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The average Australian property investor could lose money in their first year, with those in the nation’s two largest capitals likely to be more than $23,000 out of pocket in just 12 months. With a mix of stamp duty and land tax outstripping rental returns and major capitals thought to be approaching home value peaks, in many cases it could be years before landlords turn a profit. Figures showing just how much investing costs in the first year of ownership by Property Investors Council of Australia director Ben Kingsley have been released along with a warning over any further consideration of scrapping negative gearing at the next federal election. His figures show that after 12 months owning a $937,289 investment in Melbourne, out of pocket expenses are likely to leave an investor there $26,798 in the red – the worst figure in the country. The loss is calculated based on a 3.1 per cent rental return of about $29,056 a year being deducted from a $53,717 stamp duty bill and $2137 in land tax. Despite a far higher $1,441,957 median house value that added almost $10,000 more in stamp duty to the typical Victorian figure, Sydneysiders are slightly better off with an expected $23,762 loss. The bleak calculations from Empower Wealth boss and PICA director Ben Kingsley show at the end of the past financial year, investors just buying in would have been poised to incur losses across almost every major capital. First year investment profit estimates by capital city Sydney: -$23,762 Melbourne: -$26,798 Brisbane: -$5114 Adelaide: -$17,144 Perth: $1155 Hobart: $783 Darwin: $6393 Canberra: -$6244 Estimates do not factor in capital growth, interest costs, property management fees or tax adjustments due to high variability. (Source: The Property Couch Podcast) In Adelaide the $811,059 typical house purchase would leave an investor $17,144 out of pocket a year on, while in Brisbane there would be a $5114 shortfall after investing in the city’s $937,479 median home price. With Canberra also taking a loss, only Perth, Hobart and Darwin were in the black. Mr Kingsley said while some investors might expect to take a loss in their first year, few would expect it to be in the tens of thousands of dollars. While rising investment lending would seem to suggest many were taking this on, the property pundit noted that the data did not distinguish between commercial and residential investments – and he believed it was likely there was substantial growth in people buying industrial, retail and office assets that offered more favourable conditions for landlords. The property pundit said that over five years in most capitals the losses would be covered by capital gains for people buying a home with a traditional deposit. But for those leveraging equity in their own home to do so, rather than putting down cash, it was probable they would take longer. Source: realestate.com.au

Did you know you can have insurance cover in your super fund? If you have super, you might also have some automatic insurance cover. It’s called insurance in super and is exactly what it sounds like – insurance cover available through your super account. Insurance in super is designed to assist you and your family financially if you become unable to work due to illness or injury or in the event that something happens to you. Why get insurance through your super? Having insurance through your super can help protect you and your loved ones when you need financial security the most. Insurance in super can also be tax effective and convenient. This is because the cost of your insurance cover, also known as premiums, are deducted from your super account – which means your take home income won’t be impacted. When you have insurance in super, the premiums are paid from your super balance. This means you don’t have to pay premiums from your own pocket. However, your employer may, or you can make contributions to assist in funding the premiums. It is important however to check how much you’re paying in insurance administration fees and be aware that having insurance in super will reduce your super balance. Types of insurance cover Death insurance cover   Total & Permanent Disablement insurance cover Income Protection insurance cover If you die or you’re diagnosed as likely to die within 24 months due to a terminal illness – you’ll be able to financially assist your loved ones through a lump sum benefit. If you become totally and permanently disabled, Total and Permanent Disablement (TPD) cover can help ease financial pressures by paying you a lump sum benefit amount. If you’re unable to work due to illness or injury, Income Protection cover can provide you with ongoing income and financial support by paying you a regular income.   Find the right insurance cover for you The right level of cover for you depends on your personal circumstances, lifestyle and future needs. When you look at insurance cover and how much you need there are several things to consider, including: Day to day living expenses that your salary covers. Any debts – mortgages, credit cards, personal loans. How much income you (and your family) need to live comfortably. Future costs such as medical care, education for your children or yourself, and the costs associated with anyone you support financially.     