Some people genuinely enjoy tracking their spending. They carefully categorise expenses, balance the numbers, and colour-code everything in a spreadsheet. And then there’s the rest of us. Maybe you’ve tried budgeting before, and it felt restrictive and time-consuming. Maybe it didn’t stick and that’s okay.

Here’s the thing: you don’t necessarily need a budget to be good with money. You can still save, still feel on top of things, and still plan for the future without ever opening a spreadsheet or managing every single dollar you spend. It’s just a matter of picking an approach (or a combination of approaches!) that works for you.

Pay yourself first and separate your savings

The first thing you should do is move your money before you even see it. This simple shift can make a surprisingly big difference. Set up an automatic transfer right after payday so a portion of your income goes directly into a savings account. Don’t overthink the amount. It doesn’t have to be large or ambitious. Even a small, consistent transfer builds over time. What matters is that it happens first, before your brain has a chance to decide it needs that money for something else.

You can even take it a step further by keeping your savings in a separate bank account that’s harder to access. No debit card. No app that shows your balance every time you open it. The more friction between you and your savings, the more likely it is to stick around.

Clear the path of temptation

Once your savings is in motion, work out what’s pulling you into spending money unnecessarily. The sale emails, the apps you open when you’re bored, the brands that pop up when you’re trying not to shop. These tiny nudges are more powerful than they seem.

You don’t need to delete everything or cut yourself off completely, but even unsubscribing from a few promotional emails or hiding shopping apps in a folder you rarely open can create just enough space to think twice. When you’re not constantly being invited to spend, you’re far less likely to do it on autopilot.

Try a soft delay instead of a hard no

That extra space you’ve created helps with impulse spending too. Not by banning every fun purchase, but by adding a small pause. Try giving yourself a 24-hour buffer before buying anything over a certain amount. It gives you time to decide if you actually want or need the item or if it just caught you at the right (or wrong) moment. This gentle pause often results in walking away from things that seemed urgent but weren’t.

Let saving feel good

As your balance starts to look a little healthier, saving can even become satisfying. Not in a charts-and-goals kind of way, but in the quiet moments of progress. Maybe it’s a day where you don’t spend anything and feel oddly proud. Or maybe it’s realising you didn’t make any impulse purchases this week and still felt fine.

Try turning this into a habit by choosing one day a week to avoid all non-essential spending. Call it whatever you like. It’s not about being strict or punishing yourself. It’s about pressing pause, resetting your habits, and noticing how little effort it can take to save when you give yourself a break from the constant flow of spending.

These small changes tend to build on each other, even if you’re not consciously tracking them.

Use tools that save without asking

Some of the best saving happens without effort. Many banks and apps now offer round-up features that add a few cents to your savings every time you make a purchase. Buy a $5.20 coffee, and 80 cents goes into your savings account automatically. It’s like a digital jar where your spare change quietly collects, without requiring you to do anything.

Cash to help save

If you like having some limits but don’t want to track every detail, try using cash for small, everyday spending. Withdraw a set amount each week for things like coffee, snacks, or takeout. When it’s gone, it’s gone. You’re still free to enjoy your day-to-day treats, but now there’s a built-in stopping point.

None of this is traditional budgeting. But it works. And the best part? You didn’t have to give up your coffee or your peace of mind to get there. You just gave your money a chance to grow.

If you have a poor credit score or an error in your credit report, it may affect loans or credit you apply for. You have a right to get errors fixed for free, and you can arrange this yourself.

What you can get fixed (for free)

Here are some of the typical errors in credit reports. You can get these fixed for free.

Errors by the credit reporting agency

The credit reporting agency may have reported your information wrongly. For example:

• your name, date of birth or address needs updating
• a debt is listed twice
• the amount of a debt is wrong

To fix this kind of error, contact the credit reporting agency. They may be able to fix it straight away or help you get it changed.

Errors by the credit provider

A credit provider may have reported information wrongly. For example, they:

• incorrectly listed that a payment of $150 or more was overdue by 60 days or more
• did not notify you about an unpaid debt
• listed a default (an overdue debt) while you were in dispute about it
• didn’t show that they had agreed to put a payment plan in place or change the contract terms
• created an account by mistake or as a result of identity theft

To fix this kind of error:

• Contact the credit provider and ask them to get the incorrect listing removed.
• If the credit provider agrees it’s wrong, they’ll ask the credit reporting agency to remove it from your credit report.

