Plus, it’s not just life cover/death cover that can be paid through super. Here are the three types of personal insurance you can choose to pay through your super:

1. Life Cover/Death Cover
2. TPD Insurance
3. Income Protection Insurance

Let’s take a look at the pros and cons of paying for a type of insurance cover through your superannuation fund.

How to Pay Your Insurance Through Your Super Fund

For any insurance to be paid through your super fund, you need to contact your fund first or make the changes online. Here are the steps you need to take to pay your life insurance through your super fund:

Contact your super fund or visit your online super fund member portal and inform them of the changes you want to make. At this point, it will determine whether or not it can be paid through your super fund. If your insurance can be paid through your super fund, you will be given a choice as to how you want your fund to be paid.

You can choose to pay the premiums directly from your super fund account or you can choose to have the premiums deducted from your salary. Work with your super fund representative to decide which option is best for you.

If you choose to pay the premiums from your super fund account, you will need to provide a valid bank account or account number.

Benefits of Paying Insurance Through Super

There are many benefits of paying your insurance through your super fund.

Pro #1: It can be tax-effective. By paying your insurance through your super fund, the money you pay for your premiums is pre-tax. This means your insurance premiums are paid from your pre-tax income.

Pro #2: Your Insurance Premiums may be cheaper. By paying your insurance through your super fund, you may pay cheaper rates and be able to enjoy package discounts (with multiple types of insurance). 

Pro #3: It can be easier. Having your insurance paid through your super fund can be a more simplified process and more convenient. Your personal details are already within your super fund, reducing the time spent on filling out a long form. It’s also paid for you on your behalf through your super, so you can have peace of mind knowing you’re covered. 

Disadvantages of Paying Insurance Through Super

While there are many advantages of paying your insurance through super, there are also a few disadvantages.

Con #1: It can be more expensive. Being able to pay your insurance through your super fund may only be worthwhile if you have accumulated a large super fund. It’s important to compare insurance prices and get the best deal for you.

Con #2: This may reduce your retirement savings. Paying insurance through your super fund usually means the premiums and fees come out of your super balance. This can lower your nest egg for retirement so it’s important to ensure you have e large enough super fund (or are even making additional contributions for your future).

Con #3: Your level of cover might not be enough. You could be underinsured if you choose insurance through your super fund. Many super fund insurance policies are only basic and may not cover you and your family for what you actually need. 

Make An Informed Decision About Your Finances with The Guidance From An Expert!

If you’re still unsure about whether or not you need insurance, you can seek financial advice in Hornsby through Hyland Financial Planning. We aim to help you reach your financial goals through strategic planning and unique solutions. 

Get in touch with us today to learn more.

Or Book a 15-minute FREE Call!

Your super fund is a great way of saving for your later years in life. It can be easily forgotten about, but it’s important to remember that your super is money and will be an integral part of your retirement income once you reach preservation age.

You might have a pretty good idea of whether or not you have enough saved up through your superannuation fund, or if you’re going to need to make some extra contributions to your super. 

Here is a guide to how you can keep on track of your retirement savings through your super fund:

How Much Money Do I Need In My Super Account?

There are a few different ways you can calculate how much super you need to retire, as there is no “one size fits all” approach.

While your employer must pay 10% of your salary to your super (known as the superannuation guarantee) you may want to consider making your own contributions. If this is the case you should aware of the super contribution caps to ensure you don’t suffer the financial implications (e.g. the potential to pay additional tax).

The more money that goes into your superannuation account, the more it builds through the investment option you have chosen for the fund. If you have started retirement planning with your financial adviser, it may be beneficial to check with them how your super is being invested and if – in your financial situation – you can make additional contributions.

To learn more about super contributions, check out our article on The Different Types of Super Contributions You Should Know.

3 Simple Ways to Boost Your Super

1) How To Find Your Lost Super Funds

If you’re not sure how much super you’ve already got, it’s worth checking. If you’re starting your working life or you’ve had a few jobs, then it’s possible you may have a few accounts that you’re unaware of. 

This is particularly common if you’ve changed jobs over the years and you haven’t had your super details transferred over. Often the employer can create a new super account and make their employer contributions to that super fund.

You can find your super fund and check how many you may have through the Australian Taxation Office.

It’s important to keep on track of your super savings, so you know if you need to make extra voluntary contributions outside of what your employer pays to help build your savings. 

You may want to check which super fund is charging you the least amount of fees, and giving you the best performance, and ensuring your employer is paying to that super fund.

2) Think about Consolidating Funds

If you have multiple accounts you will want to consolidate. 

If you’ve got multiple super accounts, but you’re not paying anything into any of them, then you’re not actually saving any money. In fact, you may be limiting your saving potential by having these multiple accounts as they could be charging you fees.

It can be a smart idea to consolidate your super funds into one account. Not only does this give you easier access to your money, but you won’t be paying duplicate fees (and in some cases, multiple insurance premiums). It’s important before consolidating your super to check the relevant product disclosure statement so you can choose the fund that’s meeting your personal objectives.

This can also help make it easier to keep track of your super savings, which can make it easier to stay on top of meeting your saving goals and positively affect future performance.

It may be helpful in this circumstance to seek personal financial advice, so you can make an informed decision regarding your super fund and ensure your receive the investment returns that are needed to meet your financial goals.

3) Look at Other Investment Options for Your Super Fund

If the level of returns you’re making on your super balance isn’t meeting your savings target, then you may either want to change to a higher-risk investment portfolio (depending on your timeframe) or you may want to look at other investment options.

As you get older and closer to your retired years, you may want to limit the risk you’re willing to take with your super. Instead, you may want to explore other investments that you can make outside of your super.

If you’re looking for higher returns, consider some growth options, such as investing in shares or property. There are many long term investment opportunities that can help you grow your savings.

Seeking Personal Financial Advice About Your Superannuation Fund?

To ensure that you have enough super to live a comfortable life in your future, you need to know exactly how much you have, as well as an estimate of how much you’ll need ahead of time.

If you want to learn more about your super, and want to begin your retirement plan for your financial future, you may want to seek expert advice. Hyland Financial Planning offers financial advice in Hornsby to help you calculate everything as you build your super.

Get in touch with us today to learn more.

Or Book a 15-minute FREE Call!

You may be wanting to achieve early retirement, and if that’s the case, planning ahead is essential. You may want to consider checking if your superannuation account is performing and whether or not you need to make extra contributions to grow your savings. You may want to consider starting an investment portfolio to provide you with an additional income source for your retirement income.

There are many financial strategies you can take to help ensure you meet your retirement goals. To help you choose the right strategies, it may be beneficial to seek personal financial advice. A financial advisor can help you develop your retirement plans and get you on the right track to achieving your dream retirement.

This article will explore how you can prepare your finances by planning for retirement. The sooner you start, the more opportunities there are to grow your nest egg.

Here’s what you need to know:

How Much Retirement Savings Do I Need?

The amount of money you need to save for your retired years will depend on your individual wants and needs. You may want to secure a comfortable retirement, which can look different to everyone and how much income you’ll need to fund this lifestyle is dependent on your personal circumstances.

According to the Association of Superannuation Funds of Australia (ASFA), here are the average annual income you will need in retirement (estimation for a person aged 65, who is in good health and who owns their own home):

• For a Single Person: $43,687 per year
• For a Couple: $61,909 per year

Image source: https://www.amp.com.au/retirement/prepare-to-retire/retirement-money-needs 

How to Get Started Planning for Retirement

You may want to start by determining your financial goals and the strategies you can use to help achieve them.

Once you’ve listed your goals, you may want to consider your

• Investment options
• Your super fund investment strategy and if it’s tailored to your risk tolerance
• Where you want to live
• What your lifestyle looks like

A financial planner can help you determine what you need to consider when planning for your retirement and ensure you have the right financial strategies in place to secure financial security for your future income.

Determine Your Needs and Wants when Retirement Planning

Think about what monthly expenses you have now. These may include rent, food, healthcare, entertainment, gas, and other discretionary spending. You may want to use a budget calculator to help determine what you spend each month.

Create a budget for your expected retirement expenses. The budget should include everything you spend now, plus the additional costs you will have when you retire. You should consider your family size and whether you have a mortgage or annual expense payments. 

Project your income, and subtract your projected expenses from it. If your income is more than your expenses, you are on the right track to a financially secure future!

Creating a Budget For Your Retirement Income

Your budget should include information about your expected income and expenses. The budget should also have a breakdown of your expenses and savings goals. You may want to have a written document outlining your retirement income, projected expenses, and goals. By doing so you can keep track of your income and expenses either online or on paper to make sure things balance.

Better yet, you can include this budget within your financial plan with your adviser and have it reviewed annually, so you can ensure your financial strategies are up-to-date and in line with your personal circumstances.

If your retirement budget includes sufficient regular income to fund your expenses, you should be able to retire comfortably. If you have a gap in funding and need more money to meet your goals, you may need to adjust your finances and strategies to achieve them.

Develop Your Retirement Plan

Many Australians start retirement planning at least 5 years before they retire. You may want to seek a financial adviser who can provide you with tailored strategies and develop a plan that will meet your needs and wants. The important thing to consider is making sure your assets are managed to reach your goals and that your income is sufficient to handle your expenses.

An adviser can help you navigate what your retirement income options are and how you can build your nest egg to help you fund your ideal retired lifestyle. This is usually part of their retirement planning process and can help guide you through options such as:

• property investment and how to manage your investment property as a retiree
• the right investment decisions to offer you steady investment returns – now and in the future
• debt recycling
• contributing to your super fund

Start Your Retirement Plan Today To Secure Your Financial Future!

You can live comfortably during your golden years, by planning ahead and considering your retirement income options. It’s important before you retire, to keep an eye on your budget and make adjustments to your retirement plan when needed.

If you are looking for reliable and expert financial advice in Hornsby, we can help you. Hyland Financial Planning was founded on the desire to build a collaborative relationship with our clients. Our financial advisers share an ambition to improve the lives of their clients with strategic planning, wealth creation and ultimately — wealth success, leaving nothing to chance.

Contact us today to learn more and get started!

Or Book a 15-minute FREE Call!

Estate planning could include organising a Will, a Testamentary Trust, a Power of Attorney, details about life insurance, superannuation or death benefit nominations and a plan to minimise the taxes on your estate so that your beneficiaries are not left with an unfair amount of taxes to pay.

If you are looking into your estate planning, this article will share a guide on how you can get started.

What is an Estate Plan?

An estate plan involves making arrangements for your assets and affairs in the event of your death – or if you get to a point in life where you are no longer capable of making your own decisions. 

By having an estate plan in place, your loved ones will be best prepared to carry out your wishes. An estate plan strategy will ensure transfer, control and ownership of your ‘estate’ is managed in a timely and tax-efficient manner, which can help relieve stress on your loved ones during an emotional time.

What is involved in estate planning?

Before you start estate planning, have a chat with your friends, your parents, your spouse, your children and your siblings. Let them know what you would like your estate plan to look like, and let them know why you think it is important to have an estate plan.

You may want to discuss funeral instructions, your Will and plans for transferring your assets. 

To ensure your plans can be carried out efficiently and effectively, you may want to include the following legal documents within your estate plan:

• Advance Care Directive
• Enduring Powers of Guardianship
• Power of Attorney
• Testamentary Trusts

It’s important to seek expert advice to help you prepare each legal document you wish to include in your plan. You may want to seek a certified financial planner, who can help guide you through the entire financial estate planning process and build a solution that matches all your needs and wants. 

A Step-by-Step Plan to Begin the Estate Planning process

1 – List down your assets and liabilities

It’s important to list down every single asset that belongs to you. This includes your superannuation, investments, any shares, any property you own, your car, and anything that you think may be worth something.

2 – Protect yourself and your family members

Now that you have an accurate list of your assets and liabilities, you can then start thinking about who you would like to inherit your assets and how you would like your estate distributed. 

The important thing to remember is you must follow the correct legal processes for your plan to be carried out legally and efficiently. Once you have this information, you may want to draft a Will or a Testamentary Trust.

3 – Appoint an Executor

Once you have drafted your Will or Testamentary Trust with an expert, the next thing you can consider is to appoint an Executor. The Executor will be responsible for making sure your Will or Testamentary Trust is carried out. It is important to choose someone that you can trust, and someone that you know will respect your wishes as well as your family’s wishes.

4 – Review your beneficiaries

Review your beneficiary designations to ensure that you have your accounts and investment accounts set up in a way that reflects your estate planning. Remember, if you want your wishes to be carried out, it’s important to have your accounts set up in line with what you have stated in your estate plan.

5 – Regularly Review Your Plan and Update When Needed

It is important to review your plan and make sure that it stays up-to-date. You should make changes to your estate plan if you have either:

• entered into a marriage or de facto relationship,
• have children born or adopted post-dating your estate plan,
• or have had a significant change in your assets or liabilities.

Do you need a Financial Planner when Creating an Estate Plan?

A financial planner can help you make sure your assets go to the right people at the right time. In addition, a financial adviser from Hyland Financial Planning can help you structure your plan for financial outcomes that align with your goals. 

If you need financial advice and assistance with estate planning in Hornsby, come to Hyland Financial Planning.

If you want your assets and your loved ones protected when you no longer can do it, you will need an estate plan. Without one, your family could face huge tax burdens and the courts could decide how your assets are divided, or even who gets your children. Don’t let this happen and plan for the worst. We are here to help make the uncomfortable conversation stress-free and as comfortable as possible.

Contact us and get tailored advice today!

Investments for Retirement: What are your options?

To begin with, you may want to understand the types of investments you can choose from, which offer different rates of return, different liquidity levels, and risk factor.

Then you should consider mapping out your investment goals and how they will contribute to your financial future.

By gaining personalised advice, you can make informed investment choices, and be on track to achieving a comfortable retirement.

You can then evaluate each option for the specific goals you’re working towards for your ideal retirement.

What are the available types of retirement investments to increase your retirement savings?

The following are different types of investment options that you might consider:

• Cash Investments: You may consider putting your cash in low-risk, short-term obligations, such as a deposit account, that can provide returns in the form of interest payments.
• Equities: Are simply shares in the ownership of a company. They are the same as stocks, where if you buy stocks, you’re buying equities. They are considered high-risk as the market tends to be more volatile. 
• Annuities: They are financial products, that can offer you a guaranteed income stream during your retirement.
• Bonds: Bonds are when you can lend your money to an issuer either government or cooperation, in exchange for interest payments and the future repayment of the bond’s face value.
• Real Estate: You may want to consider purchasing an investment property and renting it out to be able to benefit from regular payments and use it as a form of retirement income.
• Exchange-Traded Funds (ETFs): Investing in ETFs are similar to investing in stocks as they trade on regulated exchanges. They track broad-based or sector indexes, commodities, and baskets of assets.

What Are Your Investment Timeframes?

Consider your investment timeframes when retirement planning.

How long do you plan to invest your money? Some people reach their retirement goals in 10 or 20 years, while others want to invest for 30 or 40 years. You may want to include your investments and time horizon within your retirement plans.

It’s vital that you understand this because it can affect your overall retirement plan. For example, if you want a short-term investment, you may want to consider an investment that’s liquid, and doesn’t lock you in for an extended period.

Why Is Diversification Important for your Retirement Investment Portfolio?

There are two reasons why it’s so important to diversify your retirement investments.

1. By spreading your money into different types of investments, you can potentially reduce the risk of significant losses and protect your investment returns.
2. Diversification can allow you to maximise your return over time, which can put you in a better position to meet your retirement goals.

A diversification strategy can maximise your risk/reward. If you have too much of your money in a risk-free investment, such as a bank account, you won’t usually see a high return. On the other hand, if you put too much of your money into an investment with a high risk, there’s a high chance of losing a fair amount of your money.

By diversifying your investments, you can balance risk with return, keeping a significant portion of it in low-risk investments and the rest in slightly riskier investments. This is so, when one investment isn’t performing there’s a chance the other investment is still providing a return.

For more on diversification, check out our blog to learn: How to Build a Diversified Portfolio that Matches Your Investment Risk Tolerance.

If you are unsure about what investments you should make for your golden years, you may want to seek a trusted financial planner who can offer advice on the tax implications of investments, fees and potential risks involved. They can inform you, after considering your financial situation and financial goals, of what investments may be most suited to include in your financial plan.

Seek Expert Advice from a Qualified Investment Adviser for Your Retirement Planning

If you’re planning to invest for your retired years, then you’re doing a great job of planning ahead. Having a plan in place can provide you with the best chances of reaching your goals.

Hyland Financial Planning offers you the services of an experienced financial adviser in Hornsby who can help you understand the ins and outs of investing to help grow your nest egg.

Contact us today so we can discuss your options!

There’s no denying that when it comes to ageing, requiring assistance is necessary and perfectly normal. We all get to a point where we need support, however, it can be difficult to know what the next steps are. 

You may want to sit down and discuss with your loved ones all your aged care options so they are just as aware as you and can understand the processes should they need to act on your behalf. For any financial matters that arise within these options, it’s a good idea to speak to a financial adviser who specialises in aged care planning. 

Here are 3 aged care options to discuss and consider with your loved ones:

1. Home Care

This helps people remain in their homes but assists with daily chores and maintaining the home. This service allows you to maintain independence, with support. 

Home Care is a comprehensive long-term care solution that combines the best of home and communal living. 

Home Care offers retirees a range of assistance through services such as personal care, respite care, transportation, and social support. This is an excellent option for those who wish to stay living in their own home, but need the extra support to maintain healthy living. 

