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Andrew from Vista Financial

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Andrew from Vista Financial last won the day on January 20 2017

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About Andrew from Vista Financial

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    Financial (Pensions) Adviser

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  1. Andrew from Vista Financial


    Thanks, for that.
  2. Andrew from Vista Financial


    Hi I think that the 143 is a contributory temporary parent visa(?) This being the case then the answer to your question is that FIRB is required regardless of it being a new or established property. Also you may or may not be aware but there is a recently new stamp duty premium for temporary residents when purchasing as well (varies state to state). Have a look here (I am told that these calculators are up to date but please do not reply solely on this calculator), if you opt for foreign purchaser when completing it (as that covers temporary residents): http://www.vista.financialknowledgecentre.com.au/kccalculators.php?id=19 If you do have children here given all of the additional costs involved in purchasing you may wish to explore having them purchase it in their name/s however you should of course seek professional advice in relation to this strategy in the first instance to ensure all implications/ramifications are covered. Hope this helps. Andy
  3. Andrew from Vista Financial

    QROPS: natural expiry

    No problem, look forward to talking to you at the time just to clarify though that it is 5 clear UK tax years so probably more like 5.5 years for you. ATB Andy
  4. Andrew from Vista Financial

    Permanent Residents Wanting to Return to UK- Superannuation?

    Hi Not as I understand it. The situation would differ if you exited Australia as a temporary resident only. Hope this helps. Andy
  5. Andrew from Vista Financial

    QROPS: natural expiry

    Hi again So if it is a pre-April 2017 transfer then it would fall under the old rules. The old rules are based on an unauthorised member payment charge being levied on an unauthorised payment IF the member is a UK tax resident or has been a UK tax resident within the last five full UK tax years. Therefore it may well be (depending on your cessation of UK tax residency) that you would not be liable for such a charge. This being the case it is likely a QROPS would not be required if considering rolling out. I am able to provide personal advice that would cover this IF you wish. Hope this helps Kind regards Andy
  6. Andrew from Vista Financial

    Permanent Residents Wanting to Return to UK- Superannuation?

    Hello The tax implications that will apply are likely to be UK tax implications only. When a person meets a full condition of release in Australia (typically retirement) then they can access their superannuation tax-free (unless it was an untaxed fund (government fund) and as much as they wish. This is all on the basis of the member being a permanent resident/citizen. Regards Andy
  7. Andrew from Vista Financial

    QROPS: natural expiry

    Actually just re-reading your post. It looks like a transfer that has already occurred. When did the transfer occur in that case?
  8. Andrew from Vista Financial

    QROPS: natural expiry

    Hi Wonderer Is this for a pension that was transferred to a QROPS previously OR is this in relation to a future transfer please? Regards Andy
  9. Andrew from Vista Financial

    Exchange traded funds

    Hey rammygirl Not sure about doing it via the UK as you may find it difficult to open an account as a non-resident. Doing it from Australia can be done although might be a little more expesnsive but I know that you can buy UK ETFs/Shares via: ANZ Share Investing (formerly E-Trade) Pershing (owned by CBA) Mason Stevens (although not sure if you have to be an institutional investor) Hope this helps. Regards Andy
  10. Andrew from Vista Financial

    Uk Private pension

    No problem Karen. Without providing advice (as clearly I am not in a position to do so as do not have a full understanding of your financial situation) it may be worthwhile you exploring maximising tax deductible contributions to Super. From 1 July this year a person does not have to be self-employed to be able to claim a tax deduction on a contribution they make voluntarily to Super. See here: http://www.vista.financialknowledgecentre.com.au/kcarticles.php?id=1321 Taken from article. Tax deductions for personal superannuation contributions The 10% maximum earnings as employee test for claiming tax deductions for personal superannuation contributions has been removed. This means being an employee will no longer prevent you claiming a tax deduction for your personal superannuation contributions. Personal contributions may be made until 28 days following the month you turn 75, however from age 65 you must first have worked at least 40 hours during 30 consecutive days of the current financial year. Hope this helps. Andy
  11. Andrew from Vista Financial

