Dixon Advisory

What you need to know about SMSF related party transactions

Daryl Dixon — Fri, 17 May 2013 05:16:48 GMT

Daryl Dixon 17 May, 2013 AFR Smart Investor (subscription required)

The proposed rule changes to asset transfers between DIY funds and related parties are complex and inflexible, so it's crucial to get your head around them.

Responding to the Cooper review into superannuation, the government released draft legislation earlier this year containing stricter guidelines on acquisitions and disposals of certain assets between DIY funds and related parties. The changes introduce further restrictions aimed at ensuring the integrity of these transactions by DIY fund trustees.

Read more about the author Daryl Dixon, Executive Chairman of Dixon Advisory

Read the full article: What you need to know about SMSF related party transactions

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Tougher regime but saving has appeal

Daryl Dixon — Wed, 15 May 2013 05:11:00 GMT

15 May 2013, The Canberra Times

Tuesday's budget, as would only be expected in an election year, contained no nasty surprises to upset ordinary taxpayers.

Thanks to the intervention of former minister Simon Crean, who warned against retrospective changes to the superannuation rules, all the adverse changes to the super rules had already been announced. And even these only affected a relatively few higher income taxpayers.

Resource company investors have also escaped the threatened claw-back of generous depreciation and investment allowances. The company tax changes have been directed mainly at overseas companies paying little or greatly reduced company tax bills in Australia through internal company transactions.

It may still not be safe to plan ahead for the new financial year because of the election in September and the resulting uncertainty whether the new government will proceed with the two positive superannuation measures contained in the budget.

The first is a rise in the annual concessional (tax-deductible) contributions cap from $25,000 to $35,000 for taxpayers aged 60 or more from July 1.

The second proposal, if enacted into legislation, will remove the worst abuses of the penalty tax regime on annual contributions in excess of the concessional caps. This reform is long overdue and will, from July 1, allow people to withdraw from their super fund all excess contributions and pay only their marginal income tax rate plus an interest charge. They now can face penalty tax bills as high as 93 per cent in certain situations.

Despite this improvement, overall the superannuation tax rules are now much tougher than they were when Labor was elected to office. Compared with previous years, older taxpayers now have much less scope to make catch-up contributions when they can afford them.

Despite this, for taxpayers willing to take the risk that future governments will not adversely alter the rules, superannuation remains an attractive savings option because of the higher marginal tax rates introduced this year. As part of the changes that raised the tax-free area almost threefold to $18,200 a year, the government increased all marginal tax rates. Above $37,000 a year, the marginal rate is now 34 per cent (including the Medicare levy) rising to 38.5 per cent at an annual income of $80,000.

After paying the 15 per cent contributions tax, the saving for putting money away for retirement is thus either 19 per cent or 23.5 per cent. The tax advantages of negative gearing were not changed. For investors prepared to risk borrowing, the tax savings are even higher because there is no 15 per cent contributions tax levied on the tax deduction.

Negative gearing is now for this reason even much more attractive to taxpayers earning more than $300,000 a year who are subject to a 30 per cent contributions tax rate in measures announced in the last budget. The reduced borrowing costs resulting from recent interest rate cuts also boost the attractions of negative gearing relative to super.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Historically low mortgage rates could trigger housing price bubble

Daryl Dixon — Mon, 13 May 2013 01:20:00 GMT

13 May 2013, The Canberra Times

Financial markets got it right during the week by predicting that there was a better than even chance of a reduction in the official cash interest rate. The Reserve Bank obliged with a 0.25 per cent per annum rate reduction to 2.75 per cent, taking the cash rate down to historically low levels.

The bank justified its decision by reference to a benign level of inflation and a modest softening in the growth rate of the Australian economy. Nevertheless, coming as it has one week before the federal budget, it creates the risk of a housing price bubble and future problems of management of the Australian economy.

The real estate industry has welcomed the rate reduction which may well prove to be correct in the short term. But with the federal government not able to control its spending and balance its budget, there are serious risks that historically low mortgage rates will lead to a housing price asset bubble.

Canada’s recent experience highlights the extent to which low interest rates encourage borrowing for property investments at the same time as it discourages saving. Gearing property investments provides a means of increasing returns when interest rates are at or even below the yields of assets.

