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Are you paying tax by not starting a super pension?

Pension payments in super after the age of 60 are tax free and anyone over 65 can switch their super into a pension account even if they do not change their employment. Why do so many continue paying 15% tax?

Which shares and funds do SMSFs invest in?

SMSFs offer unlimited investment flexibility and most trustees make their own decisions but the majority of investments fall into five categories. There remains a strong home bias despite global opportunities.

Cherry-picking cost base after share sale is a tax gift

While the ATO has many ways to watch taxpayer transactions and ensure tax is collected, for some unknown reason, it is legal to select from four different cost base treatments for capital gains tax. It's costing billions.

Most people (and the ATO) do not know their super tax

No entity holds a consolidated view of the taxable income of super, not even the ATO. So Treasury and the Treasurer adopted a simple method to impose a new tax, and the adverse consequences then started to surface.

Tips and traps: a final check for your tax return this year

The end of the 2022 financial year is fast approaching and there are choices available to ensure you pay the right amount of tax. Watch for some pandemic-related changes worth understanding.

Watch your SMSF’s annual return this year

The best way to preserve your SMSF’s favoured status is to make sure the fund’s annual return reaches the ATO on time. There are new rules this year that every SMSF trustee should know.

How 'bucket companies' work in family trusts

Some of our readers have said family trusts have little merit because of the tight limits on the amount that can be distributed to children paying low tax rates. But the use of bucket companies drives many of the structures.

Preparation for PAYG employees at tax time

Make a note of the lodgement deadlines for personal tax returns, and start collecting the information you will need. Unless your affairs are simple, professional help is usually money well spent.

Is a Division 293 tax notice coming your way?

It sounds arcane but it could be costly. For the first time, about 44,000 individuals will receive their first Division 293 notice early in 2019, and it will surprise many.

Latest SMSF updates from the ATO

The ATO has issued an update on illegal early release of super, when an SMSF is worth having, reporting obligations and trustee checklists. Make sure you stay on top of the rules.

'Rorts and rip-offs’ prevention in super legislation

A bill that allows the ATO to merge dormant super accounts with active ones and release super members from compulsory life insurance embedded in enterprise agreements and from exit fees was tabled on 21 June 2018.

Are two SMSFs worth the bother?

The use of separate SMSFs for accumulation and pensions stages to minimise tax obligations may attract the ire of the ATO, but there may be other, more legitimate, reasons for using this strategy.

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2024/25 super thresholds – key changes and implications

The ATO has released all the superannuation rates and thresholds that will apply from 1 July 2024. Here's what’s changing and what’s not, and some key considerations and opportunities in the lead up to 30 June and beyond.

Five months on from cancer diagnosis

Life has radically shifted with my brain cancer, and I don’t know if it will ever be the same again. After decades of writing and a dozen years with Firstlinks, I still want to contribute, but exactly how and when I do that is unclear.

Is Australia ready for its population growth over the next decade?

Australia will have 3.7 million more people in a decade's time, though the growth won't be evenly distributed. Over 85s will see the fastest growth, while the number of younger people will barely rise. 

Welcome to Firstlinks Edition 552 with weekend update

Being rich is having a high-paying job and accumulating fancy houses and cars, while being wealthy is owning assets that provide passive income, as well as freedom and flexibility. Knowing the difference can reframe your life.

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Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

The public servants demanding $3m super tax exemption

The $3 million super tax will capture retired, and soon to retire, public servants and politicians who are members of defined benefit superannuation schemes. Lobbying efforts for exemptions to the tax are intensifying.

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