The end of the financial year is approaching quickly, which means it’s time to get smart with your super. There are a lot of different super strategies, so we’re here to help you find the ones that are appropriate for you – today, and further down the track.

Boost your super while saving on tax
You might be able to claim after-tax super contributions as a tax deduction this financial year. This opportunity to boost your super may be a smart option if:

• Your employer doesn’t offer salary sacrifice, or
• You’re already salary sacrificing and you also want to make concessionally taxed super contributions from your after-tax pay or savings.

Like salary sacrifice and super guarantee contributions, personal deductible super contributions are taxed at 15%, or 30% for higher income earners. This may be considerably lower than the marginal tax rate you pay on your taxable income, which may be as high as 47% (including the Medicare levy).

They also count towards the concessional contribution cap and penalties may apply if you exceed the cap, which is $25,000 in FY2020/21 or may be higher if you contributed less than $25,000 in 2018/19 or 2019/20.

This is just one of your options

To find out if this strategy is right for you, give us a call on 03 9723 0522 before 30 June 2021. We’ll also talk you through some other strategies that may help you achieve a better lifestyle in retirement.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

During this year’s Federal Budget announcement Treasurer Josh Frydenberg stated “Australia is back!”. The Budget proposes positive changes to superannuation, an extension of the low and middle-income tax offsets, and a boost to aged care services.

Across the five largest cities, the low watermark for national home values looks to have been October 13, almost exactly six months after prices started declining.

We’ve summarised some of the key points from the Budget below but, remember, these are subject to the passing of legislation:

• From 1 July 2022, if you’re aged 67 to 74 you will not be required to meet the work test to make non-concessional contributions and salary sacrifice contributions to super

• From 1 July 2022, you can make downsizer super contributions if you’re age 60 and over (currently you need to be age 65 or over).

• From 1 July 2022, if you’re a first home buyer you can release up to $50,000 (up from $30,000) from your voluntary super contributions to help you buy your first home.

• The low and middle income tax offset is to extend to the 2021/22 financial year with a maximum offset of up to $1,080 for individuals or $2,160 for a couple.

• Additional support for elderly Australians requiring care either within the home or in a residential aged care facility

For a more comprehensive look at all the changes click here.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Contrary to much publicised expectations of collapsing property prices, at Integrity Finance Australia we are seeing strong demand in property pushing quality property prices up.

Interest rates now below 2% and increasing optimism that the worst of COVID-19 related economic lock-downs in Australia are most likely behind us, are combining to create renewed demand for property well in excess of supply.

We do not see that momentum-changing and expect a stronger December/January summer real estate market than is traditionally the case.

This view is supported by media stories as below.

AUSTRALIA’S REAL ESTATE MARKET IS SPLITTING IN HALF

Based on CoreLogic’s daily hedonic index, the Melbourne residential property market bottomed on October 18. Since then, dwelling values in the southern city have appreciated by a solid 0.44 percent.

In the first 12 days of November, they climbed 0.22 percent, outperforming Sydney, Brisbane and Adelaide, although lagging stronger growth in Perth (0.40 percent).

This reconciles with impressive auction clearance rates on what have been healthy volumes: CoreLogic estimates the clearance rate in Melbourne last weekend was 68 percent on a total of 607 auctions.

Across the five largest cities, the low watermark for national home values looks to have been October 13, almost exactly six months after prices started declining.

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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Nicholas Berry Credit Representative Number 472439 and Thomas Bailey Credit Representative Number 472440 are Credit Representatives of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

If you’re employed, your employer should be paying a percentage of your earnings into your super account. It’s worth checking to make sure you’re being paid the right amount.

If you can afford it, making extra contributions is a great way to boost your retirement savings. And it can reduce your tax. If you’re on a low income, you may be eligible for extra contributions from the government.

Check you’re getting the right amount of super

In most cases, you’re eligible to receive super from your employer if you:

• earn $450 or more in a month
• are aged 18 or over

Even if you have a casual job, your employer must pay you super.

If you’re under 18, you must work more than 30 hours a week.

