Have you asked the questions yet?
Thirties is the decade where for most people life starts to stabilise but don’t fret; this is not a negative. You have more money, more to look forward to and definitely more experience than you ever did in your twenties. Weddings occur, hangovers become real, and babies on the way. So coming out of your twenties, where you have potentially avoided asking any of the big questions about your life, finances, insurance etc. Thirties is the time to talk about them.
In terms of your financial advisor, how can they help you through this decade of your life? Here are some of the relevant questions to be asking yourself as well as asking your accountant.
Are there tax implications of getting married?
Luckily, getting married doesn’t have too much of an implication in terms of your taxes. You and your spouse still lodge separate tax returns and still pay tax on only your own income. What does change is that if you both don’t have private health insurance, then your income will be combined to calculate how much of the Medicare levy surcharge to pay. This could be an additional 1.5% tax if your combined income is high enough. Also, your spouse’s income will also be taken into account when it comes to seeing if you are eligible for family tax benefits. For you though, telling your accountant about your new hubby or wife and how much they earn is all you need to do. This will mean they can do your tax return and record that you’re now married and the rest is done.
Although not a tax issue, getting married will void any pre-existing will you have at that point, so you will need to revise and update your wills once married.
What do I do about insurance?
Your thirties is also a good time to make sure you’re protecting your assets, as they are probably more valuable now. Life insurance, health insurance and especially income protection are all important to look into.
Your accountant can advise you on this or ask our insurance experts at Accru. Income protection is also a tax deduction for you to save a bit of tax when the end of financial year comes around.
Can you help me with buying a house?
Your accountants are not just there to do your tax. Feel free to ask your accountant to be an advisor for you. In terms of the mammoth task of trying to buy your own house, everything counts. Your accountant can help you with your cash flow and budgeting as you look to save for a house deposit.
If you are wanting to buy an investment property, your accountant can also explain Capital Gains Tax and main residence exception that could apply if you chose to sell it down the track, as well as the income and expense deductions that are available. As well, keep in mind that you should keep records of any costs associated with your rental property for deductions against rent and future sale of the property.
What about other investments or business?
You may be on top of property purchases, or alternatively not interested. If that is the case and you are interested in other investment options, you will need a licenced financial planner to discuss specific investments, but a good tax adviser can explain and recommend the various investment structures available and the tax implications of using them.
The same applies to anyone interested in starting their own business. There are numerous things to consider and questions to ask. See here for ‘8 key questions when starting up your business‘.