The Federal Government passed legislation in December 2017 which allows people aged 65 and over who have sold their Principal Place of Residence (their home) to contribute all or part of the sale proceeds to Superannuation. The rationale is to allow people to downsize, free up capital to live on and invest in a tax advantaged environment.
As part of the 2017/18 budget, the Government approved legislation for the First Home Super Saver Scheme (FHSSS). This scheme provides young people the opportunity to start saving for their first home. This is done, in theory, by providing eligible people the ability to save money within the superannuation environment, reducing their overall tax liability in order to save more, quicker.
You’ve made the decision to retire; the last day of work has come; the cake is eaten and your desk is packed. Now you have the time to consider what comes next. You’ve reached the age where you can apply for the age pension and you think it’s a great idea to supplement your retirement income.
Many people rely on Centrelink’s age pension when they retire. However, sometimes the rules around getting the pension aren’t clear. There are many people out there who might be eligible to receive the pension but, due to their belief in some of the common ‘myths’ below, they haven’t even applied.
Myth 1: My home is worth too much. It will stop me from getting the pension
Your home (and up to 2 hectares of land around it) isn’t counted as an asset for Centrelink purposes.
It’s incredible to think we’re in the last couple of months of the 2017/18 financial year. We’re at the stage where we’re starting to think about everything we need to finish before the end of June, and starting to plan our move into the next financial year. So, this year, let’s not leave it all until the last week! Let’s get started on our EOFY planning.
Superannuation
Firstly, let’s make the most of our superannuation contribution caps.
The March quarter saw one of the worst starts to the calendar year since the global financial crisis (GFC) in 2008. This is in contrast to the very positive end to the 2017 calendar year. And while conditions are not that different to this time last year, with global growth relatively robust, inflation low and government policies still accommodative, a reassessment appears to have occurred in markets.
Optimism was replaced by a more realistic appraisal of what risks and challenges were ahead.