Both investors and owner occupiers receive larger tax incentives to invest in geared property assets because of the unlimited tax deductions for negative gearing and the tax-free capital gains on owner occupied housing. The rate reduction provides a bonus for high income earners now being restricted and even penalised when their income exceeds $300,000 per annum from investing in super.

Younger investors especially have very sound reasons for looking elsewhere than superannuation for their investments with the constant speculation about rule changes. Despite the huge cost to the budget of negative gearing and the exemption of capital gains on the family home, the chance of a change in the relevant tax rules is minimal.

If the federal government were to surprise us next week with a tax on capital gains on houses worth say more than $2 million and limits to the negative gearing deductions, Australia would be able to avoid the Canadian rush into property. The more likely situation is the government will continue to discourage super for high income earners and continue to provide unlimited assistance to property investments.

It is worth noting that during the global financial crisis, over investment in property brought down several economies including Spain and Ireland.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon

Inability to build reserves in good times doesn’t bode well for future

Daryl Dixon — Mon, 06 May 2013 03:43:27 GMT

5 May 2013, The Canberra Times

Just how serious the mismanagement of our resources boom has been is highlighted by the latest report of the Norwegian sovereign wealth fund. Norway, with only 5 million people, has been able to set aside $720 billion in its sovereign wealth fund.

This fund has been built up from the revenues accruing from the oil and gas deposits in Norwegian territory. Yet Australia, a resources-rich economy, has managed to set aside no money in this period of high resource prices. Instead, it is running a large budget deficit.

In a long run context also, after the sale of the bulk of Australian government owned assets, our only reserve is a Future Fund of $80 billion. Even then, this is earmarked to help meet unfunded government superannuation liabilities in excess of $200 billion and increasing annually by around $10 billion.

Standard & Poors has warned Australia is at risk of losing its AAA rating if the federal budget deficits continue for as long as the government is suggesting. The harsh reality is that a sustained fall in commodity prices would create havoc for both the federal and state budgets.

Successive governments have focused on spending money in good times and not worrying about the future. While Australian debt levels are relatively low by international standards, this doesn’t guarantee future problems could be avoided as they were in the global financial crisis.

The government could spend lavishly to deal with the impact of the financial crisis because of the reserves built up by the previous government. But with those reserves gone and the Future Fund inadequate to meet the government’s unfunded super liabilities, the funds available to deal with a new crisis, should it occur, are limited.

This month’s budget will reveal details of our current budgetary situation. Judging by past errors in projecting revenues and outlays, these figures may still present an optimistic picture of our financial situation, which could quickly change. Before the collapse of its banking system, Ireland had a relatively low debt to gross domestic product ratio. It now has an extremely high debt to GDP ratio and will struggle for years to deal with its deficit problems.

The Australian banking system looks to be in an extremely strong financial position and a collapse of our housing market doesn’t appear to be a major possibility. Nevertheless, our inability to generate surpluses while the economy has been performing well provides little reason to be confident of our ability to deal with a serious future downturn.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon

Gearing up for a low-tax future

Daryl Dixon — Mon, 06 May 2013 00:34:39 GMT

4 May 2013, The Australian (subscription required)

With superannuation spared from major tax increases in the May 14 budget, attention is now focused on other possible tax-shelter changes, including negative gearing and pre-payment of interest. Based on past experience, the odds on any major changes to the gearing rules in an election year are very low.

Political outcries have foiled all previous attempts to change negative-gearing tax rules, and as a result are not being publicly raised by Treasury, even now. Even if the maximum deductible superannuation cap is raised to $35,000 for the over 50s, the prospect of a new tax on larger superannuation pensions will encourage more higher-income taxpayers to increase their gearing activities.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Read the full article: Gearing up for a low-tax future (subscription required)

Daryl Dixon

Difficult budgetary times ahead as tax collections languish below Treasury estimates

Daryl Dixon — Mon, 29 Apr 2013 03:49:02 GMT

28 April 2013, The Canberra Times

The federal government looks likely to end up with a budget deficit this year that could be as high as $15 billion. This is disappointing in a year when a small surplus was promised.

