Prepare to adapt your retirement when life changes.
It’s very common for retirement priorities to shift over time. But for some, the change arrives with a jolt. You may spend years—even decades—planning exactly what your post-work life will look like. While life can throw a curveball into your plans at any stage, the closer you get to retirement, the more unsettling the disruption can be.
Whether it’s family breakdowns, the death of a loved one, an inheritance received, or unexpected expenses, you'll face a different personal and financial landscape. One that no longer matches the retirement you envisioned.
Adjusting your working life.
When a major life change hits, the most important rule is: don't rush anything. While you're reshaping your future and contemplating big moves, avoid making any rash decisions that are irreversible.
The event may alter the required length of your working life or your willingness to continue working:
- Health issues could force you to retire earlier than planned
- A substantial inheritance might enable a more enjoyable, earlier exit from work.
- Conversely, a divorce late in life, particularly for someone with high spending habits, might necessitate staying chained to a desk longer. The separation may leave you with an unexpected mortgage or simply drain your finances through the legal process, creating difficulties.
Make a basic plan.
Take the time to sit down and rationally think through what your new retirement might involve. If retirement is still five to 10 years away, that's a good timeframe to start contemplating your next steps.
The most critical step is to determine how much money you will need to spend. While most people worry about whether they "have enough money," the key question is almost always, "How much do I need to spend in retirement?".
Consider this example: If you retire with $1 million and your annual spending requirement is $50,000, you're likely secure. However, if you have $1 million but need to spend $150,000 per year, you have a problem. You'll need to either dramatically increase your savings or significantly reduce your spending expectations.
If you are struggling with these figures or want a professional opinion, see a financial adviser (we can direct you to one). Paying for a few hours of their time will help you consider things you hadn't thought about.
A change of pace.
Remember, retiring from your main career does not mean leaving the workforce for good. You have options:
- Moving part-time in your current job for a few years, using your extra days for hobbies.
- Taking on volunteer work.
- Leaving a stressful executive role for paid work you actually enjoy.
Hopefully, your surprises on the path to retirement are positive ones. If they are not, don't panic. Stay calm and seek advice.
We can help.
Early advice and planning can make a real difference in managing your retirement well—understanding the tax implications is a huge part of that. Don’t wait —let us help you!
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If you're living and working in Australia on a visa, you may be required to lodge a tax return with the Australian Taxation Office (ATO). Australia's tax system is complex—even more so if you're a visa holder. We specialise in helping visa holders understand and manage tax obligations with clarity, compliance, and confidence. With years of experience in this niche area, our dedicated team of tax professionals is here to make tax time stress-free. Do visa holders need to lodge a tax return? If you earn income in Australia, you're likely required to lodge a tax return. This applies even if you're on a temporary or bridging visa. Common visa types that often require a tax return include: Working Holiday Visa (subclass 417 or 462) Student Visa (subclass 500) Temporary Skill Shortage Visa (subclass 482) Graduate Visa (subclass 485) Partner Visa (subclass 820/801 or 309/100) If you earn more than the tax-free threshold (currently $18,200), you must lodge a return. Some visa holders, however, don’t qualify for this threshold—more on that below. Australian Tax Residency Test explained. When it comes to lodging your tax return, your tax residency status makes a huge difference. Even if you're on a temporary visa, you could still be a resident for tax purposes. This affects how much tax you pay, what deductions you're eligible for, and whether you can claim the tax-free threshold. 1. The Resides Test (Main Test) This is the primary test. You’re likely a resident if: You live in one place and have regular routines (like renting a place, going to work or uni) You’re part of the local community (bank account, phone, gym, etc.) You stay in Australia for a continuous period of 6 months or more You intend to stay long term—even if your visa is temporary 2. The Domicile Test You may be a resident if your domicile (legal home) is in Australia, unless you can prove your permanent place of abode is overseas. This usually applies to: Australian citizens or PRs working overseas temporarily People who still maintain strong ties to Australia Note: Most temporary visa holders don’t pass this test unless they’ve been in Australia long-term. 3. The 183-Day Test. If you’re physically in Australia for 183 days or more in a financial year (doesn’t need to be consecutive), you may be a resident—unless your usual place of abode is clearly overseas and you don’t intend to live here. You’re likely a resident if: You stay for 6 months or more You rent long-term accommodation You’re working or studying with the intention to remain for an extended time Common visa types & how tax applies. 