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Tag : Financial Transparency

There is a popular phrase thrown around by teenagers that also applies to investors: FOMO (fear of missing out)

Reading Time: 2 minutes

Recently, we have been closely watching market valuations that have been indicating overpriced equity markets and it has us concerned. I liken the current state of the markets to that of the movie, The Big Short, which was based on   the GFC (Global Financial Crisis) (If you haven’t seen the movie and would like to know what’s happening in our current markets I urge ask you to watch it this weekend.)

Although we still have exposure to some growth assets including certain shares in both Australia and various regions, Having watched people’s wealth being destroyed during the GFC, has made us overly conservative has made us highly conservative for two reasons:

  1. Our job is to preserve our client’s wealth during both good and bad times
  2. If the bad times occur, we don’t want to be in a position where we simply must ride out the loss of capital. We strive to be in a position to be able to buy, great, however,  oversold, assets with cash.

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

Reading Time: 4 minutes
The Australian Government is considering new housing affordability laws which could indicate that Australian expats may see a jump in tax liability on the sale of their Australian homes.

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

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.

What are some of the risks inside an Australian expats superannuation fund?

Reading Time: 3 minutes

We often hear Australian expats taking the age-old ‘set and forget’ approach when it comes to their superannuation. Here we wanted to explore some of the risks you may be exposed to in an Australian expats superannuation fund.

Generally, the superannuation can’t be touched for years. With this in mind, we are often asked why should expats bother looking into it before they jet off or even while they are abroad? A recent article out of the Australian Financial Review (AFR) has placed the spotlight on how our superannuation is invested and potentially exposing expats to investment risk that they may not have been aware of.

It points out the lack of transparency that members face when it comes to knowing where their super is invested and what the actual level of risk members take on by being in specific investment option (i.e. Balanced, Growth and High Growth).