We’ve put together a short guide to get you started and plan for the new year ahead, a quarter at a time. Make 2019 your best year yet, financially.
In this blog we talk about the habits of spending leading up to the “silly season” and strategies to overcome the New Year debt.
Being retrenched from your job can be hard to accept. It is the sudden shock that catches most people but try not to take it personally.
In this blog we talk about how the now popular ‘buy now, pay later’ offers work and how to make sure they don’t create unmanageable debt. For the purpose of this blog, we’ll use our case study, Sam.
In this month’s blog we’ll talk about some of the key deductions and superannuation contributions to make the most of this financial year, as well as what the ATO will be looking out for. Continue reading
We all need something to look forward to and for many members of Generation X the lure of discount airfares and package deals are irresistible; others have luxury holidays high on the agenda.
Ten simple tips for understanding CGT relief!
1. You must be affected by the Transfer Balance Cap (this means rolling back funds into accumulation) or have a TRIS not in retirement phase just before 1 July 2017.
2. CGT relief applies on an asset by asset basis. You do not need to apply it to all of the SMSF’s eligible assets.
3. You must have held the asset on 9 November 2016 and not sold it before 30 June 2017.
4. CGT relief locks in the Capital Gains Tax treatment of unrealised capital gains on pension assets by resetting their cost base to market value.
5. The CGT discount period restarts from the time the asset’s cost base is reset.
6. All assets that were segregated pension assets (includes 100% pension funds) on 9 November 2016 will effectively be tax free at the time they stop being segregated pension assets. (You will need an actuarial certificate for the time after this date if you are adopting the proportionate method.)
7. All assets that were unsegregated pension assets will lock in their capital gains on 30 June 2017. You can defer gains (not losses) until the asset is sold.
8. Unless specific assets are rolled back, CGT relief can potentially be applied to all of the funds’ assets, regardless of the actual amount rolled back.
9. Funds that had unsegregated pension assets and moved into segregated pension assets (100% pension funds) between 9 November 2016 and 30 June 2017 will not get any CGT relief.
10. Your choice is irrevocable and must be made when your 2016-17 SMSF annual return is due by completing the CGT schedule.
Consider the following when making your choice:
• Asset cost bases and market values • Your fund’s ECPI and future ECPI
• When members will enter retirement phase • Future and current capital losses
• Deferral of capital gains • The future market value and sale of assets
Published by: smsfassociation.com