Welcome to the March edition of Financial Insights and Updates.
The subject of how potential changes to the franking credit rules currently work and the possible flow-on effects for retiree incomes in particular has been in the news for some time. The inherent complications of the franking credit system – or dividend imputation – partly explain the impassioned debate, along with changes made over the years.
In response to this we have included two articles titled Winners and Losers in franking credit debate which we hope will assist in your understanding of how the system works and what is being debated.
But it’s not all about shares and taxes so we have also prepared other articles which I hope you will find interesting and informative.
PS – scroll to the end of this newsletter to access the latest publication from the Financial Planning Association of Australia titled ‘Money & Life – From mistakes to mastery: finding financial freedom’.
Winners and losers in franking credit debate (Part 1)
If you’ve kept your finger on the pulse in recent weeks, you will have noticed franking credits are back in the news. The inherent complications of the franking credit system – or dividend imputation – partly explain the impassioned debate, along with changes made over the years.
In this article, we’ll attempt to explain exactly what franking credits are, so you can confidently wade into the debate should you choose… Read More
Winners and losers in franking credit debate (Part 2)
What are franking credits?
An imputation or franking credit is a note that comes with share dividends that says company tax has already been paid on the dividend. This gives the shareholder a discount on their tax at tax time and with the aim of avoiding double taxation.
Confused? Let’s break it down… Read More
Retirement: it’s time to get busy living!
Many people eagerly anticipate retirement. Others view its approach with trepidation, worried over how they’ll fill their days.
Bob retired from work in his early sixties and, deciding he was way too young to retire from life, downsized his suburban home for a country lakeside retreat. He bought a little boat, adopted a shelter-dog and got busy…. Read More
Generational risk management
Personal risk management is a critical foundation stone of any financial plan. The key personal insurances are:
- Life insurance. This pays a lump sum benefit when you die.
Total and Permanent Disability insurance (TPD). A lump sum is paid if you meet the policy definition of being totally and permanently disabled… Read More
Work test: Making super contributions over 65
Reaching age 65 is one of life’s big milestones, but unfortunately, it does make putting money into your super account a bit more difficult. Instead of just being able to make an electronic payment straight into your super account, you need to prove you are actually ‘working’ as well.
If you are aged 65-74, you must be working for a minimum of 40 hours in any 30 consecutive day period to make voluntary contributions to your super account. This is what’s known as the dreaded superannuation work test… Read More
Make this year a financially healthy one
Another year is over – how was it for you? Did you achieve everything you’d hoped?
Are you better or worse off financially than you were this time last year?
With a new year in front of you, what can you do to make the most of every moment?… Read More
Timing the market? Here’s where Australia’s cities and towns sit on the ‘property clock’
Housing markets are cyclical, and while the nation’s two biggest cities have come off the boil, other parts of the country are heating up.
Timing the market is notoriously difficult, but the latest report by property valuation firm Herron Todd White (HTW) sheds light on where Australia’s major metropolitan and regional housing markets are at in their property cycles… Read More
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