By Aus Investment Properties
Self-Managed Superannuation Funds (SMSFs) have long been a favored option for Australians seeking greater control and flexibility over their retirement savings. As we approach the dawn of the 2024 financial year, a series of significant updates and changes are poised to transform the landscape of SMSFs. These changes are designed to empower Trustees with the knowledge needed to make informed decisions while navigating the dynamic regulatory environment. In this blog, we’ll delve into the key updates that SMSF Trustees should be eagerly anticipating.
Super Guarantee Rate:
Australia’s Superannuation Guarantee laws currently require employers to contribute 11% of their employees’ ordinary time earnings for the financial year 2023/24. However, recognizing the potential risk of retirees relying heavily on the age pension, the Parliament has taken action. Legislation has been introduced to incrementally raise this contribution percentage to 12% by the year 2025. For small businesses with employees or eligible contractors, timely adjustments to payroll and accounting systems are essential to reflect the updated Super Guarantee (SG) rate of 11% for all salary and wage payments made from 1 July. To ensure accurate super contributions for eligible workers, employers must adhere to the 11% contribution rate for all payments made after the specified date.
Work Test:
Individuals below the age of 75 can presently make or receive after-tax super contributions and salary-sacrificed contributions without needing to fulfill the work test requirements. This holds true as long as they remain within the current annual contribution caps and maintain a balance of less than $1.9 million. However, individuals planning to make an after-tax contribution and subsequently claim a tax deduction (referred to as a ‘personal concessional contribution’) must satisfy the work test by being gainfully employed for a minimum of 40 hours within any 30-day period of the financial year in which the contributions are made.
Super Co-contribution:
The maximum co-contribution entitlement for the 2023/24 year retains its value at $500. Changes have been made to the income thresholds for eligibility. The lower income threshold for full entitlement has been adjusted to $43,445, while the higher income threshold (beyond which eligibility ceases) now stands at $58,445.
Minimum Pension Withdrawal:
A noteworthy alteration commencing on July 1, 2023, is the discontinuation of the 50% reduction in the minimum pension drawdown rate. This change means that when calculating the minimum annual payment on a pension balance for the 2023-24 financial year, the 50% reduction will no longer be a factor.
Conclusion:
As we stand on the brink of the 2024 financial year, the world of SMSFs is poised for transformation. These impending updates and changes hold the potential to empower SMSF Trustees, allowing them to harness the true capabilities of their funds and ensure a brighter, more prosperous retirement future. Embracing these changes, making well-informed decisions, and exhibiting adaptability will be the cornerstones of success for Trustees venturing into this new era of SMSFs. By staying informed and taking proactive steps, Trustees can secure their financial well-being and confidently navigate the evolving landscape of SMSFs.
You can view our SMSF Investment Properties here: https://ausinvestmentproperties.com.au/properties/type/smsf-single-contract
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Owning an investment property can be incredibly rewarding, but finding good tenants is crucial to making the experience profitable and stress-free. Reliable tenants ensure consistent rent payments and take good care of the property, ultimately helping you achieve the best return on investment. Here’s an in-depth guide to attracting high-quality tenants to your rental property in Australia.
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The Australian property market in FY25 is set to demonstrate varied growth across capital cities and regional areas. With stabilising inflation, steady wage growth, and a resilient labour market, many regions present significant opportunities for high-yield property investment. Here’s a closer look at the latest data and insights from Aus Investment Properties on where the market is heading this financial year.
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Victoria is undergoing a significant shift in its stamp duty policies, offering valuable opportunities for property investors. The Victorian Government has recently announced a reduction in stamp duty on units and apartments, providing potential savings of up to $28,000 for homebuyers. This initiative aims to stimulate the real estate market, particularly in Melbourne, and encourage investment in apartments and units. However, the offer is limited, creating a window of opportunity for savvy investors who act quickly.
By Aus Investment Properties
In September 2024, Australia's rental vacancy rates slightly dropped to 1.2%, reflecting a tight rental market with increased demand across various regions. According to the latest data from SQM Research, the total number of rental vacancies decreased to 37,932, down from 39,665 in August. This shift was largely driven by areas such as Perth, Canberra, Hobart, and regional Australia.
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A groundbreaking report by urban policy experts at RMIT University has proposed a new way to improve rental property conditions across Australia. By using Australia’s tax system, the report suggests offering negative gearing and capital gains tax incentives to property investors who make positive improvements to rental homes. This move could benefit both property investors and tenants, creating a more balanced and efficient rental market.
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As Australia moves into the final quarter of 2024, the property market remains dynamic, with notable shifts in listings, asking prices, and buyer activity. According to the latest data from SQM Research, new property listings rose by 5.4% in September 2024, while total listings dropped slightly by 2.3%. Here's a closer look at the key takeaways from the September property market update and what it means for investors.
By Aus Investment Properties
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SQM Research is an investment research house that specialises in providing accurate research and data to financial institutions, investment professionals and investors.
Aus investment Properties has partnered with SQM Research to provide data across our site to assist investors in making an informed decision.
Capital Growth 12 months, measures the increase in a property’s value over the previous 12 months, indicating how much the investment has appreciated in that timeframe.
Capital Growth 10-year annualised, reflects the average annual increase in a property’s value over the last decade, smoothing out short-term fluctuations to show long-term appreciation trends.
Vacancy Rate, indicates the percentage of properties that are currently unoccupied in that postcode, It’s a key indicator for investors to assess the rental demand.
SMSF Property Investing, when investing inside your SMSF there are some restrictions on how you can purchase investment properties. We use the following information to help navigate the SMSF investment property options.
This property is a single-contract property suitable for an SMSF.
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