See employees on the Australian Taxation Office (ATO) website for more information about eligibility.

How much super your employer must pay

Your employer must pay at least 9.5% of your ‘ordinary time earnings’ into your super account.

This minimum payment is called the super guarantee.

Ordinary time earnings are what you earn for your ordinary hours of work.

See checklist: salary or wages and ordinary time earnings on the ATO website.

Use the employer contributions calculator to work out how much super your employer should be paying into your super account.

Check how much super you’re getting

To see how much super your employer is paying you, check your:

• payslip
• myGov account
• super account — online or by calling your fund

Employers only have to transfer super into your super account once a quarter (every three months). Some choose to pay more often. Ask your employer how often they pay yours.

If your employer is not paying your super

If you’re not getting the right amount, talk to your employer. If your employer isn’t paying your super, report them to the ATO. See unpaid super from your employer on the ATO website.

Grow your super with extra contributions

You can grow your super by making extra payments yourself. Even small amounts add up over time, and voluntary contributions can reduce the amount of tax you pay.

If you’re on a low income, you may be eligible for extra contributions from the government. You might be nervous about your investments or super at the moment. But don’t make any rash decisions based on falls or gains in the markets.

Pre-tax super contributions: salary sacrifice

You can ask your employer to pay part of your pre-tax pay into your super account. This is known as a salary sacrifice or salary packaging.

The payments, called concessional contributions, are taxed at 15%. For most people, this will be lower than their marginal tax rate. You benefit because you pay less tax while you boost your retirement savings.

Generally, making extra concessional contributions is tax-effective if you earn more than $37,000 per year.

There’s a limit to how much extra you can contribute. The combined total of your employer and salary sacrificed contributions must not be more than $25,000 per financial year.

If you’re self-employed, concessional contributions are tax-deductible. See super for self-employed people.

Make after-tax super contributions

You can also make contributions to your super from your after-tax pay. These payments are called non-concessional contributions because you have already paid tax on the money. You can make up to $100,000 in non-concessional contributions each financial year.

See non-concessional contributions on the ATO website for more information.

Low-income super tax offset

If you earn $37,000 or less, you may be eligible for a low-income superannuation tax offset (LISTO) of up to $500 per year. You don’t need to do anything. The ATO will work out your eligibility and pay the money into your super account.

See low-income super tax offset on the ATO website.

Government co-contributions

If you earn less than $52,697 per year (before tax) and make after-tax super contributions, you may be eligible for a matching contribution from the government, called a co-contribution. The government will work out how much you are entitled to when you lodge your tax return. If you’re eligible, the government will pay the co-contribution directly to your fund.

See super co-contribution on the ATO website.

Downsize your home and put money into super

If you’ve owned your home for more than 10 years and you sell it, you may be able to contribute up to $300,000 from the sale to your super.

You must be age 65 or older and meet the eligibility requirements.

See downsizing contributions into superannuation on the ATO website.

Spouse contributions

You can split your employer’s super contributions with your spouse. Contact your fund or see contributions splitting on the ATO website for more information.

If your spouse earns a low or no income, you may be able to claim a tax offset if you contribute to their super fund.

See tax offset for super contributions on behalf of your spouse on the ATO website.

Note : This article was sourced from the moneysmart.gov.au website.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Managing your finances to meet your day-to-day requirements as well as your long-term goals can be a complex task.

Not all debt is bad, but understanding your level of debt, as well as the type of debt incurred, will help you manage it better.

Borrowing money is easy – it’s making the repayments that can be difficult. Debt problems don’t strike without warning. Here are some of the most common signs that you may be in too deep.

• Do you worry about checking the mailbox for fear of finding another bill?
• Are you still paying off credit card bills from last Christmas?
• Have you gone through two or more mobile phone providers?
• Are you only paying off the minimum monthly credit card balance?
• Do you have outstanding personal loans that you used for holidays?
• Have you maxed out all your credit cards and applied for another?
• Is there nothing left in your pay once your debt repayments have been made?

