Here’s what you need to know today

• After America’s President and senior health officials linked taking Tylenol (the brand name for Paracetamol in the US) in pregnancy to autism, Australia’s Health Minister Mark Butler has confirmed that Australia’s health experts do not agree with America’s latest advice and that Paracetamol is also an “important treatment for fever, which can also be dangerous if untreated while you're pregnant.” (ABC News)
  
  

• British Prime Minister Sir Keir Starmer announced that government digital IDs would be required to work in Britain by 2029. The policy is intended to stop illegal immigration but all British citizens will be required to get these digital IDs. (BBC)
  
  

• Amazon settled a case with US regulator Federal Trade Commission, over whether Amazon had tricked almost 40 million customers for signing up to Prime memberships. Amazon agreed to pay a $2.5 billion fine. (Quartz)
  
  

• Intel has recently received a $9 billion investment from the US Government and a $5 billion investment from Nvidia, but it appears to be hunting for more. The legacy tech giant is reportedly courting Apple for a multi-billion dollar investment. The combination of Nvidia, Apple and the US Government has the market wondering what opportunities the former chip giant sees in its future. (Quartz)
  
  

• America announced new tariffs of 100% on imports of branded or patent-protected drugs. The duties will take place from 1 October and will only apply to pharmaceutical companies that are not building manufacturing plants in America. Foreign pharmaceutical companies have pledged $350 billion so far this year for new manufacturing and research facilities in America. (ABC News)
  
  

• Initial concern for Australia’s $2.2 billion of pharmaceutical exports to the US were quickly brushed aside after CSL, Telix Pharmaceuticals and Clarity Pharmaceuticals all published statements noting they have manufacturing facilities in the US. (AFR)
  
  

• Those weren’t the only new tariffs announced by America. The US President also announced a further 25% tariff on heavy-duty trucks and 30-50% tariffs on furniture. (Reuters)
  
  

• Russia warned NATO countries it would be “reckless, irresponsible, dangerous” to shoot down Russian military jets that entered NATO airspace. The warning came after US President Trump suggested NATO countries should do just that. (Reuters)

What the…?

Peter Thiel, the billionaire behind Palantir, has recently been making a number of public speeches on a surprising topic: the antichrist.

If that wasn’t enough, Thiel has a surprising take. The Wall Street Journal reports he argues that fearing or regulating new technology like AI will hasten the arrival of the antichrist. A somewhat convenient position for a man who has built his wealth through technology - first as a cofounder of PayPal, then investing in Facebook, before more recently cofounding Palantir. (WSJ)

Investing is a lifelong journey

Here’s what you can learn today

4 lesser known tax strategies

Community Question: Debt recycling has become a big topic of conversation in the past few years. Are there any other lesser known tax strategies that we should be aware of?

We put this question to Matt Ingram, financial adviser and partner at Northhaven Financial Management.

When it comes to tax strategies for building wealth, there are a few approaches that get a lot of attention. Debt recycling is a popular one, helping homeowners turn non-deductible home loans into tax-deductible investment debt while growing their investment portfolio. Making concessional contributions to superannuation is another classic, allowing you to boost your retirement savings and reduce your taxable income at the same time. And of course, negative gearing on investment properties remains a well-known way to offset investment losses against other income. These are the staples that many people start with before exploring some of the lesser-known strategies that can add even more value.

Carry Forward Concessional Contributions

If you haven’t maxed out your concessional (before-tax) super contributions in previous years, you can “catch up” by carrying forward the unused cap for up to five financial years. This is especially handy if you’ve had a windfall or a year with higher income and want to boost your super while reducing your taxable income. To be eligible, your total super balance must be under $500,000 at the previous 30 June.

Cash Out and Re-Contribution Strategies

This one’s a bit technical, but it can be a game changer for estate planning and tax efficiency. If you’re eligible to withdraw from your super (usually after reaching preservation age and retiring), you can take out a lump sum and then recontribute it as a non-concessional (after-tax) contribution. This increases the “tax-free” component of your super, which can reduce the tax your beneficiaries pay if your super is passed on to adult children or other non-tax dependants.

Spouse Contributions to Superannuation

If your partner is earning a low income or not working, you can make after-tax contributions to their super and potentially score a tax offset of up to $540 per year. This helps boost their retirement savings and gives you a little tax break at the same time. The full offset is available if your spouse earns less than $37,000, and it phases out at $40,000.

Contribution Splitting

You can split up to 85% of your concessional (before-tax) super contributions with your spouse each year. This is especially useful if your spouse is older and can access super sooner than you, or if you want to even out your super balances for tax or Centrelink reasons. It’s a great way to get strategic about when and how your family can access super, and it can help manage transfer balance caps which determine how much you can transfer to an account-based pension and get tax-free income in retirement.

Want to speak to Matt or another of our hand-picked financial advisers? Fill out the form on our website and we’ll put you in touch.

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