FBT 2025: What you need to know Many businesses continue to offer flexible work from home arrangements. employees are often provided with work-related items to assist them to work from home. In general, where work related items are provided to employees and used primarily for work, FBT shouldn’t apply. For example, portable electric devices such as laptops and mobile phones provided to employees shouldn’t trigger an FBT liability as long they are primarily used by your employees for work. Multiple similar items can also be provided during the FBT year where required – for example multiple laptops have been provided to the employee – but only if the business has an aggregated turnover of less than $50m (previously, this threshold was less than $10m). If the employee is using equipment provided by the business for their own private use, normally FBT would apply to the private use. However, the FBT liability can be reduced based on the business use percentage.   Reducing the FBT record keeping burden Record keeping for FBT purposes can be onerous. From 1 July 2024 however, your business will have a choice to keep using the existing FBT record keeping methods, use existing business records where those records meet the requirements set out by the legislative instrument, or a combination of both methods: Travel diaries – see LI 2024/11 Living-away-from-home-allowance – FIFO/DIDO declarations – see LI 2024/4 Living-away-from-home – maintaining an Australian home declaration – See LI 2024/5 Otherwise deductible rule – expense payment, property or residual benefit declaration – See LI 2024/6 Otherwise deductible rule – private use of a vehicle other than a car declaration – See LI 2024/7 Car travel to an employment interview or selection test declaration – See LI 2024/14 Remote area holiday transport declaration – See LI 2024/10 Overseas employment holiday transport declaration – See LI 2024/13 Car travel to certain work-related activities declaration – See LI 2024/9 Relocation transport declaration – See LI 2024/12 Temporary accommodation relating to relocation declaration – See LI 2024/8 FBT housekeeping It can be difficult to ensure the required records are maintained in relation to fringe benefits – especially as this may depend on employees producing records at a certain time. If your business has cars and you need to record odometer readings at the first and last days of the FBT year (31 March and 1 April), remember to have your team take a photo on their phone and email it through to a central contact person – it will save running around to every car, or missing records where employees forget. Need FBT help? Please contact Collins Hume on 02 6686 3000 or access any of our free FBT factsheets here »

In last month’s article , we took a high-level look at what is changing with residential aged care come 1 July 2025.  The Government’s objective is to focus on increasing the quality, accountability and long-term viability of the aged care system.   Instead of an extra tax paid by younger workers, or a Medicare-style levy, the Government decided that new people entering the aged care sector would need to contribute more towards their care services.  Now we turn our attention to what is changing in the home care world … and let me tell you, there is plenty of changes coming.  Some of these changes are already locked; whilst other changes are still be thrashed out by the industry. Let’s look at some of the high-level changes that will impact you living in your home longer. From 1 July 2025, the home care program will be renamed the Support at Home Program.  The current four (4) funding levels of home care packages will be replaced by eight (8) funding levels plus a Restorative Care Pathway and End-of-Life Pathway.  The current Commonwealth Home Support Program (CHSP) will continue until 1 July 2027 when it will transition to the Support at Home Program … it may be in the “too hard” basket? The Support at Home funds will be paid quarterly and held on your behalf by Services Australia (I had to read that more than once).  Home care providers will invoice Services Australia to be paid for home care services provided to you. The home care provider will be paid 10% of your budget for care management services and there are some limits on how much money can roll into the next quarter as the Government want to see you use the funding for services and not accumulate in an “unused funds” basket.  The home care provider will then invoice you to be paid via a direct debit facility (most probably). The Government will introduce a defined service list (yet to be fully agreed and released) which will be divided into three (3) categories – clinical care, independence support and everyday living. In all packages, clinical (health and body) care is 100% funded by the Government … BUT the “other” living costs of services like meals, transport, social support, cleaning and gardening will need to be “contributed to” by you. The full details regarding exactly how much you will contribute towards your home care services have not yet been released … but the amount(s) will be linked to your age pension status.  