The deficit blowout has resulted from revenue from company and personal tax collections languishing well below Treasury estimates. This revenue shortfall is concerning the business sector, which now fears this years budget shortfall will result in lower future business tax concessions.

Difficult budgetary times lie ahead especially if the plans for a boost in education outlays and introduction of a disability insurance scheme are to proceed. This is already evident from the announcement that the

Gonski-inspired additional school education boost will be funded by large cuts in tertiary outlays.

Such action would not have been necessary if tax rates had continued growing at the rates previously projected. The corporate sector and tax collections are being affected by the high dollar and slowing down of the mining sector.

The first impact of lower company revenues is an immediate reduction in company profits, resulting in reduction of both the governments and investors incomes within a very short period of time. Australia’s high and relatively inflexible wage structure reduces the ability for companies to adapt to falling profits quickly, explaining why personal tax collections are holding up better than company profits. But ultimately, weaker corporate profits will also result in lower personal income tax collections as companies reduce employment or take other measures to restore profitability.

Personal tax collections are coming under pressure from the decision to raise the level at which income tax becomes payable to in excess of $20,000 a year. In times of falling incomes and growing unemployment, this decision means that many more taxpayers will be paying lower tax bills as their incomes are reduced by unemployment or shorter working hours.

The increase in the tax-free area was in large part initiated as compensation for the introduction of the carbon tax. But with the sharp fall in the European carbon price, Australia faces the prospect of having implemented very costly increases in the tax-free area at a time when carbon tax revenue is highly uncertain. Unless the government reverses its personal income tax changes in light of its changed circumstances, it will have no alternative but to make savage cuts to projected outlays intended to introduce its new programs.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon

Testing time for gold and other commodity markets

Daryl Dixon — Mon, 22 Apr 2013 04:48:08 GMT

21 April 2013, The Canberra Times

With falls in all major markets this week, share investors received another reminder of how volatile their investments can be. The triggers this time were speculation that the gold price was on the way down, and the downward pressure on other commodity prices because Chinese growth is lower than predicted.

For the Australian market especially, commodity prices are important because of the large weighting of mining and energy companies in the share indices. But this week’s falls led down by the price of gold were widespread around the world even in countries not as dependent on Chinese growth as is Australia.

At this stage, there is no evidence to suggest that the Chinese economy is in serious trouble and likely to drag down world growth. The latest quarterly growth figure of 7.7 per cent released last week, though less than the expected 8 per cent per annum, is still above the projected 7.5 per cent growth rate in the five-year plan.

The plunge in the price of gold followed investment bank Goldman Sachs warning of an imminent bear market due to improved investor confidence. There is no certainty that the Goldman Sachs analysis and the rapid fall in the gold price this week will prove to be accurate indicators. The reality is that commodities markets, especially for precious metals, are subject to large speculative transactions. It will take some time to determine whether the plunge in the gold price represents a genuine reassessment or was the consequence of aggressive short selling by hedge funds. For these traders and speculators, widespread publicity about the possibility of lower prices presented a rare opportunity to make large profits by short selling gold.

Among other things, their selling helped induce speculative holders to sell all or part of their gold holdings to reduce their losses or realise any remaining gains. In this process, prediction of a falling price has proved to be a self-fulfilling prophecy. The losses incurred this week will inevitably reduce the speculative demand for gold and reduce its long-term value. But there are limits to how far the price will fall because the short sellers eventually have to close out their positions by buying.

These will be testing times for both the gold and other commodity markets because of the large losses incurred over the past week. Investors should not expect a quick recovery in commodity or share prices while many traders lick their wounds from the latest success of the short sellers.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon

The world's golden era of credit is now over

Max Walsh — Thu, 18 Apr 2013 07:04:47 GMT

18 April 2013, The Australian Financial Review (subscription only)

Excessive credit proved to be a hyper-destructive explosive that threatened those treading the easy credit path.

Bill Gross paid his way through college playing blackjack. He founded the bond fund giant PIMCO and is rightly regarded as one of America's most astute financial managers. Every month he posts a decidedly idiosyncratic newsletter on PIMCO's website.

This month he took a candid look at his track record and those of his equally and less famous peers. He wrote: "There is not a Bond King or a Stock King or an Investor Sovereign alive that can claim title to a throne. All of us, even the old guys like Buffett, Soros, Fuss, yeah – me too, have cut our teeth during perhaps a most advantageous period of time, the most attractive epoch, that an investor could experience.

