Should I take my long service leave as a payout?

I’m 62, finishing my job and considering taking my large amount of accumulated long service leave as a payout to pay directly on to my remaining mortgage rather than using my superannuation to do so. What do you think?

I’m regularly asked whether to use up or take long service leave at retirement. The usual answer is ‘‘it depends’’! If you have plans for the funds, and there won’t be a significant (or unnecessary) tax burden then taking a lump sum is quite appropriate. You must seek professional advice to correctly time the payout to minimise tax. I acknowledge there are times when you can’t choose. An advantage of using up your leave is that your employer will continue to pay the super guarantee on the income until it is exhausted. This can help to further boost the value of your super, with more funds available to pay the loan out at retirement. Because there seems to not be enough houses to go around, I would like to do my bit and downsize. I am only 58. It seems the costs to do this is ridiculous, and I

would ask “where are my incentives to free up housing?”. Do I wait until I am 60 and then relocate to the country? Will I still be hit with taxes and so on even though I’ll be cash buyer?

The housing situation is certainly making headlines, and it appears to be very slow to change. Your intention to downsize you home, freeing up a larger residence for a family to buy, is well-intended. As you have identified, it is costly with fees and taxes

(such as stamp duty in South Australia). I’m not convinced that offering further incentives/concessions to free up housing beyond the current super downsizer contribution rules would necessarily help. Many delays appear to be tied to the building industry and supply-chain issues. Being a cash buyer may help you be ahead of the game when you buy, because seeking finance is also tough right now.

I bought a DIY power of attorney kit from State Trustees but was horrified to see it was 45 pages long. All I wanted was a simple document allowing an appointed person to act on my behalf if and when I’m not capable of making those decisions myself. The kit was full of waffle. What should I do please?

A quick Google search shows there are myriad DIY enduring power of attorney documents available. Some are more long-winded than others, for sure. While there will be a cost involved, seeking the advice of a specialist solicitor is the best way to go for all estate planning documents. They work with these documents, and a wide range of client situations, dayin and day-out. They would have the short-form document that you seek. It may also be worthwhile to get your will and advanced care directives updated at the same time. Brenton is a director and an authorised representative of Goldsborough Financial Services Limited. His advice should be considered as an opinion. Readers should consider engaging their own personal financial adviser. Questions and answers may have been edited for length.