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.
Work-related travel expenses
However, eligible individuals are able to boost their tax refund with some deduction claims. Individuals are able to claim a deduction if they incur any travel related expenses that directly relates to their specific job function. Depending on the individual’s circumstances they can claim the cost of transport, incidentals, and meals for overnight trips. However, they must be able to provide the necessary documentation. Some of the travel expenses that can be claimed on a tax return include: air, bus,
New penalties for SMSF trustees
The ATO has warned SMSF trustees about a new range of administrative penalties that can be imposed for a range of breaches of the law. This includes breaches that may be inadvertent. This new legislation received Royal Assent on 18 March 2014 and will make new penalties available to the ATO for breaches that occur on or after 1 July 2014. The legislation will also apply to contraventions that were made prior to 1 July 2014. Examples of breaches of
Year end super strategies
1. Spouse contributions The spouse super tax offset allows higher earning taxpayers who contribute super for their non-working or low income earning partners to be eligible for a tax break. To be eligible for this benefit the lower earnings spouses’ income, total reportable fringe benefits, and reportable employer superannuation must have been less than $13,800 in the financial year. 2. Salary sacrifice A salary sacrifice arrangement is where an individual agrees to forego part of their future salary or wages
Tax tips for property investors
Here is a list of tax tips for property investors: 1. Renovations by previous owner Individuals may be eligible for a deduction for depreciation on the cost of improvement by a previous owner, provided items are identifiable and itemized in a depreciation schedule. 2. Repairs at time of purchase Repairs made to the property are generally deductible provided they relate to wear and tear, but not repairs carried out within the initial 12 months of owning the property. 3. Prepay
2014 year end tax tips
1. Bad debts Bad debts are taxable sales that have been overdue for 12 months or more and have no chance of being recovered. It is important to write off bad debts before year end. It must be bad, not merely doubtful and must have been previously included as assessable income. 2. Trust distributions Trustee distribution resolutions are needed before 30 June 2014, or individuals can expect to pay 46.5 per cent on trust profits. 3. Prepaid interest There is
2014 Budget Wrap
Budget Overview This week the Treasurer tonight handed down his first Budget and a first Budget since the change of Government in the last election. There was much speculation and conjecture regarding this Budget with a clear warning that all Australians will need to contribute to the pain of fixing the Budget. To that end the Government also held firm on its commitment not to make adverse changes to superannuation but there are some welcome amendments that will benefit financial
SMSF changes
From 1 July this year it will be compulsory for employers with 20 or more employees (large employers) to pay contributions to your SMSF electronically. It is estimated that there are about 150,000 SMSFs that are impacted. From 1 July 2015 it will be necessary for all employers (including small employers with 19 or less employees) to make contributions electronically. In both cases there is an exception to the rules where contributions are made to funds for ‘related parties’ of
Important changes to the Aged Pension
Joe Hockey recently advised us all that the ‘Age of Entitlement’ was over and this looks to be well on track as the new rules begin to reduce the amount of millionaire pensioners claiming government assistance. From 1 January 2015 superannuation pensions will be assessed using the deeming rules rather than the existing (and much more generous) rules that apply to superannuation pensions. Existing rules For those who have already started their superannuation pensions the income they take is generally
Boosting your business cashflow
A business can be making lots of sales, have satisfied customers, experiencing growth and look profitable but still fail. How? They run out of cash! ASIC insolvency statistics from 2005 to 2013 show that the most common cause of business failure is inadequate cashflow or high cash usage. The good news is many of the failures could have been avoided if action had been taken earlier to identify the problem. The best way to foresee a cashflow crisis is to
