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Hosting the Olympic Games is often seen as a significant opportunity for countries and cities to showcase their capabilities on a global stage. Despite the rising costs associated with hosting the event, the potential economic benefits cannot be overlooked.
There’s stakeholders of every kind when it comes to an city hosting an Olympic Games – from local advertisers, businesses their families all the way through to the state and nation hosting. So with that in mind, we thought we’d take a look at some of the impacts, benefits and concepts behind what an Olympic games means for the host.
The costs of hosting the Olympics have indeed skyrocketed over the years. The 2024 Paris Olympics is expected to be a critical test of whether recent reforms have made hosting a more viable financial option. Historically, the Olympics have evolved significantly since the first modern games in 1896. In the latter half of the 20th century, the costs associated with hosting and the revenue generated grew rapidly. This growth sparked considerable controversy over the financial burden placed on host countries.
A growing number of economists argue that the economic benefits of hosting the Olympics are often exaggerated. Critics highlight that many host countries end up with substantial debts and ongoing maintenance liabilities once the games have left their locality. These financial challenges have led to calls for reforms in the Olympic bidding and selection process. Suggestions include incentivising realistic budget planning, increasing transparency, and promoting sustainable investments that serve the public interest long after the Games have concluded.
Despite these criticisms, supporters of the Olympics contend that hosting the Games can significantly enhance a city’s global profile and drive economic benefits through tourism and infrastructure investments. The infrastructure developed for the Games often includes improvements in transportation, housing, and sports facilities, which can have long-term benefits for the host city. For instance, the 2000 Sydney Olympics led to substantial investments in the city’s infrastructure, which continue to benefit residents and businesses today.
This isn’t just in the form of sporting facilities, rather to make room for an event of scale, host cities like Sydney build serious improvements across the board to allow for attendees and athletes that create lasting impact for the city as a whole.
One of the primary economic benefits of hosting the Olympics is the short and long-term boosts to tourism. The influx of athletes, officials, and spectators from around the world can generate significant revenue for local businesses. Additionally, the global media coverage of the event can raise the profile of the host city, attracting future tourists and investors that would have otherwise not seen value in a locaiton. Again, with Sydney as an example, we saw a notable increase in tourism following the 2000 Olympics, with many visitors drawn by the city's enhanced global reputation – we knew it was a great place before-hand of course!
The long-term economic impact of hosting the Olympics is another critical consideration. While the initial investment can be substantial, the benefits can extend far beyond the closing ceremony. Improved infrastructure, increased tourism, and enhanced global visibility can contribute to sustained economic growth. Moreover, the skills and experience gained by local workers and businesses involved in organising and hosting the Games can have lasting positive effects on the local economy, making room for new business and opportunities not otherwise seen.
While the costs can be high, the potential economic benefits, including tourism, infrastructure development, and global exposure, are significant. By carefully planning and managing the financial aspects of hosting, cities can maximise these benefits and ensure a positive economic legacy. With the 2024 Paris Olympics underway, it will be interesting to see how recent reforms influence the economic outcomes for the host city and provide valuable lessons for future hosts, including Brisbane in 2032. We’ll be keeping a close eye!
Stay tuned to our socials and website for more.
Creating a Self-Managed Superannuation Fund (SMSF) while a major financial decision, offer you unparalleled control and flexibility over your retirement savings. While it opens doors to customised investment strategies and personalised financial planning, it also entails significant responsibilities and strict regulatory adherence – which is where we come in to help.
An SMSF grants you direct management of your superannuation investments, allowing for investment strategies tailored to your specific financial objectives. However, with this control comes the obligation to comply with stringent legal and regulatory requirements.
Prior to setting up an SMSF, it’s crucial to have a solid grasp on the responsibilities and legal obligations involved. Educate yourself on investment strategies, risks, and regulations related to SMSFs to make well-informed decisions.
If you’re just starting out, book a chat with one of our SMSF specialists and we can give you the complete run down while assessing how an SMSF might work best for you.
An SMSF can have up to four members, all of whom must serve as trustees or directors of a corporate trustee. Individual trustees must be over 18, while corporate trustees must be a company with all members as directors.
Engage a legal professional to draft a trust deed, a fundamental document that outlines how the SMSF will be managed and operated, ensuring compliance with legal requirements.
If you need guidance on who to speak to from a legal perspective, we can refer you to one of our experienced partners, so reach out for a referral if you require one.
