Birthdays and new years are great times for making lifestyle changes, however, for resolutions affecting your financial health, there’s often no better time than when starting a new job.

Changes to your daily routine that come with a new job can help you put in place positive changes for your finances.

Check your pay cycle

While most companies pay monthly, it may be at a different time to what you’re used to. Updating your direct debits and bill payments to reflect any change in pay dates is a good time to look at what you’re actually paying for and whether savings can be found.

If your new job pays fortnightly, this is a great opportunity to modify your mortgage repayments. Paying half your monthly mortgage as a fortnightly repayment lets you squeeze in one extra monthly repayment each year – potentially saving thousands in interest over the course of a loan.

Extra money

As job changes sometimes come with a pay increase, there are also opportunities to save more while maintaining the lifestyle you’ve become accustomed to. One of the most tax-effective investments is making additional concessional contributions into your super. Using your before-tax pay, it’s usually taxed at just 15 percent instead of your marginal tax rate.

There’s a limit to how much extra you can contribute. The combined total of your employer and salary sacrificed contributions must not be more than $25,000 per financial year.

Insurance

As you move through your career, priorities change and with a mortgage and children comes the need to protect your income. Changing jobs is a chance to check your insurance – inside and outside of super – and make sure it matches your financial situation.

Get financial advice

A financial adviser can help with a new budget based on your new salary along with investment strategies to ensure your new job gives you a boost today, and in the future.

Superannuation

With many people predicted to have more than 10 jobs in their lifetime, having a super fund that can move with you from job to job and into retirement has never been more important. After all, losing track of just one super fund can cost you thousands in retirement.

Not all super funds can do this though, and once you’ve done your homework to find the fund that best suits your investment profile and insurance needs at the right cost – it’s often a good idea to stick with it. This gives you peace of mind throughout your working life that your retirement savings won’t get lost and you won’t be paying unnecessary tax and fees when the time finally comes to retire.

There are other considerations, too, when looking at your super arrangements between jobs.

Most plans have different default insurance. If you roll your super from one fund to another, your existing insurance will usually lapse when you do so, while your new fund may not provide the cover you need or expect.

Moving from one fund to another may trigger a capital gains tax liability up to 15 percent on your investment earnings inside super. Staying with the same fund however can mean your super is tax-free when you retire.

Tax isn’t the only cost when moving between funds. There are transaction costs associated with selling and buying underlying investments, which you need to be mindful of when transferring to a new super plan.

If you’re a ‘Choice’ member – that is, you’ve actively chosen where you want your super invested, changing funds may mean your previous options are no longer available, and this could have a significant impact on the growth of your super. For help with your super, savings and more, contact us today.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

You would have heard the saying: “where there’s a will, there’s a way”. This statement is usually used to encourage people who are losing enthusiasm for a task or goal.

But it also reflects the way many people feel about estate planning. They think that so long as you have a Will, you have a way to ensure your wealth is passed correctly to your loved ones. But this is not necessarily the case.

The truth about Wills

A Will can help ensure the assets that form part of your estate are distributed according to your wishes.

But did you know that a Will typically only applies to personally held assets and therefore may not deal with a significant portion of your wealth?

For example, the proceeds from your superannuation funds and life insurance policies don’t necessarily form part of your Estate. They can pass directly to certain beneficiaries, who may have been nominated by you, or go to your Estate where they’ll be dealt with by your Will.

Also, some assets never form part of an estate, like jointly owned assets or assets held in a discretionary family trust.

To cover all bases, thorough estate planning (or personal succession planning as it’s also known) involves putting in place strategies that address all your assets, not just those covered by your Will.

Do I need a personal succession plan?

Another common misconception is that personal succession is only for the wealthy or the elderly. However, just about every asset you own and every investment you make has estate planning implications. As a result, personal succession planning is something everyone needs to consider, regardless of age or stage in life.

At a minimum, every individual should have:

• a current Will to distribute estate assets
• an Enduring Power of Attorney to cover situations where they’re unable to make financial decisions themselves
• appropriate superannuation and insurance beneficiary nominations, and
• appropriate arrangements in place to distribute or pass control of any assets that are not covered by the Will.

What are the benefits of personal succession planning?

Personal succession planning can:

• provide certainty by getting the right assets in the hands of the right people, at the right time
• enable you to provide for and protect your loved ones while minimising tax payable by your beneficiaries, and
• provide certainty that your children are taken care of.

What are the consequences of NOT having a personal succession plan?

Personal succession is something you should address now. Don’t wait until it’s too late. If you die without a valid Will, intestacy legislation will determine how your estate assets are distributed among your surviving family members.

