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Written by Scott Malcolm for FUSE Magazine
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Friday, 26 June 2009 00:58 |
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 Global Financial Crisis... Job Losses... Economic Downturn...
If you’re feeling a little depressed by the media surrounding the financial markets and watching your investments head north you are not alone.
It’s not all doom and gloom however in the financial world with policy development and provision of equity for same sex couples.
As part of the Federal Government’s initiatives to give equality to same sex couples, legislation has recently been passed to amend the superannuation and related tax laws. A major element of this reform
is a change to the definition of both ‘spouse’ and ‘child’ to ensure that same sex partners and their children can receive equivalent tax treatment in respect of death benefits paid from superannuation.
These changes are across the board and apply to both private superannuation and the public sector superannuation schemes.
Under the previous rules a person could only qualify as a ‘spouse’ if they were married or living together as husband and wife (that is, in an opposite sex de facto relationship). A couple in a same sex relationship could still receive a superannuation death benefit but only if they were financially dependent on the deceased or living with them in an interdependency relationship.
The new rules give equal status to same sex partners by amending the definition of spouse to include a person who is in a relationship
with another person and lives with them in a “genuine domestic basis in a relationship as a couple.”
As a result of this change it will now be possible for people in same sex relationships to have their name reported as a ‘spouse’ on their partners binding death benefit nomination form; be an automatic beneficiary to their partners superannuation pension; split superannuation benefits with their partner each year or receive a lump sum superannuation death benefit and receive the taxation concessions.
Another benefit under these changes is that access to the spouse contributions will be avaliable with the tax offset of up to $540 per
year, however this measure will not commence until 1 July 2009.
The definition of ‘child’ has also been updated under the superannuation legislation to include a child who was born to a woman as a result of an artificial conception procedure or conceived via a surrogacy agreement but is deemed to be the child of a person under a state or territory court order.
While it is now possible for super funds to pay death benefits to a same sex partner or the children of a same sex relationship, you will need to contact your superannuation provider to check when it will be possible to complete a new binding death benefit nomination, split contributions and add your partner as a reversionary beneficiary on a superannuation pension as trust deeds and other documents will need to be updated.
These changes open up a lot of strategy options and you should seek appropriate advice from your professional advisers before taking any action, to ensure you understand the pros and cons of these changes.
For More information on this article contact Scott on:
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Scott Malcolm is Director of Money Mechanics (tel: 6257 5557) who are authorised to provide financial advice through PATRON Financial Advice AFSL 307379. Website: money-mechanics.com.au |
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Written by John Davey for FUSE Magazine
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Wednesday, 24 June 2009 01:04 |
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 Business Relations The Balance of Power
Sharing in a business with a friend or partner is a special occurrence. It can be a synergy which is dynamic and powerful. Conversely it can result in grief and disharmony. Let’s look at the balance of power between business partners in a same sex relationship.
The tools and techniques that each person brings to the business can vary. Financial pressures and rewards, family status and personal goals can all find their way into the business relationship.
The success of any business must be based on a strong foundation that ensures that managers and partners can work well together even in challenging times. A written framework — a partnership agreement — clarifies the smallest issues that may cause a future breakdown. The best time to do this is at the beginning, but it is never too late. More importantly, it should be reviewed on a regular basis to ensure a good fit.
You create this partnership agreement before a dispute occurs to remove emotion from sensible decision making. Otherwise we attach ourselves to small details at the expense of the larger picture.
Don’t let the dream of future prosperity in your relationship be destroyed because you didn’t formulate a detailed plan. What if a shift in power means the relationship is not a good fit, and a dispute has arisen? A transparent agreement, where expectations are detailed, will assist. Without one, there is no doubt that this situation can lead to business failure. So remove the drama from your business life and clear up the expectations with a transparent concise agreement.
John Davey is a Business and Migration Solicitor at Goodman Law, specialising in commercial law. For more information on this artice contact John on +61 2 6206 9900 or email
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www.goodmanlaw.com.au |
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