What happens if I don’t have a Will?

A Will is a legal document that sets out how you want your assets to be distributed after your death. You can make specific bequests to individuals or organisations. You can ensure that personal items and special assets go to your choice of people and causes.  

What happens if I don’t have a Will? 

If a person dies without a valid Will, they die intestate, which means that the distribution of their estate is governed by the intestacy rules set out in the Succession Act 2006. If so, it could be that your wishes might not align with the way your estate will be distributed under the intestacy rules. The rules determine the order of priority among surviving family members, rather than following the distribution you would have outlined had you created a Will. 

Not having a valid Will in NSW can lead to several other significant risks and complications for your estate and your loved ones. Some of the key risks of dying intestate are: 

• Potential disputes among beneficiaries, leading to tension and strain in family relationships 

• Higher legal and administrative costs due to the need for court intervention 

• Depletion of estate due to costs, leaving less for beneficiaries, including those who might rely on your estate for living expenses 

What constitutes a Will? 

A valid Will must: 

• Be in writing; handwritten or printed 

• Be made voluntarily, without coercion or undue influence 

• Signed by the Testator, the person making the Will 

• Signed by two witnesses in the presence of the Testator 

• Be created by a Testator of sound mind and having a clear understanding of the purpose and content of their Will 

A Will allows you to appoint an executor, the person who will be responsible for administering your estate by carrying out the instructions in your Will. 

You will likely want to ensure that your minor children are looked after by someone you trust in the event of your death. You can include guardianship instructions for any minor children in a Will by nominating a guardian. 

A Will can be updated by creating a separate document (a codicil) or by making a new Will. It is worthwhile reviewing your Will regularly over the years to ensure it remains relevant to your wishes and to your beneficiaries. 

As your life circumstances change over time or you change your mind about the content of your Will, a Will can be revoked by destroying the old Will with the intention of revoking it, or by marriage or divorce, and then creating a new Will. 

A Will can be contested on various grounds, such as unequal or unfair distribution, or lack of provision for dependents or certain individuals; lack of capacity of the Testator; coercion or undue influence; fraud and/or forgery. 

You can minimise family disputes over your Will by setting out clear instructions that avoid ambiguity regarding asset distribution and by meeting legal requirements of a Will for a smoother administration of your estate. 

Probate is the legal process of validating a Will and your executor will apply to the Supreme Court of NSW for a grant of probate, authorising them to distribute your estate according to your Will. 

Do I need help to create a Will? 

It is worthwhile seeking legal assistance when drafting or updating a Will to ensure it complies with all legal requirements and accurately reflects your wishes. It can give you peace of mind to know that you have a legally binding document for your loved ones, reducing the risk of complications during the probate process. 

How can YML help?

Talk to YML Legal today to see how YML Group can assist you with the creation and management of your Will. For more information, view, our website and contact us on (02) 8383 4499 or by using our Contact Us page on our website.

Will you benefit from a SMSF loan with an offset account?

The simple answer is: Yes. Depending on the loan structure arrangement, it is typically beneficial to have an offset account attached to a SMSF loan.

An offset account reduces the interest payable on your loan by offsetting the balance against the loan principal. This can lead to interest savings, thereby lowering your SMSF’s expenses.

Overall, where your SMSF has lower expenses and makes savings, there is the opportunity to generate higher net investment returns, potentially leading to a healthier SMSF outcome for your retirement.

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your SMSF loans. For more for more information, view, our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Outsourcing and Co-sourcing to increase Productivity in a shifting Economy

Post-pandemic Australian businesses are facing a shifting domestic economy. Fortunately, they are at the forefront of adopting businesses practices that can and do optimise their business operations. Outsourcing and co-sourcing are two such strategic approaches to strengthen your company’s competitiveness by increasing productivity, reducing costs, and readily adapting to changing market dynamics.

