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Transcript

The 2026 Tax And Super Reset · My Accounting Advantage

• 0:02
  SPEAKER_01: Hello and welcome back to the podcast My Accounting Advantage.
• 0:06
  SPEAKER_01: We're on episode 26, the ultimate tax and super update for 2026.
• 0:13
  SPEAKER_01: What's Law, What's Proposed, and What You Need to Know.
• 0:16
  SPEAKER_01: And joining us is our expert in the field, Mai Harris.
• 0:20
  SPEAKER_01: Mai, welcome aboard.
• 0:22
  SPEAKER_00: Thank you, Lee.
• 0:23
  SPEAKER_00: Nice to be back.
• 0:24
  SPEAKER_01: Now the show's escalating in information as the government's moving faster than the podcast.
• 0:31
  SPEAKER_01: And I don't know how you keep up with it all, but in these next couple of weeks, we are going to bring clarity to some very important changes and the major tax and superannuation changes.
• 0:42
  SPEAKER_01: Yeah.
• 0:42
  SPEAKER_01: What can we expect from this episode?
• 0:45
  SPEAKER_00: Going to walk you through very crucial steps.
• 0:48
  SPEAKER_00: There are three.
• 0:50
  SPEAKER_00: The first one is what has become law since the federal budget announcement back in May 2026, and what is still proposed as law.
• 1:01
  SPEAKER_00: What action you should be considering now, if any?
• 1:06
  SPEAKER_01: The time is now.
• 1:07
  SPEAKER_01: And if people don't, and we're so lucky this podcast is available to our consumers, our business owners, everyone who's in the middle of this washing machine.
• 1:16
  SPEAKER_01: It just feels like a washing machine, especially in the property space, it has gone nuts.
• 1:21
  SPEAKER_01: And I'm really excited about there's an episode coming up with Luke Talbot where he's going to go deep into who is borrowing, who's not, the special fees they're charging to even get it approved.
• 1:33
  SPEAKER_01: Yeah.
• 1:34
  SPEAKER_01: And for those people that can't wait for that episode, property tip one, do not go out and fall in love with a property until you are completely pre-approved under the new laws, legislation, because it's changed.
• 1:48
  SPEAKER_01: Whatever you believed six months ago, forget it.
• 1:51
  SPEAKER_00: Yeah, it it there's been a lot of changes.
• 1:53
  SPEAKER_00: I mean, back in May 2026, the after the federal budget announcement, we found that, you know, they have a big long list because it's the biggest tax reform ever in the past decade, really.
• 2:08
  SPEAKER_00: They now moved so fast that they've shortened the list quite a fair bit.
• 2:14
  SPEAKER_00: So that's what we're going to be talking about today.
• 2:17
  SPEAKER_01: Well, let's go into part one of our program.
• 2:20
  SPEAKER_01: What has become law?
• 2:21
  SPEAKER_01: And let's start with the biggest changes that have already passed and are now law.
• 2:26
  SPEAKER_00: The first one, a lot of people probably haven't heard, but they've passed the concessional contribution cap.
• 2:33
  SPEAKER_00: They increased that from$30,000 annually per taxpayer to$32,500.
• 2:43
  SPEAKER_00: That is the maximum cap that you can actually make as your contribution and obtain tax deduction each year.
• 2:52
  SPEAKER_00: We've talked about the carried forward concessional contribution.
• 2:56
  SPEAKER_00: If you don't actually use this limit in the 2027 financial year when this one starts, you can also carry the balance forward to the next financial year.
• 3:09
  SPEAKER_00: The next thing is also the increased, which is the non-concessional contribution cap.
• 3:16
  SPEAKER_00: That has increased from$120,000 to$130,000 a year per member.
• 3:24
  SPEAKER_00: So a lot of people would still go, oh, what are you talking about?
• 3:28
  SPEAKER_00: There's uh$32,500 concessional contribution, and then there's$130,000 non-concessional contributions.
