McQueen Brisbane Office Grand Opening

McQueen Brisbane Office Grand Opening

 

As some of you may recall, our goal in 2018 was to establish a new Brisbane office where we could provide a proactive & personalised service to our Brisbane client base.

After finding the perfect location, last week we held the Official Opening Party for our brand new Brisbane office located on Eagle Street.

It was a wonderful night, with our Chairman Angus McQueen and our very special guest James Tomkins cutting the ribbon and officially opening the office.

 

Our Chairman Angus McQueen & Special Guest James Tomkins OAM

 

Our Brisbane team – Mitch Raabe, Ben Warren, Jackie Crane & Lucy Noye were thrilled to host the evening and proudly showcase their new office. Boasting spectacular river views, we know our Brisbane clients will feel very comfortable in this stunning new space.

 

McQueen team members (from L-R) – Ben Warren, Mitch Raabe, Jackie Crane, Nick Gunner, Lucy Noye, Nowaki McQueen-Tokita, Alex Lee & Angus McQueen

 

If you know anyone in the Brisbane area that may benefit from speaking with one of our Advisers, please contact our Brisbane team on 07 3736 1533 or via contact@mcqueengroup.com.au.

 

 

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579.
This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).

Looking Beyond a Will

Looking Beyond a Will

If the newspaper stories about high profile family rifts didn’t get the message across, the personal anecdotes of stress and infighting did. These days, everyone is at least aware of how important it is to have a current Will in place. However, estate planning doesn’t begin and end with a Will.

‘Estate plan’ is a catch-all term that covers every nook and cranny of what happens to your assets after you die. It can include a number of crucial documents, such as:

An updated Will

The Will might not be everything to your estate plan, but it’s a good place to start. It can cover everything from the division of assets, to your wishes for your children, pets, non-financial rights, and more. If there’s a direction you wish to make legally enforceable, chances are your solicitor can either work out how to do it or advise you on how to achieve similar results.

In the past, a person might not have updated their Will very often. But these days, it’s becoming more important to review a Will on a regular basis. Relationship status (de facto relationships, divorce, blended families), parenting arrangements, social norms, personal values and more are all much more variable than they might have been in the past.

If that doesn’t get you thinking about your current Will, the alternative should: dying without a Will. It’s known as ‘dying intestate’, and could result in a court deciding how to divvy up your estate. This is done in accordance with a strict legal formula that may not reflect your wishes, and may result in your hard-earned wealth going to someone you would not have given it to.
 

Powers of Attorney

Another fact that’s tough to face: according to official stats, more than half of those who live past age 75 will be living with a disability. For many of those people, that disability will severely limit core activities such as working or running a business, getting around, and communicating. You’ve worked hard over many years to craft your lifestyle, from your family home to your hobbies and perhaps your own business. Naturally, you’d want to protect what you’ve built. A power of attorney can cover your work/business, health care, and other personal affairs. The rules and options for powers of attorney vary from state to state in general, there are three types of powers of attorney.

  • A general power is made for a specific task and a specific amount of time – for example, if you need someone to manage your affairs while you’re overseas or recovering from a major illness.
  • An enduring power allows someone else to make legal decisions if you permanently lose capacity, for example, after permanent brain damage.
  • An enduring guardianship or health care directive is a separate type of arrangement covering your wishes for your medical treatment, from resuscitation to residential care.

Other assets

With many common assets, it’s possible and sometimes necessary to name a beneficiary in advance. These assets include:

  • Superannuation: enquire about a binding death benefit nomination (BDBN) in favour of your preferred beneficiaries.
  • Life insurance: you can generally name a natural person or a legal person (company/trust) as your beneficiary.
  • Business interests: in many cases, your share of a business will pass to the surviving partners, unless other arrangements are put in place for succession planning
  • Assets owned by a trust you control: if you manage a family trust, or a trust for a child in your care, you don’t actually own the assets – the trust does – so they can’t be included in your will. When you’re setting up a trust, make sure that the deed names an appointor – someone who can choose a new trustee if you pass away or can no longer act as trustee.

