News
In it’s most recent meeting (May), the Reserve Bank of Australia (RBA) made headlines again by announcing a 25 basis point reduction to the official cash rate, bringing it down to 3.85%. This marks the second cut this year, following sustained efforts to support households and stimulate economic growth amid global uncertainty.
While this move comes as a welcome relief to many, especially mortgage holders, the broader implications of a lower cash rate are far-reaching and nuanced. In this article, we break down some of what this change means for individuals, businesses, and investors—and how you can stay financially agile in a changing landscape.
The RBA’s decision was largely driven by softening economic indicators, including slower household spending, modest wage growth, and mounting international pressures such as geopolitical instability and sluggish global trade.
According to RBA Governor Michele Bullock, the cut aims to relieve pressure on households facing rising living costs while supporting business investment and employment. Treasurer Jim Chalmers acknowledged the move, highlighting the balance needed between economic stimulus and long-term fiscal responsibility.
Mortgage Relief:
The most immediate benefit of a lower cash rate is reduced borrowing costs. Homeowners on variable-rate mortgages are likely to see their monthly repayments drop (if their lenders pass on the cut quickly), offering breathing room in an otherwise tight cost-of-living environment. For those with fixed-term loans nearing renewal, this could be an opportunity to refinance at a more favourable rate.
Savers Take a Hit:
On the flip side, savers are likely to feel the pinch. Major banks have already responded by lowering interest rates on term deposits and high-interest savings accounts. For retirees and individuals relying on interest income, this can erode returns and may necessitate a rethink of investment strategies.
A lower cash rate can be a double-edged sword for small business owners.
Easier Access to Finance:
Lower borrowing costs mean more accessible finance for business expansion, equipment upgrades, or cash flow management. This could be particularly valuable in sectors still recovering from supply chain disruptions or reduced consumer demand.
A Watchful Eye on Consumer Confidence:
However, economic uncertainty and reduced consumer spending could offset these benefits. Business owners will need to carefully balance optimism with caution, particularly in industries vulnerable to discretionary spending fluctuations.
Interest rate movements tend to ripple across investment markets. While lower rates often boost equity markets in the short term, they also reduce returns from cash holdings and fixed income products.
Property Investors:
Lower interest rates can drive increased demand in the property market, potentially pushing up prices in some regions. However, investors should remain mindful of broader market volatility and shifting tenant demand.
Stock Market Investors:
The ASX responded positively to the rate cut, with key indices trending upward following the announcement. Growth-oriented sectors such as tech and consumer discretionary often benefit from lower borrowing costs—but volatility remains a key consideration amid global economic headwinds.
In light of the changing economic climate, here are a few strategies individuals and businesses can consider:
1. Review Loans and Debt Structures:
Now is an opportune time to assess your lending arrangements. Consider refinancing options or consolidating debts to take advantage of lower interest rates, but don’t be too hasty – get good advice from your broker as interest rates may yet change again.
2. Diversify Investments:
Relying heavily on savings accounts or term deposits may no longer yield competitive returns. Explore diversified portfolios that balance risk and potential growth, especially if you have a longer investment horizon.
3. Plan Proactively:
Whether you’re a household managing a mortgage or a business eyeing growth, having a clear, forward-looking financial plan is essential. Consider engaging with a financial advisor or Virtual CFO to assess your current position and outline a path forward.
The RBA’s latest cash rate cut reflects a delicate balancing act—stimulating economic growth while navigating global uncertainty. While there are clear benefits for borrowers and some opportunities for investors, the implications for savers and small businesses highlight the importance of strategic financial planning.
At Attune Advisory, we’re here to help you make informed financial decisions in a constantly evolving environment. Whether you're looking to restructure debt, invest smartly, or future-proof your business, our team is ready to work alongside you to build the right strategy.
So, if you’d like to discuss what tailored financial advice might mean for you or your business, get in touch with Attune Advisory today on 1300 866 113 or contact us via email here. You’ll be glad you did.
When it comes to growing and protecting your wealth, the structure you choose for each investment can be just as important as the investment itself.
