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.
End of financial year: SMSFs
The compliance requirements for SMSFs are extremely stringent, and it is important for trustees to be acutely aware of their responsibilities. Of course, we are here to help you, but you should always aim to have a robust understanding of your SMSF’s reporting requirements. Withdrawing minimum pension SMSFs that do not distribute minimum pensions to members who are in pension phase may face hefty tax penalties. If a member of your SMSF has recently reached pension phase or you are
Surviving the run up to June 30
A lot of valuable time and energy gets poured into getting your paperwork in order and making sure that you’re minimising your tax bill as much as possible. The good news is that there is still time and with this checklist you can feel confident that you are on top of your tax: Get on top of your records If you’ve fallen behind on your record keeping responsibilities, we advise you to get as much as you can together and
Capital gains at end of financial year
Timing and planning are everything when it comes to minimising your CGT bill and making the most out of your investment returns. Capital gains tax (CGT) is incurred when a taxpayer disposes of an asset, for example, commercial and residential property, shares, units in unit trusts or collectables. Where such an asset is sold at a loss, this loss can be used to offset gains in that financial year or carried forward to a later year. Here are some strategies to
Making the most of small business tax breaks
Trading Stock Small businesses can opt out of doing an end of year stocktake (which can be expensive) if the value of their trading stock has not gone up or down by more than $5000 in the past financial year. Simplified depreciation Small businesses can immediately write off the value of any business assets that were less than $1000. The depreciation on all assets valued at over $1000 can be calculated as a single pool that depreciates at 15% in
End-of-year superannuation checklist
As the end of financial year approaches, it pays to start thinking about whether or not you will be able to make any additional personal contributions to your super. In addition to topping up your retirement nest egg, you will also benefit from some generous tax breaks. Recently, there has been a lot of discussion surrounding the future of these tax concessions so if your financial situation is permitting, it might be worth considering maximising your contributions as soon as
The magic of Compound Interest
I’m certain we have all heard of compound interest and the benefits it provides over time. What exactly is compound interest? Put simply it is the concept of earning interest on your interest. Any interest or return earned in one period is then added to your original investment and then it all earns interest in the next period and so on. Examples of Compound Interest Let’s say you started with $500 to invest and were able to add $500 to
Managed Funds Vs Direct Ownership
Most of us will have our precious superannuation nest egg invested in managed funds. This is common and, for those with smaller balances, there is nothing wrong with this. However some problems can arise with larger balances and there comes a point where direct ownership becomes more advantages. What is a managed fund and what are some of the downfalls? A managed fund is an investment option (commonly spread across several investment classes) where your money is pooled with
Common errors in accounts payable
The most common accounts payable errors are overpayments, duplicated payments, unused credit notes and unclaimed discounts. Overpayments are caused by someone processing the wrong payment, this can be avoided by having one person process the invoice and another person checking and approving the payment. A common error is duplicated invoices which are paid twice, this can happen easily if suppliers send invoices to you in more than one way (for example by email and post) and you accidentally pay both
The world of Insurances
The best plans in business always have a disaster recovery plan. Your personal Wealth Protection Strategy is you and your family’s own personal disaster recovery plan. There are four main types of personal insurance that you need to be aware of: Life Insurance Total and Permanent Disability (TPD) Trauma Income Protection Life Insurance Life Insurance provides your surviving spouse and other dependants with a lump sum of capital. The lump sum can then be used to extinguish debt and be