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.
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
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