How much does insurance cost through super? The cost of your insurance cover may depend on your age, gender, occupation, medical history, health factors, lifestyle, income and employment arrangements. Things to consider with insurance through super It’s important to know that your retirement savings are reduced by the cost of your insurance premiums. That’s because premiums are deducted from your super balance to pay for your insurance cover. You need to check what other insurance cover you may have. If you have more than one super account, you may be paying premiums for multiple insurance covers you may not need. This will reduce your retirement savings, and you may not be able to claim on multiple covers. You can search for any other super account you may hold online using MyGov. You may also hold insurance cover outside of your super account. The type and amount of insurance cover that’s right for you depends on your personal, family and financial circumstances – as well as your income and lifestyle. As an example, an expanding family or a reduction in personal debt may impact your choice of the type and amount of cover you have. A financial adviser can help you decide the insurance cover that’s right for you and way to pay for your premiums in super. Keep an eye on your insurance cover You should be aware that your insurance could be cancelled if your account hasn’t received contributions for at least 16 months, unless you have elected to keep it. If you want your insurance cover to continue in an existing super account which hasn’t received any recent contributions, you need to contact your fund and opt in to retain any insurance in your account or make a contribution to your account.   Source: MLC  

Two in five Australians say they are not on track to meet their long term financial goals, according to new research from Colonial First State (CFS)1. When they were asked why, there was one thing the majority struggled to do. Read on to learn more, as well as practical tips to help you get back on track. Australians felt more positive about their long term financial future in 2024 than they did a year ago, according to research CFS conducted into financial literacy and planning for the long term future. In the three months to September 2024, 44% of Australians said they were feeling prepared for when they eventually stop working, up from 37% a year earlier. However, almost two in five (38%) Australians say they are not on track to meet their long term financial goals when they eventually stop working. In addition, 35% say they aren’t confident they will ever reach those goals. Why aren’t people on track to achieve their financial goals? What’s the number one reason the majority of Australians fail to reach their long term financial objectives? Not saving enough was by far the biggest contributor to people getting off track financially at 60%, followed by failing to plan for when they stop working, nominated by 39% of Australians, and not knowing how much they needed to save, named by 37%. The good news is there are some achievable, practical steps you can take to help get your finances back on track for the long term: Use online tools and calculators to help quantify your goals Having some idea of how much you might need to save is the first step. You can use online calculators to estimate how much you might need in your super, taking into account your goals, your current super balance, your income and how long you expect to continue working. The government’s Moneysmart website also has some great calculators to help you set savings goals, accounting for the benefits of compound interest; and it offers ideas to help you reduce your expenditure and debt, if needed. Use the tax benefits of the super system to help you save Your employer pays the equivalent of 11.5% (increasing to 12% from 1 July 2025) of your pretax salary or wages in compulsory super contributions into your super fund to help you save for the long term. Salary sacrificing a bit extra from your pretax pay into your super is a great way to make up some ground if you’re looking to catch up on your long term saving goals. You can arrange for your employer to make additional super contributions on your behalf. These salary sacrifice contributions are generally only taxed at 15% (unless you earn over $250,000 a year), which makes them a very tax effective way of saving. Salary sacrifice is a recurring arrangement, so your employer will keep making the additional contributions until you ask them to stop. It can be a great way of saving money for the long term, potentially without noticing it as much. For example, one strategy might be to revisit the government’s recent Stage 3 tax cuts and ask your employer to salary sacrifice any additional take home pay into your super. Keep in mind that both your compulsory employer contributions and your salary sacrifice contributions count towards the annual concessional contribution cap of $30,000. Any contributions that you make and claim a tax deduction for are also included in this cap. Salary sacrificing and making personal contributions you claim a tax deduction for both reduce your taxable income, so if that drops you into a lower tax bracket, it may have an additional benefit. There are also other types of contributions you can make to your super. Take advantage of unused carry forward contributions You may be entitled to contribute more than $30,000 at the 15% tax rate using what are known as carry forward contributions if you have paid less than your cap limit into super in any of the previous five financial years. This may be particularly helpful if you have spent some time out of the workforce, for example to care for a relative or due to ill health. However, this only applies if you had a total superannuation balance of less than $500,000 on 30 June of the previous financial year. For this strategy to be effective, you also need to have sufficient taxable income2. Look into special provisions for older Australians if relevant Even if you’re older, there are options