If you are considering Home Care for yourself, then you may want to seek advice from a financial adviser who specialises in aged care financial planning. They can help you navigate the aged care fees that would apply within this option and provide you with all the relevant and up-to-date information that is included in this option such as the waiting lists that can occur for home care services. 

2. Retirement Villages or Assisted Living Communities 

If you are looking for a more affordable long-term care solution, you may want to consider a retirement village or assisted living community. This aged care option usually offers a range of accommodation options, services and facilities for retirees.

Some retirement villages provide a range of social and recreational activities in the village, allowing you to maintain an active and social lifestyle. 

There are various types of retirement accommodations to choose from so you can choose the one that suits you and your financial circumstance best. You may even be able to choose a retirement village that is located close by to an aged care facility allowing you to transition easily when needed.

3. Aged Care Facilities 

Aged care facilities are best suited to those who begin to be unable to live independently and require more support as they reach their twilight years of life. There are many aged care facilities to choose from in Australia, however, it may be beneficial to find a facility located close by to your loved ones so they can visit you when desired. 

Seek Financial Advice For Aged Care Planning At Hyland Financial Planning

There is no need to worry about your future as a retiree. A comprehensive range of long-term care services are available to enhance your senior years, especially in Australia. With these services, you can feel well supported whilst still maintaining your independence. 

Hyland Financial Planning offers aged care financial advice to help you and your loved ones navigate the complexities of aged care and create a personalised financial plan to help secure peace of mind. Aside from checking our clients’ options, we also handle their concerns in terms of estate planning in Sydney or Hornsby. 

Talk to one of our financial consultants today and get more out of your retirement in the future.

By the time you would like to retire, it would be beneficial to have a financial plan and be able to look forward to achieving some of your retirement goals. If you haven’t started planning for your retirement, it may be worthwhile to start planning as early as today. 

Having a sound retirement plan that provides you with tailored financial strategies to grow your savings, can help you achieve your ideal retirement. 

After all, the earlier you start thinking about retirement, the more time you have to grow your retirement savings and be on track to securing financial freedom. 

If you are approaching retirement, it may be beneficial to seek an experienced financial adviser, who can provide you with strategic retirement planning advice and help you get on track to achieving a comfortable retirement. 

Here are 4 ways to get you one step closer to securing your dream retirement:

#1: Determine Your Retirement Lifestyle and Your Needs

If you are nearing the end of your working years, you may want to ensure you have everything in place to be able to live comfortably during your retirement years. You may want to ask yourself the following questions:

• What does your ideal retirement look like? 
• Will you need additional funds for travel and larger expense items? 
• Will your retirement savings be enough to continue your current lifestyle?

According to the Association of Superannuation Funds of Australia (ASFA), the minimum annual cost of a comfortable retirement is $45,962 for singles and $64,771 for couples. This includes the cost for:

• Your daily living essentials; 
• Your health expenses such as health insurance, medical appointments, exercise resources; 
• Your lifestyle/hobby expenses; such as food outings, attending sports games, visiting the local club etc;
• Travel costs for an overseas holiday or visiting family members interstate. 

By planning ahead, you can have a good idea of what your needs and wants are for your golden years and understand how much you need to save for your retirement. You can use certain financial strategies that will help you grow your savings and be on track to achieving your ideal retirement lifestyle. 

Check out our blog to learn more about: How much you should save for retirement?

#2: Make Extra Contributions To Your Superannuation

Many Australians rely on their superannuation to fund their retirement. However, if you haven’t checked to see if your super is on track to fund your ideal retirement, it may be time to check and possibly make extra contributions to give it a boost. 

While your employer must be paying the super guarantee of 10% of your income to your super fund, you are entitled to ask your employer to pay more of your pre-tax income to your super. These payments are called concessional contributions and are taxed at 15%, which is usually lower than the marginal tax rate. This is known as a salary sacrifice. 

However, it’s important to note that you must not exceed the concessional contribution cap of $27,500 per financial year when you combine the total of your employer and salary sacrificed contributions. 

Do you have more than one Superannuation Fund?

If you have multiple super funds you may want to consider consolidating them as soon as possible to save money on fees.

If you are unsure of how many super funds you have acquired over the years, you can check through your myGov account or the ATO.

#3: Consider a Self-Managed Superannuation Fund

Many people today choose to transfer their super to a self-managed super fund (SMSF). An SMSF allows you to have more control over your retirement savings including how your super fund is managed and how to invest the balance. This option is especially suited for those who have extra money they want to invest in something more than just stocks or shares.

However, SMSFs come with substantial responsibilities. If you’re unsure about which step you must take, you may want to consider seeking an expert financial adviser who can help you make an informed decision based on your personal circumstances. 

#4: Seek Tailored Advice From a Financial Adviser

When seeking expert advice from an experienced retirement planner, they can help you by providing you with the financial roadmap to achieving your retirement goals. This can include providing you with the right financial strategies to grow your nest egg and get you on the right path to securing your ideal future. 

At Hyland Financial Planning, we provide you with a retirement plan tailored to your financial needs and wants in life to ensure you can achieve a retirement that is comfortable and worry-free.

Hyland Financial Planning can help you with your retirement planning

Hyland Financial Planning’s financial advisors are dedicated to forming a collaborative relationship with you. We share your desire to improve lives through strategic planning, wealth creation, and wealth success.

Through our retirement financial advice, we hope to help clients develop a sense of preparedness and stability for anything that may come their way. Seeking financial advice in Sydney or Hornsby?

Book a complimentary 15-minute call today!

References:

1. https://www.abs.gov.au/statistics/labour/employment-and-unemployment/retirement-and-retirement-intentions-australia/latest-release 

The cost of a separation can also be something that takes its toll and it can be difficult to prepare for due to the usually short timeframes and the urgency of action. Generally, the overall costs of your divorce will depend on how amicable you and your former partner are about reaching fair agreements. 

Whilst it can be a challenging time navigating the separation process, it’s important to seek expert advice in areas that are going to streamline the process for you. This should include legal support as well as a financial adviser.

They can also provide you with the relevant financial information you may be seeking during this time.

Read on to learn about financial planning amid a divorce or going through a separation.

Assessing Your Financial Situation with A Financial Adviser

It’s important to carefully assess your current financial position. It can help you know what steps to take next and what you should avoid.

A financial planner can tailor their strategies to your individual circumstances and provide you with the knowledge to make informed decisions surrounding your money.

It’s recommended you gather as much information as you can about all your assets and liabilities and note the names each is in.

Consider collecting the important documents and examine the following:

• Savings (individual and shared accounts)
• Art and collectables (and other assets that are worth considering)
• Bank statements and credit card statements
• Family trust
• Insurance policy
• Home loans and personal loan statements
• Investment statements (for example, managed funds, share dividends)
• Personal effects (boats, caravans, farm equipment, motor vehicles, etc.)
• Superannuation statements
• Marriage certificate
• Insurance policies (health, home and contents, car, income protection and life)
• Tax records (tax returns and tax file numbers)
• Car registration
• Loan statements
• Utility bills (electricity, gas, water, phones and internet)
• Property documents (lease, deeds, mortgage documents)

It is also beneficial to examine your joint income and expenses as this is crucial to help you plan for the future. The documents you may need are:

• Business and personal tax returns
• Payslips
• Bank, credit cards or store card statements
• Joint debt statements

Navigating Divorce and Separation Finances

Updating Your Accounts, Will and Super

Once you have gathered all the relevant financial documents, it’s crucial to begin separating your money.

In order to separate your money, you may consider doing the following:

• Opening separate bank accounts in your name (for your income and savings)
• Changing your PIN and online banking passwords
• Closing joint bank accounts
• Cancelling joint credit cards
• Update your super and ensure the payout goes to who you want.
• Update your will and powers of attorney.

If you possess joint accounts with your former partner, you should let relevant financial institutions know of your plan to seek divorce. As you do this, you can also start opening your own bank account for your finances after the relationship ends.

Reviewing Your Insurance

Because a divorce or separation is a major life event, this is a good time for you to review your insurance needs. These may include:

• General insurance (contents, home, motor vehicle, etc.)
• Health insurance
• Personal insurance (income protection insurance, life, total and permanent disability, etc.)

Insurances are vital in protecting yourself and your family if an unexpected event occurs. Reviewing your policies will help you determine your savings in premiums and better methods to let you keep up with payments while spending on other necessities. Additionally, it’s essential to make sure your beneficiaries are up to date on life cover policies so that the financial support goes to who you want it to. 

Creating New Cashflow Plans, Financial Plans and Investment Strategies

It is only natural to experience an income reduction as you go through a separation and understandably, it can take time to adjust to relying on only one income. Creating a budget and financial plan early on can make it easier to track expenses and feel confident that bills and payments will be covered.

It would be wise to think about your new level of income – and potentially new expenses – and how these will affect your lifestyle. 

If you have investments in place, you may like to consider adjusting them to account for your new income, changed expenses, and different living arrangements.

Making important decisions can be overwhelming at a time of significant change. When going through a separation, managing your finances is probably the last thing you feel like doing.

A financial adviser can support and guide you through the process. The Hyland Financial Planning team has the knowledge and experience to help you make confident financial decisions in times of challenge. 

Do you need help navigating your finances during a divorce or separation?

Seeking professional assistance through counselling, financial planning, legal advice, and the like will significantly help identify your options when navigating a financial separation. A divorce or separation is a tough time, so don’t hesitate to ask for help from reliable experts while navigating this challenging period in your life. 

If you need financial planning services in Sydney, turn to Hyland Financial Planning. We were founded on the desire to build a collaborative relationship where our financial advisers strive to improve our clients’ lives. 

We offer strategic planning, wealth creation, and ultimately—wealth success, leaving nothing to chance. Explore our services today.

However, just like anything tax and money-related, these things can get pretty complicated, causing you to get lost in all the jargon and complicated strategies. You may not be aware of the contribution limits and restrictions in superannuation, and if that’s the case, it’s beneficial to get yourself familiar with it.

By planning ahead for retirement, you can ensure you are making the right decisions about your super that will benefit you most in the long term. 

Speaking with a financial adviser can provide you with the right guidance, especially when planning for your retirement. 

In this article, our team of experts created a guide that will help you navigate through the different types of super contributions. Here’s what you need to know about the 4 different types of super contributions you can make:

The Different Types of Super Contributions

Type #1: Concessional Contributions:

Concessional contributions are contributions made from your pre-tax income to your super. This type of contribution is taxed at 15%, which is typically lower than your marginal tax rate. This generally allows you to pay less tax while boosting your retirement savings. 

How can I make a concessional contribution?

You can ask your employer to pay part of your pre-tax pay into your super fund, which is known as a salary sacrifice method. This simply means, your employer will be paying more than the super guarantee, which is currently 10% of your gross salary, in exchange for you receiving less take-home pay – but also benefiting from paying less tax.

What is the limit to making concessional contributions?

You can currently contribute up to $27,500 per financial year through your combined employer and salary sacrificed contributions. 

It may be beneficial, as you start to contribute to your retirement, to speak with your financial adviser to see which type works best for you and how you can maximise your contribution opportunities for your personal circumstances. 

Type #2: Non-Concessional Contributions

A non-concessional contribution is a type of contribution that you can make to your super from your after-tax pay. These types of payments aren’t taxed when they are received by your super fund as you have already paid income tax on this money. 

How can I make a non-concessional contribution?

It can be effective if you have spare money to contribute to your super, where it will be invested on your behalf through your super fund. You can easily make non-concessional contributions directly to your super through your super fund or by going through a financial adviser.

What is the limit to making non-concessional contributions?

You can currently make up to $110,000 of non-concessional contributions to your super each financial year. It’s important, however, that you do not exceed this cap within the financial year or you will have to pay an additional tax/fee.

You can learn more about making a non-concessional contribution through the ATO or by asking your financial adviser. 

If you would like to make voluntary contributions, it can be useful to contact a financial adviser to achieve the most effective financial outcome for you. 

Type #3: Spouse Contributions

Another effective way to reduce your tax can be by making non-concessional contributions to your spouse’s super fund. You can benefit by:

• Helping your other half build their retirement savings
• And you also may be eligible for a tax offset. 

Am I eligible for the spouse contributions tax offset?

If you want to take advantage of the tax offset when making a spouse contribution, you should check to see if you meet the eligibility criteria:

• You must make a non-concessional contribution to your spouse’s super.
• You must be married or in a de facto relationship
• You must both be Australian residents 
• The receiving spouse must be under 67 or meet the work test requirements

Spouse contributions can create additional opportunities for both you and your other half.   Besides that, doing so also maximises the level of retirement savings that you and your spouse have to share.

Type #4: Downsizer Contribution

As part of the 2021-22 Federal Budget, from 1 July 2022 eligible individuals aged 60 years or older can make a downsizer contribution (currently, the required age to make a downsizer contribution is 65 and above) 

This type of contribution can significantly boost your retirement savings, as it allows you to make a tax-free contribution to your super of up to $300,000 using the proceeds from the sale of your home. 

Often individuals nearing retirement may choose to downsize their home to make it easier for them to maintain during their retirement. This contribution strategy is a great way to do that and still enjoy financial security. 

Am I eligible for the downsizer contribution scheme?

To make a downsizer super contribution, you must:

• Be aged over 65 (changing to over the age of 60 from 1 July 2022)
• Have owned your Australian home for a minimum of 10 years
• Have not previously made a downsizer contribution
• Provide your super fund with a ‘Downsizer contributions into super form’

Seek a Financial Adviser to Help You Make the Most of Your Superannuation

Retirement planning experts can help you grow your super and ensure you are on track to achieving your retirement goals. They can help you choose the right options to boost your savings, while tailored to your personal circumstances. To improve your superannuation balance, it’s important to start early!

How Can We Help You?

If you’re planning for your retirement and need help managing your super contributions, work with Hyland Financial Planning’s expert financial advisers in Hornsby. 

Hyland Financial Planning aims to build a collaborative partnership with clients to help them improve their wealth through strategic planning and creation. With our help, we’ll guide you through navigating your finances to help you reach financial freedom.

Book a complimentary 15-minute chat with one of our experts today to find out how we can help you achieve your financial goals!

• Overview 2022-23 Federal Budget Summary

Should you have any queries or concerns about how the budget may affect you, please contact the team at Hyland Financial Planning for assistance.

While it’s true that every kind of investment come with risks, the level of risk varies depending on the asset class, so it’s up to you to ensure your investment portfolio matches your risk profile.

A financial adviser can help you determine your risk appetite and ensure you are confident in making investment decisions that not only align with your risk tolerance but also with your financial goals.

Tips on Building an Investment Portfolio that Suits Your Risk Tolerance

Tip #1: Know Your Risk Tolerance

Your risk tolerance level will determine how much investment risk you are willing to take to earn a higher return. The higher your risk tolerance is, the greater your potential to earn higher returns. However, bear in mind that the higher you set your risk appetite, you usually risk losing more money as well.

You can gauge your risk tolerance by answering the following questions:

1. Are you comfortable with investing in stocks and other equity-oriented investments even if that means you might lose some money?
2. Are you comfortable losing 30-50% of your money overnight in a falling market even if you have time to wait until the market recovers in the long term?
3. Would you be more comfortable with investing in a fixed income product that has relatively lower returns than other products?
4. What are your financial goals and investment goals? Do you have short term or long term investment goals?

Smart investors match their investments with their lifestyle and financial goals.

For example:

• If you are investing for a house you want to buy in the next 3 years, it may make sense to choose a low-risk investment that does not experience much market volatility. This would be a more conservative portfolio – meaning you can be more certain of your investment returns and enjoy financial security in the short term.

If you are investing for retirement and planning to retire 15+ years down the track, you may have a higher risk tolerance. You may be comfortable taking greater risk in more volatile markets if it means your money will grow more over the long term.

Tip #2: Take Time to Learn about Investment Options

Your investment options are endless.

Before investing in a particular asset class, you should be aware of how it works, how the returns are generated, what the risks are and what the tax implications are. Different asset classes hold different risks. The right asset classes for you to build a diversified portfolio will depend on your financial situation.

If you are new to investing, consider talking to a financial adviser about your investment strategy and how you can match your strategy with an evidence-based market activist as well as your high or low-risk tolerance.

Tip #3: Learn About Asset Classes and Asset Allocation

Asset allocation refers to how you divide your portfolio between different types of investments. For example, you can divide your portfolio between fixed income products, equity products, property and other types of investments.

A well-diversified portfolio will generally carry lower risk as your assets are protected by short term losses by your other assets and investments.

The performance of each type of investment is different so you need to allocate your portfolio in a way that will help you achieve your target returns. However, you might need to tweak your asset allocation regularly depending on how financial markets perform.

Managing Risks and Building a Balanced Investment Portfolio

Your investment portfolio will usually contain a mix of investments that are likely safer than others. For example, you can invest in mutual funds, bonds, stocks, ETFs and other investment vehicles that are relatively safe.

Regardless of how you decide to invest, make sure you account for your levels of risk tolerance, investing goals and time horizon. Diversify your portfolio to reduce risk and help balance your investment portfolio.

How Can A Financial Adviser Help You?

If you’re planning your investment strategy and matching it to your risk appetite, seek investment advice from a qualified financial planner.

It’s best to work with a reliable financial adviser in Hornsby who can help you secure your financial future.

Hyland Financial Planning aims to build a collaborative partnership with clients to help them build and protect their wealth through strategic financial planning and creation. Our goal is to help you reach success – no matter what success looks like to you.

Reach out to us today!

Generally, as you increase your wealth, gain assets, and build your investment portfolio, the higher your taxes will be. That’s why you need to know how to strategically plan your investments, asset classes, and investment vehicles.

