Fantastic news for many taxpayers:
On 6 November the Government released to the media a paper "Restoring Integrity in the Australian Taxation System".

Of interest to many will be the Government's intention not to proceed with the following initiatives:
Self Education Expense Cap $2,000 -

The Government will not proceed with Labor’s announcement to put a $2,000 cap on the amount people can deduct as self-education expenses, including training and educational courses, textbooks and other accreditation expenses.

At last common sense has prevailed in this space. There should not be a disincentive for people to want to improve their knowledge and further their chances of employment opportunities and promotions.

Our country needs to improve its opportunities for innovation and this can be achieved through education.

Tax on Superannuation Pensions –

The Government will not proceed with Labor’s announcement which would have taxed people’s superannuation pension earnings above $100,000 in the draw-down phase.

At last we have more certainty for retirement planning knowing we do not have to factor in additional complex tax calculations for pension earnings. This did not make any sense to begin with and was extremely difficult to explain.

Retirees have more certainty now regarding their potential retirement earnings.

Labor’s $1.8 billion Fringe Benefits Tax hit on the car industry -
 
The release is as follows:

During the 2013 election the Coalition pledged not to continue with Labor’s $1.8 billion Fringe Benefits Tax change that would make it harder for people to have a company or salary sacrificed vehicle.

The Coalition Government today confirms it will not proceed with this measure.

Employees should now be more confident about making decisions regarding novated leases.

Please refer to the full paper if you would like further information regarding these measures.

I have attached the link below:

http://www.liberal.org.au/latest-news/2013/11/06/restoring-integrity-australian-tax-system

SMSF estate planning and death benefit nominations

One misconception many people have is that their normal "last will and testament" can be relied upon to distribute their estate, including money tied up in their SMSF.  But the payment of such benefits upon the death of a member is done so in accordance to the governing rules of the fund, not according to the terms of the will.

This is why it is important for every member of an SMSF to direct how benefits are to be paid upon their death - and the death benefit nomination is the vehicle to make sure this is done.

A death benefit nomination is a written direction to the SMSF trustee that instructs the trustee to pay a member's entitlements to certain dependants and/or legal personal representatives (their estate) in the proportions the member wishes in the event of their death.

A binding death benefit nomination leaves no discretion to the trustee. Benefits must be paid out in strict accordance to the nomination, which can be used to ensure no disputes arise between feuding relatives, or to exclude wayward children or estranged children's spouses.

Welcome to Rowena Thiele Advisors Blog

Our team at Rowena Thiele Advisors offer taxation, accounting, financial planning and SMSF services for individuals, families and small business.

Whether you are a small business or an individual seeking financial security our team can help you reach your financial goals. Our integrated approach to client management ensures that we will consider all your needs when presenting alternative solutions. This means that you get the best possible advice that takes into account your overall financial situation and goals from the best people.

Each week I will talk to you about a tax or superannuation matter that may be relevant to you as well as topical.