1. Student Visa (Subclass 500) Likely considered a tax resident if you stay over 6 months Can claim the tax-free threshold ($18,200) Can deduct eligible expenses (like textbooks, computers for study if working in a related field) 2. Working Holiday Visa (Subclass 417 or 462) Taxed at a flat rate of 15% on income up to $45,000 Must lodge a return if you earn any income Generally, not eligible for the tax-free threshold Superannuation can be claimed back when leaving Australia (through DASP) 3. Temporary Skill Shortage (TSS) Visa (Subclass 482) Often considered a tax resident, especially if you're working full time and have relocated Must lodge a return and may be eligible for tax offsets Can claim work-related deductions and rental expenses (if conditions apply) 4. Partner Visa (Subclass 820/801 or 309/100) Usually treated as a resident for tax purposes Same obligations and entitlements as an Australian citizen Tax returns may support future PR or citizenship applications Key differences for visa holders. 1. Tax Residency Status Your tax residency is not the same as your immigration residency. You could be a temporary visa holder and still be considered an Australian resident for tax purposes. If you're a resident for tax purposes, you may be eligible for the tax-free threshold and lower tax rates. If you're a non-resident, you’ll pay tax on every dollar earned (no tax-free threshold) and possibly at higher rates. Factors like how long you’ve been in Australia, your living arrangements, and whether you plan to stay long-term affect your tax residency status. The ATO provides a residency test to help determine your status. 2. Working Holiday Makers If you hold a working holiday visa, you're taxed at a special flat rate (15% on income up to $45,000 as of 2024-25), regardless of your residency status. You're still required to lodge a return if you’ve worked. 3. Access to Tax Offsets and Benefits Only Australian tax residents can access certain tax offsets, such as the low-income tax offset. You may also qualify for superannuation contributions, but you'll need to apply for a Departing Australia Superannuation Payment (DASP) when leaving the country permanently. What are the common mistakes to avoid? We see four common mistakes: Assuming you don’t need to lodge because you're a student or on a short-term visa Not declaring all income (including freelance or cash jobs) Using the wrong tax residency status Forgetting to lodge a return when leaving Australia Let us take care of your tax return. Whether you're a student, skilled worker, working holiday maker, or about to leave Australia permanently, getting your tax return right is crucial. This is a niche area Ascent Accountants specialises in. We understand the unique situations that come with different visas—and we make sure you claim every dollar you’re entitled to. Contact us today to get started.
Bringing clarity to concealed sales prices. Scrolling through property listings and seeing phrases like 'offers from', 'expressions of interest', 'all offers considered', or simply 'contact agent' instead of a clear price can be frustrating for buyers. This lack of transparency makes it difficult to figure out what a seller is truly expecting for a property. In fact, the frustration at properties advertised with no price at all is consistent feedback clients give to agents. Buyers often report frustration after calling agents and not being given any guidelines on where the property sits on a price scale. The absence of price information can impact user engagement, with industry feedback suggesting it can significantly influence how users interact with property websites. Clear, visible pricing may enhance user trust and interest. Strategic steps for buyers. How to overcome the problem when agents don't give a price guide. Navigating a property purchase without a price guide is challenging, but buyers can take strategic steps to reduce uncertainty and strengthen their buying position. Research comparable sales: Understanding market trends and researching comparable sales in the area is crucial for setting realistic expectations. While median values are widely referenced, they don't always accurately reflect individual property values, so look at recent sales of similar properties for a clearer picture. Know your financials: Have a clear understanding of your risk profile and financial position. Know your borrowing capacity and secure a loan pre-approval. This streamlines the buying process and makes your offer more appealing to sellers in a competitive market. Use online tools: Experimenting with the minimum-to-maximum price range feature online can assist in providing a general price range. The limitations of desktop valuations. While desktop valuations can be handy, be careful not to overstate their accuracy due to certain variables. Desktop valuations are just averages based on an area's lot size, house size, nearby sales, number of bedrooms, and bathrooms. They may not accurately account for homes that are unique, have views, or don't fit the suburb's prescribed pattern. Furthermore, distinct features are ignored. A significant difference between properties may be that one has been totally upgraded and renovated, with sellers spending hundreds of thousands, versus a property in original condition. This difference is often not taken into account by automated valuations. We’re here to help. Buying a home is a financial and an emotional decision. If you’re buying, do your homework on comparable sales and understand the tax implications with Ascent Accountants . You can also consult with Ascent Property Co. and be matched with a home that suits your needs.
