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The assets that make up your estate may include property, bank accounts, investments and superannuation. How your estate will be distributed after your death will depend on who you nominate to be beneficiaries in your Will. That is, your estate minus your superannuation – unless you have specifically nominated your estate to be the beneficiary of your superannuation. In that case, your Will can determine how your estate will be split. But if you haven’t nominated a beneficiary for your super then it will be up to the superannuation trustee to determine where your superannuation will be paid and who will benefit. Who can be a superannuation beneficiary There are rules about who you can nominate to be your superannuation beneficiary. A beneficiary can only be a dependant or personal legal representative – the person appointed as executor or administrator of your estate or a mix of these. A dependant may include: your spouse (including a de facto spouse) your children (regardless of age) someone financially dependent on you (fully or partially) someone you had an interdependent relationship with. An ‘interdependent’ relationship is a close personal relationship with someone you probably live with where you provide financial support to the other and where one of you provides domestic support and personal care to the other. What are binding nominations, non binding, reversionary beneficiaries To ensure your superannuation reaches the right people after your death you will need to have nominated a beneficiary. There are two types of nominations – binding, which is legally binding, which the Trustee must follow, or non binding which isn’t legally binding but provides the Trustee with directions on how you would like your benefit to be paid. If you select a binding nomination, you should also ensure that either you update this every three years or that you make it a non lapsing nomination. Non binding nominations may be followed by the Trustee according to your wishes but ultimately is left to the Trustee’s discretion. If you are receiving an income stream or annuity from your super and you have not nominated a reversionary beneficiary, the payment will cease on your death and the remaining balance or lump sum value will be distributed to your beneficiaries, in line with your binding nomination. You may choose to allow your beneficiary to continue the pension or annuity – providing they meet an eligibility test, similar to a superannuation beneficiary. Why is it important that you nominate someone It’s important that you nominate someone as your beneficiary as your superannuation is not automatically counted as part of your estate. There have been cases where a person’s Will allocates the estate according to their wishes but because they have not named a specific beneficiary with their super fund, someone has made a claim on the person’s super – for example, an estranged spouse. The Trustee will have final say on how it is allocated so you should make your wishes known. It is also important to consider the tax implications of who to name as your beneficiary if it is not one of the people listed above. If you are leaving your estate to various beneficiaries, a financial planner can explain the implications of the way you divide your assets including your superannuation. Why you should review your beneficiary regularly Like all your legal and financial matters, you should review regularly to make sure you are still in the same situation as you were when you last checked these. In the last three years, have you married, divorced, had children or lost relatives? If you have done any of these things it is likely you will need to change your beneficiaries for your Will, your superannuation and even your insurance. Once again, your Will does not automatically include your superannuation beneficiary – so make sure that you update both when there are any changes and review regularly.   Source: Money & Life

Providing financial support to your grandchildren can be a meaningful way to invest in their future. From practical steps to financial strategies and legal considerations, there are several ways you can help set them up for long-term security and success. Financial actions Financial gifts and savings accounts One off or regular gifts: Consider gifting money when you might otherwise give a physical gift. For special events like a birthday, graduation or a religious or cultural event, deposit a financial gift into a savings account specifically set up for your grandchild. According to the MLC Financial Freedom Report, 18% of grandparents provide one off financial gifts to celebrate milestones or alleviate significant expenses and 16% offer regular financial gifts to support their grandchildren. Savings accounts: Open a high interest savings account in your grandchild’s name. Compound interest helps regular contributions, no matter how small, grow significantly over time. Education funds Education bonds: These are tax effective investment vehicles designed to save for future education costs. Contributions to these bonds can grow. Income is taxed at 30% within the bond. Withdrawals for education expenses will attract a tax rebate for tax paid within the bond. There may be tax implications for the grandchild. Paying for school or university: Directly paying for your grandchild’s tuition can be a substantial help. This can reduce the need for student loans and the financial burden on their parents. Investment accounts Custodial accounts: These accounts allow you to invest in stocks, bonds and mutual funds on behalf of your grandchild. The assets in the account legally belong to the child but are managed by you until they reach adulthood. Superannuation contributions: If your grandchild earns an income, consider making contributions to their superannuation fund. This can provide a significant boost to their retirement savings. Concessional contributions count towards a cap and penalties may apply if the cap is exceeded. Practical steps Financial education Teach financial literacy: Share your knowledge about budgeting, saving and investing. Encourage good financial habits from a young age. The MLC Financial Freedom Report highlights how financial support from grandparents can lead to greater financial satisfaction and stability later in life. The report shows that 43% of Australians surveyed who received substantial financial support from their grandparents are extremely or very satisfied with their current financial situation, compared to 17% who did not receive such support. Involve them in financial decisions: When appropriate, involve your grandkids in discussions about money. This can help demystify finances and prepare them for managing their own money. Support for extracurricular activities Funding hobbies and interests: Financially supporting your grandchild’s hobbies, sports or other extracurricular activities can help them develop skills and