The government’s new measure to allow those with less than $500,000 in superannuation to “catch up” on missed superannuation contributions is a great opportunity for anyone who takes time out of work or otherwise has “lumpy” income that means they have a varying capacity to make contributions from year to year. Individuals who want to fully take advantage of this strategy by making contributions up to their concessional cap plus additional catch-up amounts may need to consider strategies for how to fund those catch-up contributions. Individuals with a total superannuation balance (TSB) below $500,000 are now able to “carry forward” their unused concessional contributions.

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As a small business employer, you may need to understand how fringe benefits tax (FBT) and entertainment works so you can determine whether you have to pay FBT. If you sometimes provide your employees or their associates with food and drink, gifts or leisure activities you may have to pay fringe benefits tax (FBT) – as this may be classified as providing entertainment.

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Entrepreneurs have a lot of preconceived notions when it comes to business coaching. But if these beliefs are holding you back from getting an effective business coach, you’re missing a huge opportunity to improve your skills and your business’s performance, says BDC’s Business Consultant Nyron Drepaul. [source]

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Many of the financial decisions that you make regarding your personal finances involve a certain level of risk. Importantly, the level of risk that you are comfortable with can be different from the next person. Given this, when it comes to investing inside and/or outside of superannuation, whether over the short, medium or long-term, one of the first ports of call is determining an appropriate investment risk profile.

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The write-off is a temporary measure that allows small businesses to claim an immediate deduction for certain capital expenditures, rather than having to deduct these costs over time. This “accelerated” depreciation deduction improves small businesses’ cashflow and encourages them to reinvest amounts back into their business. 

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When you envision the path required to achieve your financial goals and objectives, there is probably no doubt in your mind that it won’t always be smooth sailing, i.e. risk-free. For example, there may be both ups and downs, as well as potential obstacles that may arise along the way.

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Div 7A or deemed dividend payments may be familiar to you if you’re the shareholder or associate of a private company. It generally applies to treat a benefit provided by a private company to the shareholder or associate as a deemed dividend, which is then taxed at the recipients’ marginal tax rates. The government has now proposed to make changes to Div 7A after a review found the rules may be too complex and place an unnecessary administrative burden on taxpayers. 

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The government is acting to simplify the Division 7A rules that govern deemed dividends, proposing a new 10-year loan model for compliant loans. Significantly, companies with existing loans would be forced to transition to the new model, which also includes a considerably higher benchmark interest rate. 

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Over the last few months, several proposals regarding small and medium businesses, primary producers and farmers, consumers, aged care and education have moved through the Federal Parliamentary Process and become enshrined in law.

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