Read the full article: Golden era of credit is now over (AFR subscription required)

Read more about the author Max Walsh, Deputy Chairman of Dixon Advisory

Max Walsh

Possible benefits for couples of splitting super assets

Daryl Dixon — Sun, 14 Apr 2013 07:47:00 GMT

14 April 2013, The Canberra Times

Last week’s announcement of changed taxation arrangements for retirees receiving superannuation pensions in excess of $100,000 per annum has removed the possibility of major adverse changes in the May budget.

This was welcome news to older Australians concerned about possible reductions in their living standards. Nevertheless, until the federal election is decided in September, there will be no changes to the superannuation arrangements other than outstanding measures announced in the May 2012 budget. These include an additional 15 per cent contributions tax on assessed incomes in excess of $300,000-a-year, for which the legislation has not yet been released.

There’s no bilateral agreement or support for any of the measures announced last week. The Coalition parties, at least at this stage, aren’t prepared to commit to any changes. It’s likely this situation won’t change dramatically in the lead-up to the election.

Presumably the government, if re-elected, will move to implement the changes already announced. These will increase the tax payable on superannuation pensions earning in excess of $100,000 p.a. in income, including those received by defined benefit fund members. However, there will be winners in the proposed changes.

These include a refund of contributions tax on taxpayers earning less than $37,000-a-year and an increase in the deductible contributions limit to $35,000 for people aged 60 or more and subsequently to the over 50s.

The Coalition parties could ultimately decide these changes are desirable. Taxpayers and the Australian Taxation Office would similarly welcome action to remove the harsh penalties on fund members who breach annual contributions tax limits.

At a practical level, once the May budget details are announced, superannuation fund members can rely on having considerable time to adjust their strategies to accommodate any changes enacted by the next government.

One course of action may be worth considering. The changes announced increase the incentives for couples to ensure that their superannuation assets are, to the extent possible, split equally between them. The proposed $100,000 annual income threshold for the new tax applies to each superannuation pensioner. This means a higher tax burden on pensioner couples where all or the majority of the income is earned by one partner. The limit, as announced, is $100,000 per person, not $200,000 per couple.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Long-term super changes need to be made on rational basis

Daryl Dixon — Wed, 10 Apr 2013 00:57:31 GMT

7 April 2013, The Canberra Times

Speculation about the possibility and severity of superannuation changes in the budget is generating widespread concern. The government has attempted to defuse this by saying that any changes will be confined to higher income earners earning about $300,000 or more.

This campaign has focused on the Treasury estimates of the cost of assistance provided to superannuation and associated unsubstantiated claims about the long-term unsustainability of the superannuation tax concessions. These claims have been disputed by industry and other experts.

Commentators have questioned the accuracy of the costings of the tax concessions on several grounds. These include the fact they take no account of savings from reduced age pension outlays and the benefits to the economy of the accumulation of a large pool, currently $1.5 trillion, of assets.

Importantly, the Treasury costings assume money not put into super will not be invested in other tax shelters including negative gearing and the family home. The discussion on savings has to date only focused on superannuation.

Obviously, the politicians consider that attacking the tax concessions for negative gearing and the family home as too sensitive to raise publicly. This is despite the fact that restricting the annual negative gearing tax deduction to the same $25,000 limit as super would generate large savings.

There can be no denying the funding problems resulting from our ageing population and other new commitments including for education and national disability arrangements. But taxpayers have every reason to expect that any long-term changes are made on a rational basis.

If sustainability of the retirement system is the key concern, the findings of actuarial calculations commissioned in 1982 by the Social Welfare Policy Secretariat about the long-run financial viability of our unfunded age pension system is important. The funding problems since that review are even greater because of large discretionary increases in pension entitlements during the GFC and to compensate for the carbon tax.