In other words, self-funded retirees will pay more than full- or part-age pensioners. The Government is still the major contributor to aged care but people are now being asked to contribute more to their own care if they have the ability to do so.  However, anyone “already in the aged care system” (there are definitions around what this means) will be no worse off and not subject to new rules. Simple?  The Government hopes so and expect it will also reduce the current long wait times from assessment to service funding arriving.  I recently read a Frequently Asked Questions document prepared by the Government Minister’s Office which comprised 30 pages – I had a splitting headache by page 11 … so I’ll believe simple, faster and better when I see it. Family Aged Care Advocates guide you and your family through this ever-changing aged care maze so you can clearly understand what all these changes exactly mean for your particular situation. Mistakes or misunderstandings can be stressful, time-consuming and costly to fix. Feel free to give us a call on 0411 264 002 or visit us at www.familyagedcareadvocates.com.au

The perfect retirement looks different for everyone. However, one thing we all have in common: we all need a place to live! Housing is a key part of planning your retirement, but how do you work out the best financial decision for you? It can feel intimidating with inflation, soaring mortgage rates, and skyrocketing house prices. More and more retirees are still paying off their mortgage (up to 54% of 55-64 year olds, and 13% for those older than 65), thanks in part to rising house costs. These retirees are often paying off their mortgages with superannuation, which can limit spending for the rest of their retirement. For many, the goal of retiring with a home paid off is becoming more and more unachievable. Census data from Digital Finance Analytics showing outright home ownership for almost every age cohort has halved in the past 20 years (ABC News) But is renting any better? Let’s look at the options and how to rise above the troubling commentary that you might be reading. The Pros & Cons of Owning vs Renting There are many questions to consider as housing becomes a bigger issue for many people. Like “is it better to buy a house later in life to have housing security but be dealing with a mortgage?” What about, “can I rent and face potential instability but without the debt burden?” If you already own a home, do you keep it or sell it? Each option has upsides and downsides to it, based on your situation. In this issue, we’re looking at the pros and cons of both renting and owning, to help you decide which option is better for your own retirement plan. First, what’s so great about owning a house? For many Aussies, owning a home is a huge achievement, a sign that you've made it! And let's be honest, there's a lot to love about being the king or queen of your castle. You get to call the shots, renovate as you please, and create a space that truly reflects you. Need a bathroom makeover or a ramp instead of stairs? No problem, it's your house! And in retirement? There are some perks: Age pension friendly:  Good news, owning your home doesn't affect your eligibility for the Age Pension. It's considered an exempt asset, even if it's worth a fortune. Stability and peace of mind:  Say goodbye to rental worries. Owning your home gives you a sense of security and stability, knowing you're not at the mercy of landlords or rising rents. Leave a legacy:  Want to pass something special on to your loved ones? Your home can be a valuable inheritance for your children or grandchildren. Lower housing costs:  This is a big one, particularly when your income is limited. However, this only applies if you are mortgage-free (or very close to it)! Overall, owning your retirement home gives you control, stability, and won’t cost you as much throughout retirement. Okay, so what about the downsides of owning a home? Ongoing expenses:  Upkeep of the home, renovations, or conversions for mobility purposes can add up, as well as ongoing council rates or body corporate fees. Your money's tied up:  Having a lot of your wealth locked in your home can make it hard to access cash when you need it. The upfront costs:  Buying a home is a big financial commitment. If you don’t yet own a home, buying one later in life can create stress (in particular, keeping up with mortgage repayments when you want to start winding down). So, while owning a home has its perks, there can be both pros and cons, depending on your financial situation.  