End of Financial Year - Top 10 Tips for Business' Pay and clean up any super owing before 30 June Businesses must ensure they are paying employees additional superannuation. As superannuation is not tax deductible until it has been paid, it is also important to ensure all superannuation payments owing are completed before 1 July, this is a great way of reducing your income tax bill. Business owners should be aware of the cash flow implications of the change and make plans accordingly. Be aware of relevant tax changes It is critical you are aware of any relevant tax changes which typically come into effect at the start of a new financial year. Start by consulting your financial adviser or running a thorough search of the ATO for news and announcements. This will ensure you are well positioned to either capitalise on a positive change or prepared for an adverse change. Forewarned is forearmed. Get your tax-deductible expenses in [...]
Are you affected by the increase in the Age Pension’s qualifying age? Take steps now to avoid getting caught short on retirement income. The minimum age to qualify for the Age Pension has started going up. For those born on or after 1 July 1952, the qualifying age increases by six months every two years until it reaches 67 in July 2023. It rises to 66 in July this year. So if you’re turning 45 this year and plan to retire when you reach 60, you will need to wait until you’re 67 before you can apply for the Age Pension. You’ll have to rely on your own savings and super in the interim, making it crucial to ensure you have enough money put away for later years. But the good news is that there’s still time to grow your retirement savings. Boost your super Contributing more to your super can be a reliable route to bolstering your retirement [...]
The financial year is a 12 month time period that is used for tax purposes. For Australians, the financial year ends on 30 June, with the next financial year beginning on 1 July. From 1 July through to 31 October both individuals and businesses are required to submit a tax return form to the Australian Taxation Office (ATO). The ATO then use this form to determine how much tax is owed to the government, or how much the government needs to reimburse the individual/business if they have paid more tax than was owed. End of financial year checklist Before you get stuck into your tax return this year, make sure that you have considered the following: Credit cards Make good use of your tax return by using to pay off any credit card debt you may have. Rather than using the cash you receive to fund more purchases, use it to pay off your debts and get your financial [...]
JPMorgan’s head of financial planning, Michael Liersch, shared tips for new investors. Liersch says most investors can be successful if they have a plan, manage their perspective, and stay the course. He also recommends that investors ask someone else – a friend, family member, or financial adviser – to look at their investment strategy and challenge it. Whether you are looking to start saving for retirement or you want to put some extra cash in the stock market, investing can seem daunting to the inexperienced. But investing doesn’t have to be complicated, says Michael Liersch, head of goals-based advice and strategy at JPMorgan. In fact, Liersch told Business Insider that most investors can be successful if they have a plan, manage their perspective, and stay the course. 1. Make a plan Liersch thinks the first thing someone should do before investing is create a budget and see where your money is currently going. “As a simple first step, roughly estimate how much of your [...]
In the ever-changing super landscape, new tax breaks often arise as governments attempt to create incentives to encourage people to self fund for retirement and then to utilise their super to create income streams that will last well into retirement. One such opportunity is the ‘transition to retirement’ rule aimed at the over 55’s. The transition concept is a significant shift from the old ‘work full time until you retire’ model. The transitional paradigm recognises that many may prefer to ease into retirement gradually by cutting back working hours and drawing some income from their super before they fully retire. Extra savings there for the taking Bruce Jennings from Jennings Financial Services is spending an increasing amount of time helping pre-retirees to take advantage of this transitional environment. “My clients are pleasantly surprised when they discover the additional retirement savings that can be achieved in the 10 year period leading up to retirement. In fact it is quite startling [...]
Every now and then I come across an article which all of my clients should know about and this article from Caitlin Fitzsimmons is no exception. I totally agree with Caitlin that every parent with kids under 18 need to have a will and for good reason. Please have a read of Caitlin Fitzsimmons Why everyone needs a will, especially parents.
Craig James is CommSec's Chief Economist reviews the events of the last quarter. and in this report James looks at making sense of the volatile markets for your understanding. Economic & financial trends Shares slide: The US Dow Jones share index fell by 391 points or 2.4% on Friday. Volatile markets: In Australia over the past year there have been 85 daily moves on the ASX 200 index of more or less than 1%– a 3½-year high using annual rolling averages. Expensive US stocks: The over-priced US share market is contributing to the unsettled times. The US share market is over-valued by around 10%. The Australian share market is reasonably valued based on historic averages. What does it all mean? Financial markets are volatile. While that is hardly a new statement, investors have been on somewhat of a roller-coaster ride – not just in recent days or weeks but stretching back to 2014. Much is happening, from plunging oil prices [...]
Behavioural finance or Short termism may be rife in equity markets, but the evidence suggests investors can use this to their advantage. Make an effort to beat it and read about it here.
Martin's annual look at the top stocks on ASX and selects his top stock picks for 2016. Learn why BHP is out, Coca Cola is in, and the strength of diversified financial's like Platinum and Magellan.