Do You Need A Self Managed Super Fund?
A Self-Managed Superfund (SMSF) has been one of the most talked about items in discussions
surrounding tax, due to the numerous tax advantages it brings, both from the tax and investment point
We recently talked about the drivers that creates business results, the next part is to ask what you are going to do about it? Your budget won’t just give you a monthly sales target, for example, it will help you quantify the drivers that will produce the result.
For example, if next month’s sales target is $120,000, that end-result figure is not your focus. Not on a day-to-day basis. Knowing the underlying drivers, your focus will instead become, for example:
Now you and your staff have a clear focus and are 100% accountable.
Previously we explored the importance of deciding on a direction you want go and why it is so important to budget and set goals, today we take the next ‘step’.
As you well know, sales just don’t happen. Costs don’t just drop because you want them to. Sales and costs are a result of other underlying factors. Put another way, they are symptoms of causes.
The business budgeting process quantifies the symptoms, and by asking a series of ‘What leads to this number?’ questions, it also identifies the underlying causes.
For many, the word ‘budgeting’ is about as appealing as the word ‘diet’.
It seems to imply what you will go without, rather than what you will achieve.
To a successful business owner, however, the word ‘budget’ has a very different meaning.
It’s more like a map than a diet. It’s an outline of where you want to take the business, and what you need to achieve to get there.
Over the next few days we will give you three reasons why your business needs a budget.
Single Touch Payroll ( STP ) is a new system that will require all employers to maintain their payroll systems on a computerized payroll package that will communicate with the ATO. (Australian Tax Office)
Every Pay period, STP will provide the ATO with
This information will then prefill the Business Activity Statement ( BAS ) and Instalment Activity Statement (IAS) each reporting period.
As accountants, we come across many instances where clients either do not have any personal insurance cover at all or insufficient cover to meet their needs in the event of serious injury or illness.
Most people don’t think twice about whether to insure their car or their home, but often don’t consider the importance of life insurance. Personal Insurance cover will enable you and your family to maintain the same standard of living by providing payments to cover any outstanding debts and everyday expenses.
By making sure you have the right cover and with the right terms is crucial. We recommend reviewing your policies on a regular basis.
Most larger businesses have an internal Chief Financial Officer (CFO) or a Financial Controller. Clearly, larger businesses can afford an in-house CFO, but it goes beyond an affordability issue. Large, successful businesses also understand how crucial the CFO role is to their business performance.
This is management input that all businesses require regardless of their size.
Scammers are stepping up their attacks on taxpayers by pretending to be Australian Taxation Office staff, but security specialists say you can still spot their sophisticated tricks and protect yourself from being the victim of a scam!
The Australian Taxation Office says that in the first six months of this year it received reports of almost 29,000 ATO impersonation scams.
Scammers will often demand payments for false debts, or offer false refunds if you give them your personal details.
In the May Budget, the government introduced some changes in an attempt to reduce the pressure on housing affordability. Here is what you need to know about how these changes will affect you?
For a long time now deducting travel expenses for traveling to a property you own for rental purposes was the norm, whether it be in your state or interstate.
As per the 2017/18 budget, the government intends to disallow all travel expenses relating to inspecting, maintaining, or collecting rent for a residential investment property from 1 July 2017.
So, what does that mean for every couple or individual who may own a residential property in their personal name(s)? From the 1 July 2017 you will not be able to claim expenditure from traveling by car, plane or any other way to your residential rental property as a tax deduction against rental income. Furthermore, as per current legislation, the expenditure cannot be added to the cost base of your rental property for capital gains purposes. Read more
Two things first up: (1) If you want to (or have to) work past the age of 55, you need to read this article; or (2) If you know someone else who that applies to, please forward them this article or a link to it. They’ll thank you for it.
There are now ways you can ease into retirement, tap into your super before you fully retire, save tax and potentially boost your super as you do it. Before this legislation came in, people had to fully retire and leave the workforce before they could access their super. These days, the ‘cold turkey’ approach to retirement where all of a sudden one Monday you’re fully retired, is far less common. It makes sense, for many, to instead gradually transition to retirement.
There are various reasons people may want to continue working past the age of 55, including:
So continuing to work at least part-time past the age of 55 makes sense for many people. It also makes sense for our economy. With the ageing population and fewer people in the traditional working years age bracket, the government has introduced various legislation to encourage people to stay active in the workforce. One of these measures is called Transition To Retirement (TTR).
TTR allows you to wind back your work hours and reduce your income from that source, but then offset that with an income stream from your super. The purpose of this article is not to give advice as such—as there are a number of variables to consider for each person’s circumstance, so you will need to sit down with your advisor here to discuss TTR further—but rather to make you aware of the main considerations so you can determine if you qualify.
You can use a TTR pension in one of two ways:
Either way, that’s a nice deal.
People who are unaware that they can access a TTR pension while they continue to work past age 55 stand to pay many thousands of dollars of tax needlessly.
Here’s how you can avoid that happening to you or your loved ones…
Firstly, some terminology: Your ‘age pension age’ differs from what’s called your ‘super preservation age’. The latter is age after which you’re allowed to access your super. You can use this ASIC Super and pension age calculator to work out your preservation age. Just enter your month and year of birth and then click the Female or Male button.
Do that now, then continue…
If you can tick all those boxes, you can withdraw 4% to 10% of your super each financial year. Note that you cannot withdraw money as a lump sum.
Also note that not all super funds allow you to do this, and if that’s the case with your fund(s), you might need to change super funds if you want to take advantage of the TTR measures. We can help with that process.
So if all three of those above points apply to you, you should contact us as soon as possible to make a time to go through the specifics of your circumstances, your super fund’s TTR options and a number of other very important details. We’ll make it easy for you and will make the paperwork happen.
There’s more we could share with you here about TTR, but rather than burden you with all those details, we figure that’s what you want us to handle for you! TTR is one of the smartest retirement strategies available. It makes sense to take advantage of it if you can.