Author: Jeffrey Liu
Superannuation isn’t a “set-and-forget” investment. During your 30s and 40s, major life decisions such as starting a family or buying a home can arise, making it crucial to regularly review your superannuation strategy to ensure it aligns with your personal circumstances. While not every tip may apply to everyone in this age group, these strategies will help you consider important super-related decisions during this stage of life. 1. Reduce Your Tax Bill As your salary grows, your 30s and 40s are ideal for considering a salary sacrifice arrangement with your employer. By contributing extra from your pre-tax salary to your…
Building a substantial retirement fund takes time, but most employees rely on their employer to do the majority of the work. According to APRA, nearly 70% of superannuation contributions in 2022–23 came from employers. While your employer’s Super Guarantee (SG) contributions provide some financial security, relying solely on them might not be enough for a comfortable retirement. To enhance your super, you can make additional contributions. Although it can be complex, here’s a simplified guide to the main types of super contributions. Super Contributions: The Essentials Concessional (Before-Tax) Contributions: 5 Main Types Non-Concessional (After-Tax) Contributions: 2 Main Types Other Types…
With strong investment markets driven by the tech sector, growing consumer spending, and easing inflation, super funds saw impressive returns last financial year. As a result, many people will be eager to review their annual super fund statement. But understanding your super statement can be tricky, especially with unfamiliar figures and terms. Here’s a simplified 10-point checklist to help you make sense of it and ensure your retirement plan stays on track. 1. Verify Your Personal Details Check that your personal details are accurate, including your email and postal address. Ensure your super fund has your Tax File Number (TFN),…
What is Term Life Insurance? Term Life Insurance is widely recognized as a cost-effective way to obtain life insurance coverage for a specified period, known as the ‘term.’ It provides a lump sum payment to your beneficiaries if you die or are diagnosed with a terminal illness (typically with a prognosis of less than 12-24 months to live). The primary goal is to protect the financial future of your loved ones. At the end of the term, it is up to the policyholder to decide whether to renew the policy or let it expire. How Does Term Life Insurance Work…
Term life insurance payouts are generally not taxable if the benefit is paid directly to your spouse or a financially dependent beneficiary, as defined by the Income Tax Assessment Act 1997. However, there are specific situations where the beneficiary might face tax implications: Cashing In a Term Life Insurance Policy In Australia, you cannot cash in a term life insurance policy. While it was once possible to withdraw up to 15% of the policy’s value, this option is no longer available. Considerations Before Cancelling Your Policy Before deciding to cancel your term life insurance policy, consider the following factors: By…
Maximizing Insurance Inside Your Superannuation: A Comprehensive Guide Most Australians have some form of life insurance and Total and Permanent Disability (TPD) coverage through their superannuation, as it is often automatically included. However, it is essential to regularly review whether the cover amount and policy type continue to meet your specific needs—particularly after major life events such as marriage, divorce, starting a family, or changing jobs. If you have received a letter from the Australian Taxation Office (ATO) stating that your insurance may be cancelled due to an inactive or small super fund, contact your superannuation provider immediately. How Does…
IntroductionHealth insurance plays a crucial role in protecting us from unexpected medical expenses and providing access to better healthcare services. However, understanding the details of health insurance can be overwhelming, especially when it comes to what it covers, how often it can be used, its tax implications, and the potential risks of being uninsured. This article addresses common questions about health insurance, offering key insights to help you make informed decisions about your healthcare coverage. What happens if you don’t have private health cover? If you don’t have private health insurance, you may face the Medicare Levy Surcharge, an additional…
Life Insurance for Diabetics: What You Need to Know Finding affordable life insurance can be challenging for diabetics. Managing diabetes is already demanding, and securing financial protection for your loved ones shouldn’t add to the stress. Whether you have Type 1 or Type 2 diabetes, understanding your options and the factors influencing your premiums is essential to finding the right policy. Diabetics often face higher premiums and limited policy options, which can be frustrating. Understanding why insurers view diabetes as a higher risk and learning how to improve your eligibility can help. By addressing these concerns and offering actionable insights,…
Ensure your business has the right type of insurance and identify which employees can benefit from your business’s workers’ compensation insurance. As an employer, you have a responsibility to protect your business and your employees. You must report the wages of all relevant employees according to the legal definition of “employee.” Note that you must retain records of any payments made to a “contractor” that do not count towards considering the contractor as an employee. To understand your legal obligations, use the following definitions and guidelines: Individuals Who “May Be Considered” Employees Include: For a detailed list, refer to Schedule…
Workers Insurance in NSW Overview: Legal Requirements: Definition of Employer: Exemptions: Handling Injuries: Workers vs. Contractors: Sole Traders and Partnerships: Small Employers: Medium to Large Employers: Trusts and Trustees: Want to know more? If you’d like to discuss any of the content in this article and how it may apply to you, please call me on 1800 668 153. You can also book a discovery call thru our live calendar. We love hearing from our readers! Please send us your questions, feedback or interest topic by clicking here. Author Profile: Jeffrey Liu, JP, is the founder and principal adviser of Hippo…