    Uk Private pension

    Hi Karen It doesn't quite work like this I'm afraid. I know that the ATO website makes it sound like you can contribute an amount to super from a foreign super lump sum benefit payment however I understand that this is only the case if it was a transfer from a UK pension directly to an Australian Super Fund. The ATO actually call the two things the same ie foreign super benefit payment. Therefore a contribution to Super for tax deduction purposes has to be done as a contribution and fall in line with the contribution caps, currently the concessional contribution cap is $25,000 (this amount includes employer (salary sacrifice) contributions). The other thing to note is that whilst you have effectively taken a lump sum form your Pension, technically the UK class 75% of that as income and not a lump sum, therefore there could be two types of assessment made by the ATO being a foreign super lump sum benefit payment (ie taxed on the growth of the fund) and an income payment. Kind regards Andy
  12. Andrew from Vista Financial

    Uk Private pension

    Hi Karen Sorry for not replying sooner, I’ll answer you on Monday. Thanks Andy
  13. Andrew from Vista Financial

    What could we afford?

    Hello Dorsetbrit Don't worry so much to think about and just not knowing things you feel you should or want to know is frustrating but it will all slot together in time. Have a look here at our borrowing power calculators, just bear in mind these are just a guide and that what they tell you know could be very different to what they tell you when you arrive as things change such as banks lending policies and interest rates (as they are connected to borrowing power here): http://www.vista.financialknowledgecentre.com.au/kccalculators.php?id=1 Also this is a good one for costs of buying a house (note that foreign purchaser should be YES if temporary residents): http://www.vista.financialknowledgecentre.com.au/kccalculators.php?id=19 Hope this helps a bit. Regards Andy
  14. Andrew from Vista Financial

    Income Protection Insurance

    The income that you earn throughout your working life is a vital resource in terms of the management of your personal finances now and into the future. It allows you to fund your lifestyle expenses and work towards the achievement of your financial goals and objectives. Here is a simplistic example of just how vital employment income can be. You are 30 years of age, currently earn $60,000 per annum, and plan to work until age 65. By adjusting for inflation and not taking into account taxation, your income earning capacity over this 35-year period could equate to $2,999,669. Imagine being unable to work for a period due to a sickness or injury and how this would impact your income earning capacity. How would you and your family cope financially and plan for the future, especially if an appropriate Plan B was not in place? Consequently, in this animation, we illustrate the importance of Income Protection insurance.
  15. Andrew from Vista Financial

    EOFY planning tips: 3, 2, 1... Lift-off!

