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Since marriage equality was achieved in 2017, LGBTI people have had access to the same legal and financial rights as heterosexual married couples. Yet members of the LGBTI community still face some unique challenges when it comes to their financial wellbeing. So what do same sex couples need to know when it comes to planning their financial lives together? It’s been a long, hard road for Australia’s LGBTI community to achieve equality under the law, but thankfully, that’s now the case. From the Same Sex Relationships Act 2008, to the Sex Discrimination Act 1984 amendment in 2013, and more recently, the Marriage Act 1961 amendment in 2017, LGBTI people have won the right to live, work and marry free of discrimination. Despite the progress, some LGBTI people – who make up approximately 11 per cent of the population – still experience discrimination, harassment and hostility in many parts of everyday life. Research suggests this has a direct impact on their financial wellbeing, with LGBTIQ people 28 per cent less likely to own the home they live in, twice as likely to be single, and less likely to share their expenses, assets and retirement savings. Challenges for de facto couples For members of the LGBTI community who are in a de facto relationship (unmarried), there can be some extra hurdles when it comes to accessing their legal and financial rights. As Associate Professor Fiona Kelly and Hannah Robert, of La Trobe University, wrote at the time of the marriage equality debate in 2017, “while de facto couples may be able to assert some of the same rights as married couples, they often have to expend significant time, money and unnecessary heartache to do so”. If you’re in a de facto same sex relationship, here are three areas worth paying extra attention to: Tax time – do I have a spouse? The ATO considers you to have a ‘spouse’ for tax purposes if another person (of any sex) lived with you on a genuine domestic basis in a relationship as a couple. The ATO doesn’t specify how long you need to have been in a relationship or living together. If you have a spouse under tax law, you’ll need to include details of their income in your tax return. This is used to work out your household income, which affects your Medicare levy surcharge and private health insurance rebate, as well as certain tax offsets and benefits. Estate planning Keeping your estate planning documents up to date is especially important for de facto LGBTI couples, so you can be sure that your affairs will be handled according to your wishes. As Hall & Wilcox lawyers point out, “a de facto partner may not be considered next of kin and allowed to make medical and end of life decisions on behalf of their partner, or may have problems in proving their right to their deceased partner’s estate. This can force them to have to prove their relationship status in Court and is one of the significant legal benefits of marriage, as it removes this risk.”   An estate plan sets out what you’d like to happen to your assets and affairs when you pass away, or if you’re no longer able to manage your own affairs. It typically includes several documents that give instructions on how to distribute your financial assets, as well as who will have responsibility for the care of any dependents. These include:   your will total and permanent disability (TPD) and life insurance superannuation death benefit nominations powers of attorney and/or guardianship. Inheritance law can be complex, so it’s important to get professional legal advice to draft your estate planning documents. What about my superannuation? Superannuation law is another area that has undergone major reforms to standardise the financial rights for LGBTI individuals. Since 2008, same sex couples have been entitled to: nominate and receive superannuation death benefits upon the death of a spouse receive tax concessions on super death benefits split superannuation contributions make and receive a tax offset for spousal contributions establish SMSFs together If you’re in a de facto relationship, you’ll need to take extra steps to make sure your super death benefits (including any insurance benefits) are paid as you intended. The safest way to ensure your superannuation is paid to your partner, or another dependent of your choice, is to fill out a Binding Death Benefit Nomination. You must renew the binding nomination every three years to keep it current. Simply nominating a recipient in your will isn’t enough, because superannuation proceeds don’t form part of your estate in death. Instead, the trustee of your super fund must pay your benefit to “a surviving partner, children or dependents, or to the deceased’s estate”. If there’s no Binding Death Benefit Nomination in place, the trustee may distribute the funds according to your wishes – or not. Again, make sure you seek professional legal advice if you’re in any doubt about the best way to ensure your assets are distributed according to your wishes. Marriage equality was a major step towards bridging the gap between same-sex and opposite sex-couples when it comes to their legal and financial rights. As social attitudes and values continue to play catch-up, a growing number of LGBTI people are choosing to access quality financial advice to help them plan for their family’s financial future Source: Money and Life