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If your business provides a car to an employee (or you’re the business owner/employee using it), there’s a good chance the Fringe Benefits Tax (FBT) rules apply. A car fringe benefit arises when a car owned or leased by an employer is made available for the private use of the business owner, an employee or their associate (such as a family member). “Private use” doesn’t just mean weekend road trips — it can include everyday commuting and even cases where the car is parked at an employee’s home, making it available for personal trips. Understanding how FBT is calculated and what records to keep is essential for compliance — and for avoiding paying more tax than necessary. What counts as a “car” for FBT purposes? The FBT law defines a car as a motor vehicle (except a motorcycle or similar) designed to carry less than one tonne and fewer than nine passengers. From 1 July 2022, some zero or low-emission vehicles are exempt from FBT, provided they meet certain criteria — for example, they must be first held and used after 1 July 2022 and must not have attracted Luxury Car Tax. Electric vehicle running costs, such as charging, are also exempt when the vehicle itself qualifies. Two main methods for calculating FBT on cars There are two ways to calculate the taxable value of a car fringe benefit. 1. Statutory formula method This method applies a flat 20% statutory rate to the base value of the car, adjusted for the number of days in the FBT year the car was available for private use. The formula is: (A × B × C ÷ D) − E A = Base value of the car (cost price plus GST and certain accessories, less registration, stamp duty and eligible reductions) B = Statutory fraction (generally 20%) C = Days available for private use D = Total days in FBT year (365) E = Employee contributions If the car has been owned for at least four full FBT years, the base value can be reduced by one-third. 2. Operating cost method This method calculates the taxable value by applying the private use percentage to the total operating costs of the car (actual and deemed costs). The formula is: Taxable value = [Operating costs × (100% − Business use %)] − Employee contributions Operating costs include: Fuel, oil, repairs, maintenance, registration and insurance Lease costs (for leased cars) Deemed depreciation (25% diminishing value) and deemed interest for owned cars Certain costs, such as tolls, car parking and insurance-funded repairs, are excluded. The business use percentage is determined by odometer readings, logbook records, and a reasonable estimate based on usage patterns. The three-month logbook requirement (operating cost method only). If you use the operating cost method, you must keep a logbook for at least 12 continuous weeks (roughly three months) to record: The date of each trip Odometer readings at the start and end Total kilometres travelled Whether the trip was for business or private purposes The purpose of each business trip This logbook is generally valid for five years, but you must start a new one if usage patterns change significantly (e.g., a role change, relocation or different duties). You also need to record odometer readings at the start and end of each FBT year. Why record-keeping matters. Keeping accurate records can support a higher business use percentage (and therefore a lower FBT bill). They also ensure you claim only legitimate business kilometres and help you provide evidence if the ATO reviews your FBT calculation. Finally, your records help you decide which calculation method (statutory or operating cost) is more tax-effective. Key takeaways for businesses and employees. If a car is available for private use, FBT may apply — even if the car isn’t driven often for personal trips. Electric cars may be FBT-exempt if they meet eligibility criteria, but you may still need to calculate their taxable value for reporting purposes. The operating cost method often works better if business use is high — but only if you have a compliant logbook. Keep odometer readings, expense records and a valid logbook to support your claims. Need help with your FBT obligations? Get it at Ascent Accountants. We guide business owners through every step of FBT compliance — from choosing the right valuation method to maintaining the right records for ATO peace of mind. If you provide cars to employees or use a company vehicle yourself, now is the time to review your FBT position before the next FBT year rolls over. Let’s talk .
