Labor’s intention to prevent workers making their own superannuation contributions

The election is getting close, and we are being bombarded with competing policies – Labor is pushing one which is indefensible. They intend to stop employees claiming a tax deduction for voluntary superannuation contributions. Until recently people were prohibited from claiming a tax deduction for additional personal concessional contributions if an employer was contributing for …

Pension When Moving Into Care

Recently a reader asked my advice about a situation which is becoming commonplace. She and her husband were homeowners receiving the full aged pension and he was suffering bad health. He went into respite early in February while waiting for a nursing home place which came fairly quickly. He passed away early in April. Her …

Granny Flat Tax Trap

A fundamental principle is to take advice before you undertake any significant financial transactions. Recently, I was told about a widow who decided to move in with her son and his wife in what could loosely be called a “granny flat” arrangement. There was nothing to be built – she handed over $400,000 to her …

Investing For The Long Term

Australia’s love affair with residential real estate appears to be going through a rocky patch. Just two years ago we were being treated to salacious headlines such as “Nice earners, no sweat” with the body copy screaming that our home was making us over $700 a day tax-free. The acronym that was all the rage …

Effect of Losing Franking Credits

Expect the “retirees tax” to receive plenty of publicity as the federal election draws near. I have written about it extensively, but as a reader points out there is one group who will suffer badly. Mary is 70, a widow, and who has had no superannuation. Apart from her home, $50,000 in the bank, and …