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With that in mind, here we will explore some of the many advantages of self-managed superannuation. First however, we’ll remind you that the team at Attune Advisory have the knowledge and experience to guide you through every stage of your own SMSF journey with tailored, strategic advice to help you secure your financial future.
Ok, let’s get started…
One of the standout advantages of an SMSF is the level of control it provides over your retirement savings. Unlike industry or retail superannuation funds, where your investments are managed by external professionals, an SMSF allows you to make investment decisions that align with your financial goals. With your SMSF, you can invest in a variety of assets, including property, shares, fixed income, and more.This control empowers you to tailor your investments to suit your risk tolerance and preferences.
Diversification is a key principle of sound financial planning. SMSFs offer a unique advantage in this regard. You have the freedom to diversify your investments across a wide range of asset classes, spreading risk and potentially increasing your returns.Whether you prefer growth assets like stocks and real estate or more conservative options such as term deposits or government bonds, an SMSF allows you to create a well-balanced and diversified portfolio.
Another significant advantage of SMSFs is the potential for tax savings. The tax rate for SMSFs is generally lower compared to personal income tax rates. This can result insignificant savings on capital gains tax (CGT) and income tax, allowing your investments to grow more efficiently. Additionally, SMSFs can be used to implement strategic tax planning, contributing to long-term financial security.
SMSFs are an excellent tool for estate planning. With an SMSF, you have greater control over how your superannuation benefits are distributed upon your passing. You can establish binding death benefit nominations, ensuring your assets go to the intended beneficiaries. This level of control is especially important if you have unique family dynamics or wish to provide for loved ones with specific needs.
SMSFs offer flexibility that can be tailored to your specific retirement goals. You can choose when to start your pension, how much you withdraw, and whether you take lump sum payments or regular income. This flexibility allows you to structure your retirement income in the most tax-effective way, ensuring that your retirement years are comfortable and enjoyable.
While setting up and running an SMSF does incur costs, it can often be more cost-effective, particularly for those with larger superannuation balances. The fees associated with retail or industry superannuation funds can eat into your retirement savings over time. With an SMSF, you have more control over where and how your money is spent, potentially resulting in cost savings in the long run.
Your SMSF allows you to create a personalised investment strategy. You can adjust your investments based on your changing circumstances and financial goals. Whether you are planning for your first home, your children's education, or funding your dream retirement, you have the flexibility to align your investments according to your life-stage.
With an SMSF, you can access your financial information in real-time. This transparency allows you to stay informed about your investments' performance and make adjustments as necessary. You're not in the dark, wondering how your superannuation is being managed, and you have complete visibility and control over your fund's transactions and investments.
To conclude, self-managed superannuation funds offer an array of advantages that make them a compelling choice if you’re seeking to secure your financial future. Greater control, investment diversification, tax efficiency, and flexibility in retirement planning are just a few of the benefits that make SMSFs an attractive option.
If you're interested in exploring the advantages of self-managed superannuation for yourself, it's crucial to seek professional guidance. At Attune Advisory, our team of experts specialises in helping you navigate the complexities of SMSFs.With personalised advice and tailored strategies, we can help you make the most of your self-managed superannuation fund.
Take control of your financial future with an SMSF – contact Attune Advisory today on 1300 866 113 to discuss how to get started. Your retirement goals are within reach, and an SMSF could be the key to achieving them.
Navigating the intricate landscape of tax legislation, particularly when it involves theCapital Gains Tax (CGT), can be a perplexing journey for many small business owners. The CGT realm may seem like a labyrinth of rules and regulations, that can leave you with uncertainties about potential exemptions and how to optimise your tax position.
With that in mind, we’ll aim to shed light on the 15-year exemption for small business CGT and demonstrate why your best nextstep might be to chat to the team at Attune Advisory to delve deeper into your specific circumstances and how they might fit into the exemption.
Capital Gains Tax, often abbreviated as CGT, is the tax levied on the profit generated from the sale of a capital asset, whether it be property, shares, or even your own business. Navigating the complexities of CGT, especially when selling a business, can be a daunting task, given the numerous regulations set out by the Australian Tax Office (ATO)– this is where we can help ...
Start by picturing a scenario where your business could be exempt from this tax. That's where the15-year exemption for small business CGT comes into play. This provision was established to offer long-standing small businesses a reprieve when they sell their assets after an extended period.
To qualify for the 15-year exemption, certain criteria must be met:
It's vital to understand the nuances of each criterion. For instance, the "active asset" requirement means the asset must have been actively used in your business operations and not merely held for speculative purposes. This distinction adds complexity to the eligibility which we can help clear up for you if you’re in this position.