Co-sourcing is a hybrid model – blending your company’s established internal resources with partial outsourcing for greater specialised knowhow. It is a collaborative strategy, combining existing in-house resources with an external service provider to manage certain functions or processes, proving beneficial by ensuring an agile response to challenges your business confronts in its day-to-day undertaking.

A co-operative and mutual partnership is created through co-sourcing, enabling your company to maintain control and oversight over critical aspects of your business whilst leveraging external skilled talent and guidance that might be lacking. Think of it as gaining an additional employee within your staff structure.

In Australia, co-sourcing has gained prominence in recent years as Australian businesses emerge from the pandemic into a tightening labour market with a skills shortage. By taking advantage of co-sourcing, your business benefits from an access to a wealth of specialist knowledge and skillsets, specifically trained to work alongside Australian companies.

In the context of Australia’s current business economy:

• Outsourcing offers a deep understanding of Australia’s complex regulatory environment, helping businesses navigate legal and compliance challenges.
• Outsourcing can help businesses harness the latest technological advancements without the burden of large-scale technology investment.
• Outsourcing enables companies to stay competitive by accessing global talent and resources, helping Australian businesses to compete both domestically and internationally.

With careful planning and management to be successful, outsourcing and co-sourcing create opportunities for companies who thrive on performance metrics to meet their business objectives for the long-term.

Propel your business forward with YML Group’s own services in administration disciplines, dedicated and trained professionals who partner with businesses and who use cloud-based technology to work seamlessly with Australian businesses’ management and staff.

How can YML help?

Talk to our YML Business Services Team today to see how YML Group can assist you with our outsourcing and co-sourcing services. For more information, view, our website and contact us on (02) 8383 4455 or by using our Contact Us page on our website.

What is your EOFY accounting strategy? How will you finance your EOFY business asset acquisitions?

End-of-financial-year 2024 – 30th June – is looming and it is time to ensure your accounting strategies will improve your 2024 tax return. At YML Chartered Accountants we work in partnership with you to minimise your taxation obligations because taxation can be a major cost to your business. Let us put you in to prime position for taxation purposes, potentially resulting in a greater gain for your business as you start the new financial year on 1 July 2024.

We offer practical guidance and can help you by implementing accounting strategies for complex taxation matters. We update you on key changes and requirements that could afford you a better outcome on your annual tax return. And we have some pointers to get you started on your imminent 2024 tax return preparation:

What you can do NOW – before 30th June

• Start by reviewing your forecasted tax obligations, so you can avoid any surprises when preparing your 2024 tax return
• Check your accounting records are up-to-date as at 30th June 2024
• Scrutinise documentation and ensure you have receipts for all 2024 financial year transactions
• Write off bad debts by 30th June
• Defer income received-in-advance – for goods or services not yet provided – to the 2025 financial year
• Bring forward legitimate deductions to the 2024 financial year
• Prepay (qualifying) business expenses (in small businesses) that relate to a 12-month period or less
• Take advantage of the $20,000 instant asset write-off (in small businesses with an aggregated turnover of less than $10 million) for eligible purchases of assets (up to $20,000 per asset) that are first used or installed ready for use between 1st July 2023 and 30th June 2025
• Pay employee superannuation guarantee by 30th June to claim a deduction
• Commit to employee bonuses by 30th June to claim a deduction
• Reconcile payroll and prepare single touch payroll (STP) reports in accordance with Australian Taxation Office (ATO) due dates
• Declare and pay company dividends to shareholders
• Determine and distribute trust income to relevant beneficiaries
• Make donations to deductible gift recipients by 30th June to claim a deduction

Finance for BUSINESS ASSETS – vehicle and equipment

The end-of-financial-year is a great time to start thinking about any business assets you might need to purchase to improve your business efficiency.

Reap a taxation benefit in the 2024 financial year by making your business asset purchases before 30th June.

Do you need a new work truck? New office equipment to boost your business productivity?

