Financial Newsletter Sunshine Coast

Welcome to Unique Financial Partnerships, keeping you up to date with all financial planning, self managed superannuation funds, tax minimisation, life insurance, on the Sunshine Coast and around Australia.

The information in this newsletter is current at the time of printing. Contact us for updates.

This year, more than ever before, it is an important time to review and resolve outstanding issues that have arisen from the financial turmoil that we have all observed in the last 18 months.
Jobs have been lost, investment capital has been eaten away and earnings have been slashed. All of these items continue to contribute to the financial uncertainty that we find ourselves in.
Despite the doom and gloom, many of you should at least have a few things to smile about.
From the 1 July the government has announced a reduction in tax rates which will make many of you up to $2150 richer this year. If you are a couple you may benefit by up to $4,300. This is on top of the $900 ‘stimulus bonus’ that many of you would have received for being diligent with your 2007/08 tax return and lodging before 30 June 09.
Before you and your other half get too excited and go out and spend all your tax savings, remember the ‘new year’ resolutions that you are about to make…well ok, maybe you can treat yourself a little, after all what’s the point of working if we can’t enjoy ourselves sometimes!
Once you have had a small celebration, it is only prudent that you should now consider putting your new found gain to work and look at the best possible way to maintain and grow what we have been given to build a bigger nest egg moving forward.
It therefore follows that an important New Year resolution to consider is a review of your overall financial situation to ensure that the tax changes which have been made do not have an unforeseen impact on your other financial affairs, and indirectly take away some or all of the tax benefit that you have been given.
If we are not careful, the tax changes that provide direct tax savings may result in other tax benefits being reduced. As an example, those who are in a salary packaging arrangement or are negatively gearing an investment may be disadvantaged.
To maximise the benefit received it is therefore important to review and consider the overall impact of the changes, not only the perceived direct tax savings but more importantly if there are any negative impacts you may need to consider. If there are, you may need to implement amended strategies to maintain and/or maximise your current benefit.
For those with investments or businesses operating through companies or trusts the impact of the change, if any, should also be considered and understood. This is to ensure that the existing arrangement remains effective, or if not, following a review changes should be made where appropriate.
A further step to consider is how to make your tax savings work harder for you. This can include paying off part of your mortgage or “bad debt”.
Alternatively, you can decide that the additional amount be invested for a possibly higher after tax return. One particular resolution that you should seriously consider, if you are able to meet the criteria, is contributing your savings to superannuation and in doing so receive a maximum of $1,000 from the government on your $1,000 contribution (which equates to putting away just over $80 a month) for this financial year. Based on the maximum $1,000 received, the government co-contribution provides you with a 100% return on your invested contributions, which is not a bad return at all.

In conclusion, the demanding environment that we are in requires us to be prudent and cautious, but the recent tax breaks should also allow us to take a moment to enjoy life and treat ourselves a little.
BUT …make sure you consider and put together your New Year resolutions as soon as possible. To assist we have put together a brief list to help you get started.
As always if you, a family member or even a friend would like any help with the below or would like to meet and review your situation please make sure to contact me.
We would like to thank Mr Keat Chew the new Head of Technical Services at Netwealth Investments Limited for contributing to this article.

YOUR NEW YEAR FINANCIAL RESOLUTIONS CHECKLIST:
Celebrate your tax win
Make sure tax savings not all spent. Put together a budget and stick to it!
Pay off more of your mortgage with tax savings
Review your salary packaging arrangement if appropriate
Review impact of tax changes on overall financial situation
Consider investing your tax savings
Contribute tax savings to superannuation and access co-contribution
See a financial adviser to make sure you are on track

DISCLAIMER:
This is general advice only. It does not take into account an individual's objectives, financial situation or needs, which are necessary considerations before making any investment decision. Opinions constitute our judgment at the time of issue and are subject to change. This report was prepared by Futuro Financial Services for the sole use of the intended recipient. Its contents should not be disclosed, in whole or in part, to any other party without prior consent in each case. To the extent permitted by law, Futuro, its employees, consultants, advisers, officers and authorised representatives are not liable for any loss or damage arising as a result of any reliance placed on the contents of this report. Please contact us directly should you have any queries in relation to the information provided in this Report on 07 3018 0400.

Disclaimer
All representations and information contained in Futuro in Focus are made in good faith and are believed to be correct at the time of preparation. Articles are of a general nature and they do not purport to be specific investment advice. Individual needs or other considerations have not been taken into account, thus information contained herein should not be relied upon as a substitute for detailed advice. Futuro Financial Services will receive fees or brokerage from the provision of advice or placement of investments. You may, by contacting our Privacy Officer on 07 3018 0400 or by writing to Futuro Financial Services Privacy Officer GPO Box 942 Brisbane QLD 4001, request not to receive further editions of Futuro in Focus.