Minimising tax is an important part of growing your own money. There are ways to go about successful investing and pay less tax throughout the process.

You can seek professional advice from a financial planner who can help you make smart financial decisions. For now, let’s dive into some helpful tips so you understand your investment options and can start investing with confidence.

Minimising Taxes Through Investment Strategies

As an investor, you need to have the right strategy to meet your investment goals and financial goals. Minimising taxes should be a part of your strategy. To do that, here are a few different asset classes you can consider using as part of your diversified portfolio.

1. Superannuation or Self Managed Superannuation Funds

Superannuation is your retirement nest egg. It’s meant to help you in the future. However, by investing in your super early, you can enjoy significant tax benefits.

Through superannuation, you can get the following benefits:

• The ability to reduce your taxes in the future
• Lower effective tax rate than what you get through other means
• The ability to grow your money faster through compound interest
• Peace of mind you are contributing toward your retirement savings

You can choose to make concessional contributions or non-concessional contributions to grow your super fund. If you hold a Self Managed Superannuation Fund (SMSF), there are also several investment options to help you minimise taxes.

2. Property

The popularity of property to invest money into is growing in Australia. While other investments can be seen as quite volatile, property tends to be a low-risk investment as property prices continue to rise exponentially.

You can also reduce capital gains tax on your property investments by investing through an SMSF.

Some investors choose to invest in a couple of different properties to diversify their portfolio.

Other investors choose to make the most of tax benefits and opt for a negative gearing strategy. This is when you borrow money for an income-producing investment (such as a rental property) where the investment is not producing as much income as the cost of the asset. The short-term losses can be beneficial to your tax bill in some situations.

A negative gearing strategy can become quite complex and may be risky.

Seek financial advice from an investment advisor who can help you with personal advice based on your current financial situation.

3. Investment Bonds

Investment bonds (also known as insurance bonds) can be another tax-effective investment. Investment bonds are taxed at the company rate (which can be lowered than marginal rates). They also become tax-free after 10 years.

Additionally – with this investment product – you are taxed internally (ie. within the bond) meaning you do not have to declare the earnings you make on your tax return.

Ready to Achieve Your Financial Goals? Get Started with Tax Planning from an Investment Advisor

As an investor, you need to be aware of your tax implications. The good news is that you can reduce your tax with a financial advisor who can provide investment advice.

Ultimately, tax minimisation may not be the most enjoyable or rewarding part of investing, but its importance cannot be underestimated.

Minimise Your Taxes Now with Strategic Investment Advice from Hyland Financial Planning

If you are ready to start your investing journey (whether using property, the stock market or any other different investments), chat with Hyland Financial Planning’s advice team.

Hyland Financial Planning can provide you with investment financial advice in North Sydney to minimise your taxes and help build your wealth. We are located in Sydney and Hornsby, NSW. 

Contact us today!

Six out of ten Australians consider having a comfortable time in retirement a personal problem, while about nine out of ten consider it a national problem, according to ABC’s Australia Talks National Survey 2021.

Retirement planning can be a daunting task, especially when it comes to making the right financial decisions that will have a positive impact on your financial future.

In particular, it’s important to ensure you have enough retirement funds to live comfortably after your hard-working years and without the burden of your nest egg running out.

The age pension combined with your superannuation may be the main source of income for most retirees in Australia, however, without additional savings, this may not be enough to fund your retirement goals. By having a financial plan, you can ensure you are on target with your retirement savings to achieve your ideal retirement.

If retiring early is something you are wanting, then it’s crucial to plan ahead for your retirement and ensure your savings are on track to meet that goal.

Early retirement may seem unachievable to some, however with the right financial guidance and strategies in place, it may be possible.

What is the Standard Retirement Age in Australia?

What is the Preservation Age in Australia?

According to the latest Retirement and Intentions, Australia report released by the ABS in 2020, the average retirement age is 55.4 years, yet most Australians intend to retire at age 65.5 years. Australia has no definitive retirement age, however, to be eligible to access your super you must reach your preservation age. 

Your preservation age depends on the year you were born, but if you are currently under 65 years of age then 65 would be your preservation age.

What is the eligibility age to receive the Age Pension?

This is similar to qualifying for receiving Government Age Pension benefits. Currently, the age you can receive the Age Pension age is 66.5 years but this could be higher based on your date of birth.

As Australians’ life expectancy continues to rise, there is a high chance that your retirement years could be longer than expected. With a retirement plan, you can ensure your money goes the distance.

It is important to note that when it does come time to retire, a comfortable retirement lifestyle can include a broad range of leisure and recreational activities and to have a good standard of living through the purchase of household goods, private health insurance and domestic and international travel, and the like. 

Comparatively, a modest retirement lifestyle requires fewer savings from your income stream but you may only be able to afford the basic everyday living expenses, basic health insurance coverage and small domestic holidays.

Just How Much Should I Have in Retirement Savings?

You might’ve heard you need $1 million to retire – you may have heard this figure being thrown around as the ideal financial retirement amount. But, the truth is there’s no one-size-fits-all amount. A comfortable retirement will look different for everyone.

While seven figures in your super savings may sound great, the reality is most people heading into retirement won’t have anywhere near that amount.

According to a 2019 report by the Association of Superannuation Funds of Australia Limited (ASFA), Australians aged between 60-64 are retiring with a median balance of $154,452 for men and $122,848 for women.

The most common rule of thumb is that the average person will need approximately 80% of their pre-retirement income to sustain the same lifestyle after they retire. However, there are several factors to consider, and not all of this income may need to come from your savings. 

If you are wanting to live a comfortable lifestyle in your retirement, then you may need to ensure you are on track with your cash flow management and are applying the right financial strategies that can grow your wealth.

According to the Association of Superannuation Funds Australia (ASFA), the standard amount to achieve a comfortable retirement is:

• $545,000 for a single person
• $640,000 for a couple

Take these into consideration as you start calculating your super and are saving for retirement:

• Future medical costs
• How long you’re expecting to live in retirement
• The retirement lifestyle you’re hoping to live
• The retirement goals you’re wanting to achieve

To build your retirement savings, you may want to consider making extra voluntary contributions to your super. There are several benefits to making concessional and non-concessional contributions to your super.

Two of the main benefits are:

1. You can reduce your tax pay
2. You can grow your super balance

You can learn more superannuation contributions and more strategies on how to build your superannuation here: How To Maximise Your Super: Superannuation Strategies You Should Try.

Seeking the right financial adviser can help tailor financial strategies to your personal financial situation and goals.

Seek a Retirement Planner to Help You Achieve Your Ideal Retirement

If you are nearing the retirement age in Australia, ensuring you have a retirement plan in place may make a big difference between having a comfortable retirement lifestyle or a modest one. By obtaining personal financial advice, you may be able to provide yourself with the best financial future performance.

There is no average age for retirement in Australia, though many consider 60 years old as a good age to do so. A good rule of thumb is to remember that in order to maintain their lifestyle post-retirement, people will need 80% of their income before retirement.

Do you need help with retirement planning in Sydney?

Reach out to Hyland Financial Planning for help! We aim to improve our clients’ lives with nothing less than success.

Contact us today!

When it comes to saving for your retirement, it’s important to provide yourself with the best possible financial situation, so you can enjoy your golden years. The more money you can contribute to your super the more you can grow your super in the long term.

By planning ahead for retirement, you can ensure you are making the right decisions about your super investments that will benefit you most in the long term.

The extra contributions you can make during your working life can help your super grow.

You may want to seek retirement planning advice from expert advisers at Hyland Financial Planning. They can provide financial strategies that will boost your super without impacting your cash flow, through implementing a tax-effective strategy and by taking advantage of contributions to super.

Here is a guide to some effective super strategies that can help you grow your money for your retirement:

How You Can Boost Your Retirement Savings

Superannuation can be an essential part of your wealth creation strategy. It’s important to form the habit of saving as much as possible through your super. If you save and invest your super wisely, you can have a sizable amount of money for your retirement.

Here are some effective super strategies to help maximise your savings:

1. Start Planning for Retirement as Early as You Can

“Time in the market is more important than timing the market,” says Jason Kirby, founder, and CEO of Aussie Super. The earlier you start, the more time your money has to grow, and the larger your super balance will be at the time of your retirement.

When it comes to investing in your super, it’s a great long-term strategy – simply because you can’t withdraw your super until retirement!

But this means you also get to benefit from tax advantages and compound interest so the amount of super you have in retirement can be maximised!

2. Contribute Regularly to Your Super and Enjoy the Tax Deduction

It is way more effective to make super contributions regularly, rather than all at once.

For Example:

Suppose you only make personal super contributions of $100 per month to your super in the first year. You’ll end up contributing $1200 for that year. Now, suppose you only contribute $100 per month to your super in the second year. You’ll be contributing $2400 for that year. In this case, you’ll have added $4000 in two years.

Making extra contributions to your superannuation can build your savings for retirement. You can even set up regular payments through your online banking or through your employer as part of a salary sacrifice agreement so that you don’t even need to think about it.

3. Making a Salary Sacrifice

If you’re looking for a way to increase your superannuation balance, consider making a salary sacrifice. Salary sacrificing means you agree to your employer that they will contribute some of your salary to your superannuation.

4. Consider a Self-Managed Superannuation Fund

An SMSF option is designed for those with the financial capability and time to manage their own super fund.

Unlike the other two options, an SMSF is not administered by a super fund. Instead, it is administered by an independent trustee. This means you are in charge of all the investment decisions.

Some Australian investors prefer this option because they feel it allows them to control their super fund decisions and investments. This option is especially suited for those who have extra money they want to invest in something more than just your stocks or shares.

To be able to set up an SMSF, you must meet some criteria:

1. You must be over 18 years old.

2. You must have been an Australian resident for at least nine months before commencing the SMSF.

3. You must not be bankrupt or have a voluntary administration.

4. Your super must not be part of a defined benefit fund.

5. You must have at least $2000 to set up your fund.

6. You must have at most $4.5 million in your super fund.

7. You must have at least one member who is 18 years old.

If you enjoy investing, starting a self-managed superannuation fund may be a suitable option for you. To help you decide whether this is the best option for your financial situation, it may be worthwhile seeking an expert financial adviser who can help you make an informed decision.

Seek a Financial Adviser to Help You Make the Most of Your Superannuation

Retirement planning experts can help you grow your super and ensure you are on track to achieving your retirement goals. They can help you to understand your investment options tailored to your risk tolerance and circumstances. To improve your superannuation balance, it’s important to start early!

Hyland Financial Planning can provide you with expert superannuation advice and guidance so you can achieve your financial goals for your later years in life.

Contact us today so we can set a complimentary appointment to discuss strategies!

While debt might be unavoidable, there are many ways you can manage these debts for better financial outcomes – including tax optimisation.

Debt can be a very useful tool to build your wealth and achieve your financial goals. But if you borrow beyond your means without a clear reason or plan, or if your debt is not soundly structured, it could affect many areas of your life, not just your finances.

Know the Difference Between Good and Bad Debt

At Hyland Financial Planning, we believe not all debt is equal. Debt can be good debt or bad debt. 

• Good debt is debt that positively enhances your finances and helps you grow your wealth (ie. HECS and educational debts, mortgage, business ownership loans).
• Bad debt is used to purchase items that decline in value. This kind of debt usually comes with additional interest costs as well (ie. car loans, personal loans, credit card debt). 

It is this bad debt that you should avoid at all costs.

If you use debt for an investment that will eventually grow and pay itself back, then this can be a good financial move.

Know How Much Debt You Owe

No matter what type of debt you have, it’s important to know what you owe, so you can make the right decisions to pay down your debt quickly. 

To improve your debt management skills, you first have to know how much debt you have. Make a list of everything and everyone you owe money for, and try to assess whether you’ve accumulated more good debt or bad debt.

The first step to financial planning is knowing what you are planning for. While it might not be the most positive experience, laying it all down will make the picture much clearer. Make a note of interest rates and fees as well, so you know what debts to prioritise.

Assess Your Financial Health

After you’ve consolidated all of your debts, try to compare what you earn, owe and spend. Get an overall assessment of your financial health by asking yourself how much money you will have, how much money you need for necessities, and how to allocate the rest for debt and other expenditures.

If you don’t have a budget to work with, starting with this will help you make better financial decisions in the long run. If you know where to spend and where not to spend, you can assess which expenditures are necessary and which you can do away with.

Work Out If You Can Save on Tax

With a few smart choices, you can transform inefficient debt into efficient debt to improve your tax return. 

You can also choose to use debt strategically to build wealth. 

At Hyland Financial Planning, we can help you transform non-deductible debt into deductible debt, improving your overall tax position while investing in your future.

Work with a Financial Planner to Manage Your Debts Today

When done correctly, debt can be something you don’t have to stress about. It can even be a useful tool for growing your wealth. As long as you know what things to invest in and debts to avoid, you can reap its benefits. 

Our financial planners can support you to:

• Save on tax through efficient debt management strategies
• Pay your mortgage off quicker through our proven payment plan that defines the frequency, amount, and source of repayments
• Consolidate debt for interest efficiency
• Use debt to build wealth and invest in your future

Looking for a financial adviser in Hornsby to help you with debt management?

Hyland Financial Planning is here to help. We provide collaborative financial consultation to help you manage and grow your own wealth. Consult with us today!

However, financial planning is one of the most neglected topics covered in early retirement. But it is one of the most critical factors of retiring at an early age. 

What are the top financial factors people should consider before retiring?

1. Daily Budget and Usual Expenses

People who want to retire early with enough money need to budget. You should take note of what expenses you need to afford to live comfortably in retirement. 

Establishing a budget is one of the best early retirement planning tasks.

It is also a good idea to have a plan in place to properly manage your finances and make them last for an extended period. Your retirement may end up being longer than you think it is and you may have to find more income sources.

2. The Age Pension and Centrelink Benefits in Retirement

One of the most common early retirement planning tools recent retirees use for income is the Age Pension.

However, depending on your retirement income amount, you may only get a part pension or no pension at all.

If you want to maximise the amount you will receive from the age pension, work with a financial planner/retirement planner.

3. Health Care Costs

One of the most significant parts of a retirement plan is health care costs, especially if you or your spouse has a health problem or medical condition that requires regular attention. 

Some of the typical health costs include health insurance premiums and out-of-pocket medical expenses. People who want to retire early and can afford it should have emergency funds and considerable savings to cover the potential costs of healthcare.

5. Establishing the Retirement Plan

A good retirement plan is one of the most critical factors of retiring early. 

A good retirement plan can help you decide if you should continue working or retire early. Retirement planning is about knowing how much money you need and how to put your plan into action.

But without having a strategy and plan in place, you may feel worried that you will run out of money halfway through your retirement. 

Work with a retirement planner to help plan your finances and savings for retirement. 

Early retirement sounds exciting, but it is not as easy as people think. A lot of work and careful planning is needed if you want to retire early. Retirement planning is essential as it helps people understand their priorities and what they can do now with their finances to achieve early retirement.

Hyland Financial Planning can help you with early retirement planning

Through our retirement financial advice, we hope to help clients develop a sense of preparedness and stability for anything that may come their way. Seeking financial advice in Sydney or Hornsby?

Book a complimentary 15-minute call today!

“An Australian male aged 50 years can expect to live another 32.9 years, and a female another 36.3 years.”

As life expectancy continues to increase, it means your retirement savings will have to last longer. However, there are some other factors that could affect your retirement savings other than life expectancy.

The Cost of Ageing: Making Your Retirement Savings Last

A lifetime is a long time to live on one lump sum. If you want to continue to live your life the same way, perhaps even with some small luxuries, you’ll need to be able to save up some additional money for retirement, especially if you live longer than expected on average.

Aside from medical expenses, your retirement savings may also need to cover other miscellaneous costs such as unforeseen circumstances, the maintenance of your home, and leisure activities such as holidays away or spending time with loved ones.

Here are 3 tips to help you ensure that your retirement funds will last longer:

1 – Estimate The Time Till Your Retirement

Your current age and the time you expect to retire can form the basis of an effective retirement strategy. If you know you have years ahead of you until you reach your retirement phase, then you may want to consider adjusting your portfolio risk.

For Example:

• If you have 30-plus years until your retirement, you may find that changing to a high-risk portfolio can be beneficial. This way, you can reap the benefits of high returns during this long period of time.

Once you are nearing retirement, you can adjust to a more conservative portfolio risk to ensure you are gaining steady returns with less risk of a substantial loss on returns.

2 – Accumulate Enough Savings to Cover the First 20 Years of Retirement

The golden ticket to your retirement savings. When you reach retirement, you could potentially receive an Aged Pension, but it will be unlikely to be enough to fully fund your retirement. Taking steps to grow your retirement is vital. You may want to consider making concessional contributions to your super fund. 

There are two types of contributions you can make to increase your superannuation balance:

• Concessional Contributions: includes the compulsory contribution of 10% of your income before tax and other contributions such as salary sacrifice. These types of contributions are capped at $27,500 per financial year. 

• Non-concessional Contributions: are personal contributions you can make to your super fund which are capped at $110,000 per financial year.

3 – Create a Retirement Plan as Early as Today

It’s important to be realistic when setting your expectations for your retirement. You should ask yourself:

• What are my retirement goals?
• Would I like to travel in my retirement?
• What does my retirement lifestyle look like?
• How much do I currently have in my retirement savings?

After addressing these questions, you may want to start mapping out your retirement plan. By planning ahead, you can make sure you are well aware of all the opportunities that can allow you to grow your retirement savings and ensure your money won’t run out halfway through your golden years.