• 3:36
  SPEAKER_00: So if you are not clear on the definition of um non-concessional and concessional, and you might want to listen to my previous podcast on the super contribution, and um that will clear up the question for you.
• 3:53
  SPEAKER_00: What it means is that if you actually have extra cash that you might be um getting from inheritance or you have sold an investment property or your PPOR and you come to money and you don't know where to park your money, you can actually, that's an after-tax money, by the way.
• 4:14
  SPEAKER_00: So you can put that into super up to$130,000.
• 4:18
  SPEAKER_00: So you can invest that money in your super fund by contributing that amount, you will not be paying 15% tax at all.
• 4:27
  SPEAKER_00: Also, when you earn money from that, it depends on your age.
• 4:30
  SPEAKER_00: If you're over 60 and retire, the income-producing asset is exempt for tax, and also whatever income it produces also exempt for tax purposes.
• 4:40
  SPEAKER_01: Now, what is complicated is this bring forward rule.
• 4:44
  SPEAKER_01: Explain that to us.
• 4:45
  SPEAKER_00: Yeah, so the bring forward rule for non-concessional contribution is basically annually, like I just talked about a minute ago, that the nonconcessional contribution, which is after tax money that you want to contribute towards your super balance, is 130,000.
• 5:02
  SPEAKER_00: If you actually have more than that, you can exceed that cap of 130,000 by using the bring forward rule.
• 5:12
  SPEAKER_00: So you are allowed to put up to three years worth of non-concessional contribution at one time.
• 5:21
  SPEAKER_00: So you can bring that rule forward.
• 5:23
  SPEAKER_00: That's what the bring forward rule means.
• 5:26
  SPEAKER_00: You can contribute up to 390,000 and in one go.
• 5:32
  SPEAKER_00: But that means you've utilized your cap for non-concessional contribution for three years.
• 5:38
  SPEAKER_00: So you can't contribute anymore.
• 5:40
  SPEAKER_01: But if someone's just sold their principal place of residence, they're downsizing, yeah.
• 5:45
  SPEAKER_01: That's where this opportunity comes about.
• 5:48
  SPEAKER_01: Take us into those opportunities.
• 5:50
  SPEAKER_00: So with that opportunity, like you you might feel that, oh, you know, I have excess cash because I've just sold my principal place of residence that I've lived in, and I've now gone from a four-bedroom house into a two-bedroom unit, I have$500,000 in excess cash from the sale or the sale of a big investment, for example.
• 6:12
  SPEAKER_00: I've already paid tax on it, or I'm not paying tax on this money because it's it's my the sale for my PPOR.
• 6:20
  SPEAKER_00: So where do I put that money?
• 6:23
  SPEAKER_00: Because if I invest it outside of the super environment, I would be taxed at top marginal from the income.
• 6:32
  SPEAKER_00: Well, depending on your other income, of course, but you'll pay a lot of tax would be something that you need to consider.
• 6:40
  SPEAKER_00: So if you put it into your super, it will be taxed at 15%, should it make you a good return on investment.
• 6:49
  SPEAKER_00: By putting that$390,000 in, you don't pay any tax on that contribution.
• 6:56
  SPEAKER_00: When that$390,000 being invested by your super fund, you actually only pay 15% tax on that income.
• 7:05
  SPEAKER_00: So it's a discounted tax rate, which is fantastic.
• 7:09
  SPEAKER_00: So it's a good way to invest your cash, and that depends on your age.
• 7:15
  SPEAKER_00: But if you are over 60 and retire, that is the best thing to do with your extra cash.
• 7:22
  SPEAKER_01: This is such the pathway to wealth or security.
• 7:25
  SPEAKER_00: Yeah.
• 7:26
  SPEAKER_01: What you've just explained there is going to be an opportunity for property investors, business owners, downsizers, people receiving an inheritance.
