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Category : Finance

Australian expats could see a jump in tax liability on their home

Australian expats could see a jump in tax liability on the sale of their Australian homes under new housing affordability laws the government is considering.

Home owners who sell while they’re living overseas could lose the capital gains tax exemption on a home which used to be their main residence in reforms targeted at foreign investors to safeguard the opportunity for Australian buyers to purchase.

The reforms are part of a host of changes to policy investment rules aimed at improving housing affordability, announced as part of the 2017-18 Federal Budget in May.

Under current laws, Australian residents get a full exemption from capital gains tax on the sale of a home that was their main residence throughout the ownership period. Capital gains tax is a tax on the profits earned on an asset in the time that a person buys then disposes of it. It’s not a separate tax but rather the capital gain is included in a person’s taxable income in the year when the sale was made, then calculated as part of income tax.

Australian residents also receive a partial exemption if the home was their main residence for only part of the ownership period. And they benefit from an “absence rule,” which allows them to treat a dwelling as their main residence for capital gains tax purposes for an unlimited period of time, as long as they keep it empty and don’t rent it out.

How Much Do You Need for Retirement?

Lifestyle is a very personal thing – luxury living for one person is a modest existence for someone else. This article offers you some guidance on the amount of money you need for retirement to cover your basic living costs and support a hobby or active social life. For example, do you expect to take frequent holidays and are you planning to enjoy regular glasses of wine or beer?

Choosing a retirement lifestyle is simple — you live the life you can afford. If you want a more salubrious lifestyle, you save more, earn more, win the lottery or inherit lots of money from a rich relative. The same philosophy applies to your retirement lifestyle. If you want a comfortable life in retirement, then now is a good time to start thinking about what that type of life will look like.

So, the big question is: how much money is enough for your retirement? Or more specifically, have you worked out the amount of superannuation and other savings that you will need to finance your retirement?

I want a retirement investment plan – where do I start?

Many Australians don’t have to think twice about saving for retirement because their employer regularly contributes on their behalf. These savings then have decades to grow and years to ride out the ups and downs of the share market.

But what happens once you retire? Is there a one-size-fits-all, no fuss retirement investment option? Right now there’s not, so it’s important to understand what you need to start thinking about to make the most of your retirement savings. Brian Long explains.

Trauma and your spine

In most cases, a spinal cord injury is permanent and irreversible. It is a traumatic and devastating experience for the individual, their family, and friends and changes their lives forever. Spinal cord injury can happen to anyone at any time.

Government debt: how much is too much?

By Ashley Owen on May 18, 2017

 

The 2017 Federal Budget has turned attention as usual to the issue of government debt. Commonwealth governments ran a surplus during the mining boom from 2003-2008 but it has run deficits since the GFC to prop up employment and growth. The deficits have been funded by running up $500 billion (and rising) in debt. Is this too high? Can we afford it?

Life’s pretty straight…

Financial planning is very much so a “chicken or egg” exercise when it comes down to which part of one’s financial life. Where do you start?

While I love to delve off into economics, investments, strategies, etc. I find my default is to first ensure everything my clients intend to happen, even in the scenario of an unplanned event, still does happen.

Aussie equities vs Sydney housing: who’s the marginal buyer?

By Romano Sala Tenna on April 20, 2017,

Working as a stockbroker during the .com boom, I overheard an interesting conversation.

In early 2000, the technology sector was white hot. Hundreds of small mining stocks were ditching their mineral prospects and re-inventing themselves as Silicon Valley look-alikes. The move had been underway in the US for about four years and Australia was late to the party, but CEOs were working hard to make up for lost time.