In this Issue:
- Superannuation changes passed by Parliament
- Christmas Holiday Business Closure
- Memorable Quotes…
- Personal income tax cuts are law!
- Laughter is the best medicine
- Our Christmas Gift to YOU!
I hope you’ve had a successful year and enjoyed your journey. At this time of the year I always marvel at how I got here so quickly, another year over and 2017 to come.
If you’re a parent and see your kids growing up before your eyes, you’ll understand my concerns for my children and grandchildren, not just for their health and wellbeing, also their financial welfare. Thankfully, we can teach them to become money smart and help them to avoid the heartache that some families are going through this Christmas.
This year, I thought I would offer you some help with your Christmas shopping . I have a gift for you, which you can pass on to one of your children. Just scroll down to find out how to claim your gift.
We wish you a great Christmas holiday season and safe travels, wherever you spend your break. Catch you in the new year!
Best regards from the Team
Superannuation changes passed by Parliament
Editor: The government’s extensive changes to the taxation laws regarding superannuation were passed by Parliament on 23 November 2016.
According to the Treasurer, Mr Scott Morrison:
“The superannuation reform package better targets tax concessions to make our superannuation system fair and sustainable, as the population ages and fiscal pressures increase.
“The reforms include the introduction of a $1.6 million transfer balance cap, which places a limit on the amount an individual can transfer into the tax-free earnings retirement phase and the introduction of the Low Income Superannuation Tax Offset”.
The amendments also include the following two new measures to provide more flexibility to help Australians save for their retirement:
- the removal of the ‘10% rule’, allowing anyone (including employees) to claim a deduction for personal contributions into superannuation from 1 July 2017 (which will particularly help contractors who also draw income from salary and wages); and
- the ability for individuals with superannuation balances below $500,000 to make ‘catch up’ concessional contributions from 1 July 2018 (allowing them to ‘tap into’ unused amounts of their contributions
Christmas Holiday Business Closure
We are closing Friday, 23 December 2016 and will re-open for business on Tuesday, 3rd January 2017.
Memorable Quotes…
“Try to be a rainbow in someone’s cloud.”
Maya Angelou – 1928-2014, Poet and Author
Personal income tax cuts are law!
Editor: The government has finally legislated the tax cuts originally announced in the May 2016 Budget, so that the marginal tax rate of 37% now starts at $87,000.
The following are the rates for adult residents for the 2016/17 income year (i.e., from 1 July 2016).
| Taxable income | Tax on this income |
| 0 – $18,200 | Nil |
| $18,201 – $37,000 | 19c for each $1 over $18,200 |
| $37,001 – $87,000 | $3,572 plus 32.5c for each $1 over $37,000 |
| $87,001 – $180,000 | $19,822 plus 37c for each $1 over $87,000 |
| $180,001 and over | $54,232 plus 45c for each $1 over $180,000 |
The above rates do not include the temporary budget repair levy (due to expire on 30 June 2017), nor the Medicare levy of 2%.
The ATO has updated the tax tables and PAYG withholding tax schedules (and their online tax withheld calculator) to reflect these changes.
Laughter is the best medicine
A Classic Thanksgiving Tale
On the night before Thanksgiving, a neighborhood butcher was just locking up his shop when a man pounded on the front door. “Please let me in,” the man pleaded. “I forgot to buy a turkey, and my wife will kill me if I don’t come home with one.”
Feeling sorry for the man, the butcher let him inside. “Let me see what I have left.” He went into the walk-in refrigerator and found only one scrawny turkey left. He brought it out to show the man.
“That’s too skinny. What else have you got?” the man asked. Irritated, the butcher took the bird back into the fridge, waited a few minutes, and then brought the same turkey back out.
“Oh, no.” The man shook his head. “That one doesn’t look any better. You better give me both of them.”
Our Christmas Gift to YOU!
In his book Straight Money Talk, Robert Bauman lays out 10 steps anybody can follow to become truly wealthy, and reveals ‘money myths’ and ‘inside secrets’.
Just contact us on 07 3399 8844 to claim your gift and we will send it out to you.
About Straight Money Talk—A Straightforward Plan for Financial Independence
WHAT PEOPLE ARE SAYING ABOUT THIS BOOK:
“I’ve read many financial books and found this one to be up there with the best. It can really kick-start your journey to get your financial situation into great shape.”
– Dr. Joe Vitale, author “Attract Money Now” www.attractmoneynow.com
“Robert has done a fantastic job on this book. My views on how to handle money and how to educate my kids to learn the value of savings have totally changed now. This is an excellent book to guide you to creating great financial wealth in your life!”
– Keith Abraham CSP – Professional Speaker and Best Selling Author
Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.