Seeking advice from a retirement planner can help you ensure you have the right financial strategies in place to achieve your ideal retirement.

4 – Consider Establishing An Estate Plan

Financial security for your family and loved ones may be your number one priority. By ensuring your estate is organised, you can ensure your family and loved ones will be financially protected in the event of your death. 

Estate planning should be considered an integral part of your overall financial plan, as it can provide you with peace of mind knowing your legacy will be left to the ones who matter to you most. 

Learn more about what estate planning is and how you can get started here: How To Build your Estate Plan.

Start Your Retirement Plan Today.

If you want to give yourself the best chance for a comfortable retirement, you’ll want to have a retirement plan in place, so you can understand how to best save your money. With a retirement plan, you’ll have a solid understanding of where your money is going, how to optimise your spending decisions, and what to do when things go wrong.

At Hyland Financial Planning, we believe hope is not a plan and leaves too much to chance. We believe the sooner you receive strategic retirement planning advice—a plan—the more likely you are to achieve what you have in mind for a secure financial future.

If you need help planning for retirement, come to Hyland Financial Planning and get a head start! Our company was founded on the desire to build a collaborative relationship in which our financial advisers share an ambition to improve the lives of our clients with strategic planning, wealth creation and ultimately—wealth success, leaving nothing to chance.

Book an appointment today!

Commonly, people worry about how much money they will need during their retirement and if they have saved enough to outlast their retirement days. You may be someone who is fearful of making the wrong financial decisions during this transition and lead you to steer away from spending money on things that bring you enjoyment. 

Whether that may be spending money on a holiday overseas or spending money on hobbies, the fear of constantly making financial mistakes do not lead to a happy retirement. 

The key is having a financial and retirement strategy with the expert help of a financial planner. These professionals can help you straighten out your retirement plan, work out your investment strategies, retirement options and so on.

1. A Financial Planner Is There To Guide You

A financial planner offers help when you don’t know how to plan for retirement, need guidance or want someone else to look after your assets.

A planner can develop an entire investment strategy that is tailored to your needs and wants. 

Aside from taking care of building your retirement savings plan, they may also select, place, and rebalance investments for you, structure withdrawals from your retirement accounts and rearrange your finances to prioritise your best interests.

2. Expert Understanding of the Financial Market

You might have a casual understanding of how the market works, but financial planners usually monitor and actively manage investments. In addition, they also use investment strategies to help ensure you get a good return on your investments.

The right financial planner may be able to help you understand market trends and tap into data and insights.

They may help you avoid misreading market signals, which can be challenging to do alone, especially if you’re not familiar with the market. 

Moreover, your financial planner can move money in and out of your investments on your behalf.

3. Experience and Knowledge of Financial Matters

Financial planners usually have extensive knowledge about investment options, super funds and tips on financial management. So, they can readily help you with every aspect of your retirement requirements.

Essentially, you should feel comfortable knowing you are making the right financial steps with guidance from an experienced financial planner.

4. Financial Planner May Help Reduce Your Taxes

Retirement planning isn’t all about investments. Sometimes, tax implications may need to be considered since tax laws or your circumstances can change over time. If you’re not careful, an asset could carry heavy tax costs or can harm your overall income and wealth.

Financial planners are readily aware of methods to lower your overall tax burden, advising you on the latest significant changes to legislation. They may also keep you informed about new investments and the pros and cons of your decisions.

Financial planners take the big chunk of the financial stress you’re likely going to go through when it comes to retirement planning.

Their expert knowledge lets them simplify complicated financial options for you. That way, you can focus on achieving both short- and long-term financial goals. Planners can handle the management and implementation of your strategies so that you can relax and enjoy your retirement. 

Hyland Financial Planning was founded on the desire to build a collaborative relationship where our financial planners share an ambition to improve the lives of our clients with strategic planning, wealth creation and wealth success without leaving anything to chance. 

We exist primarily to serve our clients’ best interests and secure their financial futures. If you need a financial planner for retirement planning in Sydney and Hornsby, NSW, 

Take the next step and secure your financial future by booking a 15-minute call with us today!

Let us plan your financial future.

The share market decline in January 2022 has brought up concerns about inflation, tighter financial conditions and the economic impact of the new Omicron COVID-19 variant – especially for investors.

Some investors are alarmed by predictions of a market crash by the usual loud voices, consisting of doomsayers and exaggerated headlines. 

It’s easy to be reactive to headlines. But it’s important to avoid making impulsive decisions that could have negative impacts on your financial future. 

Markets are said to “climb a wall of worry” and history shows that investors who stay the course are more likely to achieve their long-term goals.

Shares have started 2022 on a dismal note, with many markets around the globe registering a ‘correction’, being declines of between 10% – 20%. 

However, share market pullbacks are normal – and even expected. 

“Fluctuations are a natural part of the share market.“

While it is not unusual for the share market to move from a record high into correction mode, the media has given a great deal of exposure to the latter, causing unnecessary alarm for some investors.

In the chart above, it can be seen that share markets regularly experience significant sell-offs. The drivers of those pullbacks are diverse and often centre around a combination of rising valuations in the presence of some external risk factor, which could be political, economic, or a “black swan” event (such as a pandemic). 

Since the Global Financial Crisis, markets have successfully navigated the European Debt Crisis, a China slowdown, Fed policy tightening and the worst of Covid-19.

While it is too early to know if the recent correction in shares will lead to a capitulation and a bear market (losses of 20% or more), the upcoming interim reporting season will be of heightened importance.

Investors will focus not only on company operating performance, but also on the outlook comments by management. If expectations are missed, it is likely that some stocks will be heavily marked down. Given that this is often an overreaction, it may turn into a buying opportunity for the patient investor.

Which investor do you want to be?

One of the most important things we can educate our clients on is:

• to not be distracted by short-termism
• to avoid exaggerated media noise, and
• to avoid listening to friends about what they should be doing with their investments in the short term and instead, follow professional advice that aligns with your values and goals.

For the time being, economies are on relatively stable footing, with falling unemployment, rising capital investment, excess savings ready to be deployed and businesses keen to get back to some semblance of normal. 

As usual, we at Hyland Financial Planning will keep a close eye on events as these unfold.

You can have peace of mind knowing our financial planners and investment advisers are consistently monitoring market performance to ensure our clients are always well-positioned to receive optimal investment results. 

If you have any questions or want to talk about investment strategies with one of our financial planners, please reach out. Our door is always open.

This goal can be made more challenging if you don’t have adequate savings or a financial plan. 

Early retirement is an option that seems far-fetched for most people. However, that doesn’t mean that it is entirely impossible to achieve. 

Would you believe me if I said you could retire at 60, 50 or even 45?!

Here in Australia, early retirement isn’t a decision that can be made in a heartbeat. Still, some have already proven that it is possible, so as long as people can make the most of the financial resources available.

If you want to achieve early retirement as well, here are some tips to get you started:

1. Establish a Financial Plan

You do not want to resign from your job without a solid plan in place. Otherwise, you may end up having to search for new income once your savings run out. 

The thing about early retirement is that you must already have a financial plan that will determine all of your expenses and savings before you are ready to finish up in the workplace. This will give you a clear insight into how much your daily expenses will be in retirement and give you a view of how much you need to save in order to have an enjoyable retirement.

Running out of money is never a good thing, and a financial plan may prevent that from happening once you pursue early retirement.

2. Boost Your Superannuation

Your superannuation is essential for a successful early retirement. It will ensure that you have regular income on a weekly, monthly and annual basis.

Now, there are certain stages within your employment wherein you will be given a chance to boost your super; this means that the money paid monthly will increase, increasing your super for retirement.

Feel free to accomplish the boosting of your balance early on so that you will be able to benefit from compound interest over the years.

3. Invest Wisely

One of the best ways to ensure a lifelong source of income is by investing in profitable ventures early on in your career.

While the most viable choice would be a diversified, researched investment portfolio. 

Just be sure to think long and hard about where to put your money; otherwise, you may end up risking your assets in a venture that would not be able to maintain itself, losing you a lot in the long run and making early retirement out of reach.

Start Your Early Retirement Planning with Hyland Financial Planning 

Retiring early is possible if you know the right things to do and make all of the correct decisions before as well as after your career has ended. Establishing a financial plan, boosting your super, and investing in long-term ventures may set you up for a wonderful and relaxing life.

Just remember to follow our tips and never settle for anything less than a great investment that will only grow your assets.

If you are looking for a financial company that deals with early retirement planning in North Shore, Sydney, look no further than our financial advice experts here at Hyland Financial Planning. 

Our financial advisers share an ambition to improve the lives of our clients with strategic planning, wealth creation, and wealth success. 
Contact us today and let us discuss all your financial options

Planning for your aged care usually involves organising your legal and financial affairs and establishing what care options you have available within your area of retirement. 

Aged care financial planning involves making future health, housing and legal decisions. 

Some of the most important steps when planning for life in aged care include making sure:

• You receive the assistance you require if you’re unable to take care of yourself.
• Your family understands how you want to be cared for in the case of a severe illness or disability. 
• Your Will specifies what should be done with your estate and assets.

It may be important for you to establish preparations ahead of time to protect your interests if you become extremely ill or wounded and cannot make decisions about your care.

Talking to your family about what you want and need during your later years of life is important. When you have this discussion, it’s beneficial to talk about what aged care services you may need and how that fits within your budget, needs and capabilities.

“An aged care financial planner can help you financially plan for your aged care strategy within your budget.“

Here are 4 essential things to consider when it comes to planning your future aged care needs:

1. Consider Assessing Your Current Financial Situation

When you’re in retirement and considering aged care options, it’s an excellent idea to organise your finances.

Many aged care options are more expensive than you would expect meaning it’s earlier to start saving or planning for payment solutions earlier rather than later. 

To ensure your finances are on track to meeting your aged care needs and assist you in handling your finances, it may be worthwhile to speak to a personal financial adviser to ensure that everything is in check. This way, managing your finances may become easier, and with that, you can manage the finances required for aged care. 

It’s important to ensure you have a good grasp of the expected aged care expenses and have an effective roadmap in place that can help you navigate the expected expenses as you reach your later years in retirement. 

2. Finalise Your Personal Matters

You might want to put other personal affairs to rest as well. You may choose to visit a particular location with friends, make specific wishes for your funeral or even plan that one last trip to Italy.

Regardless of your preferences, you may want to discuss these desires with your family and friends. From there, you may be able to make them happen if you work together.

3. Appoint Someone to Make Decisions For You

Another approach to plan for your future is to select someone to make choices for you if you become unable to do so yourself. This is also part of the estate planning process that we help our clients with. 

There are many types of legal appointments that confer decision-making authority:

• Medical Power of Attorney – capable of managing your medical requirements
• Power of Attorney – can handle your finances
• Enduring Power of Guardianship – can determine personal, lifestyle and treatment decisions on your behalf should you ever become incapable of making such decisions yourself.

4. Think About What Aged Care Option Suits You

There are various care assistance and housing options available today. 

It’s important for you to know that the choice will solely depend on your preferences, health, age, financial health, and the level of care you may require.  

• Home Care: This service allows you to remain in your homes and maintain independence, while also assisting you with keeping up with the essential daily home chores.
• Retirement Villages or Assisted Living Communities: These services provide living arrangements that meet independent and dependent individuals.
• Aged Care Facilities: If you can’t live independently, or want to take the pressure of yourself,  aged care may be an option worth exploring.

An excellent way to establish what your aged care options are is through the Aged Care Assessment Service (ACAS). You may want to consider booking an aged care assessment as soon as possible, as there could be possible waitlists for certain services or eligibility requirements you may have to meet.

“Booking an aged care assessment can also help you decide how much home care you may need in the future and help determine if an income-tested fee would apply to you.“

Early preparation and solid advice on advanced aged care planning can help you and your family minimise stress as you age. Speak with a financial adviser for additional information.

Working with a financial planner can provide you with the most up-to-date information regarding aged care in Australia, that is relevant to your financial situation.

Work with a Sydney Aged Care Financial Planning Specialist

If you’re looking for help with your aged care planning in North Shore, Sydney, our team of financial advisers at Hyland Financial Planning (HFP) can help! 

Our service is founded on the desire to improve the lives of our clients with strategic planning, wealth creation and ultimately – wealth success, leaving nothing to chance. 

Please take the next step and secure your financial future by booking a 15-minute call with us today!

While it’s great to be financially stable, what brings even more joy is being able to live the life you want without having to stress about money. 

Are you looking to set smart, achievable financial goals for the new year?

Here’s what you need to know when setting financial goals.

Three Types of Financial Goals

Short-term Financial Goals

Short-term goals give us a glimpse of where we want to be in the near future. They should be realistic and attached to a timeline. 

Short-term financial goals may include:

• Setting a budget and sticking to it
• Paying off small debts like credit cards or 
• Save an emergency fund
• Saving a specific amount for a purpose (holiday, new car, renovations etc.)

Mid-term Financial Goals

These goals create a bridge between your short-term and long-term goals. These goals take time, effort and patience to map out. 

Some examples of mid-term financial goals include:

• Buy a home or investment property
• Paying off larger debts
• Secure life insurance cover 
• Start investing

Long-term Financial Goals

These are the long-game goals you want to achieve – likely before you retire. Long-term goals are designed to help you meet your needs and wants in the future. 

Depending on your financial position, you may achieve some of these early in life. If that is your situation, you can take the time and work with a financial planner to secure and protect your wealth. 

Long-term goals include:

• Pay off your mortgage
• Creating a financial plan
• Save for retirement and perfect your retirement plan
• Boost your superannuation
• Secure your investment portfolio

Benefits of Setting Financial Goals

We all want to achieve our dream lifestyle for our future – whether that involves buying a dream home or travelling the world. You’ll need to set financial goals if you want to be financially successful. 

With a clear image of what you want in the future, you’ll be able to take the right steps towards your financial goals. It will also give you a clear picture of what you need and should do to achieve it.

Ready to Set Goals for 2022? 

Work with our financial planners in Sydney or Hornsby 

Hyland Financial Planning has a team of financial advisers in Hornsby that can help you achieve financial success. 

We build personalised financial plans to help individuals, families and retirees achieve all their financial and lifestyle goals. 

We’ll help you determine if you’re on the right path and give recommendations on the next steps to your success. 
Contact us today and take that first step towards your financial goals!

Since most things in life take time to build and perfect, it may take some time to accomplish. It’s important to start planning and mapping out your financial goals as early as you can. 

Here’s a four-step guide that may help you achieve complete financial independence:

1. Address Anything Holding You Back from Achieving Financial Freedom

Supporting yourself isn’t always easy. In fact, most tend to struggle and stumble at first. Before you work on achieving your goals, it’s best to put yourself in the best position possible. 

This means working on your bad financial habits and trying to pay off as much debt as possible (car loans, credit card debt, student loan even getting ahead on your mortgage!)

The goal is to get through this stage as quickly as you can. This means you’re in a good foundational position to better your finances sooner. 

2. Work on the Small, Regular Steps That Move the Needle

After working on improving your financial position as much as possible, now is the time to plan the regular things you can do to achieve your financial independence.

Set your financial goals and reward yourself for achieving important milestones. 

The small steps will be unique to your situation. Consider:

• Saving a regular amount each week 
• Use a certain amount to pay down debts weekly
• Look at where you can cut down on small expenses (bills or groceries)

This phase of your financial journey means you may be ready to start taking more exciting steps that will take you closer to financial independence. 

3. Look at Ways to Grow Your Wealth

Once you’ve achieved financial stability, you now have better control over your agency, putting you in a more attractive position financially. 

You’re at the stage where you can choose the things that grow your money. Now should be the time to start focusing on a long-term financial growth strategy, which may include building an investment portfolio. 

You finally have the choice to invest your money in something meaningful and beneficial for you. It’s at this stage that you can choose whatever investment you like without being overly concerned about your everyday financial expenses. 

4. Find Ways You Can Protect Your Wealth and Your Future

Growing money is, understandably, a huge priority for most people. But many people forget to take the next important step to protect their wealth. 

Protecting your wealth – through the appropriate insurance policies – can give you true peace of mind that you have reached financial independence. 

With a wealth protection plan, you can:

• Protect your income and your family’s future
• Maintain your desired lifestyle without financial stress
• Reduce unexpected costs in the future
• Feel confident in your financial stability

Achieve Financial Independence with a Financial Planner in Sydney

Achieving financial independence requires patience, discipline and determination to protect your wealth and reach your financial goals. These stages provide a great guide to get you started on your path to achieving financial freedom.

Hyland Financial Planning is here to help you become secure and prepared financially for what the future holds. 

We know how much your life can change in a blink of an eye. That’s why we offer financial planning – including estate planning, cash management, retirement planning, and investment advice – to help you achieve financial independence. 

If you need the help of a financial consultant you can trust, contact Hyland Financial Planning today.

While it can be uncomfortable to discuss matters surrounding end-of-life subjects such as death, wills and estates, these conversations are important to be had as early as possible with your loved ones. 

What is Estate Planning?

Estate planning involves preparing all your assets, properties, and belongings so you can put in place the appropriate strategies of how to handle them right after you have passed. Basically, it states your last wishes and the direction by which all your belongings and financial assets would be dealt with, either passing them on to your loved ones or providing them to another relevant party or entity.

Estate planning can help eliminate some of the potential legal stresses for your family members as they will know exactly what you want in the event of your passing.  

Many Australians have a will, but so many would also benefit from a comprehensive estate plan. 

A well-prepared and executed estate plan can ensure the right assets go to the right people at the right time, in an efficient and tax-effective manner.

If you want to get this process of preparation right, you may need to consider a few important things first. 