Super is there to provide you with an income when you stop working and it may provide a tax-effective way to save for your retirement over the long-term. What’s probably more interesting, is in time, your super may become one of your largest assets. We don’t often think about that, but it’s a good reason why you may want to pay closer attention to it. Here are some things worth knowing or which may even interest you to investigate further. Who pays your super Generally, your super savings will build up over the course of your working life, as money you earn is put into super by yourself, or by your employer under the super guarantee, if you’re eligible. You can make additional voluntary contributions to your super to boost your retirement savings if you choose to. However, there are limits on the amount you can contribute each year and there are separate caps, depending on the types of contributions you’re making. Where your money’s invested Any time money is deposited into your super, it’s invested on your behalf by the trustee of your super fund. Investments can be made into property, shares, cash deposits and other assets depending on your default investment profile, or if you’ve made your own investment selections. Most funds will allow you to choose from a range or mix of investment options and asset classes and choosing the most suitable option will typically come down to your attitude to risk and the time you have available to invest. How to see what your employer’s paying you Super guarantee (or SG) contributions made by your employer, if you’re eligible, should be at least 10% of your ordinary (not overtime) earnings if you’re making $450 or more each month. Note, others may also be eligible. Meanwhile, as these contributions may be the foundation of your future savings, it’s important to check they’re being paid correctly. You can do this by reviewing your payslips, checking your super statements, calling your super fund or logging into your online account to see what’s been put in. Keep in mind, employer super contributions also only have to be paid into your fund four times a year (at a minimum), on dates set by the ATO, which means your super may be paid at different times to your employment income. Where to go if something doesn’t look right If your employer hasn’t paid your super, speak to the person who handles the payroll at your work. If you’re not satisfied with what they tell you, you can lodge an unpaid super enquiry with the ATO. How your current super balance stacks up In many cases you can check out your super balance online via your super fund’s website or the statements they send you. Meanwhile, if you’re interested to know how your balance fares and what you might need each year in retirement, the Association of Superannuation Funds of Australia puts out a report each quarter. If you’re curious to know how your super balance shapes up against others your age, check out the average super balances for employed people of different age groups across Australia. How to find your lost or unclaimed super At last count, there was more than $13 billion in lost and unclaimed super waiting to be claimed across Australia. That can happen when you set up a new super fund and forget to roll over what you accumulated in a previous one, or if you forget to update your details with your providers when you change them. You can search for lost or unclaimed super by doing a super search with your current super fund or by logging into your MyGov account to find your super funds. What to look out for if you roll two funds into one If you have more than one super account, there may be advantages to rolling your accounts into one, such as paying one set of fees and less paperwork. If you do decide to consolidate, make sure you don’t risk losing features and benefits including life and other insurance that may be attached to the account you’re considering closing How to check your insurance if you have it Most super funds let you pay for personal insurance out of the money in your super fund, but there are pros and cons worth weighing up. For instance, insurance through super can often be cheaper than personal insurance bought outside super, but you may not get the same level of cover. How to make sure the right people get your money if you pass away If you don’t nominate a beneficiary with your super fund, your super fund may decide who receives your super money when you pass away, regardless of what you have in your will. There are generally two types of beneficiary nominations you can make, binding and non-binding. If you make a binding nomination, your super fund is required to pay your benefit to the person or people you’ve nominated, as long as the nomination is valid when you pass away. Keep in mind, some binding nominations are lapsing and may only remain valid for three years. If you make a non-binding nomination, your super fund will have the final say as to who receives your super benefits, but they will attempt to find all potential beneficiaries and decide who’s the most appropriate. What age you can withdraw your super The government sets general rules around when you can access your super, which typically won’t be until you reach your preservation age (which will be between 55 and 60, depending on when you were born) and meet a condition of release, such as retirement. At this time, you may choose to take the money as a lump sum, income stream, or even a bit of both. Meanwhile, there may be some special circumstances where you may be able to withdraw your super early. When can you no longer contribute to super Once you turn 75, generally you … Read more