SMSFs must comply with the sole purpose test (providing retirement benefits), maintain arm's length investments, prohibit loans to members, and limit in-house assets to 5% of total value. Trustees cannot be paid for services, must keep assets separate from personal assets, and cannot acquire assets from related parties except business real property and listed securities at market value.

SMSFs can typically borrow up to 70-80% of residential property value or 60-70% for commercial property through a Limited Recourse Borrowing Arrangement (LRBA). Your borrowing capacity depends on rental income, super contributions, existing SMSF assets, and lender criteria. Most lenders require minimum SMSF assets of $200,000 and serviceability calculations include rental yield and contribution projections.

Family Tax Benefit calculations depend on your adjusted taxable income, number of children, and their ages. FTB Part A provides up to $5,911.36 per child under 12 (2024-25 rates), reducing as income increases above $66,722. Part B supports single parents and families with one main income, worth up to $5,026.84 annually for youngest child under 5.

FTB Part A has no income limit for base rate ($1,896.44 per child annually), but maximum rates reduce by 20 cents per dollar over $66,722, then 30 cents per dollar over $118,771 (2024-25). Your adjusted taxable income includes salary, investment income, reportable super contributions, and fringe benefits. Payment phases out completely at different income levels depending on number of children.

FTB Part B eligibility requires caring for a dependent child under 13 (under 18 if studying full-time). Single parents have no income limit, while couples' secondary earner must earn under $6,935 annually. Maximum payment is $5,026.84 for youngest child under 5, or $3,508.96 for children 5-18. Primary earner's income must be under $120,007 annually.

Stage 3 tax cuts from July 2024 create a 30% tax bracket for incomes $45,001-$135,000, benefiting all taxpayers earning over $45,000. Someone earning $100,000 saves $2,179 annually, while $200,000 earners save $4,529. A new 37% bracket applies from $135,001-$190,000, with the 45% rate only applying above $190,001, delivering targeted savings for middle-income earners.

Division 296 proposes an additional 15% tax on superannuation earnings for balances exceeding $3 million, doubling the tax rate to 30% on earnings above the threshold. The $3 million cap isn't indexed and includes unrealised capital gains. However, the legislation remains stalled in the Senate with insufficient support, making the July 2025 implementation date highly uncertain pending political developments.

Legal tax minimisation strategies include salary sacrificing to super (up to $30,000 annually), negative gearing investment properties, claiming all work-related deductions, utilizing spouse contributions, maximising private health insurance rebates, and establishing family trusts for income splitting. Debt recycling converts non-deductible home loan debt to deductible investment debt. Professional tax planning ensures compliance while legitimately reducing tax obligations.

Yes, SMSFs can purchase both commercial and residential property with strict rules. The property cannot be acquired from related parties (except business real property), cannot be lived in by members or relatives, and must be held for investment purposes only. Commercial property can be leased to related party businesses at market rates. All property purchases must align with your documented investment strategy.

An SMSF borrowing capacity calculator determines how much your fund can borrow for property investment through an LRBA. It factors in current SMSF balance, contribution levels, existing income streams, property rental yield, and specific lender serviceability requirements. While no regulatory LVR limits exist, most calculators apply typical lender limits of 70-80% for residential and 60-70% for commercial property.

An LRBA allows SMSFs to borrow money for purchasing single acquirable assets like property. The asset is held in a separate trust until the loan is repaid. If the SMSF defaults, the lender's recourse is limited to the asset only - other SMSF assets are protected. LRBAs require specific trust structures, documented loan agreements, and compliance with strict ATO guidelines.

Yes, superannuation doesn't automatically form part of your estate. Without a binding nomination, super trustees decide beneficiaries regardless of your will's instructions. Binding nominations ensure super goes to intended beneficiaries and can provide tax advantages - payments to dependants may be tax-free while payments via estate to non-dependants attract up to 17% tax. Coordinate both for comprehensive estate planning.

Super death benefits to dependants (spouse, children under 18, financial dependants) are tax-free. Non-dependants pay up to 17% tax on taxable components (32% including Medicare levy on untaxed elements). Lump sums to non-dependants are taxed, while dependent beneficiaries receiving pensions pay no tax. Strategic nominations between dependants and non-dependants can save thousands in death benefit tax.

Your superannuation is paid as either a lump sum or pension to eligible beneficiaries. Without valid binding nominations, trustees decide recipients - potentially conflicting with your wishes. Dependants receive tax-free benefits while non-dependants may pay up to 17% tax. Super doesn't automatically go to your estate unless specifically nominated. Review beneficiary nominations every three years to ensure alignment with current circumstances.

Income protection through super preserves cashflow but may offer limited benefits and definitions. Personal policies outside super provide better occupation definitions, more comprehensive coverage, and tax deductions for premiums. Super policies are cheaper upfront but reduce retirement savings. Consider super for basic coverage if cashflow-constrained, but personal policies offer superior protection for professionals and high-income earners needing specific occupation coverage.

Superannuation can include life insurance, Total and Permanent Disability (TPD), and income protection cover. Life and TPD are common default covers, while income protection requires opt-in. Super insurance is cost-effective and convenient but may have restrictive definitions and limited benefit periods. Coverage amounts depend on your fund's insurance policy, occupation category, and age, with premiums deducted from your super balance.

Income protection premiums outside super are generally tax-deductible for individuals, reducing after-tax cost by your marginal tax rate. Premiums inside super aren't personally deductible but are paid with pre-tax dollars through salary sacrifice or concessional contributions. Benefits from personally-owned policies are taxable income, while super-held policies may have different tax treatment. High-income earners particularly benefit from deductibility outside super.

Consider seeing a financial planner at major life events: starting a family, receiving an inheritance, approaching retirement, changing careers, or when income exceeds $150,000. Also seek advice for complex decisions like SMSF establishment, investment property purchases, insurance reviews, or tax planning strategies. Early engagement maximises wealth-building opportunities - even young professionals benefit from cashflow management and super optimisation strategies.

ASFA standards suggest singles need $595,000 and couples $690,000 in super for a comfortable retirement (December 2024 figures), generating approximately $51,805 and $73,077 annual income respectively. This assumes home ownership and partial Age Pension eligibility. Higher living standards or retiring before 67 require substantially more. Consider inflation, healthcare costs, and lifestyle expectations when calculating your personal retirement target.

Financial planners focus on future wealth creation through investment strategies, super optimisation, insurance, and retirement planning. Accountants primarily handle tax compliance, financial reporting, and historical record-keeping. Planners need AFSL authorisation for investment advice while accountants require CPA/CA qualifications. Many professionals benefit from both: accountants for tax returns and compliance, planners for proactive wealth strategies and achieving long-term financial goals.