available to help you get your finances back on track for the long term, such as when you reduce your working hours or stop working altogether. These include: Downsizer contribution: From the age of 55, you may be eligible to make a downsizer contribution of up to $300,000 to your super using the proceeds from the sale of your home. So if you have decided to sell up and downsize into a smaller more manageable property, this could provide an opportunity to top up your super tax free, and you can also withdraw it tax free later on. Both members of a couple can take advantage of this, making a total of $600,000 that can be contributed into super. Keep in mind the Association of Superannuation Funds of Australia recommends a super balance of $690,000 per couple or $595,000 for a single person3, so depending on your goals, this option, if it makes sense for you, could get you close. Transition to retirement (TTR): If you’ve turned 60 but haven’t yet retired, it may be worth considering a TTR pension, which enables you to work full time, withdraw up to 10% of your TTR pension account as a tax free income stream, and continue to contribute to your super. TTR income stream payments can provide you with more cashflow to make additional contributions to super like salary sacrifice or personal contributions. This can boost your super tax effectively if the contributions are higher than what you’re drawing from … Read more

You may be eligible to purchase your first home with as little as 5% deposit via the First Home Guarantee Scheme. Here’s how it works. First Home Guarantee Scheme: financial support for first home buyers The First Home Guarantee Scheme is an Australian Government initiative to support eligible first home buyers to buy a home sooner. Under the First Home Guarantee Scheme, the Government will provide a limited loan guarantee of up to 15% of the home value. This may enable you to buy your first home with a deposit of only 5%1 and no lenders mortgage insurance (LMI) will be payable. In 2024/25, 35,000 home loans are available under the First Home Guarantee Scheme. Key points of the First Home Guarantee Scheme You’ll need to earn less than the income limit and meet other eligibility conditions. The purchase price will be capped, depending on the property’s location. You need to move into the home as your main residence within certain timeframes. Who may be eligible for the First Home Guarantee Scheme? To be eligible for the First Home Guarantee Scheme, you must: be an individual or two joint applicants be an Australian citizen or Australian permanent resident aged 18 years or older earn a taxable income of less than $125,000 p.a. (for individuals) or $200,000 p.a. (for joint applicants combined), based on the last financial year be a first home buyer or not have owned Australian real property (including land) in the last 10 years intend to be an owner occupier of the purchased property be purchasing a home (both newly built and established properties qualify under this scheme). For more information about the types of properties that may be eligible and important timeframes, see housingaustralia.gov.au. What types of homes can I buy with the First Home Guarantee Scheme? Under the scheme, you’re able to purchase an eligible residential property which includes: an existing freestanding house, townhouse or apartment a house and land package land and a separate contract to construct a home off the plan townhouse or apartment. Certain requirements apply depending on the type of property and contract you’re entering into. What are the property price caps for the First Home Guarantee Scheme? Caps apply to the purchase price to ensure participation is spread fairly across the country. The capital city price caps will apply to large regional centres with a population over 250,000, namely the Gold Coast, Newcastle and Lake Macquarie, the Sunshine Coast, Illawarra (Wollongong) and Geelong. Price caps for 2024/25 State/territory Capital city and regional centres Rest of state NSW $900,000 $750,000 VIC $800,000 $650,000 QLD $700,000 $550,000 WA $600,000 $450,000 SA $600,000 $450,000 TAS $600,000 $450,000 ACT $750,000 NT $600,000 Jervis Bay Territory and Norfolk Island $550,000 Christmas Island and Cocos (Keeling) Islands $400,000 What’s the downside of the First Home Guarantee Scheme? While the First Home Guarantee Scheme may help you buy your first home sooner, you need to keep in mind that a smaller deposit means a bigger loan. And a bigger loan means bigger loan repayments, as well as higher total interest payments over the life of the loan. It may be the case that the additional interest payable outweighs the LMI savings. To find out whether the First Home Guarantee Scheme is right for you, you may want to speak to a financial adviser. Also, if you move out of your home for an extended period of time and rent your home out, the loan may no longer be guaranteed by the Government. You may need to pay additional fees and charges, as well as LMI, depending on factors such as the value of your home and your outstanding debt at that point. Which lenders are participating and how do I apply? Applications can be made directly via one of the approved lenders or their authorised representative (such as a mortgage broker). Housing Australia has authorised a specific panel of participating lenders to offer the Home Guarantee Scheme to home buyers. What lending rules apply to the First Home Guarantee Scheme? You’ll need to meet your lender’s normal credit criteria to ensure you can service a loan of up to 95% and provide evidence you’ve saved the 5% deposit. Loans must be principle and interest (not interest only) and terms can be up to 30 years. What other assistance programs are available? The First Home Guarantee scheme complements (but doesn’t directly interact with) other Government assistance programs. These may include the: First Home Super Saver Scheme, where you could save for the deposit on your first home in the concessionally taxed superannuation system. First Home Owner Grant, which offsets the effect of Goods and Services Tax on buying or building a home. State and Territory based stamp duty concessions. 1 Individual lenders may require a larger deposit, based upon lending criteria and your personal circumstances. Source: MLC