If you can’t reach an agreement, contact the Australian Financial Complaints Authority (AFCA) to make a complaint and get free, independent dispute resolution.

If you’re struggling to get something fixed, you can contact a free financial counsellor for help.

What you can’t change or remove

You can’t change or remove any information on your credit report that is correct — even if it’s negative information.

For example:

• All payments you’ve made during the last two years — on credit cards, loans or bills, whether you paid on time or not.
• Payments of $150 or more that are overdue by 60 days or more — these stay on your report for five years, even after you’ve paid them off.
• All applications for credit cards, store cards, home loans, personal loans and business loans — these stay on your report for five years.

For a full list, see what’s in your credit report.

Check before you use a credit repair company

You may see ads from credit repair companies offering to fix errors on your credit report about credit products (like credit cards).

Before you go ahead, check the credit repair company is licensed on ASIC’s website. Choose ‘Credit Licensee’ or ‘Credit Representative’ in the drop-down menu when you search.

Only deal with a licensed credit repair company.

You don’t need to pay a credit repair company to clean up errors in your credit report. They may charge you high fees for things you can do by yourself for free. Paying a credit repair company may not improve your credit score.

How to improve your credit score

If your credit score is low, there are steps you can take to help improve it. You can:

• lower your credit card limit
• limit how many applications you make for credit
• pay your rent or mortgage on time
• pay your utility bills on time
• pay your credit card on time each month — either pay in full or pay more than the minimum repayment

As you do these things, your credit score will start to improve. So you’ll be more likely to be approved next time you apply for a loan or credit.

Source:
Reproduced with the permission of ASIC’s MoneySmart Team. This article was originally published at https://moneysmart.gov.au/managing-debt/credit-repair

If you have any questions or need any information please give us a call on 039723 0522.

What is a retirement village

There are so many options when it comes to moving into a retirement village. Here we explain what some of them are along with the contractual arrangements you may have for each accommodation.

A retirement village is accommodation:

• intended for people who are 55 years or older
• that may be independent living units, serviced apartments, care facilities or a combination of these
• providing services and communal facilities to residents
• operated by government, commercial businesses or as a charitable retirement village by a charitable body.

Retirement villages don’t include residential care as defined in aged care legislation or commercial residential property.

Types of occupancy arrangements

Retirement village contracts aren’t the same as ordinary residential property contracts. A retirement village contract is normally terminated on the death of a resident or when the resident leaves the village, for example, to go to an aged care facility.

Retirement villages offer several different contractual arrangements to residents. The most common types of contracts are:

• long-term leases or licences
• periodic leases
• long-term loan leases or licences
• special share or unit classes
• strata title schemes
• purple titles (tenancy in common).

Long-term leases or licences

A long-term lease in a retirement village will typically be a lease or licence to live in a retirement village for a period of more than 49 years.

The lease doesn’t amount to ownership of the unit or part of the property but is registered on the title deeds of the retirement village.

The contracts are commonly known as lease premium arrangements.

Entry

Commonly in a leasehold situation, an incoming resident pays an entry contribution close to the market value of the dwelling. In return they’re given:

• a long-term lease on that unit
• the right to use the communal facilities in the retirement village.

Upkeep

The residents pay for the upkeep of the communal facilities. This may occur on a continuing basis through a regular fee or levy. The communal facilities remain your property as the operator of the retirement village.

Termination

Depending on the contractual agreements, on termination of the lease the outgoing resident or beneficiaries may be entitled to a lease termination payment. This might be higher than the entry contribution due to capital growth (if there is any entitlement to capital growth or appreciation). Deferred management, refurbishment and other fees (commonly referred to as exit fees) are charged either on the incoming or outgoing price of the dwelling.

Periodic leases

Another form of lease is the prepaid or periodic rental lease, where a resident pays a period of rent in advance.

Entry

Residents with this kind of lease pay a fortnightly or monthly instalment that includes rent and a service fee. The rent is usually calculated in line with government pensions and rent assistance payments. Entry may be subject to a means test for the incoming resident.