This time of the year is ideal for scouring vehicle dealerships and equipment suppliers for a sale and a bargain. YML Finance, with its strong relationships with many lenders, can help you negotiate finance for your new business assets, such as vehicles and office equipment.

Based on your company’s specific finance loan needs, we also find you the lowest interest rates on business loans, prepare your loan application, develop your loan structure, and support you throughout the life of your finance loan.

YML Chartered Accountants and YML Finance offer you a complete and comprehensive range of taxation accounting and finance expertise and resources to give you a great start to financial year 2025.

How can YML help?

Talk to our YML Chartered Accountants and YML Finance Teams today to see how YML Group can assist you with your EOFY 2024 accounting strategy. For more information, view, our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Dropbox Sign

What happened
Dropbox Sign customer information such as emails, usernames, phone numbers, hashed passwords, multi-factor authentication, and general account settings were obtained. Based on their investigation, there is no evidence of unauthorized access to the contents of customers’ accounts (i.e. their documents or agreements), or their payment information.

What Dropbox has done
When they became aware of this issue, they launched an investigation with industry-leading forensic investigators to understand what happened and mitigate risks to their users. In response, their security team reset users’ passwords, logged users out of any devices they had connected to Dropbox Sign.

What YML has done
When we become aware of this issue, we stopped sending our documents through Dropbox Sign. We conducted our own internal review and audit and can confirm that there is no evidence of unauthorised access to our client documents. We have also changed all our user passwords and are currently in the process of adding multi-factor authentication to all our users. Once this process is complete, we will resume using Dropbox Sign.

What you can do (only applies if you have a Dropbox Sign account)

• Passwords and multi-factor authentication. Dropbox expired your password and logged you out of any devices you had connected to Dropbox Sign to further protect your account. The next time you log in to your Sign account, you’ll be sent an email to reset your password. Customers who use an authenticator app for multi-factor authentication should reset it as soon as possible. Please delete your existing entry and then reset it. If you use SMS, you do not need to take any action.

• If you reused your Dropbox Sign password on any other services, Dropbox strongly recommends that you change your password on those accounts and utilize multi-factor authentication when available.

Refresher : ‘Downsizer’ Superannuation Contribution

‘Downsizing’ by selling your main residential home could be the answer to increasing your superannuation balance and potentially improving your retirement lifestyle by giving you more for your living expenses or for aged care options.

In Australia, eligible individuals who have reached the age of 55 by 1 January 2023 may sell their home and use some of or all the sale proceeds as a non-concessional (after-tax) contribution to their superannuation account.

Sale Property Eligibility

To be eligible to make a ‘downsizer’ contribution, you must have sold a qualifying property in Australia that you or your spouse has owned for at least 10 years – calculated from the date of settlement of purchase to the date of settlement of sale.

The property must be exempt in whole or in part from main residence capital gains tax (CGT).

Superannuation Contribution Amount

An individual may contribute up to $300,000, or the total sale proceeds if less than $300,000. As a couple, you may each contribute up to $300,000, providing up to $600,000 in total as your ‘downsizer’ contribution.

A ‘downsizer’ contribution:

• may only be made once.
• must be made within 90 days of receipt of the sale proceeds.
• does not count towards your non-concessional contribution cap
• can be made even if you reach your total superannuation balance cap.
• is not tax-deductible.

What else do you need to know?

• You do not need to satisfy a Work Test or Age Limit to make a voluntary ‘downsizer’ contribution.
• It is not a requirement nor is it necessary to do so, but you may purchase a new property to live in if you choose after making a ‘downsizer’ contribution.
•  You may invest the sale proceeds from your home for up to 90 days (settlement period) prior to making a ‘downsizer’ contribution.
•  You may use the sale proceeds from your home to commence a new account-based superannuation fund, subject to transfer balance cap availability.
•  You must notify your superannuation fund in an approved Australian Taxation Office (ATO) form before making a ‘downsizer’ contribution that you intend to make a ‘downsizer’ contribution.
•  You must submit your ‘downsizer’ contribution form to the ATO for taxation purposes.

