Opportunities for Advisers
Same-Sex Couples
Same-Sex Legislative changes took effect from 1st July 2009. The definition of spouse has been amended in various tax laws to include a same-sex spouse and will impact on the following areas:
- Tax Offset for Dependant Spouse
- Senior AustralianTax Offset
- Medicare levy Assessment
- Main Residence CGT exemption
- CGT rollover relief on relationship breakdown
Same-sex couples may now benefit from:
- Spouse Super Contributions offset
- Splitting of Concessional Contributions
However Same-sex relationships are now recognized for Centrelink and Family Assistance purposes. This may have some adverse impact on the couple’s finances.
It is imperative that same-sex couples’ financial plans be reviewed in light of the above changes and strategies be put in place to take advantage of the changes while mitigating the reduction in concessions.
New Work Bonus
This replaces the Pension Bonus Scheme which closed on 20 September 2009. Individuals working past the Age Pension age would have 50% of their employment income up to $250 per fortnight excluded under the Income Test.
However the bonus is not available to self-employed pensioners unless they operate under a private trust or company structure. It is worth reviewing the business structure of the self-employed and how they are remunerated and draw funds from their structure.
Centrelink
Why not review all the clients who are on a part-pension? If they are Income Tested, reducing their minimum pension payment to the Centrelink Deduction Amount will enhance their pension.
UK State Pension
From 6 April 2009, certain people will be able to contribute an additional six years of voluntary Class 3 National Insurance contributions (NICs) under new legislation in the Pensions Act 2008. This is over and above those permitted under the current time limits, in order to enhance their basic State Pension entitlement. Find out more by clicking on this link.
It may be worth reviewing all clients who come from the UK!