HAYES GIRLING FINANCIAL NEWSLETTER
Welcome to our quarterly newsletter. Momentum has certainly continued throughout the first half of the year and doesn't look to be slowing down any time soon, with the tax season just around the corner.
As the end of another financial year approaches we encourage you to start preparing any documents you may need for us to complete your tax returns. Click here for our 2017 checklists for individuals and businesses.
In May Andrew was invited to attend the prestigious University of Pennsylvania – Wharton Business School, for a 3 day executive education program focusing on Growth and Innovation. Wharton Business School is currently ranked number 1 in the world, for their MBA and Executive MBA program and the opportunity to gain access to world class presenters proved too good an opportunity to miss.
With site visits and presentations from executives at Vanguard Investments (the worlds largest fund manager) in Malvern, Pennsylvania and T. Rowe Price in Baltimore, Maryland making a week long program with 20 other financial advisers and business owners from across Australia.
Andrew had the following to say about his time on the tour:
"The opportunity to meet and discuss current trends and
issues with the Chief Investment Officer from T. Rowe
Price who is responsible for the investment of approx
$1.6 trillion US dollars gave me some amazing insights
into the depth and breadth of research that these
professional fund managers undertake in their search
for appropriate returns and out performance of markets
We also got access to T. Rowe Price's political lobbyist who gave us a fascinating insight into the very topical US political landscape.
Coupled with three days from amazing presenters and educators at the Wharton Business School who really challenged the attendees to think laterally and take a wider look at what is happening in the world beyond Australia, to put in place plans to ensure that we are communicating with all of our clients the right way, and providing help in the areas that will continue to be relevant now and into the future, left me with some fantastic insights to bring back to the team and our wider Hayes Girling Financial family."
2017 May Budget
The Government announced that they will extend the instant asset write off for assets under $20,000 until 30 June 2018. This small business measure is available for businesses with an aggregated annual turnover of less than $10 million.
Lower threshold to HELP debt repayments - From 1 July 2018, a new minimum threshold of $42,000 will be established with a 1% repayment rate and a maximum threshold of $119,882 with a 10% repayment rate.
From 1 July 2017, the Government will disallow deductions for travel expenses relating to inspecting, maintaining or collecting rent for residential rental properties. Also, plant and equipment depreciation deductions will be limited to outlays actually incurred by the investors in residential real estate properties. Subsequent owners will no longer be able to claim deductions for plant and equipment purchased by its previous owner.
From 1 July 2017 first home buyers will be able to make voluntary contributions to superannuation to be withdrawn for a first home deposit. Up to $15,000 per year and $30,000 in total can be contributed, within existing concessional contributions caps. Withdrawals will be allowed from 1 July 2018 onwards and will be taxed at marginal tax rates less a 30% offset.
On Wednesday 23 November 2016, the Federal Government's proposed changes to super rules were passed by Parliament. This means that from 1 July 2017, the amount you can put into super each year will be reduced – which could impact your retirement plans.
Please note if you are already retired and no longer making contributions, this change will not affect you, however there could be family member who could benefit from this information.
Under the current rules you can make before-tax or 'concessional' super contributions of up to $35,000 if aged over 49, and up to $30,000 if aged 49 & below each year. But from 1 July 2017, this annual cap will be reduced to $25,000 for everyone. This cap includes all salary sacrifice amounts as well as compulsory employer contributions.
CONTACT US TODAY
If you're currently making salary sacrifice contributions to super each year, it's important to know if these upcoming changes could affect your financial strategy and tax position.
With the changes taking effect from 1 July 2017, speak to us about how to make the necessary changes to your salary sacrifice amounts to ensure that you do not exceed the contribution cap, and incur additional contribution taxes.
The attached summary provides an outline of five of the most important changes to superannuation. It's worth taking the time to have a read of the summary and understand how the new rules could affect your financial strategy and retirement plans.
2017 WAFP Gala
5 Minute health check
How would you rate your financial health? Unsure, why not take a few minutes to see how you score.
ATO App - myDeductions
The ATO have released an app called myDeductions which makes it easier and a more convenient way to file your tax deductions and income records all in one place. It is suitable for both individual employees and sole traders. You can add deductions or expenses, vehicle trips, income (if you're a sole trader) as well as photos of your invoices and receipts. Click here for links to the Android, Apple or Microsoft app stores.