Even in the 1980s, it was evident the value of the age pension entitlement for average income earners exceeded their working-life personal income tax payments. That was not a problem when the aged were a small proportion of the population. If the government proceeds with further super cutbacks to solve its funding problem, it increases the risk of being forced later to reduce age pension entitlements or increase taxes.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon

US equities at record high mask weak recovery

Max Walsh — Thu, 04 Apr 2013 05:41:33 GMT

4 April 2013, Australian Financial Review (subscription required)

Shortly before the US markets closed for Easter, the most closely watched US equity index, the S&P 500, hit an all-time high. The previous record high was recorded in 2007.

The more narrow Dow Jones Industrial Average had set its own new record some weeks before. However, the Dow delivered a cracker March quarter, jumping 11.25 per cent, the best first quarter showing in 15 years. The tech-heavy Nasdaq Composite achieved a 52-week high. It was quite a trifecta, even if it had been a long time coming.

However, celebrations were rather different, more subdued from what they were back in 2007 before reality reasserted itself across all global financial markets.

Read the full article: US equities at record high mask weak recovery (AFR subscription required)

Read more about the author Max Walsh, Deputy Chairman of Dixon Advisory

The ambiguous benefits of a redundancy offer

Daryl Dixon — Tue, 02 Apr 2013 06:28:19 GMT

2 April 2013, The Canberra Times, Public Sector Informant

That recent Canberra Times research revealed widespread take-up of voluntary redundancies by older public servants caused no surprise. Not only do Australian Public Service redundancy provisions pay larger amounts to employees with longer periods of service, but older people are likelier to be in a far better position to afford the reduction in living standards caused by leaving a secure job.

In this respect, the public service is no different from the private sector, where a longer period of work also drives a higher tax-free redundancy benefit compared with the benefits available to those with a shorter career.

In all occupations, job-shedding creates complexities for staff as well as difficult challenges for management, when long-term employees leave and take decades of corporate knowledge with them. Public servants at any age contemplating changing jobs will find the extra benefits offered via a redundancy package attractive.

On the other hand, when making the decision to give up secure and well-paid employment, public servants and other workers need to review thoroughly the costs and benefits of accepting a redundancy package. For people close to retirement age and with good superannuation benefits, the financial risks of accepting a package are much lower than for younger people, especially if future employment prospects are uncertain.

The ability to obtain immediate access to super benefits is a crucial factor in evaluating the benefits of and financial risks involved in accepting a redundancy offer. For members of both the Commonwealth Superannuation Scheme and the Public Sector Superannuation Scheme, there can be substantial benefits from staying in their job and continuing to contribute to these funds.

With the older, more generous CSS, which was closed off to new members in 1990, the benefits of working until close to the age of 55 or even later can be substantial. For example, while CSS rules allow members accepting a redundancy to start a pension at any age, the benefits available before 55 can be substantially lower than those available from preserving the benefit until 55 or claiming a retirement pension after age 55. This is why not many CSS members will be attracted to accepting a redundancy at earlier ages. The package is unlikely to be sufficient to compensate for the loss of future super benefits.

Similarly, PSS members can gain substantial super benefits by keeping their job until they have obtained the maximum permitted multiple of 10 times final average salary. This will be achieved much more quickly with a member contribution of 10 per cent of salary because of the extra annual 5 per cent of final average salary benefit attached to this high level of contribution. The value of the annual employer PSS contribution can be as much as 31 per cent of salary at this contribution level, especially for members prepared to take all their benefit as an indexed pension.

The high annual value of this employer contribution means that, within a relatively short period of time, PSS members can obtain benefits equal to or even greater than the benefits available from a redundancy package. Nevertheless, PSS members contemplating changing jobs or retiring before the age of 55 can benefit from accepting a redundancy.

Special provisions in the PSS allow redundant employees to access their PSS benefits as an indexed pension at any age. Normally, the PSS benefits are available only to members retiring from the workforce after age 55. Further, unlike the CSS, where there is a steep discount in the redundancy pension drawn before age 55, the PSS options are more favourable.

For example, the redundancy pension at age 45 is calculated by dividing the available lump sum by a factor of 14. A comparable private sector pension would be divided by a factor between 22 and 25. All things considered, while receiving a lump-sum redundancy pay-out may appear attractive, continued membership of the CSS and PSS can be of greater benefit, especially for younger employees.

