If so you need to consider the capital gains tax (CGT) implications before entering the arrangement.

Sometimes parents take joint equity in a property where their children live. This means that the parents and the child are joint owners of the property but only the child and their family live in the home.

If the property ownership is passed solely to the child at any point, only the parents pay capital gains tax. The child escapes a CGT bill as it is their principal place of residence but for the parents it’s deemed an investment.

The CGT will be determined based on:
• the percentage ownership the parents have in the home
• the increase in the value of the property and,
• the amount of capital the parents contributed when purchasing the property

This can result in a significant tax bill for the parents without the funds from a sale to pay it.

If you are considering helping adult children purchase a home now or in the new year, speak to our accountancy and tax experts to get the right advice. Call for an appointment today 1300 118 618.

Recent economic data reveals that the Australian economy has fallen behind many of the world’s most advanced economies. Retail sales have fallen to their lowest levels since July 2009, with most retailers predicting a very slow Christmas and January. These factors led the RBA to leave rates on hold after the Melbourne Cup day rise in November.
The last rate rise in November stretched many families beyond their comfort levels. If you know someone who is feeling the stress about their financial situation, then talk to us. We’ll arrange and appointment with them to see how we can assist with their future.

We’ve discussed the underinsurance problems in Australia previously and this new research estimates that there are 300,000 SMSF members who need life insurance coverage, yet do not have it.

The level of default cover attached to superannuation can often be obtained without evidence of health and medical reports. When you leave a superannuation fund provided by your employer, the associated life insurance cover ceases.

Establishing the right individual cover can be complex and time consuming.

The Future Assist Insurance team is here to ensure that everyone with SMSF have the right level of life and other personal insurance coverage. If you are unsure if you have the right level of cover call the team today on 1300 118 618 for an insurance check-up.

Yet couple the high Australian dollar and the recovery of the US property market since the Global Financial Crisis and the result is the ideal property investment market.

Recognising the potential of the US market, CEO of Future Assist, Mike Gore travelled to the US in 2009 and 2010 to locate the area that presented the best returns for Australian investors.

The result is US Real Estate Holdings LLC (USREH) an investment vehicle that currently owns 80 investment properties in Indianapolis. The properties are renovated and then made available to rent.

The long term strategy for USREH is to build a portfolio of 200 to 300 income producing properties in Indianapolis.

A management team has been installed to oversee the properties, the tenants and to ensure that the returns on your investment are maintained. The team is also responsible for finding and installing quality tenants in each property.

One unique aspect of the USREH program is that the management team also oversees not just the regular maintenance of each property but also the regentrification of the suburb. All maintenance and garden-care for each property and any vacant allotments in the suburb is managed by USREH.

This unique program ensures the values of properties in the suburb are maintained and that all properties in the USREH portfolio are highly desirable to tenants. This will increase demand for these properties and the long-term value of the investment.

USREH has established a close working relationship with local government authorities and community groups as a part of its operating charter. By playing an active role within the community USREH will be a positive influence in region. This will contribute to the longevity of the investment and desirability of all properties within the portfolio.

As a Future Assist customer the opportunity to invest into the US property market is available to you via USREH.

To understand the opportunity and how investing in the US property market can supplement or start your property investment portfolio call Future Assist today on 1300 118 618 and make an appointment with our Property Team.

In the minutes from the RBA meeting two interesting things were revealed. Firstly, that the RBA expected that the major banks will lift their rates beyond the official increase. And the major banks did not disappoint, with all eventually increasing their rates more than 0.25 per cent.

The RBA also stated that it will factor in borrowing costs for households into future rate decisions. This means that decisions made in the future will consider the costs of mortgages imposed by the banks on households.

What does this mean for you? If Future Assist has structured your home loan then only a part of your loan will be affected by the rate rise; the component that is variable. The rest will remain unchanged. This provides you with certainty for repayments while providing you the opportunity to use your income to grow your investments rather than just pay off a home loan.