Whether you’re starting work for the first time or you’re changing jobs, there are key things to know and do. When negotiating pay for the role, pay close attention to the remuneration package. The more you earn, the easier it will be to save and invest more. So, before you accept the role, ask if they can raise the starting salary. It is unlikely you will get a review within 12 months so you could miss the annual review time and it may mean waiting much longer than 12 months. If this is not possible, you could try to negotiate an earlier review time. Be very clear about your salary package. Is super included in the pay quoted to you or is it an addition? This makes a difference to the amount you take home. And if the super rate is changed, you might find it eats into your take home pay. Upon starting, you will be asked for your bank account details and super fund details. It’s a good time to consider your choices. Is your bank account the best one for you? Should your pay be deposited into an offset account if you have a mortgage? This is a great strategy to reduce the interest you pay on your mortgage. If you don’t have an offset account, or a mortgage, consider setting up a special high interest savings account to deposit a percentage of your pay into before you start earning your new salary. This way you will be building your savings without really feeling it. Where is your super going? If you haven’t had a job before, you might want to find a super fund that is relevant to your industry, is a brand name you are familiar with, or you may have found one on the super comparison sites. And while we’re on super, should you add a little more into your super from your pre tax salary? Just make sure you are not going to contribute more than the $30,000* of concessional super you are able to contribute annually. Check with your employer when they pay your money into your super fund and be vigilant about checking that you are receiving it. In 2023, the ATO estimated there was around $3.4 billion of unpaid super each year – money that employers are not paying their employees. Don’t jump into big expenses Remember, most jobs will have a probationary period of typically between three to six months during which time you may be terminated with only a week’s notice. Keep this in mind before signing up to any debt or big ticket purchases during that period. The first thing when people are starting a new job is to look at superannuation. What is the default fund? Is it suitable? Choosing a super fund is hard, there are so many, and they are so similar. There are four main things to consider. Look at the fees. You don’t want fees to eat away at your balance but you don’t necessarily want the cheapest if they don’t have features you want – such as online access or being able to choose your own investment mix. Do they offer insurance? For some of us, this is the only insurance we’re going to have. If you’re under 25 you might not have dependents but it’s a good time to make sure you have Total Permanent Disability (TPD) insurance which is often packaged with life insurance. TPD covers accidents or illnesses which will prevent you ever working again. Being insured could make a meaningful difference to your life in these situations. Are there investment options that suit you? For example, if you want to invest in sustainable options, does your fund offer them? Are you able to log in easily and be active? Can you see your balance, change your investment options, update your insurance? Making your salary last Salary packing is something else to consider, especially if you are working in a charity or a hospital where there are certain FBT exemptions. Talk to your accountant, adviser or HR representative if you are in these occupations. For some people there is an opportunity to pay an amount of pretax earnings into their mortgage. Others may choose to spend on dinners, utilities and a range of other expenses. Be sure that you do the research to make sure you understand all the implications, especially with offers such as novated leasing. These obligations can bite over the long run. Other benefits Wherever you are working, ensure you make the most of opportunities that are offered. This might include an annual training budget – tap into this to ensure you continue growing your skills – or a mental health day. *From 1 July 2024, the concessional contributions cap is $30,000. From 1 July 2021 to 30 June 2024, the concessional contributions cap for each year was $27,500. Source: Money & Life