interests that may benefit them in the future. Housing and transport assistance Living arrangements: Allowing your grandchild to live with you rent free or at a reduced rate can help them save money for other important expenses, such as education or starting a business. Helping them buy a car: Nearly one in ten grandparents (9%) help their grandchildren achieve a degree of independence by assisting them with their first car purchase. Other important considerations Estate Planning Wills and trusts: Ensure your Will is up to date and consider setting up a testamentary trust for your grandchildren. These trusts can provide financial support for specific purposes, such as education or buying a home and can be managed according to your wishes. Power of Attorney and guardianship: Designate a trusted individual to manage your affairs if you become unable to do so. This ensures that your financial support for your grandchildren continues seamlessly. Tax implications Understand gifting rules: If you receive government support or a pension, there may be caps on the amount you can gift without affecting your pension. Make sure you check prior to gifting significant sums. Consult a financial adviser: Work with a financial adviser to understand any social security and tax implications of your financial gifts. Avoiding risks to your retirement savings While supporting your grandchildren is a noble goal, it’s crucial to ensure you don’t compromise your own financial security. Here are some strategies to avoid risks to your retirement savings: Diversify your investments Diversification can help protect your retirement savings from market volatility. By spreading your investments across different asset classes, such as stocks, bonds and real estate, you can reduce the impact of any single investment’s poor performance. Maintain an emergency fund Having an emergency fund can provide a financial cushion in case of unexpected expenses. Adopt a sustainable withdrawal rate The 4% rule is a common guideline, suggesting that you withdraw 4% of your retirement savings in the first year and adjust for inflation in subsequent years. This can help your savings last longer during your retirement. Consider annuities or IRIS products: Speak to your financial adviser about whether annuities or an innovative retirement income stream (IRIS) product may work for you to reduce the risk of outliving your savings. Regularly review your financial plan: Periodically reviewing your financial plan with a financial adviser can help you stay on track and make necessary adjustments. Limit large financial gifts: While it’s generous to support your grandchildren, it’s important to balance this with your own financial needs. Consider setting limits on large financial gifts to ensure your retirement savings remain intact. Inspiring the next generation Your financial support can do more than just provide immediate benefits; it can inspire your grandchildren to achieve their own financial independence. By setting a positive example and providing the tools and resources they need, you can help your grandchildren build a solid foundation for their future. Setting your grandkids up for the future involves a combination of financial gifts, practical support and intentional planning. By taking these steps, you can help your grandchildren have the financial stability and knowledge they need to achieve their dreams. Your legacy will not only be remembered in the form of financial support but also in the values and lessons you impart. References MLC Financial Freedom Report 2024 Australian Taxation Office (ATO) guidelines on gift tax Source: MLC  

Property investments appear to be on the wane with younger investors as house prices rise: the number of those expecting property will be their biggest investment at retirement is half that of older Australians. So is our love affair with property changing? Higher property prices may be affecting the investment strategies of younger investors, with half as many Australians under 50 expecting property to be their biggest investment when they stop working, compared with their older counterparts, new research from Colonial First State shows*. Only 11% of younger Australians predict property will be their biggest investment, excluding the family home, compared with 21% of Australians aged 50 to 64, Colonial First State data on Australia’s investing habits reveals. The change comes despite a potential tendency to overestimate the growth associated with residential property investments. Australians expect residential property to return 9% a year on average, the data shows, while Australian shares and managed funds were expected to return 7% and exchange-traded funds were expected to return 8% on average. Property price values and rental yields on residential property, particularly, are highly dependent on the specific property purchased. However, according to the Australian Bureau of Statistics, house prices grew 3.5% nationally in the year to 30 June 2025 ^. According to IBISWorld, residential rental yields averaged 3% in the five years to 2024#. Australian shares were up 13.7% over the year to 30 June 2025, while unhedged global shares grew 18.7% over the same period**. On an annualised basis, Australian shares have returned 7.9% since 2005##. Where do Australians want to invest and why? While younger Australians are less confident that property will be their major choice of investment, it remains the aspirational investment choice for Australians in general. One in five Australians would choose property if they could only invest in one thing, while shares were the next most popular investment type, nominated by one in eight. However, shares are currently our most popular investment choice after money in the bank, held by 29% of all investors – twice as many people as property (15%). So why does property still have such a hold on us? Much of it, we pick up from our parents. Of those who believe that property should be our first investment, more than half learned this from family or friends. Australians also associate property with security: 37% nominated the role of property investments as providing financial security, along with long-term capital growth (33%). Shares were more likely to be seen as a way to diversify an investment portfolio, nominated by 32%, followed by providing growth over the long term (30%) – although wealthier investors were much more likely to see shares as a driver of growth. However, just 13% were advised to invest in property first by their financial adviser. And just one in five Australians generally has a financial adviser. So are property prices forcing a rethink of investing strategies? Younger Australians are more likely to nominate shares or ETFs as their top investment at retirement, seeking growth and diversification, the data shows. For Australians aged under 50, shares and ETFs were the most nominated investment choice people expected to hold at retirement, after money in