If you would like to discuss anything you’ve seen in this article, please feel free to give us a call. We’re here to help you make sure your wishes are respected in life and in death, and we can collaborate with your solicitor where necessary.

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579.

This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).

2018 Budget Update

2018 Budget Update

Buoyed by a stronger economy, the 2018 Federal Budget promises to deliver income tax relief, more jobs, guaranteed essential services and the government living within its means. So what does this mean for you?

 

Encouraging tax cuts
The centrepiece of the budget is income tax relief. There’s immediate relief for Australians on low to middle incomes, as well as light at the end of the tunnel for higher-income earners. Those earning up to $90,000 will get a tax cut of up to $530 via the introduction of a new, non-refundable Low and Middle Income Tax Offset from 1 July 2018. The offset will be available for the 2018-2019 to 2021-2022 income years and will be received as a lump sum on assessment after an individual lodges their tax return. The new offset is in addition to the existing Low Income Tax Offset. The new offset will provide a benefit of up to $200 for taxpayers with taxable income of $37,000 or less and for those with taxable incomes between $37,000 and $48,000 the value of the offset will increase at a rate of three cents per dollar to the maximum benefit of $530. Individuals with taxable incomes from $48,000 to $90,000 will be eligible for the maximum benefit of $530. For individuals with taxable income from $90,001 to $125,333 the offset will phase out at a rate of 1.5 cents per dollar.

Having raised it from $80,000 to $87,000 in 2017, the government is now bumping up the 37c on the dollar threshold to apply to taxable income greater than $90,000 from 1 July 2018. By 2024-25, that threshold will be eliminated and those earning $41,001 to $200,000 will face a top tax rate of no more than 32.5c in the dollar (plus the Medicare Levy), meaning Australians on high incomes will need to wait for relief.

Boomer benefits
As they have with every other life stage, the baby boomers look set to reinvent old age and how it is funded.

Older Australians who want to keep working can take advantage of the Pension Work Bonus being raised from $250 to $300 a fortnight, which will allow them to earn up to $7,800 per year without having their pension reduced.

The Pension Loan Scheme is also being expanded. This means many more retirees including full rate pensioners and self-funded retirees can boost their retirement income by up to $11,799 for singles and $17,787 for couples per year by borrowing against the equity they have in their home.

Older Australians wanting to stay in their own homes despite confronting medical challenges, can take advantage of the additional 14,000 high-level home care packages that have been provided. There’s also more money for palliative care and mental health services for those in residential aged care.

The Pharmaceutical Benefits Scheme has received a $1.4 billion boost to list more medicines including those to treat breast cancer and relapsing-remitting multiple sclerosis.

Super fees slashed
There’s not a lot in this Budget for younger Australians but they will at least get a better deal on their super.

Measures applicable from 1 July 2018 

To avoid unintentionally breaching the concessional contributions cap, individuals with income exceeding $263,157 from different employers can elect to have wages from certain employers not be subject to the Superannuation Guarantee.

Measures applicable from 1 July 2019

Administration and investment fees on accounts with balances under $6,000 will be capped at 3 per cent (of the balance). Exit fees will be banned, making it cheaper to switch super funds. The ATO will be supported to proactively consolidate any inactive super accounts a taxpayer has with their active account, where possible.

Rather than being the default option, life insurance will be offered on an opt-in basis for super fund members under the age of 25, those with account balances below $6,000, and those with inactive accounts with no contributions received in 13 months.

For individuals aged 65 to 74 with super account balances below $300,000, an exemption from the work test for voluntary contributions will be applied in the first year that they do not meet the work test requirements.

Cigs up, beer down, commutes quicker, power cheaper
In more bad news for smokers, the Government is cracking down on the sale of black-market tobacco. But Australia’s craft beer lovers may enjoy more affordable artisan ales following changes to the excise rate on small kegs.

