Your accountant may only give you financial advice on investments if he/she holds an Australian Financial Services (AFS) licence, or is an authorised representative of an AFS licence holder. ASIC’s financial advisers register can tell you where a financial adviser has worked, his/her qualifications, training, memberships of professional bodies and what products they may advise on. Before seeking financial advice we recommend that you should watch our video ‘Financial Advisers – The Facts and The Fiction’.

A financial counsellor can help you if you get into financial difficulty by helping you sort out your finances and putting strategies in place to help you better manage your money. Financial counselling is free.

A financial adviser, or financial planner, can help you with things like wealth creation strategies, choosing investments and retirement planning, for a (often substantial) fee.

You should only seek financial advice from a licensed financial adviser who has relevant experience and is licensed to give the type of advice you need.  You can find out if the adviser is licensed by searching ASIC’s financial advisers register. You are much more likely to receive advice that is in your best interests where your adviser works on a genuine fee for service basis.

A competent financial adviser can help you to develop realistic financial goals and put strategies in place to achieve them. A financial adviser, also known as a financial planner, can help you to:

• Identify short, medium and long-term goals
• Develop strategies to achieve your financial goals
• Better manage your money
• Develop an investment plan
• Choose tax-effective investments
• Make the most of your superannuation
• Find out if you’re eligible for any government assistance
• Work out your insurance needs
• Plan for your retirement
• Consider your estate planning needs.

Yes. If you can find a cheaper policy for similar cover, most insurers will negotiate the cost of your premium, particularly if you are a good customer. Negotiating terms and conditions may be harder but it never hurts to ask. Just make sure you get any amendments in writing.

First think about what you want covered then use a comparison website to compare features, premium cost and excess. Make sure you look at what isn’t covered (exclusions) as well as what is covered (inclusions).

You need insurance for anything you cannot not afford to replace if it was damaged, lost or stolen. For example, it is common to take out insurance for your home, contents and motor vehicle.

Personal insurance policies covering events such as death, invalidity and loss of income may also be appropriate if you decide that you need more cover than provided through your ADF entitlements. But be aware of war, warlike and hazardous activity exclusions that may apply to ADF members who buy personal insurance policies from the private sector. Some ADF members have private insurance, or superannuation from previous employment, which includes insurance cover. Check whether these will continue to cover you in ADF service.

Health insurance policies cover health related costs and travel insurance policies cover you for unexpected events before, during, and after you travel (including illness and loss of baggage).

For more information read the Insurance and Personal Insurance money guides.

All investments carry some risk. Ordinary shareholders in a company will often lose their money if the company fails and goes into liquidation.  A common method investors use to reduce the risk of losing their money is to ‘diversify’. A simple example is rather than investing all your money in one company; if you were to invest in ten companies the risk of all your investments failing reduces.  For further information see our Investing money guide.

While both are classified as ‘growth’ investment assets, property and shares are very different. A property is a physical asset, a share is part ownership of the company you invest in. Both have historically good long-term returns, however shares require a much smaller up-front investment which are usually ‘liquid’ (easily sold), and don’t have the high buying and selling costs that a property does. A residential property has the obvious advantage of giving you a roof over your head.

You can also invest in either through listed or unlisted managed-style investments, such as managed funds, exchange traded funds (ETFs) and Australian Real Estate Investment Trusts (A-REITs). See our Investing money guide for more information.

History shows that few people are able to make consistently sound decisions about share investing.

There are several ways to invest in shares. If you want to invest directly it may help improve your results if you diversify by choosing shares in a range of companies, across different industries. Don’t forget to do your research on the companies before you invest.

You can also invest in shares through a managed fund or exchange traded fund (ETF). These are where your money is pooled with other investors and a professional fund manager chooses which shares to buy and sell on behalf of all the investors. This gives you access to a broader range of shares. Ongoing management fees vary (and must be disclosed).

Some funds managers are “active”. Generally, these funds attract higher fees due to the regularity of buying/selling and “stock picking” designed to beat the share market index; while others are “passive”, generally with lower fees, that are designed to follow the share market index.

You should be wary of claims by professional fund managers that they always beat the index. No one ever does that.

See our Investing money guide for more information.

The investments which are appropriate for you depend on a range of factors including your goals, your attitude to risk, your investing timeframe and the other investments you already hold.  There’s a lot to consider. See our Investing money guide [link] for more information.

Most ADF members are members of longstanding compulsory super funds, DFRDB and MSBS. DFRDB was closed to new members some 30 years ago and MSBS was closed to new members on 30 June 2016.

However, if you joined the ADF on or after 1 July 2016, you will be covered by the new military superannuation arrangement in which you may choose to have Defence’s super contribution of 16.4%pa of your remuneration paid into any complying superannuation fund (ADF Super, a retail, industry or self-managed superfund).