the bank. It has been estimated that it now takes the median household over 10 years to save a 20% deposit for the median priced home, which surpassed $1 million last year^^. Conversely, it was well understood by about 70% of younger, as well as older investors that you could invest in shares with amounts as small as $1,000, which may be driving the increased adoption of equities through buying shares and ETFs. * Research commissioned by Colonial First State and conducted with more than 2250 Australians from April to June 2025. ^ Household wealth up 2.7% in June quarter | Australian Bureau of Statistics #Residential property yields – Business Environment Profile Report | IBISWorld ** CFS Investments data includes: Benchmark performance annualised for periods greater than one year is shown for: Bloomberg AusBond Bank Bill Index; Bloomberg AusBond Composite 0+ Yr Index; Bloomberg Global Aggregate AUD Hedged; S&P/ASX 300 Accumulation Index; MSCI ACWI Ex-Aus Index Special Tax Net AUD Unhedged; MSCI ACWI Ex-Aus Index Special Tax Net AUD Hedged, MSCI Emerging Markets (AUD), FTSE EPRA/NAREIT Dev ex Aus Rental Index AUD Hdg Net and FTSE Dev Core Infrastructure Index AUD Hdg Net. ^^ Housing Affordability Report ## RIMES, Colonial First State. Data from 30 June 2005 to 30 June 2025. Percentage return over rolling one year. S&P/ASX 300 Accumulation index. The index returns cannot be directly compared to an individual Colonial First State fund’s return for many reasons such as they do not include allowances for fees or taxation and do not reflect the asset allocation or stocks held now or over time. Past performance is no indication of future performance. Source: Colonial First State  

Retirement can be a golden opportunity to make changes to your lifestyle and routine and boost your wellbeing in the process. Find out more about the benefits of using your extra leisure time to stay active and connected to your community. Making the most of a new life stage If you’ve been working for much of your life, starting retirement is likely to bring some significant changes to your routine. By taking the opportunity to make the most of all this extra time on your hands, you can plan for a retirement that’s as exciting as it is rewarding. Enjoying a retirement that keeps you active and social is also a great way to invest in your mental and physical health, now and in the future. More time for your health and wellbeing Retirement often means healthy and positive changes to lifestyle habits. Compared with their working peers, retired people are likely to sleep more, spend less time sitting down and more time being physically active. A major life change like retirement creates a great window of opportunity to make positive lifestyle changes – it’s a chance to get rid of bad routines and engineer new, healthier behaviours. When people are working and commuting, it eats a lot of time out of their day. When they retire, they have time to be physically active and sleep more. Whether it’s spending more time planning healthy meals, getting into the habit of going for a regular walk or bike ride or joining a local gym, sports club or team, there are plenty of ways you can use your time in retirement to keep yourself in the best of health. Stay social to boost your health even further Some of these activities will also come with the added bonus of new social and community connections. After stopping work, you could find that your social circle will change. Opportunities to connect with work friends may be less frequent, particularly if they haven’t retired yet or you’ve made a move to a new location as part of your retirement plan. It seems pretty obvious that keeping up with friends and family will be good for your mental health, regardless of your age. Seeing more of friends in your later years has a very positive impact on life satisfaction, as social isolation can actually be as bad for your health as smoking and drinking alcohol and has a bigger impact on life expectancy than lack of exercise or being overweight. It can take time to build up your social network in retirement, so start to make a plan for how you’ll connect with your local community while you’re still at work. Your local council will be a good resource for information about groups you can join and finding out what’s going on locally. Searching online is also a great way to discover activities you’d like to take part in. Feel good about giving back Volunteering can also be a great way to meet people and make a positive contribution to your community. If you find yourself missing the routine and sense of purpose you experienced with your job, volunteering can be a good substitute. Keeping active and getting involved in voluntary work definitely brings retirees a lot of benefits that would have been brought about by keeping on working. Speak to local community groups or search online to explore opportunities that interest you or could benefit from your skills. As well as organised volunteering programs, you might be interested in sharing your skills in a mentoring or tutoring arrangement. You can choose to offer your time and skills as a volunteer or by working part time if you need an income boost. Spread your wings Your retirement is also the ideal time to tick off some destinations on your bucket list. Many companies organise travel programs specifically suited for people who are travelling in retirement. These trips can be ideal if you’re looking to meet and travel with like minded people and have all the hard work and planning taken care of. Remember to arrange insurance to make sure you’re covered for unforeseen events and any medical issues on your travels. Keeping busy on a budget Staying social and active in retirement doesn’t have to cost much. While some interests, like golf or crafts, may involve spending on memberships and materials, there are plenty of recreation activities that are low cost or even free. Investing in a sturdy pair of shoes is all you need to join a local walking club and showing your support at a local sports event likely won’t cost you a cent. With life expectancy rising, you could have many years ahead of you to enjoy new interests, friendships and opportunities to support your community. But it’s also important to plan for a secure retirement income so you can enjoy all these things with peace of mind about your financial future. Source: Challenger  