    The period just before the end of the financial year is a great time to take stock. It allows you not only to look at what you have achieved throughout the year, but also see whether any fine-tuning can (or should) be made. This fine-tuning may help to, for example, minimise your tax liabilities and make the most of the money you earn. Consequently, in this article, we discuss several end of financial planning tips you may wish to consider prior to 30 June. However, as always, whether they are appropriate for you will depend on your financial situation, goals and objectives. As such, please consider seeking professional advice before moving forward with any of the tips discussed below. Contribute to superannuation We are all familiar with the place (and purpose) that superannuation has in our lives, regardless of our level of engagement with it (i.e. a hands-on or a hands-off approach). Furthermore, despite the recent changes, superannuation remains a tax effective investment structure. As such, there are a few end of financial year planning tips worth noting. Concessional contributions Consider whether you have the ability to make further concessional contributions. While salary sacrifice is one way to make concessional contributions, the removal of the ‘10% test’ means that more employees will be eligible to make personal deductible contributions, which may be something worth considering before the end of financial year. These contributions will help you to not only reduce your personal income tax, but also accumulate wealth for retirement (and, if applicable, purchase your first home via the First Home Super Saver Scheme). Please note: It’s important to understand your concessional contributions cap limit (which in 2017/2018 is $25,000 for all eligible to contribute), coupled with a careful assessment of all contributions you, your employer/s and others make on your behalf and the date that they were (or, are expected to be) received by your superannuation fund. Doing this will assist you to avoid a potential excess concessional contribution tax liability. Non-concessional contributions Consider whether you have the ability to make further non-concessional contributions to your superannuation fund before the end of the financial year. Whilst these contributions will not reduce your taxable income, they will help you to accumulate wealth for retirement (and, if applicable, as previously stated above, purchase your first home). Also, if you meet certain criteria, you may be entitled to the Government’s Co-Contribution. In addition, if your spouse will have assessable income below $40,000, consider making non-concessional contributions to their superannuation fund. By doing this, you may be entitled to the Spouse Contributions Tax Offset, which will help you to not only reduce your tax bill, but also boost your spouse’s superannuation balance. Notably, this tax offset is now more accessible, since the income limit has increased (from $13,800 in 2016/2017). End of financial year is also your last chance to transfer (or ‘split’) 85% of your previous financial year’s concessional contributions to your spouse’s superannuation (provided they have not yet met a retirement condition of release). If you made personal deductible contributions in 2016/2017, you will need to ensure you have lodged your notice to claim a tax deduction with your fund before requesting the super split. Boosting your spouse’s super through spouse contributions and/or spouse super splitting may hold even greater significance now due to the limit imposed on individuals by the transfer balance cap, namely, a limit on the amount of superannuation that can be transferred from accumulation to retirement income phase. Please note: It’s important to understand the implications of your total superannuation balance. For example, in terms of the non-concessional contributions cap limit and bring-forward rule, the Government Co-Contribution and the Spouse Contributions Tax Offset. Please consider seeking professional advice with regards to this as it can be a very complex area. Pre-pay deductible interest or bring forward deductible expenses If you have the cashflow available, and expect your income in the next financial year to be lower than this year’s, consider prepaying deductible interest or bringing forward deductible expenses. By doing this, you may find that you are able to reduce your taxable income. Depending on your personal circumstances, areas where you may want to consider applying this can include, for example: Income Protection insurance premiums. Donations to charities, which are classified as ‘deductible gift recipient’ organisations. Interest payments on investment loans for things such as property or shares. Cost of repairs and maintenance to investment properties that are being rented out or available/advertised for rent. Work-related expenses, such as car expenses, travel expenses, clothing, laundry and dry-cleaning expenses, as well as self-education expenses, home office expenses, telephone, computer, internet expenses, tools and equipment expenses. Manage capital gains/losses When it comes to the sale of an asset that triggers a capital gain or loss, careful consideration needs to be given from a tax planning perspective. Below are some things worth noting: A capital gain will be assessable in the financial year that it’s crystalised. Consequently, deferring the sale of an asset with an expected capital gain until future financial years will defer the capital gain (and the applicable capital gains tax liability). This may be an appropriate consideration if you expect your income to be lower in the future compared to this year’s. If you hold an asset for under 12 months, a capital gain made may be assessed in its entirety upon the sale. Whereas, if you deferred the sale of this asset until after you have held it for 12 months or more you may be entitled to the 50% capital gains tax discount. A capital loss can (only) be used to offset a capital gain. Furthermore, if there is no capital gain in the same year as the capital loss, this capital loss can be carried forward to be used in future years. Consequently, to offset a capital gain you have made, it may be worthwhile considering the use of a capital loss that has been carried forward or selling an asset that is currently sitting at a loss. Importantly, whilst the above takes a tax planning perspective, when it comes to the sale of an asset that triggers a capital gain or loss, decisions should also be consistent with your overall investment strategy. Organise statements, receipts and expenses Although it’s probably a little while off before you get around to lodging this year’s tax return, you may want to consider making a start on collecting, sorting and storing your statements, receipts and expenses that are currently available to you. This may help alleviate some of the stress that often accompanies year-end preparation. Please read our ‘Checklist: Preparing for tax time the easy way’ article for a helpful list of statements, receipts and expenses that may be relevant to you. In addition, if you run your own self-managed super fund, you may also wish to watch our animation ‘An end of financial year checklist for SMSFs’. This provides a brief overview of a range of ongoing administration and reporting responsibilities – many of which fall at or around the end of financial year. Moving forward When it comes to planning for the end of the financial year, the trick is not to leave it to the last minute! With June 30 on the horizon, it’s time to take stock of your current financial situation to see whether any adjustments can (or should) be made. And remember, whilst we have highlighted several tips, it’s important to understand that their appropriateness will depend on your personal circumstances. As such, please consider seeking professional advice so that an assessment can be made that is aligned with your financial situation, goals and objectives.