Termination

If the lease is terminated before the stipulated years are up, the resident may get a refund for the time remaining.

Strata title schemes

Entry

Residents with strata title to their units are owners and have a separate certificate of title. They may either:

• share as tenants-in-common in the ownership of the communal facilities, or
• be granted rights to the use of communal facilities.

Upkeep

The residents may pay for the upkeep of the communal facilities, on a continuing basis, through a regular fee or levy.

Termination

When the resident leaves the retirement village, the tax consequences depend on the resident’s personal circumstances.

Purple titles (tenancy in common)

Entry

Each resident purchases an equal undivided share or ‘purple title’ in the retirement village. This means every co-owner would have an equal interest in every unit in the village. A resident would then be granted an exclusive use of one of the units in the village. In this way, each resident can occupy a residence to the exclusion of the other co-owners of the village. They don’t own the unit, but they do own a share in the whole property.

Upkeep

The residents may pay for the upkeep of the communal facilities, on a continuing basis through a regular fee or levy.

Termination

When the resident leaves the retirement village, the tax consequences depend on the resident’s personal circumstances.

To find out more about these types of accommodations, contact us for more information.

Source: ato.gov.au February 2025
Reproduced with the permission of the Australian Tax Office. 

Key points:

• My Aged Care will be your first point of contact if you are looking to access Government funded aged care services
• A RAS or ACAT/S assessment can determine what services will best suit your needs
• If you are found eligible for government-funded services, you will then be able to start looking for aged care providers

UPDATE — from December 9, 2024, the Single Assessment System replaced the Regional Assessment Service, independent Australian National Aged Care Classification assessors and ACAT/ACAS specialists. Every approved assessor will be able to deliver an assessment for each level of support, whether in-home or for residential care. More information can be found on the Aged Care Guide website.

The first thing you need to do is register with My Aged Care. This is the agency that looks after all government-funded aged care programs.

When you first call the My Aged Care Contact Centre, on 1800 200 422, an operator will register you and ask you a number of questions about your personal circumstances and care needs.

These questions will be quite basic and shouldn’t take too long. All you will need is your Medicare card when you call as this information is stored with your other details on the My Aged Care database.

Examples of the questions you will be asked are:

• Are you currently receiving aged care services?
• Are you getting support from a carer or family member?
• Can you prepare your own meals and do housework?
• Do you need assistance taking a shower or bath and do you need help getting dressed?
• Are there any health concerns or did you have a recent fall?
• Do you feel lonely or isolated?
• Are there any safety risks in the home?

The aim of this screening is to figure out what needs and support you require and whether you are eligible for a further assessment in person.

Additionally, the information you provide during this quick process will be recorded on your application, so you don’t have to stress about remembering the information you provided during your eligibility check.

If you are worried about doing the eligibility check by yourself, you are allowed to have a family member, friend or carer with you for support while applying online or on the phone.

You can also nominate someone to apply on your behalf. In this case, you will need to appoint your family member, friend or carer as your representative on My Aged Care.

If you are successful in your application, the contact centre operator will refer you for either a RAS or ACAT/S home support assessment.

If the operator determines that you are eligible for basic home support through the Commonwealth Home Support Programme (CHSP) you will be assessed by a Regional Assessment Service (RAS).

Otherwise, if the operator believes you require higher care support, a member of an Aged Care Assessment Team/Service (ACAT/S) will visit you at home to assess you for a Home Care Package (HCP) that will meet your needs.

When you first contact My Aged Care, the contact centre operator will assign you an aged care client number and will open a central client record. This record will eventually contain your information about your assessed needs and government-funded care services you have been found eligible for.

What will a face to face assessment be like?

Your in-person assessment will be a lot more comprehensive than your over the phone eligibility check.

Be open and transparent about your wishes and what you believe will be of assistance around the home.

Your ACAT/S assessor may recommend things you haven’t even thought of, which will be of benefit around the home.

If you require higher level care than what a Home Care Package can offer, they may assess you as needing entry into an aged care home.