• 7:35
  SPEAKER_01: This could all help for their retirement savings.
• 7:38
  SPEAKER_01: What about the transfer balance cap increased?
• 7:42
  SPEAKER_00: Yes.
• 7:42
  SPEAKER_00: So transfer balance cap is the limit on how much money you can move from your super account into a tax-free retirement pension account.
• 7:53
  SPEAKER_00: That's a big mouthful, isn't it?
• 7:54
  SPEAKER_01: It is.
• 8:25
  SPEAKER_00: Okay, so in order for your super balance to become tax free, you need to be retired.
• 8:33
  SPEAKER_00: And you um the minimum age is 60.
• 8:36
  SPEAKER_00: And so, for example, client who has just turned 60, I would say to them, you know, are you ready to retire?
• 8:44
  SPEAKER_00: And um, some people say, definitely, you know, I'm 60, I want to go travel the world.
• 8:49
  SPEAKER_00: I said, okay, let's convert your accumulation super balance into pensions so that we can quarantine all your super balance into a tax-free environment.
• 8:59
  SPEAKER_00: And they would actually ask me, what does that mean?
• 9:02
  SPEAKER_00: I said, it means that you can put, well, now they're up the limit,$2.1 million of your super balance into a tax-free environment.
• 9:13
  SPEAKER_00: And you can draw out of it tax free.
• 9:15
  SPEAKER_00: Out of that$2.1 million, when it's it really just hasn't changed any status of the super balance.
• 9:24
  SPEAKER_00: It's just moved from accumulation account to the pension account.
• 9:28
  SPEAKER_00: That's just the account status.
• 9:29
  SPEAKER_00: Okay.
• 9:30
  SPEAKER_00: So the in investment remain the same investment, and it's producing income exactly the same how it was.
• 9:38
  SPEAKER_00: The only difference is you no longer pay 15% tax on the income that super balance produces.
• 9:46
  SPEAKER_00: So if you used to pay tax on, say,$100,000 income that your super fund produced, you will no longer even pay that tax.
• 9:58
  SPEAKER_00: And when you draw money out of your pension account, there's a minimum percentage, but you can draw more.
• 10:05
  SPEAKER_00: You can use it as your bank account, you know, for the next 20 years.
• 10:11
  SPEAKER_00: As long as you leave some for a day, you can draw it all if you like, does it not attract any tax.
• 10:18
  SPEAKER_01: That is so good.
• 10:20
  SPEAKER_01: Let's move on to our next law that's been passed.
• 10:23
  SPEAKER_01: Payday Super is now law.
• 10:25
  SPEAKER_00: Yes, Payday Super has been in place from 1st of July 2026.
• 10:32
  SPEAKER_00: So that has been, you know, a major change in our super and how we we pay super for our employees.
• 10:42
  SPEAKER_00: So if you have employees, you're you must be aware now that your super payment cycle has changed from quarterly to whenever it is that you pay your wages.
• 10:58
  SPEAKER_00: So a lot of people now paying super on a weekly basis and also quarterly basis or monthly, um, whatever pay cycle that they are in.
• 11:08
  SPEAKER_00: And you really can't afford to be late with that payment because they only give you seven days for um the super to land in uh, you know, the industry super that has been nominated by your employee.
• 11:23
  SPEAKER_00: And if actually being paid late, you'll be penalized quite heavily with the super guarantee charge, which is like an interest penalty on late payment, and it's calculated daily, and it's really put a lot of pressure on cash flow for a lot of businesses.
• 11:42
  SPEAKER_01: Now, if we're going to do all these, we're gonna do them well.
• 11:45
  SPEAKER_01: Division 296 is now law.
• 11:48
  SPEAKER_00: Yes, and a lot of listeners must um worry um, not worried, but wondering what division 296 is.
• 11:56
  SPEAKER_00: And all about people, high-net wealth people who have over$3 million in their super account.