Next Steps

It is important that you contact a professional financial adviser to seek advice about the implications of a ‘downsizer’ contribution for your specific financial situation.

YML Group can help you, depending on your age and your personal financial circumstances, apply a ‘downsizer’ contribution to a recontribution strategy designed to lower your superannuation taxation obligations.

With a ‘downsizer’ superannuation contribution you could look forward to a more rewarding financial future during retirement. Are you ready to ‘downsize’?

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your ‘downsizer’ superannuation contribution. For more information, view, our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.

NEW Stage 3 Income Tax Cuts from 1 July 2024

The Income Tax Rates Act 1986 has been amended as part of the Australian government’s redesign of the Stage Three tax cuts proposed by the former Liberal government. The new amendments modify the individual income taxation rates and thresholds from the financial year 2024-25 onwards.

These modifications to tax rates and thresholds are deemed by the current government to be justified given the economic climate today. The impact of an increasing cost-of-living on low- to medium-income households is expected to be somewhat alleviated by the new tax rates and thresholds from 1 July 2024.

The former Liberal government’s proposal to create a single 30% tax rate for taxpayers earning between $45,000 and $200,000 was considered weighted towards those on higher incomes receiving a greater tax break. Thus, the Labor government has reassessed the tax rates: those on higher incomes will now receive a lesser benefit and those on lower incomes will be financially aided by the new tax rates.

From 1 July 2024, the key changes to the Income Tax Rates Act 1986 will be:

• A retention of the tax-free threshold for the first $18,200 of annual earnings
• A reduction in the tax rate for incomes between $18,200 and $45,000 – from 19% to 16%
• A reduction in the tax rate for incomes between $45,000 and $135,000 – from 32.5% to 30%
• An increase in the income threshold for the 37% tax rate – from $120,000 to $135,000
• An increase in the income threshold for the 45% tax rate – from $180,000 to $190,000

The newly legislated marginal income tax rate table shows tax payable by individual taxpayers from 1 July 2024:

Additional Medicare Levy Adjustment – Effective 1 July 2024
The Medicare levy is currently 2% of taxable income but is not payable by those annually earning $24,276 or less. Those taxpayers annually earning $30,345 or more must pay the full 2% Medicare levy. The levy increases gradually to 2% for those annually earning between these income amounts.

From 1 July 2024, the threshold for lower income earners will be annual earnings of $26,000 and the threshold for paying the full 2% levy will be annual earnings of $32,500.

YML Chartered Accountants offers you a complete and comprehensive range of resources for navigating the legislation passed by the government to simplify the tax system and adjust the taxation payable by individuals working in Australia.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your income taxation obligations. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

Navigating the Waters of Tax Audits: The Benefits of Tax Audit Insurance for Taxpayers

In the complex world of taxation, the prospect of an audit can be daunting for any taxpayer, whether you're an individual, a small business owner, or the CEO of a large corporation. Tax audits are not only stressful but can also be expensive, time-consuming, and disruptive to your daily operations or personal life. This is where tax audit insurance becomes not just a safety net but a strategic tool in managing financial risks.

Here is why purchasing tax audit insurance could be a wise decision for taxpayers.

Financial Protection

The primary benefit of tax audit insurance is financial protection. Audits can result in significant professional fees as taxpayers seek assistance from accountants, tax agents, and even legal counsel to navigate the audit process. Tax audit insurance covers these costs, ensuring that you are not out of pocket for these unforeseen expenses. This can include the cost of preparing documents, hours of advisory services, and any other professional fees incurred during the audit.

Peace of Mind

Tax audits can be stressful, with the potential to disrupt both your business operations and personal peace of mind. Knowing that you have tax audit insurance can alleviate this stress, allowing you to focus on running your business or managing your personal affairs without the added worry of potential audit costs. This sense of security is invaluable, providing comfort in knowing that you're prepared for whatever the tax office may bring your way.