Here are three tips and recommendations you can use to help get you started on your estate planning.

1. Make a Complete List of All Your Assets

This may be your first step to your estate plan since you will not be able to initiate an estate plan without indicating all of your valuables. Having an incomplete list can cause confusion for the ones handling your assets and possibly cause conflict amongst your recipients. 

By listing down your property, your financials, and any other valuable assets, you can accurately establish and organise your asset distribution adequately.

If you need support in understanding what you can list, it may be worthwhile seeking financial advice and help you prepare your estate plan.

2. Choose an Executor You Can Trust

An executor is nominated as your trustee and will carry out your final wishes and estate plan right after you pass away. This person must be legitimate, validated, and well-versed within the technicalities of estate planning. 

Understandably, it can be difficult trying to find a trustworthy person to do this crucial task once you’re gone. Nevertheless, it’s a title you need to appoint to protect your best interests. 

A good rule of thumb is to go for a person who has nothing to gain from your will and exercises pure commitment and honest service to your wishes.

3. Consider a Testamentary Trust

A testamentary trust is something that you can choose to implement within your will. Its goal is to safeguard all of your assets and activates the distribution right after you pass. 

Importantly, this allows you to incorporate certain conditions on the distribution of your assets and how they are to be specifically managed by your nominated beneficiaries.  

The benefits of establishing a testamentary trust include:

• Protection From Bankruptcy – Your appointed trustee can protect your assets from your beneficiary if in the case they went bankrupt within your passing. This can be for the purpose of ensuring your assets don’t become a part of your beneficiary’s estate for bankruptcy. 
• Protection From Financial Implications of a Divorce or Separation – Under the current Australian law, your Trust may not be subject to a Family Court Order in the event of marriage or relationship breakdown. 
• Taxation Advantages – Taxable income generated by your Trust can be allocated among the beneficiaries of your Trust in a tax-effective manner. 

Getting your estate plan right can have some difficulties, however, they can be managed effectively with the right support. By listing your assets, choosing a trusted executor, and establishing a testamentary trust, you have more potential of drafting an estate plan free from misinterpretations and problems.

Save your loved ones from stress and Heartache with Estate Planning from Hyland Financial Planning

Leaving something behind for your loved ones by establishing an estate plan as soon as possible. Your loved ones would be more than happy to commemorate your kindness, even after you’re gone.

If you are looking for a financial adviser to support you with estate planning in Sydney, look no further than Hyland Financial Planning. We are a Sydney financial planning company specialising in strategic financial advice, wealth creation, and retirement planning.

Contact us today to discuss your estate planning and financial options for the future.

You may find as your life, career and goals begin to expand, you begin to wonder: 

Am I making all the right financial moves? Do I know enough about making smart investing choices that can help me meet my financial goals?

Often it can take a stressful financial situation to make someone seek help and guidance from a professional. Worrying over certain financial decisions can undoubtedly take its toll, especially when it concerns long-term impacts. 

Making these decisions without any plan or guidance is incredibly risky since it can set you up for failure, which is why it can be crucial to seek financial advice from an independent financial adviser.

A financial consultant can help take you through the complete picture of your financial situation and the options you have. They can help you choose the most advantageous decision that supports your short-term and long-term goals. 

Here are four reasons to consider seeking financial planning services:

1. Financial Advice Can Help You Secure Your Financial Future 

While it’s perfectly acceptable to aim for a comfortable (even slightly luxurious) so lifestyle, it often comes with a lot of challenges to reach this goal.

You can find a good balance between indulging in leisurely experiences and working hard to pay for the life you want. 

A financial consultant may be able to comprehensively look at your financial goals and build a roadmap to maximising your life and making the most out of it according to your standards. 

Whether that means early retirement planning or choosing to work a bit longer and go on holiday every year, a financial advisor can help you make smart, balanced decisions that allow you to live a fulfilling life.

2. Support You in Protecting What Matters Most  

Most people work so hard to build their wealth and earn money that they forget to make the time to protect their hard-earned wealth. Protection is just as important as owning which is why so many of us insure our cars, our health and our home. But what about our life and our earning capacity? 

You may be someone who has resisted the need to purchase insurance at some point. Everyone understands the importance of personal insurance, but it takes the extra step to come up with a personalised wealth protection strategy. 

Having the right insurance policy can be an essential part of a sound financial plan, giving you peace of mind on the things that are important to you. 

If you apply for your life insurance through a financial adviser, data shows that you are around 50% more likely to have your claim approved1

Many financial advisers have seen the tragic consequences of not being insured, especially when someone can no longer work due to illness, injury, or an accident. As you know, you can’t predict the future and circumstances can inevitably change; not having insurance can make unexpected situations more stressful.

Underinsurance is a prevalent problem in Australia- as only half of the population hold life insurance.1

It can be crucial to seek financial advice to review your insurance needs and ensure you have the appropriate protection.

3. Help You Make Smart Financial Decisions During a Crisis

As demonstrated by the COVID-19 pandemic, a crisis can quickly upend your financial situation. Having a solid financial plan can provide you with the tools you need to navigate certain difficult financial situations, helping you make the right decisions that will put you back on track. 

Without any guidance or the help of a financial adviser, you are more likely to make panicked decisions that can backfire. 

It’s easy to feel like all hope is lost when disaster strikes. However, working closely with a financial adviser—whether before, during, or after the crisis—can help you get back on your feet, understand the impact of various decisions, and choose wisely. You can be assured you are making logical financial decisions not impacted by emotional or stress that give you financial freedom.

4. Help You Reduce Your Financial Stresses

Whether you’re well-off or struggling, everyone experiences some form of financial worry at some point in their lives. Financial stress can have devastating effects on your physical and emotional health.

The great news is that a sound financial plan can aim to minimise the stress you may be experiencing. While it can’t eliminate worries, it can significantly reduce the number of concerns you have, as it will guide you towards choosing the most appropriate option for your financial situation.

Having a financial plan can save you from getting stuck in tricky situations that will plunge you further into debt. By working with a financial adviser, you’ll get closer to reaching your life goals and live a life you’re proud to lead.

Looking for a Financial Planner in Sydney?

Hyland Financial Planning strives to improve the lives of our clients by providing financial advice in Hornsby and Sydney. Through strategic planning, wealth creation advice, and various financial planning services, we can help you develop a plan to suit your needs. 

Contact us today to get started!

References: 
https://www.tal.com.au/slice-of-life-blog/how-many-australians-have-life-insurance#:~:text=Only%20half%20of%20Australians%20hold,18%2D69%20held%20life%20insurance.

However, seeking the right financial adviser who can help you achieve your dream financial future is no easy task. There are so many financial advisers in Australia; how do you know who the right one for you is?

Did you know?

Almost half of Australian adults have unmet financial advice needs!1 

A financial planner should best provide you with the appropriate strategies to help you feel confident about managing your money and help set you on a path to achieving your financial goals.  

When it comes to managing your money, it can be difficult to do so alone — a skilled expert can help you with your financial situation and secure your finances.

To find the best financial adviser for you, remember to:

1. Determine What You Need From a Financial Adviser

The first question to ask yourself is: Why are you looking for a financial adviser in the first place?

Of course, it goes without saying that you need the expertise of a financial adviser to achieve financial stability and freedom, but it’s important to consider the specifics of what you need.

Depending on your age, what stage of life you are in, what you wish to achieve, and the amount of money you have, what you need from a financial adviser will differ from other people. For example, those reaching retirement age may seek aged care advice, while people who’ve secured their first job may be looking into life insurance financial planning.

When looking for a financial adviser, it’s important to reach out to an experienced professional in the area of advice you are seeking. This way, you can feel assured they will be able to guide you and provide you with the best advice to support you in achieving your financial goals. 

At Hyland Financial Planning, we specialise in:

• Retirement Planning and Superannuation Advice
• Building Your Wealth and Investment Advice
• Protecting Your Wealth and Life Insurance Advice
• Estate Planning and Aged Care Financial Planning
• Cash Management, Budgeting and Debt Management

2. Choose the Type of Financial Advice

Consulting a financial adviser won’t necessarily involve the professional telling you strictly what you must do. If you seek a financial adviser for general financial advice they may or may not account for your situation or goals.

Personal financial advice is ideal if you want to receive financial advice tailored to your financial situation and designed for your best interests. This type of financial advice may include:

• Single Issue Advice: this allows you access to financial advice specific to your current needs for a one-off situation. For example, if you are going through a divorce, you may seek financial advice for one-off financial guidance.
• Comprehensive Financial Advice: This type of financial advice is tailored to your circumstances, which aims to help you secure your financial future.
• Ongoing Advice: Change is inevitable; your circumstances will often change eventually, which means the financial advice you need should adapt, too. Ongoing advice ensures that you’ll be able to stay on top of money matters, ensuring you’re financially secured. At Hyland Financial Planning, we specialise in ongoing financial advice to help our clients 

3. Find a Qualified, Certified Financial Adviser

Financial advisers come in all shapes and sizes and like many professions, some are more qualified than others. 

You can check whether a financial adviser is registered with the Australian Securities and Investments Commission (ASIC) and has a current license to practice. ASIC regulates Australian financial planning companies to make sure they are operating fairly and honestly.

If you select an adviser that is registered with ASIC, you can feel confident in knowing your money is being carefully regulated and protected.

Check the certifications and qualifications of an advice business or professional on the Financial Adviser Register. 

Choosing the Right Financial Adviser in Sydney

With the right financial adviser, you can learn how to manage your money, where to invest it, and reach your financial goals. As long as you work with the right financial adviser, you can live a stress-free, financially secure life!

Are you looking for the best financial adviser in Hornsby to help you manage your money? 

Our financial advice team at Hyland Financial Planning may just be who you need! We will work closely with you to develop a plan to suit your needs and achieve your goals. 

Book a meeting with us today!

References:

1. https://www.pc.gov.au/inquiries/completed/financial-system/report/financial-system.pdf

Some changes, like the rise in the Superannuation Guarantee (SG), will happen automatically so you won’t need to lift a finger. Others, like higher contribution caps, may require some planning to get the full benefit.

Whether you are planning for retirement or comfortably retired, it pays to know what’s available to you.

Here’s a summary of the changes starting from 1 July 2021.

Increase in the Super Guarantee

If you are an employee, the amount your employer contributes to your super fund has just increased to 10 per cent of your pre-tax ordinary time earnings, up from 9.5 per cent. For higher income earners, employers are not required to pay the SG on amounts you earn above $58,920 per quarter (up from $57,090 in 2020-21).

Say you earn $100,000 a year before tax. In the 2021-22 financial year your employer is required to contribute $10,000 into your super account, up from $9,500 last financial year. For younger members especially, that could add up to a substantial increase in your retirement savings once time and compound earnings weave their magic.

The SG rate is scheduled to rise again to 10.5 per cent on 1 July 2022 and gradually increase until it reaches 12% on 1 July 2025.

Higher contributions caps

The annual limits on the amount you can contribute to super have also been lifted, for the first time in four years.

The concessional (before tax) contributions cap has increased from $25,000 a year to $27,500. These contributions include SG payments from your employer as well as any salary sacrifice arrangements you have in place and personal contributions you claim a tax deduction for.

At the same time, the cap on non-concessional (after tax) contributions has gone up from $100,000 to $110,000. This means the amount you can contribute under a bring-forward arrangement has also increased, provided you are eligible.

Under the bring-forward rule, you can put up to three years’ non-concessional contributions into your super in a single financial year. So this year, if eligible, you could potentially contribute up to $330,000 this way (3 x $110,000), up from $300,000 previously. This is a useful strategy if you receive a windfall and want to use some of it to boost your retirement savings.

More generous Total Super Balance and Transfer Balance Cap

Super remains the most tax-efficient savings vehicle in the land, but there are limits to how much you can squirrel away in super for your retirement. These limits, however, have just become a little more generous.

The Total Super Balance (TSB) threshold which determines whether you can make non-concessional (after-tax) contributions in a financial year is assessed at 30 June of the previous financial year. The TSB at which no non-concessional contributions can be made this financial year will increase to $1.7 million from $1.6 million.

Just to confuse matters, the same limit applies to the amount you can transfer from your accumulation account into a retirement phase super pension. This is known as the Transfer Balance Cap (TBC), and it has also just increased to $1.7 million from $1.6 million.

If you retired and started a super pension before July 1 this year, your TBC may be less than $1.7 million and you may not be able to take full advantage of the increased TBC. The rules are complex, so get in touch if you would like to discuss your situation.

Reduction in minimum pension drawdowns extended

In response to record low interest rates and volatile investment markets, the government has extended the temporary 50 per cent reduction in minimum pension drawdowns until 30 June 2022.

Retirees with certain super pensions and annuities are required to withdraw a minimum percentage of their account balance each year. Due to the impact of the pandemic on retiree finances, the minimum withdrawal amounts were also halved for the 2019-20 and 2020-21 financial years.

Source: ATO

Next financial year there are more changes…

Next financial year is also shaping up as a big one for super, with most of the changes announced in the May Federal Budget expected to start on 1 July 2022.

The Budget included proposals to:

• repeal the work test for people aged 67 to 74 who want to contribute to super
• reduce the minimum age for making a downsizer contribution (using sale proceeds from your family home) from 65 to 60
• abolish the $450 per month income limit for receiving the Super Guarantee
• expand the First Home Super Saver Scheme
• provide a two-year window to commute legacy income streams
• allow lump sum withdrawals from the Pension Loans Scheme
• relax SMSF residency requirements.

Note: *All these measures still need to be passed by parliament and be legislated.

Whatever your situation, if you would like to discuss how to make the most of the new rules, please get in touch.

Some of the key Budget announcements that should be of particular interest to you and your clients include:

• the removal of the work test for non-concessional and salary sacrifice contributions 
• a reduction in the minimum age requirement for downsizer contributions 
• an increase in the amount of super savings available to first home buyers 
• additional investment into aged care following a Royal Commission into the quality and safety of the system. 

 It’s important to note that the legislated increases to superannuation guarantee were not amended in the Budget. Therefore, rate of superannuation guarantee will increase to 10% from 1 July 2021, as previously legislated.

In addition, the Government did not announce an extension of the halving of the account based pension minimums. As a result, the standard minimum drawdown requirements will apply from 1 July 2021.

Also, keep in mind that the announcements made in the Budget remain proposals at this stage. All of the proposals mentioned must be passed by Parliament before they become law.

Superannuation

Repealing the work test for non-concessional contributions and salary sacrifice contributions for people aged 67 to 74

Expected to be 1 July 2022

The Government has announced it will allow individuals aged 67 to 74 to make or receive non-concessional (including under the bring-forward rule) or salary sacrifice superannuation contributions without meeting the work test, subject to existing contribution caps.

However, individuals aged 67 to 74 years wanting to make personal deductible contributions will still have to meet the existing work test.

This measure is proposed to have effect from the start of the first financial year after the enabling legislation receives Royal Assent. The Government stated it expects this to occur prior to 1 July 2022. 4

Hyland Financial Planning comment

Removing the work test for people aged 67-74 to make non-concessional contributions will provide more flexibility for retirees under 75 to top up their super without needing to work 40 hours within 30 consecutive days in a year prior to making a contribution. It will also allow advisers to implement strategies, such as the re-contribution strategy, that are not normally available to retired clients in this age group.

The removal of the work test to allow salary sacrifice contributions to be made on behalf of people in this age group also means funds will be able to automatically accept these contributions without needing to first confirm the member has satisfied the work test. It also means that members in this age group can have salary sacrifice contributions made on their behalf in the first week of a financial year.

The bring-forward rule and removal of the work test

It is unclear from this announcement whether the Government also intends to allow clients to use the bring-forward rules to age 74, or whether the current requirement to be under age 65 at some time in the financial year the bring-forward rule is triggered will still apply.

We are awaiting confirmation and will let you know once confirmed.

Reducing the eligibility age for downsizer contributions to 60

Expected to be 1 July 2022

The Government has announced it intends to reduce the eligibility age to make a downsizer contribution from 65 to 60 years of age.

The downsizer contribution rules allow people to make a one-off after-tax contribution to super of up to $300,000 from the proceeds of selling their home they have held for at least 10 years. Under the rules, both members of a couple can make downsizer contributions for the same home and the contributions do not count towards a member’s non-concessional contribution cap.

This measure is proposed to have effect from the start of the first financial year after the enabling legislation receives Royal Assent. The Government has stated that it expects this to occur prior to 1 July 2022.

Hyland Financial Planning comment

Reducing the eligibility age for downsizer contributions to age 60 could allow an eligible couple in their early sixties to sell their home and contribute up to $1.26m to super in a year by each making a $300,000 downsizer contribution and $330,000 non-concessional contribution.

Alternatively, where a client wants to contribute a much smaller amount, it will be important for an adviser to consider what type of contribution they should make in order to maximise their ability to make contributions in future.

For example, if a client in their early sixties has $300,000 from the sale of a home they want to contribute to super, they may be better off making a $300,000 non-concessional contribution under the bring-forward rule rather than a downsizer contribution, as this would then preserve their ability to make a downsizer contribution in future.

First Home Super Saver Scheme – increasing the maximum releasable amount to $50,000

Expected to be 1 July 2022

The Government has announced it will increase the maximum releasable amount for the First Home Super Saver Scheme (FHSSS) from $30,000 to $50,000.

Under the existing FHSSS rules, an eligible person can only apply to have up to $30,000 of their eligible (voluntary) contributions, plus a deemed earnings amount, released from super to purchase their first home.