If you die without a valid superannuation or life insurance death benefit nomination, the proceeds may not be distributed according to your wishes.

And, if you’re badly injured in an accident or lose mental capacity, who will manage your affairs while you’re still alive but unable to make your own decisions?

How we can help

With assistance from legal and tax professionals where appropriate, we can:

• Ensure you’re making the right ownership decisions when acquiring new assets or re-structuring your existing assets. For example, we can help you determine whether it’s best to invest in your name, your partner’s name, or jointly with your partner. We may also identify whether further tax and legal advice is required to consider another ownership arrangement, such as a trust, is appropriate.
• Determine if you have sufficient means to achieve your estate planning objectives. Additional life insurance inside or outside of superannuation may be necessary to provide your family with a lump-sum payment or an income stream to repay debts, meet their ongoing living expenses and cover your children’s future education costs upon your death.
• Develop a range of strategies to provide certainty, tax efficiency and/or asset protection. For example, we can explain superannuation death benefit and life insurance beneficiary nomination options. By making appropriate nominations now, your beneficiaries will be able to effectively and efficiently receive the death benefit when you’re no longer around.

We can help you address these and other estate planning issues as part of your broader financial planning.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Overview

The 2020 Budget is all about jobs, jobs and spending to make more jobs. We already have JobSeeker and JobKeeper, and now we have JobMaker and JobTrainer. Each announcement the Treasurer made was translated into jobs. Tax cuts for 11 million taxpayers equals 50,000 new jobs; expanding the instant asset write-off and the carryback of current losses is another 50,000 jobs. Bringing forward the Stage 2 personal income tax cuts were the order of the day, and there will be no increases in tax in order to pay for spending. So unlike other economic downturns, there will be no deficits tax on high-income earners. One key theme throughout the Budget is that the Government is keen to improve outcomes for young people. We know this recession has hit young people hard and many have taken early release of their super.

The announcements in this update are proposals unless stated otherwise. These proposals need to successfully pass through Parliament before becoming law and may be subject to change during this process.

What you need to know

• The Budget is forecast to result in a record deficit peaking at $966 billion (44% of GDP) in 2024. However, thanks to record low interest rates, this comes with only a minimal increase in interest payments.
• Jobs are the Government’s primary focus — creating jobs and keeping jobs, with the introduction of the JobMaker plan (including a $100-$200 per week hiring credit for eligible employees/employers and reimbursement of up to 50% of an apprentice’s training) and the JobTrainer fund.
• Tax cuts will play a major role and, unlike other economic downturns, there will be no deficits tax on high income earners. Stage 2 personal income tax cuts are to be brought forward 2 years, backdated to 1 July 2020, with tax savings for around 7 million Australians of $2,000 or more.
• Business Owners will be able to carry back tax losses from the 2019/20, 2020/21 and 2021/22 financial years to offset previously taxed profits in the 2018/19 or later financial years. This, coupled with the Instant Asset Write-off provisions and expanded access to tax concessions for small business, is calculated to generate spending and create jobs.
• Aged care gets a boost with 23,000 additional home care packages. Great news for the 100,000 Australians on the waiting list for these packages.
• Superannuation measures called ‘Your Future, Your Super’ include a stronger focus on reducing fees and costs by increasing transparency and reducing the incidence of individuals with multiple super funds. > Social security — aged pensioners, veterans and eligible concession cardholders will get $250 this year and another $250 early in 2021. However, there is no mention of extending JobSeeker.

Tax

Bringing forward income tax cuts From 1 July 2020, two years earlier than previously legislated, the Stage 2 low income tax offset (LITO) and the thresholds for the 19% and 32.5% personal income tax brackets are proposed to increase. Stage 3 of the Personal Income Tax Plan remains unchanged and commences in 2024/25 as legislated.

Current tax schedules

Proposed tax schedules

Tax offsets – 1 July 2020

The LITO will increase from $445 to $700 from 1 July 2020. The Government has not brought forward all the changes as per Stage 2 of the tax plan. The low to middle-income tax offset (LMITO) will be retained in the 2020/21 financial year. The Government does not intend on retaining LMITO in the 2021/22 financial year. Under current legislation, it is set to end in the 2022/23 financial year.

Current low-income tax offset phase-out.

Proposed low income offset tax phase-out

The amount of tax savings

The proposed bring-forward of the personal income tax thresholds, rates and tax offsets create the following future tax savings.

Carry back tax losses

Eligible companies can carry back tax losses from the 2019/20, 2020/21 and 2021/22 financial years to offset previously taxed profits in the 2018/19 or later financial years. This will generate a refundable tax offset in the year in which the loss is made.

