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Largely - albeit there are some 'carve-outs', the US being a good example.

@@AustralianExpatFinance Thank you. I'll have to subscribe since I learned a lot. Being a USA citizen, I thought i'd have to pay that 60%. So it's very good news!

@@carefulconsumer8682 I'm glad to hear that, and appreciate the feedback.

Whilst the same logic can and often does apply, I would also highlight that the US is a very different real estate market to both Singapore and Australia.

Thanks for the note here. Gifting and means-testing for pension eligibility is certainly an important part of the planning process, however it's important to note that the pension really shouldn't be treated as aspirational. It's there as a safety net, and for many Australians, and those planning to retire in Australia, is not going to be sufficient to fund the retirement lifestyle they want.

Thanks for sharing Warren. Morningstar revealed that around 17.1% of Australians have over $2M in super - that's about 188,000 people. Whilst it may not be in the media headlines, I wouldn't suggest this is a 'very very small % of people'. The more important takeaway however is just having awareness of what your 'number' is, and what you need to do to achieve your ideal retirement lifestyle.

Thanks for your feedback here. You should be able to review your superannuation via your myGov portal by linking the ATO / Tax to your myGov within the account. This will then allow you to view how many accounts you have and the balances. In terms of pensions, it's important to review this with an Adviser / Centrelink to explore your options and entitlements here. Given the importance of both, I would certainly suggest reaching out to seek some personal advice here and ensure that you're well set up for an enjoyable retirement in Australia.

Thanks for your note. Feel free to send me an email directly - Jarrad.brown@gfcadvice.com

Thanks very much for the tip. You're referring to the increase in the Foreign Resident Capital Gains Withholding Tax here being increased from 12.5 to 15% and removal of the $750k threshold. I wrote a blog post on the topic, but will prepare a video also. singapore.feebasedfinancialadvice.com/changes-to-foreign-resident-capital-gains-withholding-tax/

It is a very complex area, so I would certainly suggest anyone looking to explore their pension entitlements speaks to their Services Aus office, or Financial Adviser.

I'm sure you could buy it and sell it 10 years later. What I'm less sure of is that the rate of return will exceed alternatives.

Thanks very much for the feedback. You're not wrong. Lending policy was also significantly different back then. Despite interest rates being different, serviceability assessments were also very different and a lot less stringent to what they are today. For most aspiring investors, the most important step I feel is considering the end goal and designing the roadmap to get there ensuring that lenders will allow it.

Sorry to hear your experience here - I hope you were able to get it resolved.

Once there's a one-size-fits-all approach to retiring overseas, I'll create that roadmap. Until then I'll continue to share the questions that Australians need to be asking of themselves and their Advisers to ascertain what's right for them. Nonetheless, thanks for sharing your thoughts.

​​@@AustralianExpatFinance ok but while you have that attitude, other youtubers are providing actual practical answers and insights and I've immediately subbed to them. So if you want to be more helpful to people and grow your channel, I recommend providing more answers than questions. If you don't, then don't 🤷🏻‍♂️ Pretending that just because different people have different requirements means you can't give any answers at all is disingenuous. Your whole first segment of this video is a laundry list of questions about rules without any actual explanation of the rules.

@@gaz4097 Thank you for the feedback.

You're spot on there. Investors ran for the exits early this year in Victoria following the 'death by a thousand cuts' approach of the State Govt, albeit we're starting to see this turn now. The Land Tax change in Victoria certainly caught many off-guard.

Thank you for sharing your story - it's an important one for people to take note of.

Ha I’m in the same boat. About to build my 5th property. I have a small etf portfolio. I wish I put everything into that instead. Property is annoying as hell. But now I’m kinda stuck in property until I stop working because of CGT. I won’t buy more, I’ll just dump it all in ETFs

@@lengerer Yes mate, whilst still working you can if need be put part of your salary towards the acquisition and servicing of property. However, when you're relying solely on rental income as I am and yield is significantly decimated by Land Tax in Vic alone, I have little choice but to sell. My biggest concern is that the CGT discount gets scrapped as recent Leftist Govts keep bringing it up especially if Albo gets back in office with a minority govt with the Greens. Whether they grandfather it remains to be seen but, I honestly think it's on borrowed time. I'd rather take the hit now whilst it's in place because it will be a hell of a lot worse should the discount disappear. Should Labor win office again in Vic beyond 2025 I can confidently say the term "investment property" will exist no more.

Thanks for sharing this - it certainly highlights the importance of both diversification and planning ahead.

@@m2comp369 yes, good points. I think you have the right idea. The government will see the results, might lower home prices but will worsen rental conditions.

Thanks for your question Deborah. There is no 'best super' as what's right for one, could be wrong for another. It's important to work out which has the right features that you're looking for and suits you best.

Thanks

It's certainly a very complex area when it comes to SMSFs, and even for Australian residents, the rules and obligations for trustees continue to evolve which makes it a much more onerous task than many realise to actually run their own SMSF. Throw in the expat component, and an SMSF can become an extremely challenging task, particularly if it's holding illiquid assets such as residential property, which far too many often are.

