. thanks buddy!
I am on a CSS Defined Benefit for life. I have two choices having money in Accumulation stage already. I am 71, converting present amount in Accumulation to a Lifetime Annuity where Centrelink only look at 60%, and leave present amount in the bank earning a good 5.25% interest as a readily accessible source, but taxable. Or just use the Grandfather three year rule of being allowed to transfer the maximum $360,000 to add to the present Accumulation Account, to join the money already there, and do the Lifetime Annuity option, and have a great untaxable income for hopefully the rest of my life? Because of the regular CSS payment either option will work for me, but just wondering what other retirees might do in this situation!
3.5 million ausies hoping the government will intervene and allow a housing correction. to those ausies locked out of the housing market for good, vote for anyone but Labor and Liberals, they have had plenty of time to fix this and yet here we are.. true change will begin when they start losing votes.
Great video man from a fellow aussie. You explain everything so clearly and easy to understand. I think the best option will be through the informal trust so there will be no CGT.
I am looking for ways to optimize my Age Pension entitlements while ensuring legal compliance, I have heard from RU-vid channel which is to contribute super to my younger spouse in order to legally hide money from Centrelink Age Pension. I already at Age Pension age while my partner is several years away. I just want to found out for Centrelink purposes, will this action to be seen as Gifting? And it’s not benefit to optimize my Age Pension entitlements within a period of 5 years. Thanks for your kind advice.
@elsachu9607 yes, this is a common strategy employed by a lot of retirees and it is not deemed as a gift. There are a few things to be aware of so just make sure you do your homework first 😊
Thank you, that was a great video! I had a question: If my income as an employee for FY25 is to be $250,000 inclusive of super, would I be able to reduce my taxable income by making concessional contributions or/and a novated lease to avoid paying Div 293 tax? Or would it just cancel out? I have unused carry forward super contributions of about $50k for the last 5 years that I want to take advantage of this year. Thank you!
Unfortunately, concessional contributions nor a notated lease would help avoid division 293 tax. Concessional contributions are added back, and a notated lease will incur reportable fringe benefits which is also added back
Tall insurance and australian super they just take money. When claim they ask for 80 pages and 20 pages doctor to fill forms. Thry take ages to process. They ask every paper u can think of even its unrelated
Wholeheartedly agree with this. I work in an area where complex advice is sought and so often the conversation ends up pulling in much broader considerations. This, like your advice takes years of lived experience to move quickly to the best and most balanced outcomes, notably where the premise of the question posed isn’t quite right. Often having a small amount of knowledge can be worse then having nothing as it can give narrow steering to poor outcomes. Working with an advisor across matters is vital, notably wherein developed economies where individuals face quite a gradient to high/favourable financial security. Surely taking advice on picking your path up the climb, as well as self discipline is the best way to move ahead. On the neural theme(ish) hopefully folks get some dopamine from seeing their results and simply by implementing the small and consistent steps. Not getting it solely from purchasing items they don’t necessarily need!
excellent comment! The more I learn about the world of investing, the more dopamine I get from seeing investment returns and less and less so from material junk. Investing actually helped me become a minimalist. I look at every dollar I spend as from an opportunity cost perspective. The only exceptions would be experiences - massages, travel, food etc. That's because time & energy is the most valuable "asset" we have, so I try to balance investing for the future vs enjoying life now. Thankfully most material possessions don't count toward enjoyment but count as a liability!
I have two run down country properties that combined are worth much less than an average house in any suburb within 100kms of major city. I'm disabled, have no superannuation, and the houses are all I have to my name. It pains me to think that when I sell a house, which I will have to do soon as I can't afford the upkeep, I will pay a hefty CGT. I hope the tax bill won't wipe out my entire future savings (which I considered my superannuation). 😢
Hi there, have a watch of the video below. It explains how to use the carry forward amounts in more detail ru-vid.com/video/%D0%B2%D0%B8%D0%B4%D0%B5%D0%BE-ZLVB9yWP3b4.html
What’s the deadline to hand in the “ Intend to claim “ tax form ? Before July 1st ? Or after July 1st ? If you do tax return yourself, do you need the letter from the super fund saying you hand in the from ?
Good question, I should have included this in the video. You need to lodge it the earlier of, before you lodge your tax return or before the end of the next financial year. Even if you do your tax return yourself, you still need to lodge it. You should keep the letter on file.
Great explanation video mate on this hidden greedy tax. Got a few questions: 1) why is rental loss added? (usually a negative gearing strategy) 2) similarly with capital gain which is not exactly "income" and the govt has already slogged the tax on this 3) it's odd that this tax is applied when for example you have sold a property in the given FY, even though technically no additional contributions were made to super per se? 4) any smart tips on how we can structure our salary/incomes to avoid Div293?
Hey mate, you're going to have to ask the legislators about questions 1 - 3 😅 With regards to 4, yes there are strategies you can implement to structure your income but these only really apply to self-employed people...
Not that I agree with it but I would say the answer to 1 is that the government considers superannuation already a generous tax reduction and they don't want to let us double dip with both super and negative gearing. Division 293 is designed to penalize those who already pay the most tax and get the least benefits so they might as well make sure they hit us.
Great information. I have a question though. I have my Super with a prominent Industry Superfund and have been making Non Concessional contributions for a number of years. Looking at my on-line account i can see the make up of my fund value in Taxable and Tax Free terms. The Tax Free value is exactly the same each year as the Non Concessional monies I have invested in total. Meaning that the Superfund does not allocate any income earned by Non Concessional to Tax free monies and conversely, by definition, must show all income against Taxable monies. Am I correct? If I am correct why are Tax Free money income put into a Taxable situation, which prima face seems wrong? thanks
Hi Glenn, earnings form part of the taxable component of your super fund regardless of whether they are generated from the taxable or tax-free components. If you think about it, this makes sense because all earnings are always taxed by the fund at the super rate of 15%...
Are these benefits only available to NFP’s that are charities or that accept donations? I keep getting told our NFP isn’t eligible, but they’re never certain…
