Here, our financial experts take a close look at what’s happening in the world of finance.
We uncomplicate breaking announcements from the Reserve Bank of Australia (RBA), the Australian Taxation Office (ATO), the Australian Securities and Investments Commission (ASIC) and the Federal and State Governments so you can understand how those changes will impact you, your family or your business.
If you’re wanting to stay up-to-date on topics such as interest rates, tax planning, superannuation, the Federal Budget, incentives and schemes, HELP debt, deductions, concessions, depreciation, investment properties and much more, this is where you’ll find the answers.
Knight is with you every step of the way as you strive for financial success. If you’d like some additional information regarding any financial news, please reach out for a consultation to plan your next step.
Employee vs Contractor
They have an ABN, a business name, are registered for GST, you pay them a higher rate, they operate through a corporate structure and they even have a signed written contract; they are obviously a contractor right? Not necessarily! These are common incorrect assumptions made by business owners when considering if their worker is an employee or a contractor. How do you determine the difference? An employee works in your business and is part of your business, whereas a contractor
Buying property in your SMSF
Many people like the idea of setting up a SMSF to buy an investment property. Unfortunately, the ‘vultures’ have targeted this segment since the rules changed allowing SMSFs to borrow for property investment. There has been a wave of ‘property spruikers’ typically running seminars promoting the strategy and implementing high pressure sales tactics for investors (many of whom the strategy is completely inappropriate for) to purchase off the plan apartments whilst those within the sales chain collect huge commissions. It
Buying a business in 5 steps
1. Should you buy a business or start one from scratch? Buying an existing business can certainly have its advantages. In an ideal world you will take over a loyal customer base, reliable suppliers, experienced staff, sound processes and procedures and instant positive cash-flow. Your due diligence will evaluate each of these areas to determine if the target business is as good as it appears. The downside of course is that you will have to pay for all of this.
New ATO Penalties for Self-Managed Super Funds
The new rules apply from 1 July this year and allow the ATO to fine you and require you to rectify the mistake that has been made. They can also direct you to take further education on self-managed superannuation funds if they are not satisfied you understand your role as trustee of your self-managed fund. There are three types of new penalties that can be imposed: A direction to undertake, at your expense, an education course to improve your knowledge
Super contributions splitting
Superannuation contributions splitting is a means by which couples can share in the benefits of superannuation over their working lifetime by allowing a member of a superannuation fund with an accumulation interest to split certain contributions with their spouse. What are splittable contributions? Generally the contributions that can be split are taxed splittable contributions. Taxed splittable contributions generally include employer contributions (such as salary sacrifice contributions and superannuation guarantee (SG) contributions) and personal contributions for which a tax deduction
Selling Your Business
Like most things in life, when you are selling a business, it is only when you ask the right questions that you can get anywhere close to the right solution. Here we get you started with some of the basics: What is for sale? Do you intend to sell shares in your company or the business assets from within the company? A purchaser might prefer to buy the business assets – then they do not inherit the risks associated with
The clock is ticking on income test changes
Two of the more significant changes for retirees that was proposed in the government’s 2014 budget are changes to age pension and seniors health card entitlements. From January 1 2015 there will be different method of assessing the income tests for these highly regarded government benefits by retirees, creating a window of planning opportunity for those who may be most impacted to lock in their entitlements under the current rules. The Changes – A recap Deeming of Superannuation Pensions
Superannuation year end planning for 2014
The end of the financial year always seems to crop up faster than it should. Understanding what you could do before and after 30 June 2014 can provide the icing on the cake for employees, investors and those in small business. Such things as bringing forward tax deductions or delaying the receipt of income within the rules can mean less tax this year. When it comes to superannuation, make sure you maximise the tax deduction this year or salary sacrifice
Home based businesses
1. Cost of room’s utilities These claims must be apportioned and if the portion is based on anything other than the floor area the claim must be clearly documented. 2. Phone costs If a telephone is used exclusively for business, owners can claim for the rental and calls but not the installation costs. 3. Decline in value This can apply to items such as desks and computers. If the equipment is also used for personal use then the claim must