Watching your ageing or frail parents or loved ones struggle with some of life’s basic activities such as cooking, cleaning or caring for themselves can be difficult – and yet they will invariably want to retain their independence and live in the comfort of their own home as long as possible. It’s at this point many people start to investigate the various home and aged care options available. Home care services can range from assistance with personal care and domestic duties, to the provision of transport or nursing services – basically, any form of care that your loved one can receive, that helps them to continue to live (mostly) independently in their own home. Aged care can involve your loved one receiving home care, community support or moving into a more traditional residential aged care or nursing home facility. All forms of care require careful consideration and come at a cost – some of which may or may not be subsidised by the government. What are the indicative costs of professional home care? The Department of Human Services’ My Aged Care site provides detailed information about the costs associated with home care packages. It suggests that if you are thinking about a home care package, you’ll first need to have your loved one’s care needs assessed by the Aged Care Assessment Team (ACAT) as soon as possible. Your loved one must be assigned a home care package to receive government subsidies. The value of the home care package will depend on the level of care your loved one needs. Home care providers may then charge three types of fees – the basic daily fee, an income tested fee and potentially fees for additional services. All recipients of home care packages will pay the basic daily fee. The basic daily fee for a home care package is up to 17.5% of the basic single age pension rate, which is $12.75 per day (in July 2024). The fee will depend on the package level received and it changes with increases to the age pension every 20 September and 20 March. Those on full pensions will only pay this fee. Those on part pensions and self funded retirees may also pay the income tested care fee in addition to the basic daily fee. This fee is different for everyone because it is based on individual income levels, but the maximum amount of income tested care fee that your loved one can currently be charged, is $18.30 per day for part pensioners and self funded retirees with income up to: for single with income up to $63,559.60 p.a. for partnered with income up to $48,588.80 p.a. for partnered but separated due to illness with income up to $62,883.60 or $36.60 per day for people with income above those thresholds. The care provider may also charge to the home care package administration, case management, and other costs agreed to in the Home Care Agreement. Amounts that exceed the value of the home care package, and any additional services excluded from the Home Care Agreement, must be paid for by your loved one. Some issues with relying on government funded home care There can be complications when applying for government funded home care packages, which may mean your loved one will need to fund these services out of their own pocket. For example, your loved one might have an accident, illness or sudden loss of capacity, and they may require home care sooner than the government funded options are able to provide. There can be long waiting lists for government funded home care due to the limited number of packages available – even if you are approved for home care due to health, it doesn’t mean you’ll be able to access it straight away. Home care packages are assigned by order of priority to those who most need the services and the time they have waited for care, and it’s done nationwide. If you notice your loved one is starting to struggle or become ill, it may be worth exploring home care options sooner rather than later and get your loved one assessed as soon as possible. Options for privately funding home care services If your loved one is ineligible for a home care package, or is on the waiting list, there are a few common ways to fund these services. Commonwealth Home Support Programme The Commonwealth Home Support Programme is another government subsidised program which provides home help for people over 65 (or over 50 and identify as Aboriginal or Torres Strait Islander, or on a low income, homeless or at risk of being homeless) who need some help with daily tasks to live independently at home. Under this program, a home support assessment is required – and it provides access to domestic help such as cooking, cleaning, bathing, driving to the doctors and doing the shopping. While contributions towards specific services under this program are not fixed, these are substantially cheaper than if services were to be engaged at commercial rates. There are arrangements for those who cannot afford to make contributions. Drawing down savings or accessing equity in your home Drawing down on savings is another way some people choose to fund home care if they’re not eligible for any of the government funded options. If this is the option you’re looking at for your loved one, it’s worth speaking with a financial adviser to figure out how age pension entitlements may be affected and ensure that savings are best structured to continue earning the highest returns possible, whilst funding home care services. Drawing down on the equity in yours or your loved one’s home is another potential option to access funds – again, it’s recommended to speak with a financial adviser to understand the implications of this strategy. Accessing superannuation through compassionate grounds In some circumstances, the Australian Taxation Office (ATO) can approve the early release of a portion of superannuation on compassionate grounds to pay for medical expenses, mortgage repayments, disability, or … Read more