The Government is funding infrastructure projects across the country. Among other benefits, this should result in safer, less congested roads. Australians will also benefit from the introduction of the national energy guarantee which is estimated to result in the power bill of an average household falling by $400 from 2020.

Counterfactual cost savings
Although these cost savings won’t affect the hip pocket, the measures are welcome news. The planned 0.5 per cent increase to the Medicare Levy to fund the NDIS has been scrapped. The franking credits cash refund remains. Negative gearing and the capital gains tax discount on investment properties and other investment assets have not been curbed. Furthermore, the government is funding its largesse through measures such as cracking down on welfare overpayments and targeting the black economy rather than jacking up taxes and levies on working Australians.

Having taken the GFC and end of the mining boom in its stride, Australia’s AAA-rated economy continues to power along. The Budget is even set to return to modest surplus in 2019-20 and, barring any unforeseen events, the Treasurer looks likely to achieve the goals he has set.

If you’d like more information on how the measures contained in the Budget will affect you, please give us a call.

 

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579.
This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).

McQueen Group – Brisbane

McQueen Group – Brisbane

 

It has now been a year since we expanded into Brisbane, QLD. Given this milestone, it is timely that we provide you with an update on our activity in Brisbane and how we can help those located in South East Queensland.

 

What we are doing

Having the ability to see more people and start servicing the Brisbane area more proficiently is the goal for the remainder of 2018. Establishment of an office and foothold in an area when you are starting with a small base can often be hard, but we have made our way through the first year in great form and are now well situated at Level 11, Suite 1101, 110 Eagle Street, Brisbane.

The perks of having a small team in Brisbane, largely supported by the Melbourne office means we are very flexible and nimble. Our day to day interactions with clients are very adaptable, throughout South East Queensland we offer; home visits, meeting in cafes and anywhere else convenient for both parties. Ensuring that our clients receive a high-end, professional but personal feel when they interact with the Brisbane team.

 

Who we work with

We work with a broad range of clientele. In general, the types of clients that have been seeking us out for help fit into one of these four categories:

  • Young people establishing their financial pathway
  • Individuals and Families established financially and looking for the next steps to achieve their financial wellbeing
  • People approaching retirement and/or about to retire; and
  • People looking for investment management to invest their existing personal or superannuation funds.

Even if you feel like you don’t belong in one of the above four client groups, you can still get in touch for some guidance, as we are here to help!

 

The Brisbane team

Ben Warren is the Financial Adviser running the Brisbane team. Ben 5 years’ experience as a Financial Adviser and has dealt with clients of all ages and backgrounds. Ben can be found in his office or in any number of cafes dotted from Brisbane down to the Gold Coast.

To ensure you can always speak with someone from the McQueen Team when you need them, Ben is supported by the Melbourne office.

If you know anyone situated in South East Queensland that may benefit from some financial guidance or a second opinion, please contact Ben (07 3338 5780 / 0414 197 522) for an initial chat at our cost.

 

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579.
This information is of a general nature only and does not take into account your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).

Self-Managed Superannuation Funds (SMSFs) and Insurance

Self-Managed Superannuation Funds (SMSFs) and Insurance

Key types of insurance available via super

Three types of insurance are usually available within a superfund, including an SMSF. A member can generally purchase the following types of insurance via a super Fund:

  • Life Insurance
  • Total and Permanent Disability (TPD) Insurance; and
  • Income Protection Insurance.

There are a number of issues to consider when insuring via the super environment:

The sole purpose test

A SMSF must be maintained solely for at least one or more core purposes and (optionally) for one or more ancillary purposes.

A core purpose is to provide for:

  • member upon retirement
  • a member upon reaching age 65’s dependants in event of death.

Purchasing life insurance on behalf of a member would typically satisfy the sole purpose test.

An ancillary purpose is to provide for:

  • a member’s temporary or permanent cessation of work as a result of physical or mental ill-health.

Purchasing Income Protection (or salary continuance) and Total and Permanent Disability Insurance on behalf of a member would typically satisfy the sole purpose test.