This measure is proposed to have effect from the start of the first financial year after the enabling legislation receives Royal Assent. The Government has stated that it expects this to occur prior to 1 July 2022.

Hyland Financial Planning comment

Under the existing FHSSS rules, an eligible person can only apply to have a maximum of $15,000 of their voluntary contributions from any one financial year included in the amount that may be released. Therefore, a member would need to make voluntary contributions of up to $15,000 over two financial years to take maximum advantage of the scheme.

However, the Government has not announced that it intends to increase the $15,000 annual voluntary contribution limit. Therefore, a member would need to contribute over four plus years to take maximum advantage of the scheme under this proposal.

Removing the $450 per month minimum superannuation guarantee threshold

Expected to be 1 July 2022

The Government has announced it intends to remove the $450 per month minimum superannuation guarantee (SG) income threshold.

Under the current rules, an employer is not required to pay superannuation guarantee contributions for an employee who earns less than $450 per month.

This measure is proposed to have effect from the start of the first financial year after the enabling legislation receives Royal Assent. The Government has stated that it expects this to occur prior to 1 July 2022.

*Assumptions: Results are in today’s dollars and calculated using ASIC Moneysmart superannuation calculator with the default assumptions applied. Assumes a 30-year-old with a super balance of $50,000 drops down to part-time employment earning $449 per month for 10 years. Assumed age of retirement is 67 years of age.

Hyland Financial Planning comment

Taking into account that two out of every three part-time workers are female, the SG threshold disproportionately impacts women who do a small amount of paid work, or who work multiple jobs each paying less than $450 per month. Younger workers combining part-time employment with full-time university study are also in the same situation.

Abolishing the $450 per month threshold could therefore help younger workers over age 18 to start accumulating superannuation earlier as well as help address the gap in super savings between women and men.

For example, abolishing the threshold could give a female worker at age 30 who drops down to one part-time employment arrangement due to family caring responsibilities up to an extra $6,924 in super at age 40. This difference will then continue to grow over time due to compounding investment returns, increasing to $11,700 in today’s dollars by retirement at age 67*.

Complying pension and annuity conversions

Effective first financial year following Royal Assent

The Government has announced people with certain complying income stream products will be given a two-year window to commute and transfer the capital supporting their income stream (including any reserves) back into a superannuation account in the accumulation phase. The member can then decide whether to commence a new account based pension, take a lump sum benefit or retain the balance in the accumulation account.

The income streams affected by this measure include:

• market-linked income streams (otherwise known as Term Allocated Pensions), 

• complying life expectancy income streams and 
• complying lifetime income streams,  

that were first commenced prior to 20 September 2007 from any provider, including self-managed superannuation funds (SMSFs).

Under the measure, any commuted reserves will not be counted towards an individual’s concessional contributions cap but they will be taxed as an assessable contribution of the fund.

When commuted, any social security treatment the product carries such as 100% or 50% asset test exemption and/or grandfathering for income test purposes will cease. 7

However, the Government has confirmed there will be no re-assessment of the social security treatment the product received prior to the commutation. Therefore, the member would not be required to pay back any overpaid entitlements.

The Government has also confirmed the existing transfer balance cap rules will continue to apply. Therefore, on commutation the member will receive a debit in their transfer balance account based on the debit value method that applies.

Income streams not included in this measure include flexi-pensions offered by any provider and lifetime products offered by a large APRA-regulated defined benefit scheme (eg some older corporate funds) or public sector defined benefit scheme (eg CSS, PSS).

Hyland Financial Planning comment

The Fact Sheet ‘Superannuation – More Flexibility for Older Australians’ states the products covered as those that first commenced prior to 20 September 2007. This appears to include those products that have since been commuted and rolled over to commence a new complying product.

How the value of the reserves of life expectancy or lifetime products will be calculated for the purposes of determining the assessable contribution to the fund remains to be seen and will be an important consideration for larger balances.

It will be important for members to consider the effect of commutations and commencement of new income streams on their transfer balance account. Often the debit on the commutation of a complying income stream is well below the actual capital that is released. Members and trustees will need advice in this complex area.

This is particularly good news for trustees of SMSFs that hold these products where balances have been depleted to the point of making the expenses to administer the fund unviable.

Relaxing residency requirements for SMSFs and Small APRA Funds (SAFs)

Expected date 1 July 2022

The Government plans to relax the residency requirements for SMSFs by extending the central management and control test from 2 to 5 years and removing the active member test.

Under current rules, SMSF trustees living overseas who intend to return to Australia at some point can be away for a period of up to two years and the fund will still meet the central management and control test. Under the proposal, the trustee will be able to be away for up to five years and still meet the test.

Further, the active member test will be abolished. Under this test, if the fund had members that were ‘active’ by making contributions or rollovers into the fund, the residency status of the fund could be jeopardised. This means that members who are overseas for a period of time often cannot make contributions to their SMSF or SAF. In contrast, a non-resident can contribute to large APRA and industry funds without putting the fund’s residency status at risk.

Abolishing the active member test simplifies the rules and ensures that members and trustees who are temporarily overseas can continue to make contributions to their SMSF or SAF without jeopardising the fund’s complying status.

Hyland Financial Planning comment

Under the central management and control test, SMSFs trustees must only intend to move overseas on a temporary basis. If the trustees move away permanently with no intent to return, the current 2 year period (and the proposed 5 year period) will not apply and the SMSF will become a non-resident (and hence non-complying) fund immediately.

Early release of super for victims of family and domestic violence

Not proceeding

In the 2018 Women’s Economic Security Statement the Minister for Women, the Hon Kelly O’Dwyer MP, announced that the Government planned to extend the ability to access early release of superannuation to victims of family and domestic violence.

The Government confirms that this proposal will not be proceeding.

Individual tax

Personal income tax cuts – retaining the low and middle income tax offset for the 2021-22 income year

Effective 1 July 2021

The Low and Middle Income Tax Offset (LMITO) was due to be removed at the end of the current financial year. However, the Government has announced it will retain LMITO for the 2021-22 income year.

 The LMITO provides a reduction in tax of up to $1,080. The table below shows the amount of offset an individual client is entitled to depending on their taxable income:

If the LMITO was removed as scheduled from 1 July 2021, individuals earning between $48,000 pa and $90,000 pa would have seen an increase of $1,080 in income tax and other individuals with taxable income between the effective tax-free threshold and $126,000 would also have been affected. 

This announcement means that personal income tax will stay the same in 2021-22 income year compared with the current year. 

The table below shows the tax cut at different income levels in 2021-22 if LMITO is retained compared with the scheduled removal of the LMITO: 

Hyland Financial Planning comment 

This announcement means that an individual’s effective tax-free income threshold for 2021-22 financial year remains the same compared with the current financial year. An individual who is not eligible for seniors and pensioners tax offset can effectively have taxable income of up to $23,226 without having to pay income tax. 

It is important to note that the LMITO is a non-refundable tax offset. An individual who is eligible for LMITO is not required to complete a section in their tax return. The ATO will work out the LMITO once the tax return is lodged. 

Modernising the individual tax residency rules 

Effective 1 July following Royal Assent 

The Government will replace the individual tax residency rules with a new, modernised framework based on recommendations made by the Board of Taxation in its 2019 report Reforming Individual Tax Residency Rules – a model for moderations. 

Under the current rules, the definition of a ‘resident’ or ‘resident of Australia’ is defined in subsection 6(1) of the 1936 Act. The primary test for deciding the residency status of an individual is whether the individual resides in Australia according to the ordinary meaning of the word ‘resides’. If an individual does not reside in Australia according to the ordinary meaning, the other tests listed below must be considered in determining the individual’s residency status: 

• The domicile and permanent place of abode test that applies mainly to individuals who are usually residents of Australia but during the income year are not living in Australia 
• The 183 day test that enables the ATO to consider usual place of abode and intention to take up residence in Australia so that individuals who are enjoying an extended holiday in Australia are not treated as residents 

The Commonwealth superannuation test. 

Following extensive consultation and research, the Board of Taxation concluded that the current individual tax residency rules are no longer appropriate and require modernisation and simplification. Individuals (and their employers) can face large compliance costs, including the need to seek third-party advice despite having otherwise simple tax affairs. The Board also identified a number of integrity concerns that arise due to the ways in which the current rules operate. 

Under the announcement new, modernised framework: 

– The Government will replace the primary test with a simple ‘bright line’ test, that is a person who is physically present in Australia for 183 days or more in any income year will be an Australian tax resident 

– Individuals who do not meet the primary test will be subject to secondary tests that depend on a combination of physical presence and measurable objective criteria. 

The new framework will be easier to understand and apply in practice. It is designed to deliver greater certainty and lower compliance costs for globally mobile individuals and their employers. 

Hyland Financial comment 

Certain foreign residents for tax purposes are excluded from accessing the main residence CGT exemption on the sale of a property and therefore cannot make a downsizer contribution. The current residency test can result in uncertainty as to whether an individual is a tax resident at the time of a CGT event. 

The proposed simplified residency test can provide greater certainty in terms of whether the individual is a tax resident at the time of disposal when determining the qualification for the downsizer contribution. 

Please note that if an individual has come back to Australia and re-established their Australian tax residency solely for the purposes of getting access to the main residence CGT exemption, the ATO could apply Part IVA in the 1936 Tax Act (ie the general anti-avoidance provisions) to cancel any tax benefit that the tax payer may obtain under a scheme. 

Employee Share Schemes – removing cessation of employment as a deferred taxing point 

Effective 1 July following Royal Assent 

The Government will remove the cessation of employment taxing point for the tax-deferred Employee Share Schemes (ESS) that are available to all companies. 

This change will apply to ESS interests issued on or after 1 July following Royal Assent of the enabling legislation. 

An ESS provides an employee with a financial share in the company where they work and is commonly used by an employer to attract and retain talent. An employee can participate in an ESS if they receive shares in the company they work for at a discounted price or they have the opportunity to buy shares in the company. Tax-deferred ESS is one of the concessional schemes employers may offer to employees. 

A tax-deferred scheme allows an employee to defer paying tax in relation to their ESS interest until the income year in which the deferred taxing point occurs, instead of paying tax in the year the interest is acquired, if the employee and the scheme meet certain conditions. 

Under the current rules, the deferred taxing point1 is the earliest of: 

• cessation of employment 
• in the case of shares, when there is no risk of forfeiture and no restrictions on disposal 
• in the case of options, when the employee exercises the option and there is no risk of forfeiting the resulting share and no restriction on disposal 
• the maximum period of deferral of 15 years. 

The removal of cessation of employment as a deferred taxing point will result in tax being deferred until the earliest of the remaining taxing points. 

The Government also announced regulatory improvements to reduce red tape for ESS. The regulatory changes will apply three months after Royal Assent of the enabling legislation. 

Example 

ABCDE Technology Limited, an Australian company, provides its employee Tamara shares under an ESS. Tamara is granted the shares on 1 October 2022, which will vest on 31 August 2025 after certain conditions are met. 

On 31 December 2023, Tamara leaves her employment to pursue other opportunities but continues to be entitled to acquire the shares. Under the current law, Tamara would be taxed at the time she ceases employment before she has acquired the shares. 

Under the new arrangements, Tamara would be taxed at the next deferred taxing point when there is no risk of forfeiture and no restrictions on disposal of the shares. 

Hyland Financial Planning comment 

Tax-deferred ESS is one of the concessional schemes employers may offer to employee. There are no proposed changes to other schemes. Please refer to the ATO website for more information about concessional ESSs. 

Increasing the Medicare Levy low-income thresholds 

Effective 1 July 2020 

The Government will increase the Medicare levy low-income thresholds for singles, families, and seniors and pensioners from the 2020-21 income year. 

The following table compares the level of taxable income below which no Medicare Levy is payable. 

Freezing Medicare Levy surcharge thresholds for 2 years 

Effective 1 July 2021 

The Government will continue with the current policy settings for the income thresholds for the Medicare Levy Surcharge (MLS) and Private Health Insurance Rebate for a further two years from 1 July 2021. 

The following table outlines the income thresholds for Medicare Levy Surcharge and the respective Private Health Insurance Rebate for each income tier: 

Simplifying self-education tax deductions 

Effective from the income year after Royal Assent 

Currently, tax deductions for Category-A self-education expenses must generally be reduced by $250. 

The Government has proposed removing this $250 reduction amount to effectively allow individuals to claim a tax deduction for all Category-A self-education expenses. 

Category-A expenses include tuition fees, textbooks, stationary, student union fees, student services and amenities fees, public transport fares, car expenses worked out using the ‘logbook’ method (other than the decline in value of a car), running expenses for a room set aside specifically for study. 

Business tax incentives 

The Government will support business to invest, grow and create more jobs through targeted tax incentives. 

Extending temporary full expensing 

Effective 6 October 2020 

Businesses with aggregated annual turnover within the relevant threshold will be able to deduct the full cost of eligible capital assets acquired from 7:30pm AEDT on 6 October 2020 (Budget night) and first used or installed by 30 June 2023 (extended from 30 June 2022 previously). 

• Full expensing in the year of first use will apply to new depreciable assets and the cost of improvements to existing eligible assets for businesses with aggregated annual turnover of less than $5 billion. 
• Full expensing also applies to second-hand assets for small and medium sized businesses with aggregated annual turnover of less than $50 million. 
• Full expensing does not apply to second-hand assets for businesses with aggregated annual turnover of $50 million or more. 

Extending temporary loss carry-back 

Effective from 2019-20 

Ordinarily, companies are required to carry losses forward to offset profits in future years. 

The Government has announced that it will extend the temporary loss carry-back measure a further 12 months to allow companies with aggregated annual turnover of less than $5 billion to carry back tax losses from 2019-20, 2020-21, 2021-22 or 2022-23 income years to offset previously taxed profits in the 2018-19 or later income years. 

Eligible corporate tax entities can elect to apply tax losses against taxed profit in a previous year, generating a refundable tax offset in the year in which the loss is made. The tax refund is limited by requiring that the amount carried back is not more than the earlier taxed profit and cannot result in a franking account deficit. 

The tax refund will be available on election by eligible companies when they lodge their 2020-21, 2021-22 and 2022-23 tax returns. 

Companies that do not elect to carry back losses under this measure can still carry losses forward as normal. 

Hyland Financial Planning comment 

The temporary loss carry-back measure allows an eligible business to access their losses earlier and generate a cash refund to provide a cash flow boost for the corporate business. 

International tax 

Updating the list of exchange of information jurisdictions 

Effective 1 July 2022 

The Government will update the list of jurisdictions that have an effective information sharing agreement with Australia. Residents of listed jurisdictions are eligible to access the reduced Managed Investment Trust (MIT) withholding tax rate of 15% on certain distributions, instead of the default rate of 30%. The updated list will be effective from 1 July 2022. 

To be listed, jurisdictions must have established the legal relationship enabling them to share taxpayer information with Australia. This measure will add Armenia, Cabo Verde, Kenya, Mongolia, Montenegro and Oman to the list. These new jurisdictions have entered into information sharing agreements since the previous update in 1 January 2021. 

Social Security 

Increasing the flexibility of the Pension Loans Scheme 

Effective 1 July 2022 

The Pension Loans Scheme (PLS), a voluntary, reverse mortgage type loan available through Services Australia, currently allows a fortnightly loan of up to 150% of the maximum rate of Age Pension. From 1 July 2022, the Government will implement two changes to the scheme – a No Negative Equity Guarantee and lump sum advances. 

No Negative Equity Guarantee 

A No Negative Equity Guarantee will be introduced so borrowers, or their estate, will not have to repay more than the market value of their property, in the rare circumstance where their accrued PLS debt exceeds their property value. 

Lump sum advances 

Eligible people will be able to receive one or two lump sum advance payments totalling up to 50% of the maximum Age Pension each year. Based on current Age Pension rates, this is around $12,385 per year for singles and around $18,670 for couples combined. 

Note, the total amount eligible people are able to receive under the pension loans scheme, including any lump sum advance payments, has not changed. The total amount cannot exceed 150% of the maximum Age Pension which is around $37,155 per year for singles and around $56,011 per year for couples. 

Four-year Newly Arrived Resident’s Waiting Period (NARWP) 

Effective 1 January 2022 

The Government has announced it will apply a consistent four-year Newly Arrived Resident’s Waiting Period across most welfare payments from 1 January 2022. 

This differs from current rules, where clients who have recently arrived as a resident in Australia may have to wait 1, 2 or 4 years before qualifying for a payment or concession card under the Newly Arrived Resident’s Waiting Period. 

Increased support for unemployed Australians 

Effective 1 April 2021 

As already legislated, the government has made a number of changes to working age payments from 1 April 2021: 

• the base rate of working-age payments has been increased by $50 per fortnight. This increase applies to JobSeeker Payment, Youth Allowance, Parenting Payment, Austudy, ABSTUDY Living Allowance, Partner Allowance, Widow Allowance, Special Benefit, Farm Household Allowance and for certain Education Allowance recipients under the Department of Veterans’ Affairs Education Scheme 
• the income-free area of certain working-age payments has been increased to $150 per fortnight. This applies to JobSeeker Payment, Youth Allowance (other), Parenting Payment Partnered, Widow Allowance and Partner Allowance 
• the temporary waiver of the Ordinary Waiting Period for certain payments was extended to 30 June 2021 
• the eligibility criteria for JobSeeker Payment and Youth Allowance (other) for those required to self-isolate or care for others as a result of COVID-19 was extended to 30 June 2021 
• face-to-face servicing for job seekers has recommenced, implementing a graduated return in job search requirements from 15 per month from April 2021 to 20 per month from July 2021, and mandating job seekers in online employment services to complete their career profile in the jobactive system, to allow better job matching. 

