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.
Why should I have a Business Plan?
Following on from our recent article on Why should I have a Business Plan – Part 1, we outline below what that business plan should contain. By now you understand why you need a business plan and you’ve spent some time doing your homework gathering the information you need to create one. First of all, the business plan should be kept short and to the point, that means making it no longer than 15-20 pages. Your appendices can house all
Why do I spend all of what I earn?
Most people spend almost exactly what they earn, meaning they are not saving or investing. This habit makes it very hard (impossible) for them to create wealth or even accumulate enough in savings for a comfortable retirement. Not saving also means you are more likely to have to borrow to fund larger purchases such as holidays or a new car down the track. So, knowing that it’s not good for our futures, why do we tend to spend more than
Capital Gains Tax and the Sale of Your Business or Business Asset(s)
Do you run your own business? Are you thinking of selling it, or a part of it, or a capital asset within it? Decisions of this kind can be some of the hardest but most important decisions you will ever make. With that comes a lot of questions and concerns, not least of all – “How much tax will I pay on any profit I make?” and “Are there any options available to me to minimise this tax?” If you
Investment pitfalls
Over the years I have provided advice to all sorts of people in all sorts of investment markets. The easy part is choosing an investment strategy, the hard part is ensuring you stick to it and not making mistakes such as selling out after a market fall or hanging onto fallen investments in the hope they’ll one day recover. Here are some of the most important investment mistakes to avoid: 1. Not accepting or learning from your investment mistakes
Transitioning to retirement
With 2014 now underway, those planning for their retirement should take stock of where they are today and where they want to be at retirement. If you are aged 55 to 64, there are exciting Transition To Retirement (TTR) strategies to consider, even while still working. While your SMSF may be the best vehicle to manage these strategies, you can still use other types of super funds to implement them. There are a couple of key points to note with
SMSF limited recourse borrowing arrangement
Although Self Managed Superannuation Funds (SMSFs) are normally not permitted to borrow, there are some important exceptions to this rule. One such exception, which has received plenty of attention in recent times, is an “SMSF limited recourse borrowing arrangement”, which gets its name because the rights of the lender against the SMSF trustee are limited if the SMSF defaults on the loan. What is an SMSF limited recourse borrowing arrangement? An SMSF limited recourse borrowing arrangement typically involves an SMSF
2014 Outlook
Heading into the New Year we have greater conviction that Australia’s pace of economic growth can accelerate in 2014. Therefore, we expect to see further signs of rebalancing in the economy, but only in a gradual fashion. Capital spending by mining businesses on plant and equipment should hold up for the time being, given the high level of work yet to be done on committed projects (especially for LNG) and the continued strong commodity demand in China. While we agree
ATO lifts the bar on super
The ATO has indicated that it will commence sending out initial notices to employers about unpaid superannuation obligations. Failing to meet superannuation obligations will generate significant penalties for employers. In addition to interest and administrative penalties, employers lose the tax deduction that would normally be available for superannuation payments made on time. The total cost to businesses found to have underpaid their super or paid it late can be substantial. The ATO has no discretion to waive or reduce these
Protecting company revenue
Business owners should take the time to recognise and plan for any potential challenges that could affect their revenue over the Christmas period. The festive season is often a time of increased sales activity. Business owners need to consider strategies on how to effectively manage this busy period in order to protect their business. An unorganised and badly managed business could have a negative impact on the company’s overall revenue. Business owners should also be aware of the impact a