The rising cost of living is causing a strain on household budgets for many Australians. As a result, more are turning to side hustles and passive income opportunities to supplement their income. In this article, we explore a range of side hustles accessible to people of all ages. #1 side hustle idea: deliveries A popular side hustle idea that has emerged in recent years is delivery services. There are now more opportunities than ever to earn money as a delivery driver or ride service through companies like Uber, Uber Eats and DoorDash. These services are simple to sign up for, require minimal investment and offer flexible schedules to To get started as a delivery driver, you’ll need a reliable vehicle, a smartphone and a driver’s license. The income you can expect to receive from deliveries will depend on the specific delivery service you choose and the number of deliveries you complete. On average, delivery drivers in Australia can earn anywhere from $20 to $40 per hour1. The time commitment required for deliveries can vary but it is generally quite flexible. Most delivery services allow you to choose your own hours and work as much or as little as you want. #2 side hustle idea: market research Another idea is market research. Companies are always looking for feedback from consumers on their products and services and they’re willing to pay for it! Market research can involve anything from filling out surveys to participating in focus groups or product testing. To get started in market research, you’ll need good communication skills and the ability to follow instructions. You may also need access to a computer or smartphone, as many market research companies conduct their surveys online. Some companies may require you to have certain demographic characteristics too. From participating in market research studies, you can expect to earn between $80 to $120 per study but this can vary2. Some in person focus groups or product testing may pay even more. The time commitment required for market research studies can vary. Online surveys can typically be completed in a few minutes to an hour, while focus groups or product testing may require a few hours of your time. #3 side hustle idea: content creation If you have a talent for writing, photography, or video production, content creation could be an excellent side hustle idea for you. Many businesses and individuals require content for their websites, social media accounts and other digital platforms. This includes creating blog posts, videos, social media content and more. If you have an interest or experience in graphic design, photography, or video editing, you can offer these services as well. To get started in content creation, you’ll need a good portfolio that showcases your skills and experience. You may also need equipment like a camera or microphone, depending on the type of content you want to create. The income you can earn will depend on the type of services you offer, your level of experience and the demand. On average, content creators in Australia can earn an average of $109 per hour3. The time commitment required for content creation will depend on the specific services you offer and the amount of work you take on. You could spend anywhere from 5 to 20 hours per week. #4 side hustle idea: investing in shares Investing in shares can be a great way to earn passive income over the long term. While it is not a get rich quick scheme, it can be a positive way to grow your wealth over time. Before investing, it’s essential to educate yourself on how the share market works. You may also consider ways to mitigate risks through investment strategies like diversification. Depending on your level of knowledge and experience, you may need to considering working (or engaging) with a financial coach or investment firm to help you make informed decisions about your investments. The income you can earn from investing in shares can vary widely, but over the long term, the share market could provide positive returns. It’s important to remember that investing in shares comes with risk and it’s not a guaranteed source of income. The time commitment required for investing in shares can vary depending on your investment strategy. If you’re investing in shares, you’ll need to research and keep up to date on the companies you invest in. You can expect to spend at least a few hours per week on this side hustle idea. Important considerations before starting a side hustle Time commitment: before starting a side hustle, it’s important to evaluate how much time you can realistically commit to it. Will it interfere with your primary job or personal life? Make sure you can balance your time effectively. Legal requirements: depending on the type of side hustle you choose, you may need to obtain permits, licenses or register a business name. Be sure to research and comply with any legal requirements. Financial investment: while many side hustles require minimal investment, some ask for significant investment upfront. Make sure you understand the costs involved and budget accordingly. Skills and experience: consider your existing skills and experience when selecting a side hustle. Choose something that aligns with your strengths and interests to increase your chances of success. Market demand: research the market for the side hustle idea you’re considering to determine if there’s a need for it. Will you be able to earn enough income to make it worthwhile? Work life balance: consider whether your side hustle idea will add more stress to your already busy schedule or provide a fulfilling way to earn extra income. 1 Indeed: Delivery driver salary in Australia https://au.indeed.com/career/delivery-driver/salaries/ 2 Research Connections – Paid market research: https://researchconnections.com.au/paid-market-research-faq 3 Adobe future of Creativity: https://www.adobe.com/content/dam/cc/au/newsroom/pdf/2022/Adobe_Future_of_Creativity_2022.pdf   Source: MLC