The following outlines your obligations as a trustee or director of a corporate trustee of a Self Managed Super Fund (SMSF) and what happens when they are not met. Understand your obligations All trustees of your SMSF are responsible for running the fund and making decisions that are in the best financial interests of all members. This means you are responsible for decisions made by other trustees even if you’re not involved in making the decision. Trustees must meet specific obligations under the Superannuation Industry (Supervision) Act 1993. Exercise honesty, care, skill and diligence As a trustee, you must ensure your SMSF complies with: your trust deed the rules of the Superannuation Industry (Supervision) Act 1993 (SISA). The SISA states that as a trustee, you must: act honestly in all matters concerning your fund act in the best financial interest of all members not hinder any trustee from performing or exercising functions or powers not access or allow others to access benefits early retain control over your fund. Meet the sole purpose test The sole purpose of your SMSF is to provide retirement benefits to your members or to pay death benefits if a member dies before retirement. To be eligible for the tax concessions normally available to super funds, your SMSF must meet the sole purpose test. Generally, it is illegal for anyone to benefit from the SMSF outside of this sole purpose. It can be illegal to: access funds early invest in a related business be paid for your duties or services as a trustee use the SMSF’s assets for personal use. An example of breaching (or contravening) the sole purpose test is where your SMSF invests in a rental property specifically to allow a related party to live in that property. Accept contributions and rollovers In accordance with the trust deed and superannuation laws, you need to follow specific rules for accepting contributions and rollovers. You also need to make sure any contributions and rollovers are: properly documented allocated to the correct member’s account. Develop and review your SMSF investment strategy Your SMSF’s investment strategy must: consider all members’ personal circumstances include investment objectives and types of investments allowed consider liquidity and diversification of assets and whether to hold insurance be regularly reviewed and updated when needed. When making investments, you must demonstrate with records how your decisions comply with your SMSF investment strategy. Comply with investment restrictions There are restrictions on SMSF investments. Any investment your fund makes cannot provide a present day benefit for the members or related parties. Other than very limited circumstances, generally: you can’t acquire assets from, or lend money to, fund members or other related parties your SMSF can’t borrow money. Pay benefits Trustees are responsible for ensuring a member is legally entitled to access their super benefit before releasing any retirement benefits. Generally, members can only access benefits once they meet a condition of release. You must pay benefits to members according to the trust deed and super laws. Value SMSF assets Each year you must value your SMSF’s assets at market value so you can prepare the fund’s accounts, statements and the SMSF annual return (SAR). Some assets must be valued and reported in a specific way. You must also keep evidence of your valuations to provide to your SMSF auditor. Prepare SMSF financial statements Each year you need to prepare: a statement of financial position an operating statement for your SMSF. You must then provide this to your SMSF auditor. Arrange the yearly audit Your SMSF must be audited each year by an independent SMSF auditor who is registered with the Australian Securities & Investments Commission (ASIC). The auditor will assess your fund’s compliance with super laws and report any contraventions to us. Lodge the SMSF annual return (SAR) Each year you must lodge the SAR by its due date and pay any tax liability. If the SAR is more than 2 weeks overdue, you may not be able to receive contributions or rollovers until you lodge your return. You may also be required to lodge: transfer balance account reports once your SMSF begins paying a pension activity statements. Pay yearly fees Your SMSF is required to pay the supervisory levy when you lodge your SAR. The amount will depend on whether your fund is new, existing or winding up. If your SMSF is set up with a corporate trustee, you will also have to pay ASIC fees. Notify the ATO of changes to your SMSF You must tell the ATO about certain changes to your SMSF within 28 days. If your SMSF is set up with a corporate trustee, you’re also required to inform ASIC. Keep accurate records You must keep records of all decisions and actions your SMSF takes. This will provide you with supporting evidence on the decisions you and the other trustees make. Meet the residency rules Your SMSF must be an Australian super fund at all times during the financial year. If it isn’t, the assets and income of the fund will be taxed at the highest marginal rate. Your fund is an Australian super fund if it meets all three of these residency conditions at all times during the financial year: establishment or at least one asset held in Australia central management and control ordinarily in Australia active members. If a member moves or travels overseas for an extended period, this may affect the residency status of the fund. Consequences of not meeting your obligations The ATO is a key regulator for SMSFs. This means they’re responsible for: administering super and tax laws ensuring trustee compliance. Their main focus is to assist trustees to understand their obligations and comply with the law. When an obligation is not met and results in a contravention, they may need to take compliance action. The action they take will depend on the: type of breach or contravention trustee’s attitude to their obligations seriousness of the contravention.   Source: Australian Taxation Office

Working out how much your business is worth can be an important part of getting finance, attracting investors or selling your business. Here are some suggested steps to help you through the process. Prepare your business information You’ll need a range of business information to value your business properly. If you need help with preparing your documents and can’t afford a professional, consider asking friends or family with bookkeeping or business experience. If you’re selling, potential buyers may want to value your business independently. So it’s a good idea to already have your business documents organised and up to date. You’ll need the following information. Finances and assets Your financial statements (for the last 5 years if possible) such as cash flow statements, debts, annual turnover and profit and loss statements. Details of physical assets such as machinery, buildings, equipment and stock. Details of other assets such as goodwill towards the business and intellectual property (any designs or ideas that you have protected through copyright). Legal information Legal documents such as leases and insurance policies. Registration papers such as business name certificates, Australian business number (ABN) registration papers, licenses, permits and any other papers that demonstrate you comply with government requirements. Business profile, procedures and plans Market conditions such as details of competitors and how your business compares to them. Sales information such as reports and forecasts. Business history