Time Savings

Handling a tax audit can be incredibly time-consuming. For businesses, this time could be better spent on growth activities or operations. Tax audit insurance often provides access

to experts who can manage the audit process on your behalf, saving you precious time. These professionals are well-versed in audit procedures and can efficiently navigate the complexities of your case, minimizing the disruption to your daily activities.

Flexibility and Control

Finally, tax audit insurance provides taxpayers with flexibility and control over how to handle an audit. Instead of being limited by financial constraints, policyholders can engage the best possible experts to represent their interests. This level of control can be crucial in effectively managing and swiftly resolving an audit with minimal financial impact.

Purchasing Tax Audit Insurance

If you're considering acquiring audit insurance for yourself or your business, you have the option to select from preferred service providers or use our recommended provider, BizCover by link below: https://www.bizcover.com.au/tax-audit-insurance/?utm_source=0012V00002X0IDLAAR&utm_medium=0012V00002X0IDLAAR&utm_id=0012V00002X0IDLAAR .

Should you need further assistance or wish to explore your options, please don't hesitate to contact us at 02 8383 4400.

Is your bank offering you the best interest rate?

Our lenders are sharpening their interest rates, currently 6.14% PA on home loans and 6.29% PA on investment loans, both principal and interest repayments.

Rates are based on Loan to Value Ratio (LVR), so reach out to us NOW.

Learn more about how we can help you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your loans. For more for more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Landholder Duty – Changes to the Ownership Percentage Threshold

Landholder duty (formerly stamp duty) in NSW changed under the Treasury and Revenue Legislation Amendment Bill 2023 (NSW) which passed on 21 September 2023. The changes to landholder duty affect both private unit trusts and wholesale unit trusts, effective 1 February 2024.

Landholder duty is charged on NSW land purchased with an unencumbered value of $2 million or more, held by private entities and private unit trusts

From 1 February 2024 the landholder duty ‘significant interest’ threshold for private unit trusts was reduced from 50 percent to 20 percent – thus, land transactions of 20 percent or more to private landholders under a private unit trust scheme will be subjected to landholder duty.

Investors, including self-managed superannuation funds (SMSFs), will also be required to pay landholder duty when they acquire a 20 percent or more ‘significant interest’ in a private unit trust.

Private companies will continue to have a 50 percent threshold before landholder duty is applied.

Public landholders will continue to have a 90 percent threshold before landholder duty is applied.

What option is available to increase the threshold?

Under transitional provisions within the Treasury and Revenue Legislation Amendment Bill 2023 (NSW), from 1 February 2025, a private unit trust scheme may apply to register as a wholesale unit trust – whereby the landholder duty ‘significant interest’ threshold is restored back to 50 percent.

Applications for registration as a wholesale unit trust must be made prior to 1 May 2024 and be approved for NSW land acquisitions made on or after 1 February 2024 to qualify for the 50 percent landholder duty threshold applicable to wholesale unit trusts.

Qualifying criteria to register as a wholesale unit trust must be met by private unit trusts applying for wholesale unit trust registration, two key criteria being:

• The trust scheme is not established for a particular investor; and
• Not less than 80 percent of units in the scheme are held by ‘qualified investors’ (such as listed entities)

Next Steps

It would be prudent for investors who acquire NSW land to check the unencumbered value and whether they are acquiring a ‘significant interest’ to ensure that correct and timely landholder duty is paid from 1 February 2024.

Additionally, private unit trusts might decide to transition to a wholesale unit trust via registration to benefit from a higher ‘significant interest’ threshold next year from 1 February 2025. YML Chartered Accountants can assist those investors with registration before the 1 May 2024 cut-off.

How can YML help?

Talk to our YML Legal Team today to see how YML Group can assist you with your landholder duty obligations. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.