Many people have a good idea of what super is and how much of their money goes into it. But there are some gaps when it comes to the basics, such as when you can access it and how super is taxed. Read on for a cheat sheet summary of ten top things to know about your super. Many Australians know how much of their salary or wages their employer must pay in compulsory super contributions but there’s a lot of confusion when it comes to critical information, such as the age at which you can access your super, how women fare on average within the super system, and how your super is taxed. Q1. What is super? Super is money put aside throughout your working life for you to live on when you retire from work. Q2. How much of your salary or wage does your employer currently have to put into your super? Your employer must pay into super on your behalf, also known as the Superannuation Guarantee, this is currently 11.5%. This goes up to 12% on 1 July 2025. Q3. How are the investment returns on my super taxed? The total taxable income a fund receives is taxed at up to 15% (including two-thirds of any realised capital gains). Q4. What types of employees aged 18 or over must be paid compulsory super by their employer? Full-time, part-time and casual employees must be paid the Superannuation Guarantee by their employer. Q5. How does the average Australian woman’s super balance compare with that of the average Australian man when approaching retirement? According to the Australian Government’s 2024 Status of Women Report Card, women generally retire with about 25% less super than men, as women are disadvantaged by a range of structural issues. These include that they earn less than men on average and are more likely to take time out of the workforce to have children or care for relatives. Q6. From what age can you access your super after retiring? You can actually access your super from age 60 if you’ve retired from a job (and it’s tax-free). It’s also possible to access super under other circumstances: for instance, if you meet the release conditions related to experiencing financial hardship or if you’ve turned 60 and you want to keep working but you set up a transition to retirement pension. Q7. How much super would you need to retire comfortably as a single homeowner in Australia, according to the Association of Superannuation Funds of Australia’s (ASFA) Retirement Standard^? ASFA nominates $595,000 as the amount a single homeowner should have in their super when they retire to enjoy a comfortable retirement, rising to $690,000 for a couple. Q8. Can you make extra contributions to your super? Yes, there are a number of ways you can contribute extra to your super on a pre-tax and after-tax basis. There are some limits to the amount you can contribute each year, also known as contribution caps, but making extra contributions can make a big difference to your super balance over time, as well as having the potential to reduce your tax. Pre-tax, or concessional contributions are only taxed at 15% but you can only contribute up to $30,000 a year (including compulsory employer contributions). You may also be able to contribute more than this if you have not fully utilised your concessional cap in any of the previous five financial years. After-tax, or non-concessional, contributions are capped at $120,000 a year. If you’re under age 75 any time during a year, you may be able to apply the ‘bring-forward’ rule. This may allow you to make up to three years’ worth of non-concessional contributions at any point during a three-year period, depending on your total superannuation balance at the end of the previous financial year. Q9. Who gets your super if you die? Depending on the rules of your fund, your super can be paid directly to your beneficiaries or to the executor of your estate, to be paid in accordance with your will (or the laws of intestacy if you die without a will). However, a common misconception is that super is automatically considered part of someone’s estate – in fact, it’s important to nominate who you want your super to go to. This is because super is ‘held in trust’ for you by the trustee of your super fund. Death benefit nominations work like a will, giving you a level of control over what happens to your super balance when you’re gone. If you don’t complete a benefit nomination, your super fund may decide who your super is passed on to. Q10. What are some ways you can better understand the role your super can play in your financial future? Check out the website of your super fund. Visit ASIC’s Moneysmart website for more information and calculators on super. Contact a financial adviser for personal, ongoing financial advice.   Source: Colonial First State

Preparing yourself for retirement Retirement can cause a range of emotions so it’s important to prepare yourself emotionally as well as financially. Here’s some tips to improve health and wellbeing in retirement: Give yourself time: coping with major life changes is never easy. Allow yourself the time you need to figure everything out. Add structure to your days: while you may not miss your morning commute to work, you may miss the daily routine of eating lunch at a certain time or chatting with colleagues during a coffee break. Try to establish a loose daily schedule to create a sense of comfort. Stay active: engaging in activities that you enjoy and find fulfilling can help you maintain a sense of purpose. Consider volunteering, taking up a new hobby, or exploring new interests to keep yourself engaged and motivated. Remain connected: maintaining social connections with friends and family can provide support. Consider joining social groups or clubs in your community. Set new goals: you may have achieved many of your professional goals but it’s important to keep setting new goals to strive towards. This