Members of MSBS (not DFRDB) may also choose to join the new military arrangement, but before you do, think very carefully about what you’re giving up. Consider getting financial advice before you make such an important decision.

From 1 November 2021, where a person joins a new employer and the person does not choose a superannuation fund, the employer may have to contribute to the new employee’s previous fund. This change aims to stop new superannuation accounts from being opened every time an employee starts a new job. More details on this on the ATO website.

Starting and running a SMSF involves significant time, effort, responsibility and cost. Most people start an SMSF to have greater control over their retirement funds, however, unless you have a lot of money (minimum of $500,000), it can be very expensive. You would also need to be confident about choosing investments or consider paying an expert to help you. Go to the MoneySmart website for more information on what’s involved.

A comparison website will help you compare funds based on fees, performance and other criteria. Look at fees and long-term average performance, net of fees, and choose a fund that has a range of investment options that suit your needs.
There are hundreds of funds available so any fund that is consistently in the top say 20 funds is likely to be okay. Always look at long-term performance, over 5-10 years, as last year’s top performer may not be this year’s.
The Australian Tax Office also has a YourSuper Comparison Tool to assist you in assessing and choosing a superfund.

 If you have served in the military then to find if you have any money in any of the military super schemes, your best bet is to contact the Commonwealth Superannuation Corporation or CSC which is trustee and administrator of all these super schemes.  You can find their contact information at this webpage https://www.csc.gov.au/Members/Contact-us/ including information on how to contact them if currently overseas.

MSBS is a defined benefit fund that gives you access to a lifetime pension, indexed to inflation as well as a lump sum. It closed to new members on 30 June 2016. Your benefit is based largely on your years of service and final average salary; and to the contributions you make.

ADF Super is an accumulation fund. It commenced on 1 July 2016. You will receive a lump sum at retirement based on contributions and investment returns. You will decide how much income you draw down and you will be responsible for making it last throughout your retirement.

Both funds have advantages and disadvantages, however MSBS provides greater certainty when it comes to your retirement benefits. Therefore, we strongly recommend that if you are an MSBS member you should consider seeking financial advice before deciding to change to ADF Super.

This is a unique feature of MSBS impacting upon many long serving ADF members. It’s a good problem to have and there are solutions. What to do next depends on your circumstances. There is no simple answer. One sensible way forward is to contact the trustee of MSBS, the Commonwealth Superannuation Corporation, who will outline your options.

Besides earning less money (which is a self defeating strategy) there are limited means by which you can legitimately reduce the tax you pay.  You can reduce your taxable income by claiming allowable deductions, which will reduce the amount of tax you have to pay. Only claim genuine deductions for expenses you can document. The ATO has a deductions guide specifically for ADF members. Go to the ATO website and search ‘ADF members”. You may also find our tax time video useful.

If you have a defined benefit super fund like MSBS, you will pay tax on some of your pension income. You can find more details in the factsheets for your fund, available on the CSC website. If you are an accumulation fund member, for example ADF Super, your super pension should be tax free from age 60. However, we strongly recommend that before making a decision to receive your superannuation benefits, you should seek financial advice from either the Commonwealth Superannuation Corporation or from a licensed financial adviser of your choice.

A deductions guide specifically for ADF members is available on the ATO website. Make sure you have documentary evidence of your claims.

If your tax and financial affairs are relatively simple, consider preparing your own tax return (by 31 October) or consider using a registered tax agent, rather than an accountant. Accountants are generally more suitable for taxpayers in business or who have more complex tax and financial affairs.

To find a qualified accountant to prepare your annual tax return you could ask for a recommendation from friends or family or you could use the search functions available on the websites of the peak professional bodies, CPA Australia and Chartered Accountants Australia New Zealand. If you want them to complete your tax return for you, make sure they are also a registered tax agent.

Whoever you appoint, understand the fees that you will be paying. Fee arrangements should be put to you in writing before the work starts.

Your child support is calculated as a percentage of your gross (rather than taxable) income, including deployment income and allowances. Contact the Child Support Agency for more information. You must notify that Agency of changes to your income if you want to avoid incurring a child support debt.

• While the veteran community has broadly welcomed the Douglas decision, and many veterans have benefited from the decision, the Government is concerned that a number of veterans are facing higher end of year tax liabilities.
• The draft legislation reflects the Government’s commitment to ensure veterans are not left worse off due to the Douglas decision and that veterans who benefited from the decision retain these outcomes. This will also extend to Spouse and Children’s pensions paid to a spouse or child following the death of a member of a DFRDB or MSB scheme affected by the Douglas decision to ensure these beneficiaries are no worse off.