Checklist for a face to face assessment

To prepare for your face to face assessment, make sure to have:

• Medicare card and a form of identification, for instance, Department of Veterans’ Affairs (DVA) card, driver’s license, passport, or healthcare card
• Notes or referrals from your doctor
• Ask a support person to be present for the assessment if you want
• Prepared questions and information about aged care that you wish to discuss with the assessor so you have a better understanding about services
• Contact details for your doctor and any other health professionals you see regularly
• Information on support you receive from others or from the community
• Have a translator or Auslan interpreter pre-organised if you require it

What to expect

You may need to fill out an Application for Care Form which will be provided by the assessor.

You can expect a conversation with the assessor asking you about your needs or any health problems.

They will ask you about any support you receive, your current lifestyle, any health concerns or chronic illnesses, how you deal with day to day tasks at home, if you struggling with any cognitive issues or memory loss, whether you have problems at home or with personal safety, any activities you engage in with family or in the community, and they will ask if they can chat with your doctor.

If you have a family member, friend or carer with you, the assessor may ask you for permission to talk to them about any support they believe you might benefit from.

What next?

If you are eligible for CHSP service, you should be told during your face-to-face assessment.

However, if you are eligible for a Home Care Package, any short-term care options or nursing homes, there will be a period of time where your assessor reviews the information you provided and determines what option best suits you.

They will provide a recommendation to a “decision maker,” who will then make the final decision on your case.

You will receive a letter within two weeks of your assessment to let you know if you have been found eligible for aged care services.

Source:
This article was originally published on https://www.agedcareguide.com.au/information/assessing-your-needs. Reproduced with permission of DPS Publishing.

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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 Wealth Advisers Pty Ltd (ABN 35 994 727 125) as a Corporate Authorised Representative (1316489) of Integrity Financial Planners Pty Ltd (AFSL 225051). Integrity One Wealth Advisers 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.

About SMSF investment restrictions

SMSFs are complex, here we have outlined some of the restrictions to help you before you make any decisions on self-managed super fund (SMSF) investment. You must ensure you understand any restrictions on SMSF investments to avoid any penalties.

There are some exceptions, however, generally your SMSF must not:

• lend or provide financial assistance to members or related parties
• acquire assets from members or related parties
• use collectables and personal use assets in a way that provides a present-day benefit
• allow trust distributions owing to the SMSF to remain unpaid
• breach the in-house asset rules
• borrow money.

No one associated with your SMSF should get a present-day benefit from its investments.

If you don’t comply with the investment restrictions, the ATO may take a range of actions, including:

• imposing penalties
• making the fund non-complying
• disqualifying you as a trustee
• prosecution of trustees.

Who are related parties?

A related party of your SMSF includes:

• all members of your fund
• associates of fund members, which include
  • the relatives of each member
  • the business partners of each member
  • any spouse or child of those business partners
  • any company or trust the member or their associates control or influence
• standard employer-sponsors (employers who contribute to your SMSF for the benefit of a member under an arrangement between the employer and a trustee of your fund)
• associates of standard employer-sponsors, which include
  • business partners and companies or trusts the employer controls (either alone or with their other associates)
  • companies and trusts that control the employer
  • relatives of an employer sponsor.

A relative is any of the following:

• a parent, grandparent, brother, sister, uncle, aunt, nephew, niece, lineal descendant or adopted child of the member or their spouse
• a spouse of the member and any individual specified above.

Loans and financial assistance

Your SMSF can’t provide loans, or direct or indirect financial assistance, to a member or a member’s relative. For example, you can’t use your SMSF as guarantor for a loan for a member or a member’s relative.

Loans must:

• be in the best interests of the members
• comply with the SMSF’s investment strategy
• be conducted on a commercial arm’s length basis.

If you run a business through your SMSF, you also can’t overpay a member or relative of a member for their services. If you employ a member or a relative of a member, their salary or wage must not be higher than the standard salary for that type of role.

Acquiring assets

Your SMSF can’t acquire an asset from a related party unless the price reflects the market value and is:

• a listed security (for example, shares, units or bonds listed on an approved stock exchange)
• business real property
• an asset specifically excluded from being an in-house asset.

You must also ensure the market value of your fund’s in-house assets doesn’t exceed 5% of the total market value of your fund’s assets.

Crypto assets and private company shares are not listed securities and can’t be acquired from a related party.

If an asset is not acquired or sold at arm’s length, all or part of any income from the transaction may be non-arm’s length income and taxed at the highest marginal rate.