such as start date, ownership and location changes. Business procedure documentation such as marketing, staff roster and customer service procedures. Business plan such as marketing, emergency management and growth plans. Other details such as opening hours and whether the business premises are owned or leased. Staff, supplier and customer information Employee details such as job descriptions, skills and experience, work history, performance reviews and pay rates. Supplier details such as supply agreements and supply prices. Customer details such as customer numbers, customer profiles and direct marketing activities. Decide whether to get professional advice If you can afford to, consider getting professional advice on how to value your business through your accountant, a business adviser or a business broker. These professionals can help you: analyse your finances find trends in your industry’s market calculate the goodwill value of your business estimate your business’ future profit work out a value for your business. They might also have clients who would be interested in buying your business. This could save you the cost and hassle of advertising. Choose a valuation method Keep in mind that there is no one set valuation method. You could use a combination of methods to get your final value. You may also need to negotiate the method of valuation with a buyer or investor. If you use a professional, they can help you decide which method is best for your business. Some common methods for calculating the value of a business include using: current market values return on investment business asset value cost of starting a business from scratch future profit of a business. Look at current marketplace value and your industry How you value your business can depend heavily on the industry you’re in and the current marketplace value of similar businesses. Industries usually come up with their own rules and formulas to value a business. So, it’s a good idea to get a good understanding for your particular industry. Use the return on investment method to calculate value If you’re selling your business, the return on investment (ROI) method uses your business’ net profit to work out its value. You can either calculate: an ROI based on a selling price (value) you have in mind; or a selling price based on an ROI that you set ROI = (net annual profit/selling price) x 100 For example, you have a selling price of $200,000 in mind but want to test your ROI based on that price. You calculate that your business’ net profit was $50,000 for the past year. To work out the ROI, you use the formula: ROI = (50,000/200,000) x 100 In this case, your ROI is 25%. If you have an ROI in mind, you can use it to calculate the price for your business: Value (selling price) = (net annual profit/ROI) x 100 Say you wanted a ROI of at least 50% for the sale of your business. If your business’ net profit for the past year was $100,000, you could work out the minimum selling price you should set. Selling price = (100,000/50) x 100 In this case, to achieve a ROI of at least 50%, you’ll need to sell your business for at least $200,000. Use your business’ assets to calculate net worth When calculating the value of your business assets, make sure you include both tangible and intangible assets of your business. Tangible assets are physical things you can touch such as tools, equipment and property. Intangible assets are things that can’t be touched but are still valuable, such as intellectual property, brands and business goodwill. After you’ve calculated the total asset value of your business, use this as an indication of how much you’d like to sell your business for. Assessing your business’ assets value can be a complicated process. It’s a good idea to ask your business advisor or accountant for help. Calculating business goodwill Goodwill can include: customer loyalty and relations brand recognition staff performance customer lists reputation of your business business operation procedures. Calculating goodwill can be a complicated process. You’ll get different results depending on the method you use. You can use different methods to get a price range you’d like to set for your business goodwill but in the end, the value is what the marketplace or buyer is willing to pay. Because it’s difficult to calculate goodwill, it’s a good idea consult a professional such as your accountant. Account for depreciation If you use your business assets to calculate value, remember to account for depreciation. Depreciation is the loss of value for your assets over time. For example, you may have purchased a computer for your business 3 years ago for $1,000. When calculating your business’ asset value, the value of … Read more

Superannuation is one of the important pillars of savings in retirement for most Australians. After years of working and contributing to your super fund, retirement is when you are finally able to access it. Whether retirement is just around the corner or still a few years away, it’s worth understanding your options. In this article, we’ll walk you through your options on what do with your super when you retire, how is it taxed and what happens if there’s any left when you pass away. When can you access your super? You can usually access your super when you reach your preservation age (currently age 60) and retire. Alternatively, you can start accessing it once you turn 65, even if you’re still working. There are other special circumstances where you might be able to access it earlier, like severe financial hardship or permanent disability but generally speaking, retirement is the key trigger. Your options once you have access to your super Once you retire and meet a condition of release, your super becomes accessible for you to withdraw but that doesn’t necessarily mean you have to withdraw and use all of it. You’ve got a few main options and you may prefer a combination of these: Leave it in your super fund (Accumulation phase)  Yes, you can actually choose to leave your super where it is, in its accumulation phase even after you retire. If you don’t need to access the money straight away, you can leave your super invested in the fund’s accumulation account. Your money can keep growing (taxed at 15% on earnings) and you can access it when you’re ready. So, while this may suit short-term plans, it may usually not be the most tax effective option when compared to other options like starting a superannuation pension in retirement, which is often tax free and funded with money from your superannuation savings. Take a lump sum  Where access to funds is required, you may prefer withdrawing a lump sum from super. This can help you in various ways like paying off a mortgage, clearing credit cards or personal loan debt, covering medical costs, funding travel expenses or investing elsewhere (e.g. property, shares outside of super). However, this decision should be carefully considered as withdrawing a lump sum or lump sums can