Are you thinking about retiring this year?

If you are planning to retire in 2017, you may be thinking about the tax you will have to pay on your retirement fund. There is nothing to worry about here; take a look at our guide below and understand how tax affects your retirement.

Lump Sum Payments at the End of Employment
If you are reaching the end of your working life, you and your employer will be focused on tying up loose ends and ensuring that all due payments are present and correct. These can include termination payments if your term of employment ends before your contract is complete, and unused holiday lump sums.

The Australian Tax Office will take these payments into account, however they will be taxed at a lower level than your standard income. You will receive a statement from your employer detailing whether this payment is Lump Sum A or Lump Sum B, and this must be recorded on your tax return.

Redundancy Payment
Redundancy payments below a certain amount are not taxable under Australian law. This amount is calculated based on the number of years you have spent in employment. Any redundancy payments received above this amount will have tax applied to them.

Early Retirement Tax
If you have been offered early retirement from your job, you may be worried about how this will increase the financial burden of your retirement years. In order to offset this burden, the ATO can assess your early retirement scheme and decide if you qualify for reduced rate tax.

Capital Gains Tax Issues
Of course, not everyone who is heading towards retirement is an employee. If you are a business owner, or own other professional assets that you will not require in retirement, you will probably want to sell them on.

The profit you make from this sale is likely to fall under the jurisdiction of capital gains tax. However, providing that the assets are business and not personal assets, you may qualify for an exemption, up to a limit of $500,000. Above this amount, tax will apply.

Tax on Superannuation Funds
In most cases, if you are drawing money from a superannuation fund on retirement, this will be tax free. However, this cannot always be relied upon. For example, if you are aged between 55 and 59, a component of your super fund withdrawal will be added to your total taxable income.

This will be taxable at the marginal tax rate, with an offset applied.

It is also important to check what type of super fund you have. If, like most supers, it is a taxed fund, you will not have to pay any tax on the benefits you withdraw from it. However, if tax has not yet been paid on the fund, this may be applied to the benefits withdrawn.

General advice warning: Any advice contained in these pages is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters and consult your accountant and or financial planner.

 

(Source: Feedsy Exclusive, Published on March 2, 2017)
(Article source here)

/by

Reno Rookies: Watch Out for These 5 Renovation Pitfalls

Spatula? Check!
Grout? Check!
Know how to tile? Well, I did see this one video on YouTube…

Many of us are trigger-happy when it comes to starting renovations. Feeling excited, we’re so fired-up about our special projects that, just like a kid waiting for Xmas, we find it impossible to wait, jumping in before we’ve actually thought everything through.

Better hold onto your horses folks! This is one of those times in life where we have to exercise some restraint. Jumping the gun here can lead to some serious – and expensive – problems down the track (such as having to call a professional to re-do that tiling?).

To keep you focused, here are the 5 biggest pitfalls and problems you need to watch out for when renovating your home.


1. Wonky Priorities
It’s easy to get distracted by all those fancy paint swatches when you waltz into your nearest home & garden shop, but should you really be debating between a blue or yellow-based whitewash for the living room, or be fixing that leaky toilet?

Make a list of things that need doing “Urgently” and a second list of things that would be “Nice to do”. Tackle your “Urgent” list first. They might not be the most fun parts of your reno, but it’ll make your house immediately liveable.


2. Not the Right Kind of Help
So what if your neighbour’s son-in-law was an apprentice carpenter for 6 months back in the ’90s? That doesn’t mean he (or your neighbour) is the right person to answer your wood-based queries!

Ask your work colleagues and close family members if they can recommend someone, or hunt through search engine listings to find businesses with great feedback ratings. Don’t get stuck with someone inexperienced, unskilled, or worse – unqualified – for the job at hand.


3. Lack of Communication
Humans the world over are united in their hatred of having someone breathe down the back of their neck while they’re working. So if you’re feeling the need to do so, then you’re probably not communicating well with your partner/tradie/architect/interior designer.

Establish open lines of communication right from the start. Be in touch with your contractors once a day to follow up on progress, or have instructions clearly defined so everyone can get their jobs done with minimum distraction.


4. Breaking the Bank
Budgets can blow out oh so easily during even the most meticulously-planned renovation. When planning your budget, prepare your action plan in advance in case you head for (or hit) the red. Will you fire the tradies and pick up the paintbrush yourself? Or will you pause everything until the cash flow returns? Make your decisions now to avoid getting stuck later on.


5. Unrealistic Time Frames
With that rush of adrenalin as those first strips of wallpaper are pulled off, you might think, “This is a breeze! We’ll be done by January!” Don’t fool yourself. Not only do unexpected life events crop up, but you might suddenly find that – underneath all that wallpaper – lies a totally outdated electrical system that urgently needs replacing.

Give your renovation calendar plenty of wiggle room so you won’t get stranded while waiting to move in – or worse – have to move in while the job’s only half done.

What do you think of our list? Is there anything you’d add to it, or do you think we’ve covered all the bases? Share your thoughts with us!

(Source: Feedsy Exclusive)
(Article source here)

/by
,

Chocolate may prevent irregular heart beat

Moderate consumption of chocolate has been linked to a lower risk of developing atrial fibrillation (AF), an irregular heart rhythm that can lead to stroke if untreated.

Research published in the journal Heart found the rate of AF was lower for people consuming chocolate regularly, compared with individuals reporting chocolate intake less than one 30 gram serve per month, with similar results for men and women.

The association was found to be strongest when women consumed one weekly serving of chocolate and between two to six servings for men.

