The Australian share market rallied for the third straight session to close at a 2016 high despite steep falls in iron ore prices. The S&P/ASX 200 again jumped 0.7 per cent at the open, before slipping to close up 22.4 points, or 0.4 per cent, at 5613.5 on volume 12 per cent below average as miners defied weakness in ore prices and banks continued to rally. The Australian dollar is moving within a narrow range and remains relatively steady against the US dollar. The local currency was trading at 72.66 US cents at 1200 AEDT, up from 72.52 US cents on Tuesday.

What this means for you:
The ATO has released data saying that the number of SMSF's has risen dramatically in the last five years (grown by 31 per cent) but the overall returns haven't been as positive. Our suggestion would be to hold off having an SMSF unless you've got a balance of at least $200,000 and you're contributing to it regularly. Otherwise, the costs of a tax return and audit can erode too much of the rate of return each year.

If you're looking for savings in the new year, you may want to get a second opinion on your insurance structure. Making use of your superannuation to hold some of your cover can be an effective way to reduce the overall cost of the premiums. But, you need to make sure you structure matches your situation and where you'd like any benefits to be paid. Drop in and see us in the new year for a free second opinion.