How to Reduce Tax and Build Your Wealth Whilst Living Offshore

How to Reduce Tax and Build Your Wealth Whilst Living Offshore

Australian ExpatriatesIf you are living and working overseas there are a number of additional factors you need to be aware of when managing your money.

First and foremost, you may no longer be a tax resident in Australia. Instead, you may have become a tax resident of the country in which you are residing. Becoming a non-resident for tax purposes in Australia gives rise to a number of considerations. For instance, non-residents pay a higher rate of tax (32.5% or more) and are not afforded a tax-free threshold (i.e. tax is payable on the first dollar earned). This, and a range of other considerations discussed below, are particularly relevant if you own income-producing assets in Australia or you are redirecting your surplus Continue reading “How to Reduce Tax and Build Your Wealth Whilst Living Offshore” »

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The Key to Successful Investing in the Share Market

The Key to Successful Investing in the Share Market

Blog - 14112013In the short term, the share market is an irrational place. Prices jump all over the place and in a lot of cases, there is no evidence or fact to explain such large swings in share values. Instead, most of the time such price volatility is a result of investors who make decisions based on emotion rather than fact. The faintest whiff of bad (or good) news can ignite greed (or fear) among investors and this can lead to panic selling (or buying) in very large numbers. This sort of behaviour, more often than not, explains why share prices move up and down so erratically in the short term.

Medium-to-long term however, the market typically values companies properly, that is, according to their fundamental valuations which is typically centred around assets, cashflow and earnings growth.

Therefore, the key to successful share market investing is Continue reading “The Key to Successful Investing in the Share Market” »

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Why you should not invest in managed funds

Blog - 24102013With around 85% of financial advisers affiliated with product providers, it’s not surprising that managed funds are recommended to clients more than any other investment type.

But are managed funds really the best investment for the majority of people? How do they stack up against investing directly?

Continue reading “Why you should not invest in managed funds” »

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Excess super contributions tax abolished

Blog - 08082013The 31.5% penalty tax applying to excess concessional super contributions has (finally) been scrapped.

The old scheme was unfair in that excess contributions were taxed at 46.5% (including the 15% contributions tax that ordinarily applies to concessional contributions) which is equivalent to the highest marginal rate. Furthermore, the excess contribution amount was assessed under the non-concessional cap so if the contributing member had also taken full advantage of this cap, a further 46.5% tax penalty applied. This meant excess contributions could be taxed as high as 93%!

Continue reading “Excess super contributions tax abolished” »

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Grandfathering of conflicted remuneration to benefit independent financial planners

Tug of WarThe government last week announced how pre-FoFA conflicted remuneration arrangements would be treated going forward. Simply, all existing arrangements will be grandfathered indefinitely.

There’s more. A 12 month transition period (to 30 June 2014) was also announced for financial planners. During this time new clients are still able to enter into pre-FoFA (conflicted) fee arrangements. These will also be grandfathered indefinitely.

Continue reading “Grandfathering of conflicted remuneration to benefit independent financial planners” »

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TASA legislation passed by Parliament

Tax planning bookThe Tax Agent Services Act (TASA) legislation was passed by the House of Representatives recently.

Originally, the legislation proposed that all financial planners providing tax advice in the context of financial advice would need to register with the Tax Practitioners’ Board (TPB) from 1 July 2013. However, the legislation was unexpectedly amended before being passed and as a result, financial planners now have a 12-month extension before registration is required. There is also a 3-year transition period from 1 July 2014.

Continue reading “TASA legislation passed by Parliament” »

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Government moves quickly to increase super contribution limit

Super strategy picThere were no further changes to superannuation announced in the recent Federal Budget, but the Government has wasted no time in moving on its previously announced proposal to increase the concessional contribution cap from 1 July 2013.

On 5 April, Minister Shorten announced a $10,000 increase to the annual $25,000 cap and Treasury have already released an exposure draft for industry consultation.

The increase will be phased in over two years with individuals aged 59 or older becoming eligible on 1 July this year, and those aged 49 or above becoming eligible from 1 July 2014. For everyone else, the $25,000 annual cap will remain and indexation will be frozen until the 2014/15 financial year, then the cap will be indexed annually until it reaches $35,000.

Continue reading “Government moves quickly to increase super contribution limit” »

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Why the $AUD is hurting the economy

Australian MoneyA lot has changed since the start of 2013. A Federal Election has been announced by our (now marginal) Government, growth in China has eased more than expected, the budget deficit has ballooned further and the share market has risen considerably without supporting fundamentals. Furthermore, our currency remains at all-time highs and official interest rates are also high (by global standards). There’s no doubting these factors, when combined, make for an interesting economic forecast for Australia.

Arguably, the high $AUD is the most significant factor here. Continue reading “Why the $AUD is hurting the economy” »

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    Financial Planning Expert is an independent financial planning business based in Melbourne. We provide genuinely independent and conflict free financial advice. We’re experts in self-managed superannuation fund (SMSFs) advice and strategy, retirement planning, property and share investment advice, life and income protection insurance, tax planning, asset protection, estate planning and advice for Australian expatriates.