• 12:04
  SPEAKER_00: Now they um it has passed as law that if you have um over$3 million to$10 million in your super account, you'll need to pay extra 15% tax on the relevant earning that is produced by your balance that is over$3 million.
• 12:27
  SPEAKER_00: If you are fortunate enough to have a balance over$10 million, they give you an extra tax.
• 12:35
  SPEAKER_00: How's that?
• 12:37
  SPEAKER_00: Lovely.
• 12:38
  SPEAKER_00: Further 10% on the relevant earnings produced by the balance, your balance, that is over$10 million.
• 12:48
  SPEAKER_00: I'd let's just say don't panic.
• 12:51
  SPEAKER_00: Because, you know, most Australians are not immediately affected.
• 12:56
  SPEAKER_00: And if you are fortunate enough to have over three million or over$10 million, yeah, I think you're gearing up to pay the extra tax anyway.
• 13:06
  SPEAKER_01: This is where we've seen in the media business people saying they're leaving Australia.
• 13:10
  SPEAKER_01: When a business person leaves Australia with their company and they no longer employ Australians, what's your view on this?
• 13:17
  SPEAKER_00: Yeah, it's pretty sad really because um there's no incentive to, you know, build the business, build the wealth in Australia.
• 13:26
  SPEAKER_00: What the government really don't look at is w these people are very small percentage in the world that can, you know, turn something into a business and grow the economy for us.
• 13:41
  SPEAKER_00: So really there should be some sort of incentive for them to stay so they can pr they can build more businesses, produce more jobs for us, us Australian, because otherwise it will all be outsourced.
• 13:55
  SPEAKER_01: Well, we see this around the world where, you know, in Thailand you might have this beautiful beachfront land and no one in the village has got any work, yeah, and they donate the land to a hotel chain so everyone can work in there.
• 14:08
  SPEAKER_01: But for the hotel chain, okay, we'll build a hotel that no one else can afford to build and make it a Acor member advantage.
• 14:17
  SPEAKER_01: Suddenly everyone in the town or everyone in the village is now working in the hotel.
• 14:22
  SPEAKER_01: And that's incentive.
• 14:24
  SPEAKER_00: Yeah, definitely.
• 14:25
  SPEAKER_00: I think they need to really take a long hard look at um, you know, how how we're going to grow as a nation um going forward in the next five to ten years because you don't want that initiative to dry up.
• 14:41
  SPEAKER_01: The next one's got a positive movement to it.
• 14:44
  SPEAKER_00: Yes.
• 14:44
  SPEAKER_01: The 20,000 instant asset write-off is permanent.
• 14:49
  SPEAKER_00: Yes, it's now a permanent fixtures in the immediate write-off space.
• 14:55
  SPEAKER_00: So great news for um small businesses, up to$10 million turnover.
• 15:02
  SPEAKER_00: What does this mean?
• 15:03
  SPEAKER_00: It means that, you know, eligible small business can immediately deduct eligible assets costing less than$20,000.
• 15:12
  SPEAKER_00: So, for example, if you purchase an equipment for your factory and it's costing$20,000 or less, you can obtain an immediate depreciation right off.
• 15:25
  SPEAKER_00: So don't actually have to depreciate the assets according to its useful life.
• 15:30
  SPEAKER_00: You just get 100% tax deduction on that straight away.
• 15:34
  SPEAKER_01: So here we are in the wonderful recording studio here.
• 15:37
  SPEAKER_01: This was about 20 grand of fit out.
• 15:41
  SPEAKER_01: With all its little things that we have to put in here to be in a studio.
• 15:44
  SPEAKER_01: It's beautiful.
• 15:45
  SPEAKER_01: What would happen?
• 15:46
  SPEAKER_00: Well, you can actually write off each uh the equipment that you purchase for this studio because everything here itemized costing less than$20,000.
• 16:00
  SPEAKER_00: So yes, we can do a hundred percent write-off in the one financial year.