reduce how long your super lasts. It’s also worth considering how that money will be managed outside super, as it may be subject to different tax treatment or may impact any Centrelink entitlements like the Age Pension. Start a superannuation pension (account-based income stream) An account-based pension lets you convert your accumulated super into a regular income stream. However, once an income stream is started with a set balance, you cannot add more monies to the ongoing account-based pension unless the pension is commuted and restarted again. If you need access to your superannuation savings, starting an income stream is a popular option which can be tax effective. Where access to the super savings is required, an income stream can be a good option because: You can receive regular and flexible payments (monthly, quarterly, etc). You can choose how much to set as regular income for your pension payment (subject to government set minimum limits). Earnings are tax free once you’re in pension phase. Payments can be adjusted as your needs change. You keep control over your investment strategy. You can still withdraw lump sums if needed but many people like the idea of a steady income, much like a salary. However, consider that the ongoing income payments can reduce your account balance over time. Can a lifetime annuity help?  One of the biggest concerns for retirees is running out of money. If you want income for life, no matter how long you live, lifetime income streams such as a lifetime annuity can help you achieve that. Unlike an account-based pension (which relies on how long your money lasts), a lifetime annuity is more like an insurance product. You invest a lump sum from your super and in return, receive a regular income for the rest of your life. Some retirees consider using a combination of a pension and an annuity – the pension provides flexibility and the annuity can provide peace of mind. However, lifetime annuities are designed to be held for life. Although there may be flexibility to access a lump sum if needed, there may be break cost considerations. Can I combine these options? Absolutely and many retirees choose to do so. You might prefer to consider: Leaving some of your super invested in accumulation phase. Taking a lump sum to pay off debts. Starting a super pension to draw regular income. Using part of your super to start a lifetime annuity. The right mix will depend on your lifestyle, goals, health, family situation and other sources of income, including the Age Pension. There are many more options we have not discussed. The Age Pension and Super: How they can work together The Age Pension is a government payment designed to help eligible Australians in retirement. As of 2025, you can apply for the Age Pension from age 67. There are also concessions and benefits that come with it, such as reduced utility bills and medical costs, so it’s well worth checking your eligibility. Eligibility is also based on your means – your income and assets. Centrelink includes your super in the assets and income tests. However, the assessment can differ if your super is converted into an income stream like a lifetime annuity. Age Pension, combined with other sources of super based income like an account-based pension and/or a lifetime annuity, can help make your money last longer. It acts as a safety net if your super runs down over time. This can be a powerful way to stretch your retirement savings further.     How is my super taxed when I retire? The earnings on your super are usually taxed at a maximum rate of 15% whilst the super remains in accumulation phase. … Read more

Receiving an inheritance may be a once in a lifetime financial opportunity that also coincides with a very difficult, emotional time in your life. Whether you inherit $10,000 or $100,000, your age, life stage, risk appetite and financial preparedness are likely to play a key role in decisions about how and where to invest. Many Australians are likely to be left some form of inheritance, most likely from a parent, at some point in their life, with 81% of retirees currently expecting to leave wealth behind. The average amount Australians expect to inherit is $184,000, according to research commissioned by Colonial First State*. And while one in two Australians consider up to $10,000 a sizeable amount with which to start investing, the research shows the average amount most Australians consider to be a sizeable investment to own is more than $600,000. Investing an inheritance may help close that gap. Following are some general thought starters to consider by age, life stage and size of inheritance but please consult a financial adviser for advice relevant to your personal situation. Also consider your risk appetite. Generally, the more risk you’re willing to undertake, the higher the potential reward may be. However, higher returns come with a higher risk that the value of your investment may fall. In general, if you only have a short time frame to invest, lower risk investments could be a safer option as they’re less likely to fluctuate in value. What to do when you first receive an inheritance The first thing to do when you first receive an inheritance, particularly if it comes at an unexpected time, is to consider your options. That may mean putting it in a high interest savings account or a mortgage offset account while you decide what to do. Then consider your goals. Do you need to pay off debt? Are you looking to build long-term wealth? Pay off your home loan? Build a diversified investment portfolio? Or invest for the kids? Most people with a six figure amount to invest will consult a financial adviser, although it can also be cost effective to obtain one off financial advice for smaller amounts. Inheriting assets like shares or property, such as the family home, can also have different capital gains tax implications if you decide to sell, so getting tax advice may also be important. In your 20s In your twenties, it may be helpful to pay off any high interest debt or build an emergency fund to cover three to six months of living expenses. Otherwise, the earlier you invest, the more time your money has to grow and compound. $10,000 to invest: A growth oriented exchange traded fund (ETF) or managed fund may allow money to grow while offering flexibility to access it later if needed. A voluntary contribution to super, allocated to growth or high growth, can be a tax effective investment that compounds over the long term if you’re within the super contribution caps, or limits, although you generally can’t access it until you reach age 60 and have retired.     $100,000 to invest: Low touch investors might consider a diversified range of shares via set and forget growth ETFs and managed funds, such as a US shares themed ETF or a long-term growth managed fund. It may be worth consulting a financial adviser to start building a diversified growth portfolio of managed investments. In your 30s For many, the thirties are about getting into the housing market. $10,000 to invest: A high interest term deposit or savings account that offers some growth may be a good option over a short time frame. A voluntary contribution to super may allow you to save for your deposit faster using the First Home Super Saver scheme. The tax rate is generally 15% on earnings in super, while the amount of your contributions you can release to buy your first home increases in line with the shortfall interest charge rate (currently 6.78%). $100,000 to invest: Starting a family or looking to enjoy a little extra income? Dividend focused ETFs may help generate a passive income stream. If property investing is more your thing, you may have enough to invest in a growing regional market or a real estate investment trust (REIT). In your 40s At this point, many Australians who have a mortgage are looking to reduce it. $10,000 to invest: Those with a mortgage that’s more than 50% of the value of their home might consider paying it down or putting their inheritance in a mortgage offset account. If a mortgage is less than 50% of the value of the home, it may be worth considering shares as average share market returns most years can be higher than average mortgage interest rates – again, there are many low cost ETFs and managed funds available. Or consider making a one off voluntary concessional (pre tax) or non-concessional (after tax) contribution to your super and investing it in a long-term, high growth shares investment option, a gold or silver themed ETF or the growth focused managed fund of your choice. $100,000 to invest: Thinking about paying for the kids’ education? Investment bonds can be a good option to include in the mix as withdrawals are tax free after 10 years. Some investors may consider debt recycling by paying down the mortgage and then applying for a new loan to buy an investment property. Interest on the new loan is generally tax deductible so those interest payments can be offset against your income to reduce the amount of tax you pay. For those who can afford to invest the money outright, it may be worth building a diversified portfolio of ETFs or managed funds. Global and local shares have historically offered among the best returns. We can connect you with a financial adviser if you’d like help to invest. In your 50s After the age of 50, it’s often a good time to maximise pre tax and after tax super contributions to harness some of those tax advantages. $10,000 to invest: Have you reached your annual super contribution cap limits? You can contribute up to $30,000 a year in concessional contributions, which are generally … Read more

Your super and investment savings represent years of hard work for a secure future. Unfortunately, they can be a prime target for scammers, causing significant financial loss and emotional distress. Financial scams are on the rise and becoming more sophisticated, making them harder to detect. This article will help you recognise common types of super and investment scams, how to identify them and how to protect yourself and your loved ones. Super scams These scams usually involve individuals or companies pretending to be from a super fund or regulatory body seeking your personal information. They may claim they need it to update your super account or verify your identity. Or they could offer to help you access your super before you’re eligible to under law. They may claim that doing this can, for example, help you pay off debts or purchase a house. But accessing your super early can result in significant penalties. In addition, these scams may involve high fees or charges which can eat into your super savings. We recommend that: You never give out your personal information unless you’re sure it’s safe. You’re aware of the conditions of release to withdraw your super. Given the variety of scams out there, following these four steps can help prevent you falling victim. Stop If you receive a suspicious call, email or text, pause and assess. Genuine organisations never pressure you to act immediately or ask for your password via email. Reflect Be careful about sharing personal information online. Scammers piece together details from various sources to exploit or create accounts in your name. Always reflect. Protect Whether it’s personal or work, staying vigilant is crucial. When in doubt, reject contact, delete suspicious messages and avoid opening unknown links. Report If you receive a suspicious email, do not click on any links or attachments or provide any information. If you receive a suspicious email, you can report it to the Australian Cyber Security Centre (ACSC). Amy’s story: a crypto cautionary tale Amy, intrigued by a cryptocurrency investment promising high returns using her super, fell victim to a scam that led to the loss of her savings and her involvement in criminal activity. Her story highlights the dangers of crypto scams. It will help you to recognise and avoid such fraudulent schemes and the potential consequences, including financial loss and legal repercussions that victims may face. Amy was contacted by a man named Michael via Facebook. He was promoting a cryptocurrency investment business promising amazing returns that didn’t require an initial deposit from her bank account but rather from her superannuation. A complex scheme Intrigued by this, Amy engaged in further conversation with Michael. He walked her through the steps of setting up a legitimate Self Managed Super Fund (SMSF), allowing Amy to take the funds she had invested with her existing super fund and place them into a bank account, which was then invested into a fake crypto wallet/fake investment website. As time went on, Amy would check her balance on what she believed was a genuine trading platform – it showed significant growth, her initial $30,000 deposit soaring to over $170,000. However, after hearing about instability in the crypto markets, Amy decided that it might be time to withdraw some of her profits. Amy contacted the crypto business, which advised that she would need to pay an upfront sum of $4,500 to cover taxes – funds that Amy didn’t have readily available. Amy reached out to Michael and explained that she wanted to withdraw some of her money from her crypto investment but couldn’t afford to pay the upfront lump sum tax. Michael explained if Amy agreed to open a number of bank accounts and handle some fund transfers on his behalf that would “help to grow the Australian business”, she would be able to earn a 5% commission on each amount transferred and accumulate enough money to pay the lump sum tax. Amy agreed to the arrangement and funds began being transferred into the bank accounts Amy had opened. Michael would call Amy and request her to “transfer $x into the crypto wallet, then purchase this specific crypto coin”. The crypto wallet would then be emptied by Michael/Crypto Investments. How did the scam work? Amy unknowingly fell for a crypto investment scam. Michael convinced her to open an SMSF, allowing her to access funds that were meant to be preserved until retirement. The fake crypto platform showed huge growth, giving Amy confidence in the investment and making her feel good about the nest egg she believed was growing. By quoting her high upfront costs to access the funds, Michael manipulated her into becoming an unwitting money mule, engaging in money laundering and helping the scammers deceive other unsuspecting people out of their funds. Unfortunately, Amy has not only lost her super but has also become involved in criminal activity. The matter is now with the police and Amy faces possible prosecution for money laundering offences.   Source: MLC

