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.
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
Wills and blended families
In recent years there has been a rise in the number of blended and stepfamilies within Australia. Figures from the Australian Bureau of Statistics showed that one in five families is a blended or stepfamily. Today, the issue of passing assets to beneficiaries on death is becoming increasingly risky. As the numbers of blended and stepfamilies continues to rise it is important to ensure a Will reflects an individual’s wishes. Due to this, families should consider incorporating a Mutual Will
Increases to flexible work arrangements
Australians will now have the express right to request flexible working arrangements under changes to federal workplace laws. The Government has amended the Fair Work Act to broaden the right to request flexible working arrangements. Since July 2013 a number of legislative changes concerning the rights of employees to request flexible working arrangements commenced. It is important that all businesses are aware of these changes and have implemented them into their business. These changes benefit employees who may otherwise feel
SuperStream is here
SuperStream is the name for the range of proposals designed to improve the processing of everyday superannuation transactions. From 1 July 2014, SuperStream will affect the way employers meet their superannuation contribution obligations.The standard process as it exists, involves a combination of paper and electronic transactions. This makes for a complex and inefficient system. The concept behind SuperStream is to increase the processing speed of transactions, reduce error and remove human involvement from the system to reduce the time between
Christmas party planning
Smart employers take precautions when planning the work Christmas party, to prevent being left faced with post-party legal and HR issues. It is important that employers inform their employees that normal disciplinary procedures will apply for any forms of misconduct at the Christmas party. For serious matters, formal action should be taken as soon as possible and not simply left to deal with in the New Year. Here are some simple steps that an employer can take to ensure the
Employee leave during the holidays
Employees may find that their employer is temporarily shutting down operations during traditionally slow periods, such as between Christmas and New Year. Employees should be aware that their employer needs to abide by procedural requirements when asking them to take leave. Strict penalties apply for those employers who fail to comply. Most modern awards and enterprise agreements will set out the strict rules and requirements that employers must comply with if they require an employee to take paid annual leave