• 16:05
  SPEAKER_01: We'll just clarify that.
• 16:06
  SPEAKER_01: A hundred percent write-off, not a percentage, a hundred percent.
• 16:09
  SPEAKER_00: A hundred percent.
• 16:10
  SPEAKER_00: If it's costing fifteen hundred bucks for that armchair over there, we can just write it off in the one financial year.
• 16:19
  SPEAKER_00: We don't have to depreciate it.
• 16:20
  SPEAKER_00: That's what I mean.
• 16:21
  SPEAKER_01: That's a big benefit to small business.
• 16:24
  SPEAKER_01: Yes.
• 16:25
  SPEAKER_01: Why do you think this one was brought in?
• 16:26
  SPEAKER_01: Why why are we getting a little reprieve here in the world?
• 16:29
  SPEAKER_00: Well, this has been in for quite some time now.
• 16:32
  SPEAKER_00: During COVID, it was up to 150,000, believe it or not.
• 16:36
  SPEAKER_00: Yeah.
• 16:37
  SPEAKER_00: And then they scaled it down to 20,000 for the past few years.
• 16:41
  SPEAKER_00: They were considering dropping it to$1,000.
• 16:45
  SPEAKER_00: Then this year they have announced that, okay, we're just gonna make it a permanent fixture that you can obtain a hundred percent tax deduction on assets costing less than$20,000.
• 16:58
  SPEAKER_00: So big win here.
• 17:00
  SPEAKER_01: Another big win is the$1,000 standard work-related deduction.
• 17:06
  SPEAKER_01: Instead of claiming smaller work-related expenses individually, give us some examples.
• 17:12
  SPEAKER_00: Yeah, so basically this one to me is a big win for those people who struggle to find tax deduction each year.
• 17:21
  SPEAKER_00: And often, you know, I get people who are working full-time under PAYG arrangement, and they don't really have a lot of tax deductions each year.
• 17:32
  SPEAKER_00: They just said, look, you know, I can't find any receipts or I don't um really buy anything for work.
• 17:40
  SPEAKER_00: So now you have an option to use this 1,000 standard work-related deduction.
• 17:46
  SPEAKER_00: It just means that you can claim up to$1,000 as a standard claim.
• 17:53
  SPEAKER_00: And you don't need any substantiation, you don't need any records.
• 17:58
  SPEAKER_00: You can just put in$1,000 tax deduction in your tax return and claim it.
• 18:04
  SPEAKER_01: You don't even need the receipts, the little bits of paper in the box.
• 18:08
  SPEAKER_00: No.
• 18:09
  SPEAKER_00: Yeah, that's the beauty about it.
• 18:11
  SPEAKER_00: It's and that includes, you know, um, working from home costs.
• 18:16
  SPEAKER_00: So usually we have to work out the hourly rate using the ATO um hourly rate for working from home.
• 18:24
  SPEAKER_00: But yeah, you don't even have to do that anymore if you choose to use this 1,000 standard work-related expense.
• 18:33
  SPEAKER_00: And like usually, I know a lot of people struggle to keep receipts for stationary, fine little, you know, receipts for things that they purchased for work that is costing like say$50 to$300.
• 18:50
  SPEAKER_00: They just didn't pay attention at the time.
• 18:52
  SPEAKER_00: But now you can just elect to claim that$1,000 and forget about it.
• 18:57
  SPEAKER_01: We're on a roll.
• 18:59
  SPEAKER_01: Let's go for the capital gains tax reform has passed.
• 19:03
  SPEAKER_00: Yes, it's a confirmation that it has now passed as law, that um the negative gearing changes will be affected from 1st of July 2027.
• 19:16
  SPEAKER_00: But it already happened because if you actually purchase a property after the budget night, we all are in May, so you actually can't enjoy the negative gearing effects anymore.