• The Douglas decision was concerned with the direct tax treatment of the invalidity pension benefits from the DFRDB and MSBS schemes. As such the Australian Government’s commitment is related to that direct income tax change caused by that decision.
• The draft Bill maintains the benefits of the Douglas decision for invalidity benefits and death benefits for beneficiaries of invalidity pensions paid from the DFRDB and MSB schemes that commence on or after 20 September 2007, and otherwise retrospectively and prospectively reverses the effect of the Douglas decision in relation to all other schemes consistent with the intent of the current superannuation tax law. This will ensure that payments in all other schemes that may have been within the wider scope of the Court’s decision will continue to be taxed as superannuation income stream benefits, which is consistent with the intent of the current superannuation tax law.

• On 25 July 2022 the Government announced that it is introducing legislation to ensure that no veteran pays higher income tax because of the Douglas decision. A draft bill, Treasury Laws Amendment (Measures for a later sitting) Bill 2022: Taxation of military superannuation benefits, and associated draft explanatory material, was released for public consultation between 25 July and 5 August.
• The Government’s approach means that affected veterans in the DFRDB and MSB schemes will not only retain the income tax benefits of the Douglas decision but also retain the resulting benefits of changes in their taxable income, such as Family Tax Benefit entitlements and the childcare subsidy. 
• The implementation of this legislation will be subject to passage of the Bill, The Government anticipates this legislation will be introduced shortly.

• In relation to the current taxation arrangements for veteran’s incapacity benefits, it is a longstanding feature of the Australian system that military pensioners are subject to taxation on their superannuation income streams. The taxation treatment of a military disability benefit paid from a superannuation fund is equal to the taxation treatment of any other disability superannuation benefits. 
• The taxation treatment of disability benefits, including from military superannuation funds, is concessional for some taxpayers compared to non-disability benefits. People under their preservation age receive a 15 per cent offset (from their marginal tax rate) if the income stream has been financed from a taxed element. The tax-free component of disability lump sums is increased based on how many years the recipient was forced to retire early due to their disability. 
• The highest tax rate faced by military disability benefits is the recipient’s full marginal tax rate (with no offset). This occurs when the recipient is under 60 years of age and the benefit is provided as an income stream and financed from an untaxed element.

A budget helps you to work out where your money is going. It shows your income versus expenses. You can then make decisions about whether you are spending money on what’s important to you and how much is left over for savings. A great place to start is with a budgeting tool like our budget calculator.

Start with a budgeting tool like our budget calculator or a free budgeting app. Enter all of your income and expenses for a set period, such as a calendar or financial year. The amount left over is the amount you have available to save. Consider using bank and credit card statements to make sure you capture all expenses, particularly those that are paid less frequently such as utility bills, car rego and insurances.

Use a comparison website to see what’s available in the market. Check more than one as each website is unlikely to cover the whole market. Read the terms and conditions to make sure an account suits your needs. When you’ve identified a suitable account you can usually apply to open an account online. To find comparison websites, enter ‘compare savings accounts’ into your browser’s search function.

Saving protects you from unexpected life events and helps you achieve longer term goals. You are forgoing spending now so you have resources in the future. Having 3-6 months worth of cash in savings is likely to reduce your stress and allow you to focus on what’s important.

Under Australian Consumer Law, if you buy something from a business in Australia (rather than say from an overseas online trader or in a private sale) you should be able to get either a full refund, a replacement or a repair (it’s your choice) if the goods suffer from what the ACL describes as a ‘major’ problem. If the problem is only minor, the business can choose to offer you a repair only. For more information see the Australian Competition and Consumer Commission (ACCC) guide to repair, replacement or refund.

Using a credit card and paying the balance in full each month is one way to build your credit rating, however you need to be very disciplined with your money and not be tempted to overspend. A safer option is to simply pay your bills such as internet, phone and utilities, in full, on time, every time.

It can take time to build up or improve your credit score. You can improve your credit score by:

• making your repayments on time
• paying your mortgage and other loans on time
• paying your rent and bills on time
• lowering your credit card limits
• consolidating multiple personal loans and/or credit cards
• limiting your applications for credit
• paying your credit card off in full each month

Your credit rating, or credit score, is a number allocated to you by a credit reporting agency that expresses your perceived creditworthiness. Your credit score is dynamic, which means it changes constantly as new information about you is received. You can get a free credit score from a number of online providers. The results may vary depending on which credit reporting agency is used.

The following websites offer a free credit rating:

• Creditsavvy (Experian score)
• Credit Simple (illion, formerly know as Dun and Bradstreet score)
• Finder (Experian score)
• Getcreditscore (Equifax score)
• WisrCredit (Equifax and Experian score)

You may need to check with more than one ratings agency to get a consistent and reliable measure of your credit rating.

If your bill or loan repayment is late by 14 days or more, the information can be listed on your credit report and is likely to have a negative impact on your credit score. Partial payments are considered missed payments for credit reporting purposes. Credit reporting agencies record the date your credit payments were due, whether or not you made the payments in full by the due date, and the dates you made any missed payment. This information is recorded for any credit products held in the last 2 years.