can energise you and provide a sense of purpose while helping to redefine your identity. Remaining physically active in retirement Regular exercise has many health benefits including reducing the risk of chronic diseases, such as heart disease, diabetes and stroke. In addition to the physical benefits, exercise is one of the best remedies for improving mental health – it stimulates endorphins which helps to reduce stress and anxiety. Here’s some tips on how to remain physically active. Make it a habit: consider setting a goal to exercise for a certain amount of time each day or week and gradually increase it over time. Find a workout friend: a partner to exercise with can make it more enjoyable. Choose activities you enjoy: consider trying different activities, such as swimming, golf, yoga, gardening or dancing to find what works best for you. Stay active: consider taking regular breaks from sitting to stretch, walk, or do light exercises to stay active throughout the day. Remaining mentally active in retirement Staying mentally active is just as important for having a happy retirement as being physically active. Regularly engaging in intellectual activities can help improve cognitive function, memory and concentration. It can also help reduce the risk of dementia and Alzheimer’s disease. More importantly, it provides a sense of fulfillment and purpose. By engaging in new experiences, you can accomplish new challenges and continue to grow as a person. Here’s some tips on how to remain mentally active in retirement. Engage in intellectual activities: challenging your brain with intellectually stimulating activities, such as reading, puzzles, or learning a new language, can help keep your mind sharp and active. Try something new: learning a new skill or hobby keeps your brain engaged. Consider taking up painting, writing, or playing an instrument to challenge your mind in new ways. Travel and explore: new places can provide different experiences. Visiting museums, historical sites, and cultural events can also provide mental stimulation and learning opportunities. Volunteer: volunteering can provide a sense of purpose and help you stay engaged in your community. It’s also an opportunity to meet new people. Retirement can be an exciting and fulfilling phase of life if you plan and prepare well. Taking care of your mental and physical wellbeing can help you find a new sense of purpose. Source: MLC

When property prices are rising, renovating for a quick return is a popular investment strategy. But when markets are sluggish, improving a property before ‘flipping’ it, can also generate profits for savvy investors. Buying to flip When you flip a property, you’re buying a dwelling that you believe is undervalued, which you then improve and sell within a short period of time for a capital gain. The key to a ‘renovate and flip’ or a quick turnover strategy lies in knowing the right type of improvements to make to generate the best returns. Repainting, for example, can be less expensive when compared to other renovation jobs and you can restore a tired looking property quite quickly with an exciting new colour palette. Best of all, you may be able to do it yourself over a couple of weekends. That said, before you start a renovation, even before you splash on a coat of paint, be sure to do some research and check out the prices renovated properties in your area are selling for. It’s pointless spending the money and doing the work unless there’s a clear financial benefit down the track. Also, if you choose to renovate an apartment, townhouse or villa, you need to check with the strata management first to make sure it’s allowed. One noteworthy improvement that can increase the value of a strata property is enclosing a balcony to create a home office, study or sunroom (subject to your local council’s approval). Alternatively, making room in a kitchen or bathroom for a washing machine and dryer instantly creates an internal laundry. Other examples include adding a split system air conditioner, timber floating floors over concrete and using plaster to hide unsightly ceilings. One issue with flipping a property is that you may find the improvements or renovation take longer to complete than originally planned and the costs are higher. Cost blowouts can occur where there are unexpected problems with the home’s condition that need to be fixed before you start the improvements. Making adjustments and additions to the original contract of works with a builder can also hike up costs as the renovation proceeds. Gathering a number of building quotes, then keeping a lid on costs once the renovation gets underway, will help produce the best financial outcome for you. The role of a real estate agent An experienced licensed real estate agent can be a valuable ally in helping you secure the right investment property to flip. While the loyalty of a real estate agent is ultimately with the vendor, who pays their commission, finding a buyer is also central to their interests. Real estate agents have information for buyers and investors – you just need to know what questions to ask. Start by seeking an agent’s view on the asking pricing of a property and get them to justify it. Also ask the agent to provide you with a recent sales report that shows what similar properties in the area are selling for. It’s essential to make sure the price tag attached to a property is in step with prevailing market conditions. Likewise, you should also ask why the vendor is selling, as the answer could save you time and money. For instance, if the vendor has bought elsewhere, he or she may be very motivated to sell, especially if they’re paying bridging finance. Source: BT