Deeming rates changed for the first time in five years in September, which will affect the income the government estimates retirees earn from their investments. At the same time, Age Pension payments and part Age Pension cut off limits have also increased. Deeming rates used to estimate the income Age Pension recipients receive from their financial investments increased from 20 September for the first time since being frozen during the COVID-19 pandemic. The increase means retirees will be deemed to receive more income than previously from the same amount of financial investments. Pension payments are reduced by 50 cents for every dollar of additional income. But while that will see Age Pension payments reduced for some, it may be offset for many by an increase in Age Pension entitlements. There has also been an increase in the part Age Pension cut off limit and in the income limit for the Commonwealth Seniors Health Card – but once again, that change may be offset by the increase to the deeming rates. Many people mistakenly assume they’re not eligible, so it’s worth checking if you qualify under the new rules. Eligibility for the government Age Pension starts at age 67, though you can apply up to 13 weeks earlier. What are the new deeming rates and why do they matter? The deeming rate increased from 0.25% to 0.75% for the first $64,200 a single pensioner receives and the first $106,200 a couple receives. The higher deeming rate, which applies to the balance of any financial assets, increased by the same amount, from 2.25% to 2.75%. Age Pension payments increased in September 2025 Here are the maximum Age Pension payment rates that are in effect as of 20 September, paid fortnightly, along with their respective annual equivalents. Single payments rose by $29.70 per fortnight, while combined payments for couples increased by $22.40 per person. Maximum Age Pension payments from 20 September 2025 Payment Type Fortnightly* Annually* Previous fortnightly payment Previous annual payment Single $1,178.70 $30,646.20 $1,149.00 $29,874.00 Couple (each) $888.50 $23,101.00 $866.10 $22,518.60 Couple (combined) $1,777.00 $46,202.00 $1,732.20 $45,037.20 Department of Social Services Indexation Rates September 2025. *Includes basic rate plus maximum pension and energy supplements. Payments last increased in March 2025 and are likely to change again when they are next assessed in March 2026. Tip: Many people assume they’re not eligible for either a part or full Age Pension and therefore apply late or miss out on this and other government benefits. Age Pension income and assets test thresholds increase The government reviews the Age Pension income and assets test thresholds in July each year. The upper limits, also known as thresholds, increase in March and September each year in line with Age Pension payment increases. Whether you are eligible for the Age Pension depends on your age, residency and your income and assets. If your income and assets are below certain thresholds you may be eligible. When determining how much you’re entitled to receive under the income and assets tests, the test that results in the lower amount of Age Pension applies. Here are the income and assets test thresholds that apply as at 20 September, compared with previous thresholds. Assets test thresholds The lower assets test threshold determines the point where the full Age Pension starts to reduce, while the upper assets test thresholds determine what the cut off points are for the part Age Pension. If the value of your assets falls between the lower and upper assets test thresholds, your entitlement will be reduced. The higher your assessable assets, the lower the amount of Age Pension you are eligible to receive. Your family home is exempt from the assets test but your investments, household contents and motor vehicles may be included. Asset test thresholds from 20 September 2025 Payment type Full Age Pension limit Part Age Pension cut off Previous full Age Pension limit Previous part Age Pension cut off Single – homeowner $321,500 $714,500 $314,000 $697,000 Single – non-homeowner $579,500 $972,500 $566,000 $949,000 Couple (combined) – homeowner $481,500 $1,074,000 $470,000 $1,047,500 Couple (combined) – non-homeowner $739,500 $1,332,000 $722,000 $1,299,500 Source: Services Australia Age Pension Assets test thresholds Income test thresholds from 20 September 2025 The lower income test threshold determines the point where the full Age Pension starts to reduce, while the upper income test threshold determines what the cut off point is for the part Age Pension. Income includes things like payment for employment or self employment activities, rental income and a deemed rate of income from financial investments such as managed funds, super (if you are over the Age Pension age) or account-based pensions commenced after 1 January 2015. Income doesn’t include things like emergency relief payments. Income test thresholds from 20 September 2025 Payment type Full Age Pension limit Part Age Pension cut off Previous full Age Pension limit Previous part Age Pension cut off Single $218 per fortnight $2,575.40 per fortnight $212 per fortnight $2,510.00 per fortnight Couple (combined) $380 per fortnight $3,934.00 per fortnight $372 per fortnight $3,836.40 per fortnight Source: Services Australia Age Pension Income test thresholds If you have income between the lower and upper income test thresholds, your entitlement will reduce as your level of income rises. For example, the Age Pension payment for a single person earning more than $218 per fortnight will reduce by 50 cents for each dollar earned over $218. For a couple earning more than $380 per fortnight combined, the Age Pension payment for each person will reduce by 25 cents for each dollar earned over $380. Tip: The Work Bonus allows you to work and earn up to $300 per fortnight without affecting your Age Pension. If you don’t work, this amount accrues up to a maximum Work Bonus balance of $11,800. Commonwealth Seniors Health Card income limit increases From 20 September 2025, the income limit to qualify for the Commonwealth Seniors Health Card (CHSC) will be: Single: $101,105 per annum (an increase of $2,080). Couple (combined): $161,768 per annum (an increase of $3,328). You must be Age Pension age … Read more