Single Touch Payroll (STP), is an Australian Government initiative to reduce employers' reporting burdens to…
Money Matters for 2019
The start of a new year is a great time to overhaul your financial situation. Why not take a look at some recent changes and enjoy new opportunities for 2019 and beyond.
First Home Deposit
Voluntary contributions made to superannuation since 1 July 2017 can now be withdrawn to allow first time buyers to purchase a first home under the First Home Super Saver Scheme (FHSSS). This scheme allows those eligible to save their deposit in the concessionally taxed super environment.
HECS and HELP Debts
From 1 July 2019, students and graduates earning $45,881 pa (or more), will need to start clearing some of their HECS and HELP debts. As it stands, repayments don’t need to be made until $51,957 pa is earned. Rates for repayment will also change – and a lifetime debt limit will be put into place.
Instant Asset Clearance
Small business owners may be able to claim an immediate tax deduction of up to $20,000 when purchasing certain assets, as long as they do so before 30 June 2019. From 1 July 2019, the amount claimable will be reduced to approximately $1,000.
Catch-Up Super Contributions
Superannuation fund members who make concessional contributions under the current cap of $25,000 in 2018/19, may be able to add more than the cap amount in further years (i.e. 2019/20 and beyond). This could enable ‘catch-up’ super contributions to be made for financial years to come. Concessional contributions are contributions to your superannuation fund that are made prior to tax being removed. Concessional contributions include those made by an employer (super guarantee and salary sacrifice) as well as personal contributions claimed as tax deductions.
Super Work Test Exemption
The Government has released new legislation to allow retirees aged between the age of 65 and 74 years with total superannuation balances below $300,000 to make independent super contributions in the first year that they don’t fulfill the ‘work test’ requirements from 1 July 2019. This gives eligible recent retirees additional time to make extra contributions before they become ineligible. Currently, these individuals need to have worked at least 40 hours in 30 consecutive days in a financial year to be able to contribute to their superannuation funds.
If eligible, after 1st of July 2018, those aged 65 years or can contribute up to $300,000 to their superannuation fund from the sale of their home. Known as ‘downsizer’ contribution, the sale of their home will not count towards the concessional and non-concessional contribution caps – and can therefore be made without the usual restrictions.
Tax Offset for Aged Care Costs
For 2019/20 and subsequent financial years, those receiving aged care will be unable to claim a portion of their care costs (such as daily care fees and means-test fees) as a tax offset. This could increase the income tax payable by those in this position.
We can offer assistance and assess whether or not any of the above opportunities will be relevant to you and your situation. We can then make suitable adjustments to your ongoing financial plans for the future.
Lindale Insurances Pty ltd ATF Lindale Insurances Trust ABN 27 027 421 832 is a Corporate Authorised Representative of Millennium3 Financial Services Pty Ltd AFSL 244252and ABN 61 094 529 987. This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement. For Australian Residents Only.
Disclaimer: The views expressed in this publication are solely those of the author; they are not reflective or indicative of Millennium3. They cannot be reproduced in any form without the express written consent of the author.