Great question. In most cases, no, as the account based pension would be providing a tax free income, however as you highlight it's important to review the tax treatment of this income in your country of residence, and the tax treaty between that country and Australia.

It's definitely one of the most overlooked topics. This doesn't make property a bad investment, it just means you need to consider the net return with the exit plan factored in.

You raise a fantastic point, and the part of property investment that is most often ignored - the exit plan. Residential property as a retirement income stream is often terrible, but commercial property, shares and even some fixed income assets can deliver much better yields. This is where we need to be considering holding structures for property portfolios, tax deductions, timing of sales, and even property development to sell a portion of an existing asset rather than the whole block if possible.

I would strongly suggest seeking some professional advice here, as it's not as draconian as you suggest. It's just a matter of crunching your numbers and working out what's best for you. If you travel and don't actually cease your tax residency by commencing residency elsewhere, then it's unlikely that you would have actually broken ties with Australia.

Thank you very much for the feedback. Often, if you haven't claimed another property as your main residence through that same period, you can resume your Australian tax residency and still be eligible for the Main Residence Exemption (MRE). You don't actually have to return to live in that same property. As always, important to seek personal advice particularly when it comes to potentially large CGT bills.

Thanks for your note here.

Thanks for your note here. You can reach out to Brad Murphy at Murphy Tax - they should be able to assist you here.

@@AustralianExpatFinancehi , you left a message . Are you located in Australia ?

@@wazzofrogThailand - I'm located in Singapore.

Thank you very much - appreciate the feedback.

Great question - some certainly do, particularly younger expats who don't have children. It could be a great way to save on rent and still live in a convenient location.

Great question - all comes down to crunching your own numbers. There's no one size fits all approach here. In terms of career prospects, personally I feel that Singapore is one of the greatest opportunities in the world for Australian expats to experience, however, it's important to note that many Australian firms see international expertise and experiences as a distraction and time 'out of the market'.

Thank you for sharing here. The asset test threshold for a couple who own their own home for a full pension is currently $470,000. I would suggest reaching out to your Centrelink office and discussing your options with them. Hopefully they can provide you with some updated guidance here.

Firstly, I'm not suggesting you do anything other than seek personal financial advice ;) Secondly, a few important points to note on your comment here. Utilising the carry forward concessional contribution can tip you over the $500k limit, it's just that your super balance must be below $500k as at the most recent June 30 to use it. It's also important to note that any deductions such as the concessional contributions must be made in the same financial year as the capital gain is realised to be valid.

@AustralianExpatFinance Thanks for the reply. Yes, I would not make any decisions without first seeking financial advice, as I realise your advice is only of a general nature. Could you please confirm if my understanding is correct here though. From 1st July 2024, the general concessional contributions cap is $30K. Members can make 'carry-forward' concessional super contributions if they have a total superannuation balance of less than $500,000 on a rolling 5 year basis. From 1 July 2024, the non-concessional contributions cap is $120K. Members have access to up to 3 years of future "bring forward" contributions ($360K) provided their total superannuation balance is less than $1.66M. It was these second non-concessional contributions I was referring to in my hypothetical example, but I think my terminology was wrong.

@@waffle_burger8499 To clarify, the $500,000 limit is just at the most recent 30 June, so it could have been above $500,000 during the financial year but dropped to $499,000 on 30 June, and this would still be available. In terms of the non-concessional, yes, you're about spot on in terms of the caps on the bring forward rule. $360,000 up to $1.66M $240,000 for $1.66M - $1.78M $120,000 for $1.78M to $1.9M Please also bear in mind these limits can and do change as I'm sure you're already aware.

No, commission is generally not received from recommended investments. Not too sure what point you’re trying to make with this one.

Don’t quite understand this one, but if you’re referring to the fact that there is no one size fits all approach to suitable investment strategies, you’re on the money. Well done.

These are well diversified, liquid, and relatively inexpensive ETFs, which is a great start. Are they right for you? Without knowing a LOT more about you, that's really impossible to answer. I don't mean to sound unhelpful here, but there could be a lot to change or nothing at all. For example, there could be too much or too little risk, the currency exposures could be inappropriate, there could be lower cost options, the holding structure could be inappropriate, a different asset class could be far more appropriate for you based on your goals. On a separate note, I commend you for sticking to the plan - as simple as this sounds, this is where far too many go wrong. Panicking when markets get choppy, stopping contributions because the portfolio is down, or chasing the next 'shiny' investment.

@AustralianExpatFinance Thanks, I appreciate the feedback and the reply. Yes, there are many factors to consider. My circumstances haven't really changed for a few years, so my instincts tell me this approach is probably still appropriate for me. I have actually surprised myself by being able to stick to this plan. I used to fall into that category of "dabblers" trying out the latest fad or chasing historic returns. Taken me 15 years to learn the hard way it rarely works 🙄.