• 19:30
  SPEAKER_00: And um that negative effect, which is the losses that you incur from having a rental property, will have to be capitalized and quarantined for when you actually make money from the rental property.
• 19:46
  SPEAKER_00: So there's no tax incentive at all.
• 19:48
  SPEAKER_00: If you were to purchase um existing properties from now on, the incentive is still there for new residential property if you should purchase a new one to become your rental property as part of your investment strategy.
• 20:06
  SPEAKER_00: And the next one we're all familiar with now, because it's been talked about so much for the past few months, is the 50% CGT discount has now passed, as well as laws.
• 20:20
  SPEAKER_00: So that's not something that you can apply anymore from the 1st of July 2027.
• 20:28
  SPEAKER_01: The SMF borrowing rules have changed, and that's why we've got a big episode on this coming up.
• 20:34
  SPEAKER_01: But just as a starter to it, take us into it.
• 20:38
  SPEAKER_00: So the SMSF borrowing rules have changed in a big way.
• 20:42
  SPEAKER_00: Is basically the government has stopped the limited recourse borrowing, which is the borrowing under the SMSF to purchase residential properties.
• 20:55
  SPEAKER_00: However, it is still available if you should, um I mean, if you choose to purchase a commercial property, and the commercial property is actually fit into the definition of real property.
• 21:10
  SPEAKER_01: Business real property.
• 21:12
  SPEAKER_01: Yeah, meaning it's for business intention only.
• 21:14
  SPEAKER_00: That's correct.
• 21:16
  SPEAKER_00: So it has to be a commercial property that is fit to be used for business purposes, and I mean it still can be a residential property on the main road, for example, because yeah, that's a that's a yeah, that's a doctor's surgery.
• 21:31
  SPEAKER_00: Big definition change.
• 21:33
  SPEAKER_00: Yeah, so it's usage.
• 21:35
  SPEAKER_00: It's um the definition is based on the usage of the property.
• 21:39
  SPEAKER_00: So yeah, if you're actually able to purchase a property that already has a commercial tenant, like yes, medical center in a house setting on the main road that can be qualified as a real business property.
• 21:56
  SPEAKER_01: Well, just to clarify that though, there might be a lot of people.
• 22:00
  SPEAKER_01: Out there who just got excited thinking, so anything on a main road, I can buy it and convert it into my business.
• 22:06
  SPEAKER_01: Is that the case?
• 22:07
  SPEAKER_00: Well, in this case, if you're going to involve purchasing that property under the self-monites super fund, for example, it's already have um it's must be used already as a commercial property.
• 22:20
  SPEAKER_00: So for example, if you already renting a residential setting property, a house, but operating business out of it already, and you're looking to buy that one, it's already being used commercially.
• 22:36
  SPEAKER_00: Then it will be fine and it will pass the RIBA restriction in this case.
• 22:43
  SPEAKER_00: But you can't just go out there and um look for a house on the main road and then convert it into a commercial property because it's not, it doesn't satisfy the current business usage status.
• 22:59
  SPEAKER_01: Let's move into part two.
• 23:01
  SPEAKER_01: What is still proposed?
• 23:03
  SPEAKER_00: Okay, so the government has managed to shorten their wish list quite a fair whack in the past few months.
• 23:11
  SPEAKER_00: That's a very short period of time that they um used to pass the law.
• 23:16
  SPEAKER_00: You know, that's they're probably at speed compared to any other law that was proposed in the past few years.
• 23:24
  SPEAKER_00: The only one that is still proposed is the trust tax reform, which is the 30% minimum tax on discretionary trust income.
• 23:34
  SPEAKER_00: What is interesting is last, not last night, but the night before, our treasurer had come out and watered down that proposal.
• 23:46
  SPEAKER_00: Let me take you back to what was proposed back in May 2026, is that they look at taxing discretionary trust at minimum tax of 30%.
