Limited recourse borrowing arrangements (LRBAs) have been greenlit by a recent enquiry, and also comments from the Assistant Treasurer.
The Council of Financial Regulators in November released its second report on Leverage and risk in the superannuation system. Consistent with the 2019 report, the Council found that LRBAs are “unlikely to pose a material risk to the superannuation system or broader financial system”. Following this, in the lead up to the recent Federal Budget, the Assistant Treasurer Steven Jones confirmed that there are no current plans to ban such arrangements. […]
Whether your superannuation impacts your Age Pension depends on a number of factors, such as your age and your level of assets and income.
Age pension age
In order to qualify for Age Pension payments, you must have reached age pension age. Your age Pension age is determined by when you were born, as follows: […]
The ATO Commissioner has just issued a warning to businesses on the importance of securing your au domain name!
To recap, .au direct domain names were launched earlier this year by the organisation that manages Australian domain names, the Australian Domain Administration (auDA). This will allow businesses to elect to drop the .com from their web addresses. […]
The ATO has issued a reminder to sole traders and partners in a partnership.
If you take goods from your business for your private use, make sure you accurately record this in your stock on hand.
Circumstances will sometimes get in the way of your ability to pay a personal or business tax debt on time.
If this is the case, it is vital to go on the front foot and put a payment arrangement in place with the ATO. For larger business debts, this is now more important than ever with new legislation allowing the ATO to disclose the business tax debt information of a taxpayer to credit reporting bureaus in certain circumstances. […]
Do you run a business and have or are thinking about hiring workers? If so, it’s important to understand the difference between contractors and employees, as you have different tax and superannuation responsibilities depending on the status of the worker.
What’s the difference between contractors and employees?
Generally speaking, an employee works in your business and is part of your business. A contractor is a person who is typically running their own business and the business engaging their services has little direction or control in respect of how that service is supplied. […]
Have you ever wondered how much superannuation you will have and need in retirement? The answer is it depends on a range of factors, such as your lifestyle goals, whether you have paid off your mortgage, your financial situation, whether you live a relatively healthy lifestyle, your likely life expectancy, and so on.
How much will I spend in retirement?
According to the government’s MoneySmart website, the amount of money you will need when you retire depends on:
Your costs in retirement – for example, paying off your mortgage, rent, renovations, travel and medical costs, and
The lifestyle you want – for example, a modest versus a comfortable lifestyle (discussed below).
Are you a small business owner or work in a profession where you are open to being sued? If so, have you thought about what might happen to your superannuation should your circumstances change and you become bankrupt?
The risk of bankruptcy
Self-employed people, company directors and ‘at risk’ professionals such as doctors, dentists, accountants, lawyers, etc are particularly vulnerable to lawsuits from disgruntled clients or former, aggrieved business partners. Should your small business fail or where litigation against you by one of these individuals is successful, there is a risk that you may become bankrupt.
Once bankrupt, your assets are accessible under bankruptcy laws to repay creditors unless your assets are considered ‘exempt divisible property’. […]