@@waffle_burger8499 Love your work! As the saying goes, if your investing strategy is exciting, you're probably doing it wrong.

Thanks for your question. Superannuation (and the account based pension) is one of the most tax efficient structures for retirement, particularly for retirement in Australia, so any withdrawals should be treated with caution. A good Financial Adviser can assist in managing your investments within super to maintain the tax efficiency, but it’s best to seek some personal advice to consider what’s right for you.

@@AustralianExpatFinance Thanks Jarrad, cheers Mate

Great question. A Transition to Retirement (TTR) strategy can be quite suitable for someone pre-retirement looking to reduce working hours but not retire fully. This typically allows you to receive some payments from your super fund (currently capped at 10% per year) before the age of 65 whilst you're still working.

@@AustralianExpatFinance What happens after you turn 65 ?does The transition to retirement stops

@@cyndiwenban90 The major change is that the cap on the amount you can withdraw is typically removed.

Can the super be invested and earning a return in pension mode?

@@lostinasia3685 It most certainly can. It's important to review what options your super fund provider will grant you.

Thanks for sharing your thoughts here Joe. Given that the majority of my content and information is for Australian expats (who are not earning $40,000 per year) this is not a one-size fits all approach. And no, I don't share your view that anyone earning over $100,000 per annum has 'fallen' into anything - this would be like suggesting that every successful business owner fell onto a good idea and 'got lucky'.

Thanks for sharing your thoughts Brian.

It's important to note that there's a lot more to consider when calculating your ROI than just the tax rate. i.e. gross capital gain, deductibility of property holding costs, interest rates, gross rental yields and much more.

It’s certainly very different to the US retirement system, which can certainly make it challenging for Aussies in the US.

Great to hear you've been maximising your superannuation options. There could be many options to consider here such as prepaying interest on the loan to offset the tax on the sale of the other, not selling the property at all, making a concessional super contribution, to name just a few. In this case, I would strongly recommend you speak with your Financial Tax Adviser and run the scenarios to work out which is the best option here.

Thank you for sharing here. Often retirement income streams are assessed as income for means testing, but given the complexities of your situation, I would certainly suggest it's worthwhile you reaching out to your Financial Adviser to review your situation in detail.

Great question. No, it wasn’t as he was a non-resident for the majority of the holding period.

Thank you for your question here. Firstly, yes it applies to Australian residents also, however the tax rates are different between residents and non-residents which is important to consider. The maximum contribution is this year's concessional contribution ($30,000) plus up to the last 5 years' of unused concessional contributions, which can be added at once to offset other taxable income. However, there are many factors that can impact the tax calculation here for you such as; accumulated capital losses, ownership of the property, tax-free thresholds, other costs that have impacted the cost base of the property and more. Given the complexity involved here, I would highly recommend you reaching out to your Adviser for some formal advice and guidance.

If making contributions to super, ask your accountant about division 293 tax also. Your numbers look ok for being under the threshold as long as that’s your total income AND super contributions come under $250k. And if haven’t been making catch up payments for previous thresholds, then there’s probably close to $120k you can contribute at a tax rate of 15%. Plus non conventional contributions on top of that. Definitely need to consult your accountant here, it can get very confusing and cost you tens of thousands if not done correctly

@@NoRegertsHere Absolutely - ALWAYS seek advice from your Adviser before making contributions or any key changes to ensure you're doing what's right for YOU.

Thanks for your note here Katherine - I'll certainly be sure to create some additional resources to add more value here. Given your move, I would certainly suggest reaching out to your Expat Financial Adviser and Accountant to ensure that nothing is missed for you. Having the right plan in place with such a big move can be an incredibly valuable tool.

Thank you very much for your question. At a high level, non-resident tax rates for Taxable Australian Property (in your case, the rental income) is taxed at 30% on the first $135,000. Therefore, as an example, the tax payable could be $4,203.60 (($19,812 - $5,800) x 30%). However, it's important to seek advice as many factors could alter this such as accrued losses, different ownership structures and more. Brad Murphy of Murphy Tax in Melbourne is excellent, feel free to reach out to him.

@@AustralianExpatFinance Thank you very much for your quick reply, I really appreciate it.

@@MrGEO1940 You're most welcome.

Hi Bobby, I would absolutely advocate seeking advice about the fund, underlying investments, and tax strategies for your super to ensure that this is all aligned with your financial goals. When it comes to super, cheaper definitely doesn't always mean best.

Thanks Jarrad. Much appreciated, cheers Bobby

@@bobby666-33 You're most welcome Bobby. Best of luck.

Thanks for the video. I’ve been thinking about this. Can you expand on this to cover recontributions. What are the pros, cons and pre-requisites.

@@peterpanousis8458 Thanks for your question here Peter. I will create a separate video on recontribution strategies and what to consider here.

Thank you for sharing, and great to hear your story of starting with property early. I would like to highlight that the vast majority of Financial Advisers certainly do not recommend 'tin pot' companies - perhaps back in the 80s and 90s when the industry wasn't what it is today.