2019 is likely to be filled with a large amount of ‘media noise’. We are heading for a Federal Budget in April, and a Federal Election in May, on top of all the other sensationalised news items we are subjected to day in and day out.

Are you finding this noise distracting? Have you also noticed the Australian economy’s performance is a bit flat?

To help you simplify your personal finances, below are some key areas to address, if you haven’t already.

Financial Health Checklist

1. Have you set aside some cash for an emergency drawing situation?
   
   
2. Is your interest-only loan term set to expire, and have you assessed what the new loan repayments will be (on a Principal & Interest basis)? Finance from banks is slowing, be prepared for extra questions.
   
   
3. Are you up-to-date with your taxes and claimed all your available deductions? Tax credits may be available.
4. Have you reviewed your private health cover and is it suitable for you and your family?
   
   
5. Labor's proposed changes to negative gearing are grandfathered, which means existing properties will be still be able to be negatively geared. Watch this space.
   
   
6. There is an ATO lost super service via myGov. There is $14bn sitting with the Tax Office as unclaimed money.
   
   
7. Have you or your employer been paying superannuation regularly?
   
   
8. If you have life insurance, it is likely the cost has gone up by 5-10% or more in some cases. Have you considered a more tax-efficient way to hold insurance inside superannuation?
   
   
9. Do you have a Will in place and does it reflect your wishes? Did you know that upon your death, generally, household mortgages and business loans will be passed onto your family/beneficiaries. Taxation may be applicable for non-dependent beneficiaries if proceeds are paid from superannuation.
   
   
10. A big secret that the media will not tell you is that wholesale superannuation balances above $250,000 are cheaper and are better performers over 1, 5 and 10-year terms compared to public sector and industry super funds.
    
11. Please consider the asset allocation of your superannuation/investment portfolio, as this is the likely driver of your portfolio investment returns, not selection or timing.
    
12. Should Labor win the election, super fund’s franking credits as a cash payment will go. This will result in performance and earnings decline of around 1% per annum. There are options available.

If you have any queries about any of these items, please contact us.