• 23:58
  SPEAKER_00: Once you distribute income to your beneficiary, they will receive a non-refundable tax credit that the trustee had pay.
• 24:07
  SPEAKER_00: If your tax rate, average tax rate is below 30%, well, you lose out and they don't care.
• 24:14
  SPEAKER_00: That's really shocked a lot of people who had, you know, the family trust set up so that they can benefit from the lower tax rates from by distributing to other family members.
• 24:28
  SPEAKER_00: The family trust was to make a distribution to the bucket company, for example.
• 24:35
  SPEAKER_00: In the past, you can just make a distribution to the bucket company and the bucket company will be paying the tax on that distribution.
• 24:42
  SPEAKER_00: However, if the trust was to distribute under this new proposed law, it would pay 30% tax first.
• 24:53
  SPEAKER_00: And then once it distributed the income to the bucket company, the bucket company will not be eligible for that tax credit.
• 25:01
  SPEAKER_00: So it will again paid another 30% tax on that.
• 25:06
  SPEAKER_00: So the tax could be up to about 60%.
• 25:08
  SPEAKER_00: So that's what they were proposing to do.
• 25:12
  SPEAKER_00: Now, from the 3rd of September, the treasurer announced that they are looking at um diluting tax credit that is not refundable.
• 25:24
  SPEAKER_00: That's very interesting.
• 25:26
  SPEAKER_00: What are they trying to do?
• 25:27
  SPEAKER_00: They're trying to say, look, you know, I understand that a lot of people will be disadvantaged by this new proposed law, and the cost of restructure will be immense.
• 25:40
  SPEAKER_00: And I I can second that.
• 25:42
  SPEAKER_00: It will be massive for a lot of businesses.
• 25:46
  SPEAKER_01: How long will they have to do that?
• 25:48
  SPEAKER_00: Period of three years from 1st of July 2027.
• 25:52
  SPEAKER_00: It's like a roll-over relief period that they can implement the restructure of taking assets out of family trust, etc.
• 26:03
  SPEAKER_00: That's still apparently uh going to be the case.
• 26:06
  SPEAKER_00: But however, what they're now um looking at introducing is that we you can do an election.
• 26:12
  SPEAKER_00: It's called family trust election for whom you want to distribute to.
• 26:17
  SPEAKER_00: You can select family member to receive the trust distribution at a fixed percentage.
• 26:24
  SPEAKER_00: That that is decided once.
• 26:27
  SPEAKER_00: And that's how it's going to be going forward.
• 26:31
  SPEAKER_00: And by doing that, they're going to accept the distribution to those selected family member beneficiaries for the 30% minimum tax.
• 26:45
  SPEAKER_00: So what it means is that if you actually make that um distribution election under your family trust to say 50% to your bucket company fixed forever, and then um 25% to your wife, fixed, and then um another 25% to yourself, fixed.
• 27:06
  SPEAKER_00: That's it.
• 27:07
  SPEAKER_00: Basically, there's no more discretion going forward.
• 27:12
  SPEAKER_00: So if you elect to do that, they're going to give you exemption for that minimum 30% tax, and you don't have to actually pay the 30% tax first.
• 27:23
  SPEAKER_01: And my this is why people need advice.
• 27:26
  SPEAKER_01: Yes.
• 27:27
  SPEAKER_01: Like I'm on this podcast with you, and I get advice from you because you're my accountant.
• 27:32
  SPEAKER_01: You know, in life, any big major moment, you get a payout, you get this, you've sold something.
• 27:38
  SPEAKER_01: So many people do not get advice, and that window of opportunity goes and it's gone.
• 27:43
  SPEAKER_00: That's right.
• 27:44
  SPEAKER_00: So it's so important.
• 27:45
  SPEAKER_00: Like in this event, if you actually have a discretionary trust, um, I mean, the law's still evolving and they keep changing their minds.