Social Security Agreements — Republic of Serbia and Bosnia-Herzegovina 

Effective date TBA 

The Government will enter into bilateral social security agreements with the Republic of Serbia and Bosnia-Herzegovina. Social security agreements enable Australia and the agreement countries to share the costs of providing retirement income support to those who have split their working life between countries. 

Child care 

Increase in child care subsidy 

Effective 11 July 2022 

The Government announced it will: 

• increase the Child Care Subsidy (CCS) rate by 30 percentage points for the second child and subsequent children aged five years and under in care, up to a maximum CCS rate of 95% for these children, commencing on 11 July 2022, and 
• remove the CCS annual cap of $10,560 per child per year commencing on 1 July 2022. 

This will provide greater choice to parents who want to work an extra day or two a week. Removing the annual cap helps support the choices of parents to work the hours they want to work and, in particular, reduces barriers that secondary income earners face when seeking to work more. 

The current hourly fee caps will continue to apply. 

Hyland Financial Planning comment 

The increase in Child Care Subsidy will benefit eligible families with two children under five in childcare. 

The removal of the annual cap will also help eligible families with a combined income of more than $189,390, by removing the subsidy cap that restricts them to a maximum of $10,560 child care subsidy per child per financial year. 

Aged care 

In response to the Royal Commission into Aged Care Quality and Safety, the Government is investing $17.7 billion over five years into improving the aged care system. 

Increased funding for Home Care 

Effective 1 July 2021 

To support senior Australians to remain at home, the Government is funding an additional 80,000 Home Care packages: 

• 40,000 released in 2021-22 
• 40,000 released in 2022-23 

Additional respite care services will be provided to assist carers and enhanced support services will be provided to assist senior Australians to navigate the aged care system. 

Increased funding for residential aged care 

Effective over 3 phases: 2021, 2022-23, 2024-25 

To improve and simplify residential aged care services, the Government is implementing a range of measures, including: 

• Increased funding for aged care providers to deliver better care and services, including food through a new Government-funded Basic Daily Fee Supplement of $10 per resident per day 
• Assigning residential aged care places directly to senior Australians and supporting providers to adjust to a more competitive market 
• Expansion of the Independent Hospital Pricing Authority to help ensure aged care costs are directly related to the care provided 
• Implementation of a new funding model – the Australian National Aged Care Classification system 
• Increased funding to drive systemic improvements to residential aged care quality and safety including increased funding for the Aged Care Quality and Safety Commission 
• A new star rating system to highlight the quality of aged care services and funding to expand independent advocacy to support greater choice and quality safeguards 
• Upskilling of the existing aged care workforce, financial support for Registered Nurses and funding to train new aged care workers, including subsidised places through JobTrainer 
• Creation of a single assessment workforce to undertake all assessments to simplify the assessment experience for senior Australians who enter or progress within the aged care system 
• Supporting senior Australians to access information about aged care through the introduction of dedicated face-to-face services 
• An increase in front line care (care minutes) delivered to residents of aged care and respite services, mandated at 200 minutes per day, including 40 minutes with a Registered Nurse, by 2023 
• Funding to improve the governance of the aged care system including the drafting of a new Aged Care Act by mid-2023 

Hyland Financial Planning comment 

The proposed reforms to the aged care system are in response to the 148 recommendations of the Royal Commission into Aged Care Quality and Safety. 

The Government also released their response to the Royal Commission on 11 May 2021. 

A number of recommendations impacting aged care funding were not accepted, such as the proposed 1% increase in Medicare Levy. The Government also did not accept changes to the basic daily care fee and means tested fees. 

The proposal to phase out Refundable Accommodation Deposits is subject to further consideration with the Government considering options to reduce the current dependence on Refundable Accommodation Deposits as a mechanism to raise capital. 

Are you thinking about selling the family home in order to raise funds for retirement? Under the “downsizer” contribution scheme, individuals aged 65 years and over who sell their home may contribute sale proceeds of up to $300,000 per member as a “downsizer” superannuation contribution (which means up to $600,000 for a couple).

These contributions don’t count towards your non-concessional contributions cap and can be made even if your total superannuation balance exceeds $1.6 million. You’re also exempt from the “work test” that usually applies to voluntary contributions by members aged 65 and over.

The government reports that as at June 2019 over 4,000 people around Australia had taken advantage of the scheme in its first year, representing total superannuation contributions of over $1 billion.

The downsizer scheme is a good opportunity for many Australians to boost their retirement savings, but you must ensure you’re eligible before making a contribution. If you don’t qualify, your contribution could count as a non-concessional contribution and cause you to breach your contributions cap. Here are some areas where the ATO is seeing mistakes with the eligibility rules:

The 10 Year Ownership Requirement

In order to qualify, you, your spouse or a former spouse must have owned the property for the 10 years prior to the sale.

The ATO explains that it’s not necessary for the same person to hold the property during those 10 years, as long as it was held by some combination of the person, their spouse and/or former spouse throughout the 10 years.

However, there’s an additional requirement: the property must be owned by you or a current spouse (not a former spouse) just before you sell. This means, for example, that where a couple divorces and the property is transferred to one spouse under the property settlement, when that spouse eventually sells the property they can potentially make a downsizer contribution, but their ex-spouse cannot.

Another thing to watch is the 10-year ownership period. The ATO says that the ownership period is generally calculated from the date of settlement of purchase to the date of settlement of sale. If you signed a contract to purchase “off the plan” and the settlement occurred much later, be aware that the ownership period for downsizer purposes only starts upon settlement.

The Main Residence Exemption Requirement

Another key requirement is that the capital gain from the sale must be wholly or partially exempt from capital gains tax (CGT) under the “main residence exemption”. If your home is a “pre-CGT asset” (ie acquired before 20 September 1985 and therefore not subject to CGT), it must be the case that the capital gain would hypothetically qualify for the main residence exemption, in whole or in part, if it had been acquired on or after 20 September 1985.

You won’t qualify for any main residence exemption where you’ve never used the property as your main residence – perhaps because it’s a rental property permanently leased to tenants, or your holiday home.

But thankfully, even a partial main residence exemption will allow you to make downsizer contributions. Common situations giving rise to a partial exemption include using your home to generate income (in addition to living there); where the land adjacent to your home’s dwelling exceeds two hectares; or where you’ve only lived on the property for part of the ownership period.

The main residence requirement is not related to the 10-year ownership requirement, so it’s not necessary that the property was your main residence during that 10-year period. It’s only necessary that you have (or would have) at least a partial main residence exemption.

As 2020 draws to a close, we would like to take this opportunity to pass on our best wishes to you and your loved ones, wishing you a very safe and Merry Christmas.

This year has undeniably been one we won’t forget in a hurry. But amongst the turmoil that came about as a result of COVID-19, there were certainly some wins along the way that I’d love to share with you:

In March, Michael Flanagan passed me the baton and we welcomed the clients of Optimise Wealth into Hyland Financial Planning. That week sharemarkets crashed and to apply the words of Reid Hoffman (the founder of LinkedIn) to our situation…when COVID-19 broke, our Team were forced to jump off a cliff, build a 747 Jumbo plane on the way down to carry all of our clients to safety. They did this and more. The way our Team pulled together this year brings a flood of positive teary-eyed emotions. 2020 taught me that we have assembled an amazing group of client focused people that would make any business owner proud.

Also this year, our licensee (AMPFP) engaged Price Waterhouse Cooper, a big 4 consulting firm to independently conduct a Fee for Service audit of all practices to ensure clients are receiving the services they pay for. Concurrently, PWC were also auditing our firm’s systems, processes and compliance procedures and our staffs understanding and adherence to these processes. I’m proud to say we have passed with flying colours and the feedback from PWC was that we are a practice perfectly positioned for the future of compliant financial advice.

Market recovery patterns

Contrasting ‘investors’ with ‘traders’, most people do not make radical changes in their portfolios based on short-term volatility. That’s a good thing, as picking tops and bottoms is almost impossible, even for professional fund managers who stare at screens all day. A well-designed investment plan should focus on long-term goals and needs, and not worry too much about monthly variations. Volatility is the cost of participating in the long-term benefits of share investing.

Regardless of an investor’s ability to look long term, two questions remain:

1. How often does a diversified share portfolio lose money?

2. How long does it usually take to recover?

We opened the Morningstar Direct database for the Australian All Ordinaries Accumulation Index to measure the total returns (including dividends) over one year, three years and five years since 1983. For the five year, we did a check using the Canadian Total Return Index, given the similarities between the Canadian and Australian markets.

There are good reasons to take comfort from the charts, and the pictures ‘tell a thousand words’. Of course, Covid-19 is a unique threat, and only time will tell whether ‘this time is different’.

One-year returns

Australian equity investors should expect to lose money for one year in every four to five years. Anyone who considers this loss of capital unacceptable should hold a more diversified portfolio including other asset classes, because over time, the same pattern will probably repeat.

(In the chart, 0.1 equals 10%, 0.2 equals 20%, etc. Yes, the All Ords rose 67% in 1983, and fell 40% in 2008 and rose 40% in 2009).

Three-year returns

Moving to a three-year horizon of annualised returns (that is, 1985 shows total returns over 1983, 1984 and 1985, annualised) shows good years regularly offset down years, such that over 90% of three-year periods produced a positive result. Over the period, only the severe loss of the GFC carries into other years.

Five-year returns

Similarly for five-year performance, now about 19 times out of 20, the All Ords produced a positive result.

Canadian total returns over five years

The Australian economy has experienced almost 30 years of economic growth (which will be punctured in 2020), so as a quick check on whether the above numbers are an Australian miracle, here are the Canadian Total Returns numbers for five years. There are no five-year losses.

A longer-term perspective of 120 years

Taking the data back to 1900 shows annual returns are positive in 80% of years, and the average annual return (nominal, not adjusted for inflation) for the All Ords Accumulation Index is 13.2%. Remember that inflation has reached double digits in the past so this number in no way reflects real returns or the potential for the future.

Over this longer horizon, and measuring returns over a decade, Australian shares have generated positive returns 100% of the time and 82% for US shares.

All Ords Accumulation Index, annual returns for all years since 1900

Bull and bear years since 1980

Finally, defining bull and bear years as 20% rises or falls in this Vanguard chart of the All Ords index shows that in the last 40 years, persistence with equity markets usually pays off. The bear markets have been much shorter and shallower than the bull markets.

Is the past a prologue?

We will only know if this time is different when we look back in a few years, and given the uncertainty in the market, there could be another leg down from the recent drop. Taking history as a guide suggests those who do not panic are likely to be rewarded over the long term.

Past performance does not necessarily indicate a financial product’s future performance. 

The Australian government has, rightly, sacrificed economic activity in the name of health in response to the COVID-19 crisis. It’s not alone in this, as you’d well know, major economies worldwide have done and are doing the same thing, albeit in different ways.

An unfortunate victim in this is Australia’s almost 30-year run of economic growth, we are experiencing our first recession since 1991. The March quarter is most likely to be negative, and the June quarter will see a big hit to economic activity thanks to the virus driven shutdowns, possibly in the order of 10 per cent. In other words, our economy will shrink considerably as this virus runs its course.

Again, Australia won’t be alone in this, a global recession is likely as major powerhouses like the US and China factor in the huge economic hit of social distancing, isolation measures, and virtual shutdown of regular activities, businesses and services that are not essential.

There are a range of factors Australians will feel as we move through the recession period, and a big one will be how tough the jobs market is. There will be much higher unemployment, it will be harder to switch jobs, and it’s reasonable to expect more redundancies and terminations as the crisis continues.

This leads to a loss in income and falling wages, which reduces the spending power of affected Australians. Compounding that, even for those who are holding on to their jobs, uncertainty will rise – people worry about the future, they worry about their income, they worry about their employment prospects. That will impact spending patterns, and how much people are willing to part with beyond the essentials.

It’s worth pointing out some of the potential opportunities for investors who are prepared to take a long-term view. For one, interest rates will be lower, the official cash rate is currently sitting at the all-time low of 0.25%. This will mean it’s cheaper to service a mortgage.

The residential property market is also likely to take a hit, which could provide lower entry points for people who have struggled – particularly in cities like Sydney and Melbourne – with affordability. The same logic applies to shares. Although the market is currently doing it bad, for those with a long-term outlook, there are opportunities to find value at a lower price point in a bear market.

Finally, the thing I think will be different about the recession before us and those Australia has seen before, is that the current crisis is not the result of a bust after a boom. This is an enforced shutdown and a significant disruption – it was not caused by anything fundamental in the Australian economy. Because of that, I am hopeful that once the virus is under control, we can recover and reach a more normal functioning in a quicker way than we have before. Adding confidence to this is that government and financial support programs – notably the wage subsidy and debt payment holidays – have been applied early and aggressively and should help offset protect many businesses and individuals so that the economy can bounce back reasonably quickly once the virus is under control.

Q: Can I access my super to help meet expenses?

Super is an investment that is generally only able to be accessed when you retire. To access your super savings, you need to meet what is known as a ‘condition of release’. The Government has also introduced a new option to access some of your super savings where you’re in financial distress as a result of Coronavirus.

While the conditions of release to access super are quite restrictive before retirement or reaching age 65, there are certain instances where you may be able to get early access to some of your super. These include:

• severe financial hardship (see next question)
• specified compassionate grounds (see page 2)
• under the new temporary access measures as a result of Coronavirus, and `
• reaching ‘preservation age’ where you can start a ‘transition to retirement pension’, taking annual income payments of up to 10% of the account balance.

Note: Preservation age ranges from 55 to 60, depending on your date of birth. For more information see ato.gov.au.

You can fully access your super when you:

• reach your preservation age and declare retirement
• cease an employment arrangement after turning age 60
• reach age 65
• are permanently disabled, or
• are terminally ill.

Unfortunately, if you lose your job but don’t meet a condition of release or the requirements for the new Coronavirus related condition, you’re not able to access money in super.

Note: To understand more about these conditions of release and the tax you may have to pay on amounts you withdraw from super, please speak to your financial adviser at Hyland Financial Planning, or visit ato.gov.au for more information. If you receive a Government benefit or concession, it’s also important to check how any amount you withdraw could impact your entitlement.

Q: How much of my super can I access if I am under ‘financial stress as a result of Coronavirus? 

You may be eligible to access two lump sums of $10,000 from your super under this condition. The first payment must be applied for before 1 July 2020. You may be eligible to claim a second payment of $10,000 from 1 July for approximately three months. 

To be eligible, you must meet one of the following conditions: 

• you are unemployed 
• you are eligible to receive Jobseeker Payment, Youth Allowance (JobSeeker only – excludes recipients undertaking full-time study or new apprentices), Parenting Payment, Special Benefit or Farm Household Allowance 
• on or after 1 January 2020, you were made redundant, your hours of work reduced by at least 20%, or if you’re a sole trader, your business was suspended or your turnover reduced by at least 20%. 

You’ll also be able to make a withdrawal where you’re an employee of your own company or family trust and your working hours have decreased by at least 20%. 

You can only apply for one payment per financial year. If you withdraw less than $10,000 in a financial year, it is not possible to make a second application up to the $10,000 limit. Unused amounts in 2019/20 do not rollover to the 2020/21 financial year. 

Application will be through MyGov, and you’ll need to make a declaration that you meet one of the above eligibility requirements. Once the ATO confirms you’re eligible, they will issue you and your super fund with a determination and the payment will be made to you. If you have a self-managed super fund, arrangements will differ and additional information will be provided by the ATO. 

These payments will be tax-free and won’t be assessable when determining your entitlement to Centrelink or DVA entitlements. You can apply to access your funds under this condition of release on MyGov. 

It is expected that claims can be made from mid-April. 

Q: Can I access my super under the Coronavirus condition of release if my income has reduced, however I remain working the same hours each week? 

No. A 20% reduction in working hours is required when you continue with your employer. A reduction in income for employees does not meet the eligibility requirements. 

Q: How do I access super under the ‘financial hardship’ condition of release? 

Accessing super early under financial hardship requires you to have been in continuous receipt of an ‘income support payment’ from Centrelink or Department of Veterans’ Affairs (DVA) for a minimum of 26 weeks (or up to 39 weeks, if you’ve reached your ‘preservation age’). 

Income support payments most commonly include Disability Support Pension, JobSeeker and Carer Payment. 

Your super fund will determine whether you’re eligible, including whether you’re unable to meet immediate family living expenses. This will be considered on a case-by-case basis by the fund. ‘Immediate family living expenses’ may include groceries, utilities, medical bills and education costs. 

If you wish to apply for a payment on financial hardship grounds, contact your super fund for more guidance on the application process. As well as providing information about your financial circumstances and expenses to your fund, you’ll need written confirmation from Centrelink or DVA that you’re receiving an income support payment.

How much can I withdraw? 

If you’re aged less than your preservation age, you’re only allowed to withdraw a single payment of between $1,000 and $10,000. You can only make one financial hardship withdrawal in a 12-month period. If you’ve reached preservation age plus 39 weeks, there is no limit on the amount you can withdraw (provided you’re not working at the time). 

Will I have to pay tax on the amount I withdraw? 

Depending on your age, you may have to pay tax on amounts paid to you from super under this condition of release. Where you withdraw a lump sum, your super provider will withhold the tax on your behalf if your payment is taxable. 

If you’re aged 60 or over (and your super fund isn’t an ‘untaxed’ fund) you won’t have to pay tax on any withdrawals. 

If you’re under age 60, you may have to pay tax at up to 22% on some of the amount you withdraw. If you’ve reached your ‘preservation age’, you may be exempt from paying tax on some of these amounts. 