AF is the most common cardiac rhythm disorder in clinical practice and is independently associated with an increased risk of stroke, heart failure and death.

Symptoms include heart palpitations, fatigue and shortness of breath or breathlessness.

Researchers at Harvard TH Chan School of Public Health and the Duke University Medical Centre analysed data from more than 55,000 participants, aged between 50 and 64, from the population-based Danish Diet, Cancer and Health Study.

Participants provided information on their usual weekly chocolate consumption, with one serving classified as 30 grams, but weren’t asked to specify which type of chocolate they ate.

Information on heart disease risk factors, diet, and lifestyle – roughly one in three smoked – was obtained when the participants were recruited to the study.

Their health was then tracked using national registry data on episodes of hospital treatment and deaths.

During the monitoring period, which averaged 13.5 years, 3346 new cases of atrial fibrillation were diagnosed.

After accounting for other factors related to heart disease, the newly diagnosed atrial fibrillation rate was 10 per cent lower for 1-3 servings of chocolate a month than it was for less than one serving a month.

The risk of AF was 17 per cent lower for one weekly serving; 20 per cent lower for two to six weekly servings; and 14 per cent lower for one or more daily servings.

“Despite the fact that most of the chocolate consumed in our sample probably contained relatively low concentrations of the potentially protective ingredients, we still observed a robust statistically significant association,” the authors wrote.

While no firm conclusions can be made about the cause for the association, the authors suggest that “dark chocolate may be a healthy snack option” that helps to prevent the development of AF.

However, doctors from the Duke Centre for Atrial Fibrillation in North Carolina have urged caution, highlighting that the chocolate eaters in the study were healthier and more highly educated – factors associated with better general health – which might have influenced the findings.

(Source: Sarah Wiedersehn; Australian Associated Press)
(Article source here)

/by
,

Millennials urged to cook for good health

 

Australia’s younger generation of foodies need to get out of the cafe and back in the kitchen if they want to keep their weight in check.

A survey commissioned by the Dietitians Association of Australia has found the nation’s cafe culture is entrenched in young adults.

Three quarters of those aged 18-34 eat out or order take-away food at least once a week, and 28 per cent dine out or order in at least three times a week.

That’s significantly more than their parents.

According to the survey, 43 per cent of 50-64-year-olds eat out at least once a week and just 10 per cent dine out regularly.

While eating out is convenient it can be bad for the waistline because of the large portion sizes.

Research shows that people who cook at home eat smaller portions and take in fewer kilojoules, as well as less saturated fat, salt and sugar, resulting in a healthier weight.

DAA spokesman Themis Chryssidis says foodies need to discover the joys of home cooking.

“Why not impress your friends and family by trying your hand at recreating your favourite cafe or restaurant dish at home?”Mr Chryssidis asked.

“Eating is just as much about enjoying food as it is about nourishing our bodies, so it’s great that young Australians are a generation of foodies. We want this love of food to play out in the home kitchen too,” he said.
(Sarah Wiedersehn; Australian Associated Press)
(Article source here)

/by
,

How do you compare to other renters?

 

Fears about potential eviction, blacklisting, and rent hikes are stopping one-in-seven Australian tenants from making complaints about or requesting repairs on rental properties.

A report by affordable housing, tenant and consumer groups says there’s an “entrenched culture of fear among renters” and that the significant power imbalance between landlords and tenants must be addressed.

Half of more than 1000 renters surveyed say they are worried that a repair request or complaint could land them on the blacklisted tenancy database, while 14 per cent decide not to risk it, the National Association of Tenants’ Organisations, National Shelter and Choice found.

“People are reluctant to complain to agents or landlords because they’re worried about rent increases or eviction,” a National Association of Tenants Orgnisations’ spokesperson said.

“It’s hard to imagine a product or service this poor in any other sector.”

Almost a quarter waited more than a week to hear back about an urgent repair request and 11 per cent copped a rent hike after asking.

“Affordability is extremely important to renters but it can’t be addressed without also looking at the quality and security of housing,” National Shelter executive officer Adrian Pisarski said.

Every second person surveyed for Unsettled: Life in Australia’s private rental market said they experienced discrimination when applying for a rental, usually over their age or the fact that they received government payments, or because they had young children, pets or were a single parent.

Of the renters surveyed, five per cent felt discriminated against them because of a disability.

“Rachel” – who did not want to use her real name for privacy reasons – fears she is often discriminated against and put in a “too hard basket” by many Melbourne landlords because she has multiple sclerosis and can’t live in a flat or somewhere with too many stairs.

“When we go and have a look at a house, because I can’t get around without my walking stick, I have to say ‘I just use it to balance. I don’t need wall rails or anything like that’,” the 35-year-old told AAP.

“If it looks like there’s going to be a need for any addition to be put in place, we’re not going to get the property.

“I basically had to lie about myself and say ‘my disability isn’t that bad, don’t worry about it’.”

The report calls for a national plan to boost housing supply, particularly affordable housing, and address renter’s security, rights and amenity.

HOW DO YOU COMPARE TO OTHER RENTERS?

* 83 percent have no fixed-term lease or it’s less a than 12-months long

* 53 percent of renters pay between $201 and $400/wk

* Almost half of renters in metro areas pay more than $301/wk

* The median rent price is Sydney and Melbourne is $480/wk

* 21 percent wait at least a week to hear back about urgent repairs

* 11 percent had a rent hike after asking for repairs

* 14 percent are too scared to complain about something or ask for repairs

* Half feel they’re discriminated against in rental applications.

(Source: Unsettled: Life in Australia’s private rental market)
(Article source here)

/by