• 27:54
  SPEAKER_00: So just plan for it and talk to your accountant so that you know, maybe there's another strategy, or maybe it's something that you don't have to do immediately, but just start the conversation.
• 28:09
  SPEAKER_01: Let's move into part three of this incredible audio today.
• 28:13
  SPEAKER_01: What should we be doing now?
• 28:15
  SPEAKER_01: The worst response is to panic, I would imagine.
• 28:19
  SPEAKER_00: It really is.
• 28:20
  SPEAKER_00: So, what should you be doing now is number one, is to review your current situation.
• 28:26
  SPEAKER_00: We've talked about, you know, the increase in concessional supercontribution.
• 28:31
  SPEAKER_00: So you probably should just give it some thought and review your superposition to see if you can maximize your contribution opportunities in the 2027 financial year since the cap has now increased.
• 28:46
  SPEAKER_00: The action number two that you could do is review your property portfolio and investment strategies.
• 28:53
  SPEAKER_00: Are you being affected by negative gearing changes or any capital gains tax changes?
• 28:58
  SPEAKER_00: So it would be nice to know that beforehand so that you can make informed decisions.
• 29:05
  SPEAKER_00: Action number three, review your business structure, particularly if you operating through a family trust and multiple entities, and you have quite a complex investment structures.
• 29:18
  SPEAKER_00: So it's a good time now to have a look at uh whether or not that structure is still valid to you, it's still serving you and still providing you with that tax effectiveness going forward.
• 29:32
  SPEAKER_00: Action number four is review your payroll system.
• 29:36
  SPEAKER_00: If you employ staff, payday super is here.
• 29:40
  SPEAKER_00: So are you paying super at the same time as your wages?
• 29:45
  SPEAKER_00: If you're not, you need to actually change that immediately because you could be penalized for late super payment.
• 29:54
  SPEAKER_00: Give it a review.
• 29:56
  SPEAKER_00: And if something went wrong and or you need to notify your accountant that you have paid late, do it now.
• 30:05
  SPEAKER_00: Because unfortunately, the super guarantee charge is calculated on a daily basis and it doesn't stop until you pay that late launchment and late payment penalties.
• 30:17
  SPEAKER_01: What about action number five?
• 30:20
  SPEAKER_00: Well, action number five is focus on facts and not headlines and what other people are saying at the barbecue.
• 30:29
  SPEAKER_00: Because a lot of the time, you know, people call me panicking about, you know, something because they've listened to their neighbors or they listen to their friends.
• 30:41
  SPEAKER_01: Or influencer on Facebook.
• 30:43
  SPEAKER_00: That's right.
• 30:44
  SPEAKER_00: Um, please check your facts and um make sure that the information that you receive is actually correct and is applicable to you because sometimes you are panicking for nothing and you're just, yeah, making yourself sick.
• 30:58
  SPEAKER_01: Use a certified tax account, not that would be highly advisable.
• 31:03
  SPEAKER_00: Yeah.
• 31:04
  SPEAKER_01: My, we've got through a lot of information there today.
• 31:07
  SPEAKER_01: What's your final executive summary?
• 31:09
  SPEAKER_00: The final thought is if you are unsure how anything uh changes and how any of these changes affect you, now is the perfect time to review your structure, tax strategy, retirement plans, and investment.
• 31:23
  SPEAKER_00: The sooner you understand the rules, the more opportunities you'll have available to you.
• 31:29
  SPEAKER_00: So it's time to get planning.
• 31:32
  SPEAKER_01: My great information.
• 31:34
  SPEAKER_01: Next week we're going to be discussing the self managed superfund of property borrowing explained, which means we're getting closer to this depth of information we require.
• 31:44
  SPEAKER_01: But today was just amazing to bring all that into play.
• 31:46
  SPEAKER_01: I want to thank you for joining us on the podcast.
• 31:49
  SPEAKER_00: Thank you, Lee.
• 31:50
  SPEAKER_00: Thanks for having me.