Would you like to provide this opportunity to your friends and family? If you know someone who is feeling the stress from this most recent rate rise, then talk to us. We’ll arrange and appointment with them to see how we can assist with their future.

While land tax may not cost much while members of a family are alive, once that situation changes, the land tax is then consolidated across those who inherit the estate. This can mean a greater tax burden on fewer people, hence an overall increase in the amount payable by individuals.

The UK has severe inheritance tax laws. If you inherit an estate from the UK and you reside in Australia, the British government will take 40% of the inheritance if it’s valued above £320,000 (AUD 534,534).

After your death, it’s too late for your benefactors. The only option is to ensure that your estate is established properly from the start.

Some Wills are straightforward and estates can be bequeathed simply.

However it is increasingly likely that a thought process needs to be undertaken to ensure that your hard estate is distributed they way you intend, whilst minimising likely taxes for your benefactors.

To understand more about establishing your Will speak to our estate planning experts on 1300 118 618.

Then speak to our Superannuation experts immediately. Legislation introduced at the end of last year now allows the Federal government to take hold of any unclaimed lost super.

Currently there is $13 billion dollars of unclaimed superannuation, all of which is about to taken by the Government unless the owners claim it immediately.

There are 34 million superannuation accounts held by just 10.5 million working Australians. That’s 3 accounts for every working person.

It is ideal to consolidate all your super accounts to boost your retirement savings into an account that is working for you, not sitting idle, incurring fees and undergoing minimal growth.

Now it is extremely important that if you think you may have lost Super that you claim it immediately before it is taken by the government.

If you think you may have lost super call our Superannuation experts on 1300 118 618. Don’t leave it until next week, you may be too late.

Tax is one of the biggest expenses for both households and businesses. If, however, you have a tax strategy then you can ensure that you pay a fair and reasonable amount of tax.

About 60 per cent of the tax paid by Australians is in the form of income tax taken from wages and salaries. GST accounts for a further 25 per cent. Taxes on property sits at around 8 per cent and pay roll taxes charged to businesses accounts for about 5 per cent.

So whether you have a job or operate a business there are a range of taxes that affect you differently. Understanding how to structure your income, investments and businesses can mean the different between a hefty tax bill and one that is fair and reasonable for your situation.

While the government is planning a review of taxation, now is the time to ensure that how you are currently paying tax is the most effective way. It’s the start of the 2nd quarter of the financial year, so it’s the ideal time to ensure the 2011 financial year taxation contributions are in line with your expectations.

Our Taxation experts are available to discuss your situation and work with you to determine a taxation strategy that will benefit you, your family and your investment plan. Call 1300 118 618.

However, since that announcement at the start of the month it looks increasingly likely that a rate rise will occur in November.

In fact some of the banks have touted that they may raise rates beyond any official increase by the RBA.

The current valuation of the Australian dollar, which is flirting with achieving parity with the US Dollar, is yet another sign that rates are going to increase.

What all this means for the average Australian household is very different to currency traders. An increase in a variable home loan means more outgoings every month when many are already under pressure from the general rise in the cost of living.

If you know someone who is concerned about the prospect of rising rates now is the time to show them a way forward. An introduction to Future Assist now may transform lives. Call Future Assist on 1300 118 618.

In the next 40 years the majority of Australians will be aged over 50 and there will be more than 2.25 million people aged over 80, compared with just 800,000 in 2010.

Whereas once it was common to depend on pensions to fund retirement. The rapidly aging population means it is not economically viable for the government to provide blanket support of people in their retirement.

Government aged pensions are means tested and the maximum payments are $644.20 per single or $485.60 each if in a couple. With the costs of living ever increasing, the aged pension can cover the cost of essentials but it does not provide for a relaxed retirement.

This is why superannuation is vital to allow you to have a comfortable retirement.

There is now over 1.5 trillion dollars invested into superannuation in Australia. Making the most of your superannuation is vital. To ensure that your super is working as hard towards your future as you are, speak to our experts for a superannuation health check.