With household expenses such as mortgage repayments and schooling costs generally at their peak in the early stages of a career, this could be the key explanation for the lower take-up rate of redundancy pay-outs by younger workers.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Daryl Dixon on Nightlife with Tony Delroy – 2 April 2013

Natalie Laharnar — Tue, 02 Apr 2013 05:31:00 GMT

2 April 2013, ABC Nightlife

With the May federal budget only weeks away, speculation over changes to superannuation was a hot topic for Dixon Advisory Executive Chairman Daryl Dixon’s recent discussion with Tony Delroy on Nightlife on ABC radio.

Daryl again raised the question of whether super changes would be applied to politicians, judges and senior public servants. He also spoke about tax-effective strategies people might turn to, instead of investing in superannuation, such as negative gearing.

Among the other diverse topics in the discussion were:

the good quarter for investment returns and the positive outlook for Australian shares
the likelihood that interest rates won’t go lower
the uncertainty caused by speculation about super
the increasing importance of super with longer life expectancies.

Daryl also answered a range of questions from callers on superannuation and investing.

Listen to the full interview and discussion with callers which took place on 2 April 2013. It runs for about 40 minutes.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Cypriot bailout terms may reduce investor confidence

Daryl Dixon — Sun, 31 Mar 2013 06:36:00 GMT

31 March 2013, The Canberra Times

Fortunately for the European and world economies, the Cyprus banking system will now be bailed out under the terms of a harsh agreement finalised this week. This time round, the big losers were the large depositors in the Cyprus banks.

In the Greek bailout, it was the bondholders owning government debt who lost out. That arrangement did not affect confidence in the Greek banks, though it discouraged both domestic and foreign residents from investing in Greek assets.

Inflicting losses on large bank depositors, as has now been done in Cyprus, could well have a more serious impact by reducing confidence to invest in weaker eurozone countries. Bank depositors can no longer be certain that part of their assets will not be confiscated in any future European Central Bank bailout.

At this stage, it looks likely that small depositors will continue to be protected by government guarantees. But when the governments themselves are facing serious debt problems, there are obvious limits to their ability to guarantee deposits.

Uncertainty about the future safety of European bank deposits could well contribute to further problems with eurozone membership. Cyprus attracted large overseas deposits in relation to the small size of its economy because it was in the eurozone. If Cyprus had maintained a separate currency as Britain does, the inflow of foreign deposits would have been discouraged by an appreciation in the exchange rate.

The attraction of investing in Cyprus was access to euro currency deposits in a tax haven. Without being able to offer euro-denominated investments, Cyprus would never have been able to attract these large-scale deposits. Worse still, because devaluation was not an option available to Cyprus to deal with its banking problem, it had no alternative to a levy confiscating part of all large deposits.

Recent reports suggest Britain now faces the risk of a triple-dip recession. Nevertheless, the adjustment process for the banking system and economy has been much less painful than in other weak euro-currency members. This is the result of the depreciation of the British pound to such an extent that the Australian dollar is now buying nearly 2.5 times more pounds than it did several years ago.

The falling value of the pound has discouraged imports, encouraged exports and assisted the restructuring of the economy. Currency devaluation is not an option available to weaker eurozone members unless they opt to leave the eurozone. If eurozone bailouts continue to be as tough as the Cyprus one, there could be an even greater incentive for weaker countries to exit the eurozone.

Read more about Daryl Dixon, Executive Chairman of Dixon Advisory.

Annual checks could pay off for DIY retirees

John Wasiliev — Thu, 28 Mar 2013 03:59:02 GMT

28 March 2013, The Australian Financial Review

At least three times a year – and in certain circumstances more often – do-it-yourself superannuation fund retirees who are either eligible for the government age pension or close to it, should check they are getting the benefits to which they are entitled or ensure they are on top of any changes that could upset their budgeting.

For many in the DIY super community, this test shouldn't require too much effort. It only needs a quick look to determine whether your total assets, including your super, are greater than the upper Centrelink assets test limit.

Financial planner Nerida Cole of DIY super specialist Dixon Advisory says many people who are self-funded don't look forward to the prospect of getting Centrelink support, because it will mean their assets have run down to a point where they have to rely on government benefits.

Nerida Cole, Executive Director, Head of Financial Advisory at Dixon Advisory

Read the full article: Annual checks could pay off for DIY retirees.