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.
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
Is it time for a Sea Change?
When we think of a sea change we tend to think of a move from the city to the country or the coast and we also associate a sea change more often than not with retirement. This is not always the case and there are now many different types of people looking for a sea change. Who would be classified as a sea changer? Those looking for a slower pace of life People wishing to downsize and pass some of
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