What to think about before you even apply for a loan Before taking out a loan, check:

• The term of the loan.
• What interest rate will be charged and how often must the repayments be made?
• How is the interest rate determined – is it variable (the lender can move the rate up and down) or fixed?
• Are there any fees over and above the interest payments, such as monthly service fees?
• What is the actual amount, in dollar terms, that will be paid over the life of the loan? On a house, over a term of 25 years, this will be several times the actual purchase price.
• What type of security is required? For example, a mortgage on a house may involve the lender having title over the property.
• Is there a level of flexibility available? Can you repay the loan early? Is there a penalty for early repayment?
• What happens if you experience short-term financial difficulties or are unable to repay the loan?
• Is the contract covered by the National Credit Code?

Debt strategies

Here are some basic strategies that can help if you find yourself in trouble.

• Budget: Modify your budget to make sure it accounts for your debt repayments. Keep track of your spending for about three months to get a realistic idea of where your money is going. Once you can put this into perspective, you may find ways to reduce your spending and increase your debt repayments.
• Pay off debts with the highest interest rates first: These can cost you more in the long run. Credit cards and personal loans tend to have a higher rate of interest than mortgages. If you have multiple loans and can afford to make extra repayments, it’s wise to start with the loan with the highest interest rate first, then work your way down.
• Use your mortgage: Many of today’s home loans have facilities allowing you to reduce the interest you are paying on your mortgage without reducing the amount of readily available cash you have on hand. Features such as a redraw facility or an offset account effectively reduce the balance of your mortgage for the period of time that the funds are sitting in the account, which in turn reduces the interest calculated on the balance. Ask your lender if these options are available to you, and always be aware of any fees or restrictions that they may have in place, should you wish to pay your mortgage off faster than the original term.
• Consolidation: Think about consolidating your debts if you have more than one. But only do so if it will help minimise your overall interest payments and the fees and charges you pay. For example, taking a personal loan (at an interest rate of 9%%) to pay off three credit cards (which have interest rates ranging from 12% to 16%), will save you time, paperwork and money in the long run. Consolidating a short-term (high-interest rate) car loan with a long term mortgage (low-interest rate), may not save you money, so it’s best to get professional advice.

Don’t put your debt at risk

When taking on a debt of any kind, it’s important to remember that unexpected things can occur that may impact your ability to pay off your debts. If you were unable to work due to injury or illness, would you be able to keep up with your financial commitments and protect the assets you’ve worked hard to accumulate?

Before taking on a large debt, speak with your financial adviser about preparing for the unexpected through risk management strategies such as income protection insurance

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Looking for the most effective way to build your wealth? Not sure where to start?

The first thing you need to do is determine your needs and goals, both short and long term. Once you have figured out where you want to be, you need an appropriate strategy to help you achieve those goals. There is no one way to do this as everyone’s situation is different and it will change as your lifestyle and personal changes. That’s why it’s important to review your strategies regularly to make sure they are still suitable for your needs.

Understanding risk

One thing you need to consider is your risk profile. Risk is related to return – generally, the higher the risk, the higher the return and conversely, the lower the risk, the lower the return. While some people like higher risk investments because they have the opportunity to obtain higher returns, others prefer less risky investments such as cash.

It’s also important to remember other fundamentals of investing – markets are cyclical and shares are a long-term investment. So even if a downturn does occur, eventually they will regain their value, but in the meantime, opportunities may arise.

Superannuation

What about your super? Is it working as hard as you are? Your risk profile can also be applied to your super investments. It’s a long-term investment, but it’s important to make sure it’s invested the right way.

Changes to the amount of super you can contribute each year means you may need to reassess your super strategy. Contributing more to super will not only boost your account balance, but it could also even reduce the amount of tax you pay!

Obtain advice

As professional financial planners, we can provide you with financial advice to help you determine your needs and goals and establish the most appropriate financial strategies for your personal situation and your risk profile.

We can also help you with retirement planning, tax-effective super strategies and estate planning – in fact the whole range of financial issues that you may need advice on.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.