To help you comply with the requirements, use the valuation guidelines for self-managed super funds.

Collectables and personal use assets

Where your fund invests in collectables and personal use assets, this must be for genuine retirement purposes, not to provide any present-day benefit.

Assets such as artwork, boats, jewellery, vintage cars and wine are described as collectables and personal use assets.

Natural diamonds (including pink diamonds), when held in loose form, are not considered collectable or personal use assets. As such, they do not have specific storage and insurance requirements. However, for these types of assets it is recommended trustees:

• hold adequate insurance
• consider storage arrangements.

‘Diamonds held in loose form’ means they cannot be mounted, integrated into or used as an item for adornment or other purposes which would be inconsistent with the holding of the diamond in loose form for investment purposes.

Collectables and personal use assets can’t be:

• used by or leased to a related party (if leased to an unrelated party it must be at arm’s length)
• stored or displayed in the private residence of a related party (this includes all parts of the land the residence is situated on and all buildings on that land, such as garages or sheds)
• displayed in any other premises owned by a related party (they can be stored there provided they’re not visible to clients and employees).

You must keep a written record of the reason for deciding where to store the assets.

Collectables and personal use assets must be insured. You should consider the availability and cost of insurance before investing in them. Items must be insured within 7 days of the fund acquiring them and the fund must be listed as the owner and beneficiary of the policy.

These assets can be sold to related parties provided the sale is at market value as determined by a qualified, independent valuer.

Unpaid trust distributions

If your SMSF is entitled to a distribution from a related trust but you allow it to remain unpaid, you may contravene the:

• in-house asset rules
• arm’s length rule
• sole purpose test.

In-house assets

You are restricted from having in-house assets that comprise more than 5% of the market value of the SMSF’s total assets.

An in-house asset is any of the following:

• a loan to a related party of your fund
• an investment in a related party of your fund
• an asset of your fund that is leased to a related party, such as business equipment or machinery.

Any lease must be made on an arm’s length basis and reflect the market value.

If at the end of the financial year your SMSF’s in-house assets exceed 5%, you must prepare a written plan to reduce in-house assets to 5% or below. This plan must be prepared before the end of the following financial year. Trustees must also ensure the plan is carried out.

There are some exceptions to in-house assets, including:

• business real property that is leased between your fund and a related party of your fund
• some investments in related non-geared trusts or companies.

The in-house asset rules for assets owned before 11 August 1999 were defined differently. If your SMSF owns assets that were acquired before this date, you should review your fund’s investments to ensure you are complying with the current rules.

Decrease in asset values due to COVID-19

Some SMSFs may have experienced a decrease in asset values due to the economic impact of COVID-19. If this resulted in a breach of the in-house asset rules as at 30 June 2020, or the in-house assets being more than 5% of the total assets, the fund was required to prepare and implement a rectification plan by 30 June 2021.

Business real property

Business real property generally means land and buildings used wholly and exclusively in a business. It’s an exception to the in-house asset and related party acquisition rules.

If business real property contains a dwelling for private or domestic purposes such as a farm, it can still meet the requirements of being used wholly and exclusively in a business if:

• any dwelling used for private or domestic purposes is in an area of land no more than 2 hectares, and
• the main use of the whole property is not for domestic or private purposes.

Running a business in an SMSF

If running a business through an SMSF, it must be:

• allowed under the trust deed
• operated for the sole purpose of providing retirement benefits for fund members.

The rules governing SMSFs prohibit or limit some activities available to other businesses, such as entering into credit arrangements or having overdrafts.

You should get professional advice before running a business through your SMSF.

It is important to ensure the sole purpose test is not breached. Issues that attract our attention include those where:

• the trustee employs a family member (we look at things like the stated rationale for employing the family member and the salary or wages paid)
• the ‘business’ is an activity commonly performed as a hobby or pastime
• the business run by the fund has links to associated trading entities
• there are indications the fund’s business assets are available for the private use and benefit of the trustee or related parties.

Contact us if you have any questions regarding your SMSF, we’re here to help.

Source: ato.gov.au April 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/self-managed-super-funds-smsf/smsf-investing/restrictions-on-smsf-investments/what-are-the-smsf-investment-restrictions.