To understand what tax is payable in your case, please speak to your financial adviser at Hyland Financial Planning or visit ato.gov.au for more information. 

What else should I consider? 

If you’re receiving any Government benefits or concessions, or you hold a Government concession card, it’s important to check how a payment from super could impact your entitlement. 

Q: How do I access super under the ‘compassionate grounds’ condition of release? 

If you have certain unpaid expenses that you can’t meet, you may be eligible to access some of your super savings. However, there are specific circumstances that will qualify you to make a withdrawal under this rule. Also, the amount that you’re able to withdraw is based on the types and amount of expenses you’re unable to meet.

Eligible expenses may include: 

• payment of medical expenses for either you or your dependant, associated with a life threatening illness or injury, pain, or mental illness 
• home loan repayments when you’re threatened with repossession by your lender 
• modifications to your home that you need to make because of a severe disability, and 
• funeral expenses if you lose a dependant. 

Other rules and eligibility criteria may also apply. 

How to apply for a release on compassionate grounds? 

First of all you’ll need to check with your super provider that they will release your funds if you meet the compassionate grounds criteria. 

Then you’ll need to apply to the ATO directly and the application can be done online. Appropriate evidence is also required to allow the ATO to make an assessment of your circumstances. This could be doctors’ reports, quotes, invoices, bills, or proof of dependency (when your claim relates to a dependant). The ATO will provide guidance on exactly what is requires when you apply. 

The ATO indicates that assessment of your eligibility may take up to 14 days, however, this may increase at peak times. If the ATO determines that you’re eligible, they will contact you and your super fund directly. You will then need to get in touch with your super fund to arrange a withdrawal. 

You’ll only be eligible to make one lump sum withdrawal as determined by the ATO and you need to keep your receipts as evidence once you’ve paid the expense. 

It is also important to understand that if you’ve already paid the expense (even using a credit card or borrowed funds), you won’t be eligible to apply to access your super on compassionate grounds, as it only relates to unpaid expenses.

Will I have to pay tax on the amount I withdraw? 

You may have to pay tax on these amounts, depending on your age and the amount you withdraw. This is the same as for a release under financial hardship. 

For more information see ato.gov.au and speak to your financial planner. 

Q: Which condition of release should I use to access my super? 

You may not be eligible to access you’re super under more than one of these conditions, due to not meeting the eligibility criteria. However, if you are, it may be better to apply under the new financial crisis condition of release, depending on your age and the amount you need to access. 

If you meet the criteria to apply under the new Coronavirus option and you’re able to access the amount you need, this may be preferable because the payment is tax-free. Also, it is likely that the evidence you’re required to submit to support your application will be less onerous, and the claim may be approved faster. Also, if you do need to access additional amounts later in year and you also meet the eligibility rules for either financial hardship or compassionate grounds, this may enable you to withdraw additional amounts. 

You should speak to your financial planner to understand the best option for you before making any withdrawals. 

Q: My account-based pension balance has dropped significantly. Can I stop my income payments? 

Super rules require you to withdraw a minimum amount from an account-based pension each year. This minimum amount is based on your age and pension balance at the beginning of each financial year, or on the date you start your pension if you start it part way through the year. Due to the economic downturn in financial markets impacting pension balances, the Government has halved the minimum payment requirements for this financial year and the 2020/21 financial year. 

If you’ve already received total income payments from your pension this financial year that are at least equal to this new minimum amount, you can ask your fund not to pay you any additional pension payments for the year. You could also decide to stop your pension altogether by switching your pension back to an accumulation account, but your super fund will make sure you’ve received at least the annual minimum before you do. 

If you continue your account-based pension, your new minimum pension payment for next financial year will be based on your account balance on 1 July 2020. This means that your annual pension payment may be significantly lower than anticipated. You may need to adjust your annual pension payment to ensure your cash flow needs are met. If you do want to adjust your annual payments down as allowed by this new rule, you should speak directly to your super fund and your financial planner to make sure that the request is processed by the fund (as this will not be automatic). 

Q: I was a temporary resident of Australia, but have now returned to my home overseas. What will happen to my Australian super savings? 

If you’ve worked and earned super while visiting Australia on a temporary visa, you can apply to have this super paid to you as a Departing Australia Superannuation Payment (DASP) after you leave. You can only submit a DASP application after you’ve left Australia and your visa has expired or has been cancelled. 

If it has been six months or more since you left Australia, your visa has ceased to be in effect and you’ve not claimed DASP, your super fund will transfer your super money to the ATO as unclaimed super money and can subsequently be claimed from the ATO rather than from your super fund. 

Your DASP will generally be paid to you within 28 days of receipt of your completed application. Payment options include electronic funds transfer to an Australian bank account, cheque or international money transfer.

A final DASP tax will be withheld from your payment. You’ll be issued a DASP payment summary from the fund within 14 days of making the payment. This payment summary will detail the amount of DASP tax that was withheld and the net amount issued to you. 

Note: If you’re a New Zealand citizen leaving Australia permanently, you may be able to transfer your super to New Zealand under the Trans-Tasman retirement savings portability scheme for individuals. 

Q: Can I contribute my redundancy payment to super? 

Any contributions you make will be under the ordinary contribution caps. However, before you do this, it’s important to remember that once you contribute funds to super, you’ll need to meet a condition of release before you can access these funds again. Therefore, before you do make a contribution, it’s important to make sure you’ve set aside enough to access in the meantime, until you decide on your next steps. 

Q: I have lost my job, been made redundant, or had a reduction in my working hours – can I apply to receive a social security benefit? 

You may be entitled to a social security benefit or concession card. The benefit or concession you’re entitled to will depend on your circumstances. You may also be eligible to apply for a benefit where you can’t work because you’re in isolation or hospital, or you need to stay home to care for children as a result of COVID-19.

This could include: 

• Jobseeker payment (which replaced Newstart allowance and Sickness Allowance from 20 March 2020) 
• Youth Allowance (JobSeeker), or 
• Parenting Payment. 

Where your claim is related to COVID-19, some eligibility requirements that relate to these payments could be waived. This includes certain waiting periods, and ordinary means-testing requirements under the assets test. Also, you might be eligible for the Coronavirus Supplement, which is an additional $550 per fortnight paid in addition to your fortnightly benefit. 

However, if you are still employed and receiving leave entitlements from your employer, such as annual leave or sick leave, or if you are receiving Income Protection payments, you may not be eligible to make a claim under COVID-19 provisions. 

JobSeeker Payment 

The JobSeeker payment is available for you if you’re aged between 22 and Age Pension age and you meet certain eligibility criteria. The amount that you’re entitled to receive will also vary and usually depends on your income and assets. 

The Government has waived the asset test for six months from 24 March 2020, so your entitlement will only reduce under the income test (if your income is above certain limits). You will also be exempt from meeting certain waiting periods when determining your entitlement to the payment. 

Flexibility will also be provided to the activity requirements that usually apply and require you to be looking for work or participating in paid or voluntary activities. 

Low Income Health Card 

You may also be eligible to apply for a Low Income Health card which is income tested. The card provides certain benefits such as cheaper medicine under the Pharmaceutical Benefits Scheme and concessions for utility bills. 

How do I apply? 

To determine what benefits or concessions you’re entitled to, you should speak to your financial adviser at Hyland Financial Planning, or a Centrelink or DVA representative. Applications may be able to be made online, through MyGov, over the phone, or in your nearest Centrelink office. 

Q: The value of my investments have reduced as a result of negative market movements. Should I tell Centrelink/DVA? 

Most income and assets are assessed to determine your entitlement to income support such as Age Pension, Service Pension and JobSeeker. Ordinarily, Centrelink or DVA automatically revalue many of your assets without you needing to do anything. This is achieved through reporting from certain providers (such as super funds and managed fund trustees) and readily available market information. 

Financial investments, such as bank account, term deposits, managed funds, direct shares and super (if you’re over Age Pension age), are automatically revalued in March and September each year. This aligns to the increase in the reassessment for income support recipients on 20 March and 20 September using the latest market values at that time. 

Income streams, such as account-based pensions, are revalued in February and August based on information received directly from the super fund. If your income stream is paid from your self-managed super fund, this is valued in February only. 

Other assets, such as property investments, which don’t have a readily available market value are based on information provided by you or the Department may seek a valuation (at its own expense). 

It’s expected that a revaluation of financial investments will be captured on 20 March. However, income streams are revalued in February and these values would not capture the more recent market falls. 

Where the value of assets may not capture current values or possible further market falls, you’ve the option to request the Department to do a revaluation of your assets to determine your entitlement. If this is requested, all your assets are revalued and your entitlement re-determined. 

Also remember that you should notify the relevant Department in 14 days if there are any changes in your circumstances that would impact your entitlement. This could include personal or financial changes including: 

• change in your relationship status 
• making lump sum withdrawals from your super or income stream, or 
• selling or redeeming shares or managed funds. 

By ensuring you have the correct value recorded with the Department, you can ensure you’re receiving the correct entitlement. If you’re also in residential aged care, this may also change the ongoing fees you need to pay. 

Q: I have paid a lump sum accommodation payment or bond to an aged care facility. With all that’s happening in the economy, do I need to be concerned about recovering this amount? 

Lump sum accommodation payments or bond balances paid to a Government subsidised aged care facility are effectively guaranteed by the Government. If the facility becomes bankrupt or insolvent, the balance of the lump sum will be repaid to you or your estate by the Government. If you’ve agreed with your facility to have ongoing fees and other expenses deducted from your bond or deposit, this will reduce the amount paid to you by the Government. 

Q: Does my life and sickness insurance policy cover COVID-19 and other pandemics? 

This will vary from one policy to another and you’d need to check with your financial adviser at Hyland Financial Planning, insurer or super fund to confirm if you’re covered. Most life insurance policies generally cover pandemics. Some policies provided through employer or industry/corporate super funds may have pandemic exclusions, usually when death, total and permanent disability or an illness related to a pandemic occurs shortly after cover commences (eg within 30 days). Beyond this, most policies will pay in the event that a death, disability or illness results from a pandemic (and where all other policy conditions are met). 

Q: If I can’t work because I have been diagnosed with COVID-19, or I am required to self-isolate, can I claim on my income protection policy? 

As most people who have been diagnosed with COVID-19 have recovered quite quickly, you may not be able to claim on your income protection policy. This is because you need to be disabled (as defined in the policy) for the duration of the waiting period, which can be a short as 14 days, but is most likely between 30 and 90 days. Also, if you’re receiving sick leave or other special leave payments from your employer during this time, you may not be eligible to receive additional payments from an income protection policy held in super. 

Next steps 

To find out more about these are any other issues or concerns you may have, we recommend you contact your financial adviser at Hyland Financial Planning. 

Important information 

This document has been prepared by Hyland Financial Planning Pty Ltd (ABN 78 153 866 981) authorised representative and credit representatives of AMP Financial Planning Pty Ltd (ABN 89 051 208 327) Australian Financial Services Licensee #232706. Any advice provided is of a general nature only. It does not take into account your objectives, financial situation or needs. Please seek personal advice before making a decision about a financial product. Information in this document is current as at 25 March 2020. While care has been taken in its preparation, no liability is accepted by Hyland Financial Planning Pty Ltd, AMP Financial Planning Pty Ltd or its related entities, agents or employees for any loss arising from reliance on this document. Any opinions expressed constitute our views as at 25 March 2020. Case studies are for illustration purposes only. Any tax information provided is a guide only. It is not a substitute for specialised tax advice. 

At the outset, let me make the observation that neither you nor I will be talking about coronavirus in five years’ time, let alone 10, 15 or 20-years’ time. That should provide the kind of perspective you require to navigate this period of market volatility successfully.

Coronavirus continues to rattle investment markets as the number of new cases outside China continues to rise posing increasing uncertainty over the impact on economic activity. And its impact has intensified following the plunge in oil prices. From their highs global shares and Australian shares have had a fall of around 20%.

The rapid fall in share markets has been quite scary. In our view the key things for to bear in mind are:

• periodic sharp falls in share markets are healthy and normal. With long-term trends ultimately remaining up & providing higher returns than other more stable assets like cash and term deposits. See Will Douglas’s video below for the history of Volatility
• Selling shares or switching to a more conservative investment strategy after a major fall just locks in a loss
• When shares fall, they are cheaper and offer higher long-term return prospects. We’ll look for opportunities the pullback provides. It’s impossible to time the bottom but one way to do it is to average you in over time.
• While investments have fallen, dividends from our share market haven’t. Companies like to smooth their dividends over time – dividends never go up as much as a company’s earnings in the good times and so rarely fall as much in the bad times.
• The best way to stick to an appropriate long-term investment strategy, let alone see the opportunities that are thrown up in rough times, is to turn down the noise.

For now, please do your best to look past the headlines knowing full well that our team are here to support you, and ensure you make the right (financial) decisions in a particularly volatile and nervous period.

We are living in extraordinary times which can cause a lot of stress and anxiety with relation to financial health and well being, but today we have some good news that I’d like to share with you. Joining me today is Peter Tuite, for some of you it will be quite interesting to put a face to a name. Peter and I have got some really important messages that we would like to share with you, but delivering a personal message and any personal strategic advice to you requires more resources, so Peter will be working with me as your co-adviser during these challenging times.We are living in extraordinary times which can cause a lot of stress and anxiety with relation to financial health and well being, but today we have some good news that I’d like to share with you.

Joining me today is Peter Tuite, for some of you it will be quite interesting to put a face to a name. Peter and I have got some really important messages that we would like to share with you, but delivering a personal message and any personal strategic advice to you requires more resources, so Peter will be working with me as your co-adviser during these challenging times.

From Monday 2nd March 2020, Optimise Wealth Management will cease financial planning operations and Michael will no longer provide advice as a financial planner.

I am thrilled to be able to announce the arrangements we have put in place for the continuation of your services:

• Justin Hyland and his team at Hyland Financial Planning have moved into the (former) offices of Optimise in Hornsby and will take over your ongoing service needs,
• Jackie Austin and Kenny Hong, both of whom previously worked alongside me at Optimise, will remain in the industry, moving to Hyland Financial Planning,
• Justin, Jackie, Kenny, and Hyland Financial Planning’s other financial planners will continue to provide financial planning services under the Hyland Financial Planning banner,
• Former clients of Gerald Turner, and those clients formerly advised by me directly, will be cared for by the financial planners within Hyland Financial Planning,
• I will work with Justin and the team at Hyland Financial Planning in a business strategy and general management capacity to oversee a smooth transition.

Why the change?

There has been, and will continue to be, significant changes to the financial planning industry. After such a long time in the industry I feel more enthusiasm for new challenges and endeavours.

Business as usual – no changes to your ongoing services!

Hyland Financial Planning has moved into the offices of Optimise and will continue to provide review services in the same manner as Optimise. Hyland Financial Planning will undertake their best endeavours to meet with you to conduct your review on your scheduled date.

Justin or another Hyland Financial Planning planner will be in contact for your next plan review. If you would like to know your next scheduled review date or bring forward your next review, please contact Hyland Financial Planning on 1300 495 263.

How to contact Justin and the Hyland Financial Planning team

If you have any questions, please contact Justin or the team at Hyland Financial Planning on 1300 495 263 or send your questions to hfpteam@hylandfp.com.au.

To find out more about Hyland Financial Planning please follow this www.hylandfp.com.au

Thank you. Helping you with your finances has been an honour and a privilege and I would like to convey a heartfelt and sincere ‘thank you’ to you for the opportunity to assist wherever and however the team at Optimise or I could.

I’m confident Justin and the team at Hyland Financial Planning will do a fantastic job!

Wishing you a happy and prosperous future

Michael Flanagan

A New Years resolution is a ‘Good Intention’ to make a change. It’s an idea filled with hope that you plan (or at least intend) to carry out. It’s something you mean to do, whether you pull it off or not.

I believe we should ban good intentions, they’re a waste of your time… Ban the good intentions around your home and work. Don’t write them down and call them ‘Goals for 2018’ or some other wishy-washy title on a meaningless post-it note on your fridge because in many cases a lack of time or the first bump in the road can throw us off track.

We’ve all had ‘Good Intentions’ and made these mistakes… but what if we had a crack at doing something else that might ACTUALLY work? Something that might cause us to move forward in life rather than repeat the same day, week, month, or year that we’ve just had?

At Hyland Financial Planning we’ve developed the New Year Wealth Review. We understand what’s important to you, we ask important questions and look at how you’re spending, saving and investing your money and show you how to plan for the future.

2017 was a great year. Justin Hyland, Director of Hyland Financial Planning signs off on a great year for clients and share markets. We welcome the clients of Intersure Pty Ltd and Bill Smith to our firm and look forward to working together in 2018.

We’re delighted to be continuing the good work of Bill Smith at Intersure as Bill takes a well deserved break and celebrates his 80th birthday in August this year. Bill and I are working on the merger of our firms and I look forward to meeting you shortly.

We have identified some of the biggest changes to Super in over a decade that affect our clients. This video will give a quick summary of only three announcements. There are many more so please contact us if you would like to understand how the changes affect your personal situation this financial year and next financial year.

When it comes to contributing to Superannuation and the proposed government changes, we have identified the 3 most impacted clients and created case studies for you to view. Helping you move forward after months of uncertainty. In this video I’ll give a quick summary of the proposed changes to Superannuation that will affect everyone after 1 July 2017.

Treasurer Scott Morrison certainly threw us a curve ball this week with some big changes to superannuation. In fact, I’d call it a hand grenade for well-off, or soon to be well-off Australians.

2016, your best year yet!