If you are considering using your superannuation to establish your own self-managed superannuation fund to purchase a residential investment property, here are a few broad guidelines I use when considering if such a strategy is appropriate for my clients: 1) Minimum super balance: ASIC advises that a minimum of $200,000 is required to establish an SMSF. 2) At least 10 years of working life left: This is not an ideal strategy for people who have less than ten years to work. 3) Protect your cash flow: What happens of one of the members loses their job? Or if you lose a tenant? I always recommend that an SMSF hold a cash buffer that amounts to six months of all property expenses that includes loan repayments and rental costs such as landlord insurance, strata fees and council rates 4) What is your plan to pay off the loan?: Whenever you take on a loan, you need a plan to pay down this loan.

Cut out at ‘termite’ taxes ......... The IPA has urged the government to implement holistic tax reform to eradicate “nuisance taxes”. Nuisance taxes and termites have something in common – termites eat away at the family home while nuisance taxes erode the revenue base and economic stability. These taxes are inefficient, distortive and inequitable and are levied by state governments. Payroll tax is an example of a tax that is counterproductive to economic growth. It acts as a disincentive to employment and does not motivate small entities to grow. Stamp duty is another example of a state-based tax which should be either abolished or reduced to a level that minimises the drag on the economy. THEY SHOULD BR REMOVED A shift towards greater reliance on consumption taxes (GST) would encourage savings and investments, and would provide a more suitable source of revenue.

 

As of 1 Oct 2016, some transactions between Aust and overseas businesses are no longer subject to Australian GST.

• GST-registered importers no longer need to identify the exact amount paid or payable for international transport, insurance and other costs to calculate the value of the taxable importation for GST purposes.

• More supplies of services by Australian businesses to non-resident businesses will now be GST-free.

• Overseas businesses supplying or acquiring goods from an Aust businesses may no longer need to be registered for GST and may cancel their ABN.

 

As a director of a company, you may be at personal risk for decisions made in the best interests of the company unless your company indemnifies you. A director’s indemnity involves a company undertaking to protect its directors against liabilities that they may incur in the course of performing their company duties. A director’s indemnity may be required (as in some instances by ASIC) or a company can choose to indemnify their directors.

Can accountants save the planet? Accountants are unlikely revolutionaries, but according to Jane Gleeson-White, they are leading the charge in reforming the global economy for the good of us all. An international movement has begun within the finance world, and many innovative global companies are starting to look at how nature and society can be included in their bottom line.

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