Beyond the obvious benefit of not paying CGT, the 15-year exemption can offer other financial advantages:
The 15-year exemption for small business CGT offers significant relief to long-standing businesses in Australia. Business owners can make informed decisions about their assets by understanding this provision and its benefits. Keep in mind that every business's situation is unique, and what applies to one may not apply to another.
Speak with an expert.Our dedicated team can provide clarity about your eligibility or offer guidance on various tax-related concerns. We're here to alleviate the stress of navigating the financial maze – in this instance the 15-year CGT exemption. Don't hesitate to book an appointment via email or give us a call on 1300 866 113.
As you’re no doubt, acutely aware, running a business inAustralia requires careful oversight of your tax obligations to ensure your financial affairs are truly in order. One such tax that may not be on your radar is Division 293 tax.
Below, we will shed some light on what Division 293 tax is and why it's essential for you as an Australian business owner to be aware of it…
Division 293 tax is an additional levy introduced by theAustralian Taxation Office with a specific target: high-income earners. Its purpose is to minimise the generous tax benefits high-income individuals might receive from their superannuation contributions. Normally, superannuation contributions are taxed at a concessional rate of 15%. However, Division 293tax essentially doubles this rate for certain high-income earners, imposing an extra 15% tax on their contributions.
Here's a key point to note: If the combined total of your adjusted taxable income and your Division 293 super contributions for a financial year equals $250,000 or more, you could be liable for this additional tax.
You might wonder if you qualify as a high-income earner. TheATO has specific criteria for this classification. You are deemed a high-income earner if your Division 293 income exceeds $250,000 in a financial year. This income is determined through the 'Adjusted Taxable Income' calculation, which takes into account various components, including your taxable income and personal concessional contributions.
The ATO introduced this tax to bridge the gap between the tax concessions available to high-income earners and those accessible to average-income earners regarding superannuation contributions. The existence ofDivision 293 tax is basically all about promoting equity in the Australian tax landscape, ensuring that all Australians, regardless of their income, benefit from tax concessions fairly and equitably.
Let's illustrate the application of Division 293 tax with a couple of examples:
Individual Scenario: Suppose your Adjusted TaxableIncome is $300,000 with concessional super contributions of $27,500 in the 2023 financial year.
Business Owner Scenario: If your Adjusted TaxableIncome is $240,000 with concessional super contributions of $27,500 in the 2023 financial year.
If you're a small to medium-sized business owner and have questions about Division 293 Tax and its implications for you and your business, it's crucial you speak with the Attune team so we can provide clarity and the best way forward for you.
We invite you to book an appointment via our website or call us on 1300 866 113. Our team of specialists is hereto guide you through the intricacies of your tax obligations and associated laws, ensuring that you're compliant and taking advantage of the best financial strategies for your business.
As a business owner, you juggle various roles, from operations and customer service to possibly even manufacturing. Amidst it all, you may find yourself wondering, "When will I start making money?"Whether your business deals with products or services, you've likely encountered the term 'breakeven analysis.' But what exactly does it mean, and why is it important? At Attune Advisory, we understand the complexities of managing a business, and we're here to guide you through the intricacies of breakeven analysis.
At its core, breakeven analysis serves as your financial lantern, illuminating the path to determine the minimum amount of sales you need to coverall your expenses. This is the point where you're not yet turning a profit, but you're not sinking into debt either.
Your breakeven point is like a financial safety net. It provides valuable insights for setting sales targets, pricing strategies, and expansion plans. In essence, breakeven analysis empowers you to make informed financial decisions to ensure the stability and growth of your business.
Step 1: Fixed and Variable Cost Types
Begin by identifying your fixed costs, which remain constant regardless of your sales. These costs typically include expenses like office space rent, utilities, and staff salaries. Next, list your variable costs, which vary based on the volume of products sold or services rendered. Variable costs encompass expenses such as materials for products and additional labour you might need to deliver services.
Step 2: Crunching the Numbers
The breakeven analysis formula is pretty straightforward:
Breakeven Point = Fixed Costs / (Price per Unit (or Hour)– Variable Cost per Unit (or Hour))
That mathematics is simpler than it first appears – simply plug in your costs and prices, and you'll easily find your breakeven point.
As you can tell, our belief is that understanding your breakeven point, whether your business deals in products, services, or a combination of both, is not a luxury – it's a necessity.
Having said all this, if you find breakeven analysis overwhelming or are looking for some help to get it right, let's tackle it together– you're not alone. At Attune Advisory, we're here to simplify the process for you. You can book an appointment with us via email or reach us at 1300 866 113, and we'll help you navigate your breakeven analysis and other financial aspects of your business with tailored advice that supports your business strategy.
