Superannuation Changes – September 2016

Superannuation Changes – September 2016

Superannuation
The Government has provided further clarity on how the proposed bring forward and the $1.6 million eligibility threshold will work. The government has dumped the controversial superannuation $500,000 lifetime non-concessional contribution cap and replaced it with an annual limited of $100,000. An individual under 65 can continue to ‘bring forward’ three years’ non-concessional contributions. Bring-forward Non Concessional Contributions (NCC) – transitional arrangements Where an individual has triggered the bring forward in 2015/16 or 2016/17 but has not used it fully by 30 June 2017, transitional rules will apply. Where an individual triggers the bring forward in 2016/17, the transitional cap is $380,000 (the current annual cap of $180,000 plus $100,000 annual cap in 2017/18 and 2018/19). See examples 1 and 2 in the table. If an individual triggers the bring…
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Family Guarantee Can Help Your Kids Onto The First Step Of The Property Ladder

Family Guarantee Can Help Your Kids Onto The First Step Of The Property Ladder

Investments
A Family Guarantee loan is a way for your parents or family to help you purchase a home without them actually providing the cash for a deposit. A family members can use their own home's equity to provide additional security for a portion of your loan amount. This solution reduces your loan to value ratio which can save you a significant amount of money by avoiding the need to pay Lender's Mortgage Insurance. So you get into your home faster, with help from your family. Below are the key features of one of our lenders family guarantee policy: By increasing your security through a security guarantee from your family, you will reduce the loan value ratio of your loan to under 80% and this eliminates paying Lender's Mortgage Insurance. First…
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Accession3 Trainee Program

Accession3 Trainee Program

Uncategorized
Shape your own success! On the job experience, fully paid with university support Are you interested in a career in Accounting and Business Servicing? Are you passionate about helping yourself and others reach their goals? At A3 we will help support you financially and emotionally through your Business or Commerce degree whilst you gain invaluable on the job skills and training. We will challenge you, we will make you laugh, and we will mentor you so you become the best you can be. Overview The Accession3 Trainee Program, within our accounting division, combines study and practical experience at our Toowoomba firm. You have the choice of either studying a Degree through university or a Diploma through TAFE. Upon successful completion of the program, you are eligible to apply for appointment…
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Making $1M

Making $1M

Investments
Could you save $6,000 per year? Do you think it’s possible to turn a $6,000 saving into a cool $1m? We think you can. Here’s how. By investing your $6,000 each year for 30 years into investments returning 10% pa will grow into $1,091,661. The only point of conjecture in this calculation is whether a return of 10% per annum is possible. We believe it is. In fact, we’d argue we have proof. WAM Capital Limited (a Listed Investment Company or LIC) has achieved total shareholder returns (TSR) of 9.7% pa respectively over the past 10 years. Magellan Financial Group Ltd’s (ASX: MFG) flagship global fund has returned 10.8% pa since inception – which is only 9 years ago. No while neither of these are 30 year average returns we…
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Why We Are Nervous About The S&P 500 And Overseas Markets

Why We Are Nervous About The S&P 500 And Overseas Markets

Investments
This isn’t a discussion around the quality of the underlying companies, their ability to make profits or the strength of their balance sheet. This is a discussion of how far can you stretch the rubber band before it breaks and snaps back to bite your hand for being too greedy and looking for that extra inch. The reality is the S&P 500 (and broadly global indices) have performed well. Fuelled by the easy cash being thrown from so many Central Banks helicopters we’ve seen the S&P 500 hit new highs. What’s missing is the fact that sales of the underlying companies haven’t followed suit. The S&P 500 Aggregate Price/Earnings Ratio The P/E ratio of the S&P 500 companies is at 26. It spiked higher than that only three times over…
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SMSF Asset Allocation Survey

SMSF Asset Allocation Survey

Superannuation
AMP Limited recently released the results of its SuperConcepts SMSF Investment Patterns Survey for the 12 months ending June 30. This survey highlights the investments decisions made by SMSF Trustees. A summary of the key finding of the report are: Cash increased 1% to 18% Investment in Australian shares fell from 37.1% to 34.5% International share allocations declined 1% to 13.1% Direct and indirect property assets increased from 18.3% to 21.7% The four major banks (CBA, ANZ, NAB, Westpac) and Telstra Corporation Ltd remained the five most commonly held investments. Investment in Equities has fallen, both Domestic and International, while cash has increased along with property. With cash rates at historic lows such swings beggar belief. While we may consider a short-term tactical swing to cash while we anticipate a fall…
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Information Is Key

Information Is Key

Taxation
Is it really that important to have up-to-date financial information? Of course it is! And this is why: 1. Cashflow If you don’t know what is coming in, how do you know you can pay what needs to go out? Knowing your current debtor position and historical payment trends allows you to determine an appropriate level of working capital (cash in the bank) to ride the worst of bumps and not be scratching for cash. Perhaps a simple income to expense ratio (income/expenses) can determine the health of your cashflows. 2. Decision Making Without analysis of your current financial information and historical data you are not going to be able to make future business decisions. When is the best time to purchase plant? – how to structure the timing of…
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Recent Changes Assisting Farmers

Recent Changes Assisting Farmers

Business
Recently there have been a few changes by the Queensland Government aimed at helping farmers. To summarise just a few: QRAA increase the size of loans available to producers to improve productivity and sustainability. The maximum loan amount has risen from $650,000 to $1.3 million for a Sustainability loan and from $650,000 up to $2 million for a First Start loan.  The Government claims the increases reflect the higher capital requirements in the industry. To date, 54% of approved applications went to the beef cattle industry and 18% to sugar producers but it is available to all farmers. The loans can be for a period of 20 years and come with a fixed interest rate ranging from 3.25% for 1 year to 3.22% for 5 years. Other conditions still apply.…
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A $20,000 Head Start For First Home Buyers

A $20,000 Head Start For First Home Buyers

Investments
From 1st July 2016, the Queensland State Governments First Home Owner's Construction Grant (FHOCG) has been boosted to $20,000 (from $15,000). This increase lasts for 12 months only before it reverts back to $15,000. Some conditions do apply, this is the Queensland State Government we are talking about! A 'new home' that entitles the buyer to the First Home Owners' Grant is a house, unit or townhouse that: Has not been previously occupied as a place of residence Has not been previously sold as a place of residence or Is a substantially renovated home (renovation in which all, or most, of the structural and/or non-structural components of a building are removed or replaced). Other eligibility for the Queensland First Home Owners' Grant: The buyer cannot be a company or a…
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