Tax effectiveness of insurance held through SMSFs

Life insurance premiums payable by the SMSF are generally tax deductible to the fund. Life and TPD premiums on policies held outside of super are not.

The actual payment of insurance premiums by the SMSF can also be tax-effectively funded by using super contributions, as employers can claim a tax deduction for all super contributions (Superannuation Guarantee and Salary Sacrifice).

Potential limitations on accessibility of benefits

As the policy(s) will be owned by the SMSF, proceeds will first be paid to the fund. Payment can only be made to the member once a condition of release has been met. In the case of death or temporary incapacity, this should occur quickly and simply.

Some flexibility and/or the availability of certain options may be reduced as a result of purchasing insurance via a super fund.

Death benefits may only be paid directly to a super dependant or legal personal representative.

Taxation of the benefit on payment

The tax treatment of a benefit payment will depend on:

  • the type/cause of the payment being made (death, TPD, salary continuance)
  • how it is paid (lump sum or income stream); and
  • to whom the benefit is paid (member, dependant or non-dependant).

 

Life Insurance

Life Insurance is typically purchased when a person wishes to provide their dependants with financial security in the event of the person’s death. Special consideration should be given to whether the payment is to be made to a dependant or non- dependent and the tax implications of this benefit.

Payment to a dependant:

Irrespective of whether the Fund has claimed a tax deduction, the payment as a lump sum to a tax dependant will always be tax free.

Where the death benefit is paid as a pension, the tax treatment of the income stream will depend on the age of the deceased and/or the recipient:

  1. provided at least one is aged 60 or over, pension income will be received tax free; otherwise
  2. the taxable portion of income stream payments will be taxed at the beneficiary’s marginal tax rate less a 15% tax offset.

Acquisition of a Life Insurance Policy by an SMSF

Generally SMSFs cannot acquire an existing Life Insurance Policy from a member or a member’s relative. As such, in order to transfer any existing cover into their SMSF, a member may need to apply for a new policy to be issued and may also need to go through the underwriting process again. This could present an issue where a member’s health has deteriorated since first taking out the policy.

However, some life insurance companies have existing processes in place to allow a new (or effectively a replacement) policy to be issued in the name of the fund without the need for additional underwriting. This generally makes transferring existing cover into a fund a much less daunting prospect.

Total and Permanent Disability (TPD) Insurance               

TPD Insurance is usually insurance that is attached to a Life Insurance Policy, with the benefits being released to the Fund (as the policy owner) once the member meets the policy’s total and permanent disability definition. In order for the Fund to then release the proceeds to the member, the member will also need to satisfy a SIS condition of release.

Due to the nature of the SIS condition of release that relates to permanent incapacity, an ‘own occupation’ definition TPD Policy held through an SMSF may create a situation where insurance benefits are released to the Fund, however could not be released to the member. For this reason, own occupation TPD can no longer be applied for in the superannuation environment.

Advantages 

  • insurance premiums tax deductible to the Fund
  • improved personal cash flow – can use existing accumulated superannuation benefits to pay for premiums
  • creates a tax-effective option of funding insurance via salary sacrifice
  • benefit can be paid in the form of a concessionally taxed income stream; and
  • tax deduction for premiums can offset “contributions tax” in the Fund.

Disadvantages 

  • benefits may be subject to tax
  • access to benefits may present a problem – criteria for release of TPD benefits may differ between super Fund/law and insurance provider
  • some product features may not be available; and
  • time delays occur as a result of Trustee process.

Income Protection Insurance

Income protection insurance  provides a regular income stream in the event of a member’s temporary disability.

Advantages

  • insurance premiums tax deductible to the Fund
  • tax deduction for premiums can offset “contributions tax” in the Fund; and
  • Income Protection Insurance held outside super is also tax deductible with no impact on contribution limits.

Disadvantages

  • policies held inside super may not offer all features of non-super due to sole purpose test
  • super contributions made to pay for premiums will count toward contribution limits
  • group rates provide for cheaper premiums; and
  • improved personal cash flow – can use existing accumulated superannuation benefits to pay for premiums.