Corporate tax entities with an aggregated turnover of less than $5 billion are eligible.

The amount that is carried back cannot exceed the earlier taxed profits and the carryback amount cannot generate a franking account deficit.

Full deduction for capital asset expenditure (‘Instant asset write-off’)

Businesses with an aggregated turnover of less than $5 billion can deduct the full cost of eligible capital assets acquired from 6 October 2020 that are first used or installed by 30 June 2022.

Businesses with an aggregated annual turnover of less than $10 million can deduct the balance of their simplified depreciation pool at the end of the income year while full expensing applies. The provisions which prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out will continue to be suspended.

Capital gains tax exemption for granny flat arrangements

From 1 July 2021 a capital gains tax (CGT) exemption will be introduced for formal, written granny flat arrangements that are created, varied or terminated. This will encourage elderly Australians to enter formal written arrangements which provide them protection in the event of a family or relationship breakdown and reduce the risk of financial abuse.

Medicare levy thresholds

The Medicare levy thresholds have been increased for the 2019/20 financial year.

Social security and aged care

$250 economic support payments

Two tax-free economic support payments will be paid to aged pensioners, veterans and eligible concession card holders – one payment in November 2020 and the other in early 2021.

Aged care support for older Australians

From 2020/21 the Government will provide 23,000 additional home care packages across all package levels.

Superannuation — Your Future, Your Super

Fund stapling

Under this proposal, effective from 1 July 2021, once an employee has a super fund and they change jobs, their new employer will contribute to their existing fund. Employees will however be able to advise their employer to make contributions to a different fund if they wish.

What’s next?

Most changes must be legislated and passed through Parliament before they apply. If you think you may be impacted by some of the Budget’s proposed changes, you should consider seeking professional advice. A financial adviser can give you a clear understanding of where you stand and how you can manage your cash flow, super and investments in light of proposed changes.

If any of these proposals raise questions, concerns or opportunities for you, please contact us.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

The following infographic from the Integrity One Aged Care team highlights some key metrics on age and retirement demographics in Australia, as well as an overview of the value of aged care advice.

Our Aged Care specialists can assist you or a loved one with financial considerations on aged care options and services. If you are interested in or have questions about any aspect of aged care please give us a call on 03 9723 0522.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

These are indeed testing times for us all!.

Victoria entered Stage 4 restrictions for six weeks commencing at 11.59 pm on Wednesday, August 5, further impacting on everyone’s lives and work. We want to reassure all our clients that we are still here for you.

Even though our staff are all working from home they are all still accessible to you – they are just a phone call away.

The biggest impact has been In-person meetings, document printing, and document signing,

In-person meetings – As much as we love meeting our clients in person sadly this has not been possible for some time. Fortunately, technology has come to our aid and we have utilising a range of video meeting options and using the technology clients feel comfortable with, failing this a telephone call can be just as effective. It is particularly important that we keep communicating during this period and we strongly suggest clients not defer Portfolio Review meetings until we can meet again in person as it may be still quite sometime before this is possible.

Document printing. We are still in a position to print and send hard copy documents to those customers that prefer it. While is quicker and environmentally friendlier to use electronic documents we understand if this is not your preference. Unfortunately, it is no longer possible to drop documents to the office so all hard copy documentation will need to be sent through the mail.

Document signing. A number of government agencies, insurance companies and superannuation funds have temporarily modified their requirements around physical signatures and use of electronic signatures. Again we have a range of options around electronic document signatures which we have adopted and our staff will guide you through when necessary. The use of electronic signatures has the added benefit of reducing the amount of document printing.

These are challenging times, and increased isolation will be difficult for some people. As always do not hesitate to reach out to us if you are worried or concerned about your financial situation. Speaking with and helping our clients is what we love best!.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Moneymanagement.com.au recently reported that 84% of financial advisers passed the FASEA June exam.

No at bad result BUT 100% of Integrity One’s advisers that sat the exam passed the exam – now that’s a great result!.

Congratulations Tom Bailey, Nic Berry, Matt Borg, Jenny Sneesby, Cath Winduss & Ben Young.

The exam is a required component of the education standard that all advisers are required to pass to provide personal financial advice to retail clients in respect of retail financial products.

The exam tests the practical application of advisers’ knowledge in the following competency areas:

• Financial Advice Regulatory and Legal requirements (including Corporations Act chapter 7, AML, Privacy and Tax Agents Services Act (TASA) 2009
• Financial Advice Construction – suitability of advice aligned to different consumer groups, incorporating consumer behavior and decision making·
• Applied ethical and professional reasoning and communication – incorporating FASEA Code of Ethics and Code Monitoring Bodies.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

Integrity One Facebook

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.