Ensure that all trustees sign a trustee declaration within 21 days of assuming their role, acknowledging their understanding of their duties and obligations. By the time you’re appointing trustees, they should be aware of what’s involved, but once again, we can provide you the details to educate and inform your trustees if required.
To operate your SMSF legally, obtain a Tax File Number (TFN) and an Australian Business Number (ABN). You’ll need to register your SMSF with the Australian Taxation Office (ATO) to comply with tax regulations.
Again, this is something we can assist with as part of the set up process.
Formulate a detailed investment strategy that aligns with your financial goals. Consider factors such as diversification, risk tolerance, and liquidity to create a balanced and secure investment portfolio.
Building the best strategy for your unique situation is another key area we’re perfectly suited to assist with. Our experience means we can tailor our advice to you and help guide you with your strategy building.
Set up a bank account in the name of the SMSF to handle contributions, rollovers, and investments, ensuring a clear separation between your personal and SMSF finances.
This will operate solely for the purpose of your SMSF.
If members have existing superannuation accounts, roll these funds into the SMSF to consolidate and streamline your retirement savings.
Implement robust record-keeping systems to comply with reporting requirements. Maintain financial statements, member statements, and annual returns to ensure your SMSF meets regulatory standards.
There’s software to help with this – we can offer advice on the best methods to have easy to manage record-keeping as part of your SMSF.
Evaluate insurance options for SMSF members. Trustees are responsible for considering insurance needs to protect the fund and its members – this is a must.
Regularly review the performance of your SMSF and ensure it complies with current laws and regulations. We can be part of assisting you to submit the annual return to the ATO to maintain compliance and of course, through the life of your SMSF, the Attune team can help ensure operations undertaken within your SMSF are compliant.
Engage SMSF professionals – start with the Attune Advisory team and engage your existing financial advisers, and legal experts (if you have them), to ensure your SMSF is compliant and managed effectively.
The right, tailored professional advice is invaluable in navigating the complexities of SMSF management.
Attune Advisory can help you take control of your retirement savings with a Self Managed Super Fund. So, if you’re looking for assistance with setting up or managing your SMSF, Attune Advisory's experts offer a range of advisory and support services. Whether you aim to manage your retirement investments better, maximise tax advantages, or stay compliant with ever-changing regulations, our experienced team will guide you through the entire process.
Reach out to us via email or call the Attune team on 1300 866 113 to start the conversation. You’ll be glad you did.
Through our decades of experience in the financial services industry, we have assisted countless small business owners to move from early stages of starting the journey, into business maturity.
And as new businesses kick off and grow, we thought we’d compile a list of essential accounting tips for small businesses so you can maintain order and promote growth in your own business. Of course, we can help you create the right strategy for your business in all areas we discuss below, so keep that in mind as you read…
Our top tip is to delegate your bookkeeping. Spending countless hours on bookkeeping can be inefficient – especially when you bring other skills to the business.
Instead, follow the adage, "Work on your business, not in your business." Effective bookkeeping involves more than reliability; it includes automating functions to free up your time for business growth.
Choosing the correct business structure can significantly impact your tax obligations and asset protection. You can opt for:
• Company
• Trust
• Sole trader
• Partnership
Your business structure influences succession planning, attracting investors, and scaling your business. The Attune team will discuss your current situation and your goals before giving you assistance with your business structure – it’s all about tailoring our advice to give you the best results.
In the 21st century, cloud software is indispensable for accounting. Utilise cloud-based filing systems and tools like Xero for tracking expenses and mileage. This transition not only reduces physical paperwork but also streamlines your financial management.
Once again, you don’t have to try and set this all up alone – speak with the Attune team for a little help and advice that can get you going in no time.
For businesses dealing with stock, inventory management systems are crucial. They automate stock tracking, prevent overordering, and help maintain optimal cash flow. Advanced systems can even notify you when stock levels are low.
Be done with complex spreadsheets, software is the way to go.
A competent accountant is invaluable – that’s where we come in. Among many other things, we can assist you with:
• Setting up the best business structure
• Overseeing tax compliance
• Managing cash flow and strategic planning
Attune’s holistic business advisory and accounting service can guide you through business growth and set you up for success.
Utilise software like Xero and Spotlight Reporting to forecast cash flows and budgets. Setting goals and benchmarking performance helps you anticipate trends and identify areas for improvement.