 

Trauma Insurance

As of July 2014, Trauma policies cannot be held inside the superannuation environment. There are grandfathering rules for policing held inside superannuation prior to this time, however no new policies can be applied for.

As a trauma event is not in itself a condition of release, holding trauma cover inside a superannuation fund would create a situation where insurance benefits are released to the fund, however cannot be released to the member. Hence the decision to no longer allow for Trauma policies to be held in superannuation.

What to do?

It is recommended that specific advice be sought as to each member’s personal circumstances and whether any of the above types of insurance available within SMSFs should be acquired inside or outside a Fund. Particular attention should be given to whether a deduction is able to be claimed for the insurance premiums and also the potential tax implications for both members and beneficiaries if and when an insurance benefit becomes payable.

 

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579. This information is of a general nature only and does not consider your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).

Meet Tom & Rhonda

Meet Tom & Rhonda

Recently, we caught up with Tom & Rhonda, some of our very first clients. We checked in with them to see how Tom is feeling since achieving one of his major goals; Retirement. Tom was good enough to share his account and financial journey with you.

How long have you been a client at McQueen? 

I have been a client for approximately 23 years.

What did you hope to get out of your relationship? 

I was introduced to Angus when I moved to a new employer. He was young and seemed to know what he was talking about, so I thought I would give him a chance. I had some super and a self managed Superfund with cash in it. Angus spoke to me about personal insurance and my superannuation. At the time I was about 40. Angus was approachable and easy to talk to.

Highlights of the journey?

Angus was always happy to come over to the house, interested in our personal life and when we hadn’t finished chatting he would come with me in the car to the school to pick up the kids.

Through your advice journey what became the goal? 

Over the years my key contact at McQueen changed and it was with Nowaki that I started talking about retiring. I wanted to retire with $500,000, at age 55. Having been invested through two big market crashes, I knew the journey was not going to be easy. Nowaki looked after our investments, ensured we contributed to our supernnuation and also mapped out our financial future to help us understand where we would end up.

When did you retire? 

I retired in 2017 at age 63, Nowaki had told me at 61 and 62 that I could comfortably retire, but  it was this year when I finally started to believe it and felt ready. Rhonda will retire at the beginning of this year. Whilst we may both continue to work in some capacity – it will be on our terms, at our leisure.

How did you feel when you retired?  

Despite much preparation and discussion with the McQueen team, it felt really odd when I gave my notice, I was worried whether I was doing the right thing.

How did you feel on your last day?  

My last day was a Friday, there was a dinner held the night before with the whole company. On the Friday Rhonda picked me up from work after my lunchtime usual pizza with the boys. I was with the company for 16 years, so felt quite emotional (without shedding a tear). They were like a family.

How are you feeling about retirement now? 

I am now super busy; I mind my Grandson once a week, I have time to spend with my mother and mother in-law to help them through health issues and pursuit of their hobbies. I feel less stressed, although it is my nature to worry about money. I am not settled in yet and have not started playing any extra golf – something I hope to do more of once Rhonda also retires.

What do you value in your relationship with McQueen? 

Trust. Friendship, I feel comfortable with the team.

Retirement is one of the biggest changes that you can make in your life. Done right it can be one of the best! Planning for retirement takes more than just financial planning; you need to consider what you will do with your time and in many cases how this will effect your spouse and family unit. 

 

McQueen Financial Group is a corporate authorised representative of Total Financial Solutions Limited. AFSL No. 224 954, ABN 94 003 771 579. This information is of a general nature only and does not consider your investment objectives, financial situation or particular needs. You should not act on any information in this report without first consulting a professional investment adviser in order to ascertain whether the information and any investment decision is appropriate. This information is believed to be accurate however no warranty of accuracy or reliability is given in relation to any advice or information contained, and neither TFSA or its Representatives and officers, agents or employees of either of the aforementioned shall not be held liable for any loss or damage whatsoever arising in any way for any representation, act or omission, whether express or implied (including responsibility to any persons by reason of negligence).