KSW Insight Newsletter | March 2022

2022-23 Federal Budget –
Is there anything in the Budget for you?

In the lead up to the federal election in May, the Government handed down their budget for 2022/23.  It included very few taxation measures, and the details of some were vague. Due to the caretaker period once the Prime Minister calls the election, we are unlikely to see the draft legislation before 30 June, making tax planning involving the announced measures difficult.

Our full article here summarises the key items that we think are most important.

The ATO’s New Views on Discretionary Trust Distributions

Discretionary trusts have long been a popular investment vehicle for families, with useful features that provide a level of asset protection, flexibility, and the ability to pass assets from generation to generation without triggering a tax event.  However, there have been some anti-avoidance provisions (within s100A of the Income Tax Assessment Act 1997) lurking in the tax legislation causing some concern.

Our full article here details the ATO’s attempts to clarify the interpretation of s100A and the release of the Draft Taxation Ruling TR 2022/D2.

Contribution Rule Changes from 1 July 2022

Last month we welcomed the long-awaited passing of the legislation from the 2021 Federal Budget on contribution changes which will apply from 1 July 2022. Below are the items that have now passed and in our full article here is a recap in detail of the Budget announcements passed.

• • Removal of work test for salary sacrifice and non-concessional contributions

• • Increase in the non-concessional bring-forward rule for those up to age 75

• • Reduction in eligibility age for downsizer contributions

• • Removal of the $450 per month Superannuation Guarantee

• • First Home Super Saver Scheme

RECAP on S&W Wealth Web Event – How much do I need to retire?

 A recap on the recent web event hosted by Dean Holmes and Chris Tsiolis from S&W Wealth on retirement planning considerations, particularly the amount of savings/wealth required to achieve a comfortable retirement.

Whilst the Age Pension can provide an income of around $35,000 (for a couple) this is not near enough for a comfortable retirement. The Association of  Superannuation Funds has recently published that around $65,000 a year is required for a ‘comfortable retirement’.  Of course, the amount required will vary for each family, but this estimate isn’t necessarily exorbitant. The key is to start building your superannuation, other investments and business assets as quickly as possible as part of an overall strategy whereby tax, investment returns, and your goals are optimised.

The path to being an independent retiree rather than dependent on government pensions is an exciting one and best taken in the ever-changing political and economic environment where there is no guarantee a pension will be payable in the future.  

Here is the recording of the web event. For more information you can contact Chris and Dean from our dedicated Wealth Team on 9161 1003 for an obligation free discussion.

Life at KSW

We welcome a new Auditor to the KSW Team. Ridhesh Shrestha has recently joined the Audit Team and will be assisting with various audits and assurance services. 

Quote

“Tell me and I forgot. Teach me and I remember. Involve me and I learn“

Benjamin Franklin