Do this regularly to make sure your goals and plans suit the current state of your business.
Third-party HR or payroll assistance ensures compliance with award rates and regulations. They also help manage employee leave entitlements and overtime obligations. Automating payroll functions with Xero can streamline these processes, but it’s incredibly important you have the right inputs to get the right output.
Make a point of speaking to a HR lawyer about your payroll if you have staff on multiple pay rates and awards.
Avoid double handling of paperwork by integrating your point of sale, accounting, and filing systems. Using software like Xero provides real-time data on your business performance, allowing for timely issue resolution.
There’s other options out there that might suit your point of sale best, so do your research!
A digital dashboard in your accounting software (we like Xero) collates all your business numbers for easy tracking. Understanding your financials helps you identify your breakeven point and manage cash flow effectively. Maintaining a separate account for tax and GST is also advisable so nothing gets tangled up.
Franchises have unique financial challenges, including higher setup costs and complex payroll needs. Specialist advice can assist with valuation, planning, and accounting for franchises, ensuring your business runs smoothly from day one.
It doesn’t matter if it’s a food chain or sporting goods store, Attune’s specialist advice will ensure you’re doing everything you’re obligated to and of course, getting the best results you can from the structure!
If you’re looking for help starting or growing your business, speak with the Attune Advisory team today. We’re here to offer strategic, tailored advice that will keep you on the road to success. Call the team on 1300 866 113 or send us an email to start the conversation.
Separating your personal assets from your business assets is a critical step when establishing your business. Often, this can be an overlooked aspect, with the belief that nothing adverse will happen. However, in the world of business, risk is always present and being prepared for whatever may come is one of the keys to success.
Protecting your personal assets from liabilities created through your business involves more than just insurance or securing your valuables. Here, we explore the best asset protection strategies that a small business accountant can help you implement.
Asset protection is not a one-time task but a long-term commitment. Understanding the necessity of these strategies and implementing them consistently is crucial for safeguarding your personal and business assets.
Running a business involves inherent risks. Even when business is booming, uncontrollable factors can impact your future. Market changes, economic downturns, or unforeseen global events can reduce revenue and lead to financial struggles. Additionally, accidents or legal issues can pose significant threats.
If personal assets are not separated from business assets, they may be used to cover business liabilities. This means personal financial trouble can follow business difficulties. Implementing asset protection strategies helps shield your personal assets from business risks, so let’s dive in to what they are …
1. Identify Your Assets Clearly
The first step in asset protection is knowing what assets you have. A small business accountant can help identify both business and personal assets, including property, investments, and even your business name.
2. Establish a Family Trust
Setting up a family trust is a common strategy for protecting personal assets. Assets in a trust are owned by the trustee, limiting liability. If your company is the trustee, business and personal assets are separated, protecting personal assets from business debts. However, it's important to note that this does not completely eliminate risk.
When looking at setting this kind of structure up, it’s important you chat to the Attune team – we’re experts in structuring your business to work for your specific situation.
3. Restructure Your Business
Many small businesses start as sole traders, where personal and business assets are intertwined. Transitioning to a company structure creates a separate legal entity for your business. This structure means that liability is borne by the company, not you personally. Directors and shareholders have different levels of liability, which helps protect personal assets.
Once again, for clarity on where liability lies for each party in this scenario, we’re here to help.
4. Ensure Adequate Insurance Coverage
Insurance is essential for protecting assets. Types of insurance to consider include income protection, life insurance, trauma insurance, and total and permanent disablement insurance. These policies can provide financial stability in case of personal or business setbacks. Regular reviews with your Attune Advisory team members can ensure your coverage remains appropriate and cost-effective.
5. Create a Legally-Binding Will
A will is a fundamental form of asset protection. It ensures that your assets are distributed according to your wishes. A testamentary trust within your will can protect assets from personal or business liabilities after your death. This also safeguards against family conflicts and financial mismanagement.
Although we can’t help directly with the set up of your Will, we can work directly with your lawyer or refer you to one of our partners, with whom we work often.
To conclude, implementing these strategies can provide robust protection for your personal assets. They are relatively straightforward and require the right expertise and understanding of your business needs to execute in the most appropriate way for you.
Your first stop should be a call to the Attune Advisory team for advice and help with your structure at each step. If you’d like to discuss the best strategy for you and your business, call Attune on 1300 866 113 or send us an email to start the conversation.
