We may need to talk about your family trust

Welcome to this month’s client newsletter. In this edition, we cover key updates that may impact your financial decisions.
 
First up, a recent court decision has implications for some family trusts, particularly those with private corporate beneficiaries (often called bucket companies). If your company has an unpaid present entitlement (UPE) from a trust distribution, this article is particularly relevant.
 
For those buying or selling property in Australia, changes are coming from 1 January 2025. Sellers will need to obtain a clearance certificate from the ATO to confirm their residency status. Without it, buyers must withhold 15% of the sale price and remit it to the ATO. We explain the key changes you need to know.
 
If you’re 60 or over, a transition to retirement pension could be a smart move. Whether you want to manage cash flow, reduce tax, or pay off debt before fully retiring, we explain how this strategy can work for you.
 
With the ATO updating its guidance on the difference between employees and contractors, it’s more important than ever to understand the tax, super, and legal implications. Whether you’re a worker or a business owner, this distinction can have a big impact. 
 
Finally, we explore concessional contributions. Managing superannuation contributions requires balance – while they provide valuable tax benefits, exceeding the cap can lead to additional tax. We outline key factors to help you make the most of your contributions without going over the limit.

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2025 – 04 – MBS Monthly Update