Does Renting in Retirement Work First, what are some of the positives about renting? Renting can be a legitimate financial choice later in life. Usually this is when people have built up a valuable pool of assets and investments - just not in property. Shares are the most common alternative investment, and some people prefer to live off the return they receive from their portfolio rather than spending their capital on an expensive home. Less home maintenance : Depending on your rental, you’ll probably be able to forget about mowing lawns and fixing leaky faucets, as your landlord takes care of all the upkeep. That can be a huge relief, especially as you get older and home maintenance becomes more challenging. Debt-free living:  Renting can be a great way to avoid taking on a big mortgage or tying up your money in property. Without a big expenditure of capital, people might choose to put that money into other investments. Flexibility:  Want to try a new neighbourhood or be closer to family? Renting gives you the flexibility to move whenever you like. Renting does have significant downsides too: No ownership:  You're not building any equity, and those rent payments don't contribute to owning anything in the long run. Limited control:  Want to paint the walls purple or put in a new kitchen? You'll need your landlord's permission, and they might not always say yes. Rental uncertainty: Rent prices can go up, and your lease might not always be renewed. This can make it hard to feel truly settled and secure. Constant payments:  While you don’t have debt, you do have to keep paying rent, week in, week out. This can put a strain on your finances and your mental health. Mental Health and Life Expectancy:  According to research, renting can have serious impacts on your long-term health and stress, which can reduce your quality of life. Thinking about renting? Ask yourself these questions: What are your financial goals? Does renting fit with your overall retirement plan? What kind of lifestyle do you want? Do you value flexibility or stability? What's your budget? Can you comfortably afford the rent, especially with potential increases? If you still have some time before retirement, and you have other assets or money in cash, consider seeking financial advice about whether you should invest in property now. Renting can be a great option for some retirees, particularly if it’s a choice that has weighed the pros and cons carefully.  While not all retirees will have the choice between owning and renting, there is always help available to navigate your retirement plan - whatever your situation. Already Own Your Home? You’ve Got Options! Things look a bit different if you're already a homeowner. Here's the deal: Still Paying Off the Mortgage? No worries - your goal should be to pay off your mortgage as soon as possible (while preserving your long-term retirement fund as much as possible). Some people choose to work a few years longer, or transition to retirement. We know a couple who are empty nesters and have been renting out spare rooms to homestay students. And if you're keen to ditch that mortgage debt sooner, we can help you explore some strategies to pay it off before retirement. Mortgage-Free? That’s great. With no mortgage hanging over your head, your housing costs are likely to be much lower – usually just maintenance and council rates. That frees up a lot of breathing room in your budget. If needed, you could consider utilising the equity in your home to fund your retirement through downsizing, or a home equity release.  Purchasing a Home in your 40s or 50s When considering purchasing a home for retirement, particularly if you're in your 40s or 50s, several key factors need careful consideration. Here's a breakdown: Think long-term: If you're buying in your 40s or 50s, that mortgage could be with you for a while! Make sure you can handle those repayments for the long haul. It's also worth thinking about how long you'll live in the house. If it's less than 10 years, you might not get the full benefits of owning. Got a second property or some investments up your sleeve? That could make managing mortgage payments in retirement a whole lot easier. You may need to ask yourself, can you really afford it? Let's be real, mortgages (and rent!) eat into your savings. So, factor in ALL the costs – think bills, repairs, council rates - into your retirement planning. The Age Pension probably won't cover your mortgage repayments, so it’s important to understand where your retirement income will come from. Crunch those numbers and figure out if buying or renting makes more sense for your retirement budget. What's the plan? Dream home or future nest egg? What do you want from this house? Is it your forever home, an investment for the future, or something to pass on to the kids? Have you thought about what happens when you eventually move on? Will you sell up or is it part of your legacy plan? Knowing your goals will help you pick the perfect place and avoid any surprises down the road. For more clarity on how advice could help you, please feel free to get in touch with Essential Wealth and Retirement: P . 02 5562 6260 (Ballina) P.  07 5230 4198 (Gold Coast) E:   support@ewar.com.au   W:   www.ewar.com.au     Ballina Office Address: 97 Tamar Street, Ballina, NSW 2478 Gold Coast Office Address: 80-82 Upton St, Bundall, QLD 4217 BallinaGCFP Pty Ltd ABN 12 670 111 583 trading as Essential Wealth & Retirement is a Corporate Authorised Representative no. 1305335 of GPS Wealth Ltd AFSL 254 544.   A word of caution for - the included material in this newsletter has been provided as General Advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding this communication. We have taken care to prepare this material, but any decisions or actions you take as a result of you reading this communication are entirely your own.

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