Whether you’re acquiring your first rental property, building a share portfolio, or diversifying into private businesses, the right entity will optimise your tax position and safeguard your assets. In this brief overview, we’ll explore:
1. Why structure matters
2. Top vehicles for property investors
3. How trusts can work in your favour
4. Tax-efficient strategies for high net worth individuals
Imagine two investors earning the same income from identical shares—but one pays significantly less tax. The difference? How their holdings are owned and reported. A well chosen structure can:
It isn’t a one size fits all solution. The best approach depends on your goals, risk tolerance, and time horizon, so speaking with the Attune team for an approach tailored to you is incredibly important, but for now, let’s unpack the leading options in brief.
a) Direct Ownership (Individual or Joint)
• Pros: Simplicity in setup, direct control.
• Cons: Taxed at your marginal rate; exposure to personal liabilities.
b) Company Structure
• Pros: Flat 25–30% corporate rate; limited liability.
• Cons: No access to franking credits for individuals; dividend distribution may trigger further tax.
c) Unit Trust or Property Trust
• Pros: Income streamed to beneficiaries on their marginal rates; flexible profit distribution.
• Cons: Trust setup and compliance costs; trustee duties and record keeping.
Tip: Many savvy property investors use a company as trust trustee. This hybrid approach leverages corporate tax rates for undistributed profits, while flowing income to beneficiaries when distributions make sense.
Trusts are among the most powerful tools for both tax planning and asset protection:
• Discretionary (Family) Trusts
Allow trustees to allocate income and capital gains among family beneficiaries each year—optimising tax outcomes by utilising lower rate tax brackets.
• Unit Trusts
Beneficiaries hold fixed units. Ideal for joint ventures and partnership style investments where each party’s stake is proportionate to their contribution.
Key considerations:
• Choose your trustee carefully—often a company with robust governance.
• Prepare a clear trust deed outlining powers, beneficiaries, and distribution rules.
• Keep meticulous minutes of distribution decisions to satisfy the ATO.
High net worth (HNW) clients typically juggle multiple asset classes—each with unique tax implications. Here are a few advanced strategies:
1. Private Ancillary Funds (PAFs)
Philanthropy can deliver a 30% tax deduction on contributions and align with social-impact goals.
2. Family Investment Companies (FICs)
A corporate entity wholly owned by family members—retains profits at corporate tax rates and facilitates generational wealth transfer with dividend imputation benefits.
3. Spousal Loans
Lending funds at the ATO benchmark rate from a higher income spouse to a lower income spouse can shift investment income—and tax liability—down to the lower rate bracket.
4. Negative Gearing and Depreciation
Strategically pairing interest expenses with high depreciation assets (e.g., commercial fit outs, fixtures) to maximise deductible losses in rental properties.
Every investor’s situation is unique, and the “best” structure will hinge on your:
💡 Pro tip: Review your structures annually to ensure they remain fit for purpose as tax laws and personal circumstances evolve.
At Attune Advisory, we work closely with you to craft bespoke structures that not only unlock tax efficiencies but also stand the test of time. Ready to explore your optimal investment framework?
Book a Strategy Session today and let’s map out a structure aligned with your objectives.
Contact the Attune Advisory team on 1300 866 113 or send us an email to find a time that works for you and we can show you what’s possible with the right structures in place.
As the end of the financial year (EOFY) approaches, many Australian business owners find themselves in one of two camps: calmly reviewing their financials—or frantically trying to piece everything together. With the right preparation and guidance, it can actually be a powerful opportunity to optimise your business finances and plan for a successful year ahead.
We’ve created an EOFY checklist to help you stay on track, avoid costly mistakes, and maximise your tax-time benefits.
Before anything else, make sure your bookkeeping is up to date. This includes:
• Bank and credit card reconciliations
• Receipts and invoices (preferably digitised)
• Accurate profit and loss statements
• Updated balance sheets
Having your records in order is the first step to making smart financial decisions—and it’s essential for a smooth experience with your accountant.
Now’s the time to review all possible deductions:
• Business-related expenses like utilities, rent, and vehicle use
• Prepaid expenses (like insurance or subscriptions)
• Superannuation contributions paid before June 30
• Depreciation on assets or equipment
Pro tip: Speak with your advisor about instant asset write-offs and small business concessions that could reduce your tax bill this year.
Make sure:
• Employee payroll is up to date
• Superannuation contributions are paid on time (before June 30 to claim a deduction)
• You’ve finalised Single Touch Payroll (STP) reporting for the financial year
EOFY is a great time to review your payroll processes and ensure compliance with current ATO requirements.
If you have debts that are unlikely to be recovered or inventory that can’t be sold, writing them off before EOFY may allow you to claim them as deductions. Be sure to document your decisions clearly for tax records.
EOFY isn’t just about closing the books—it’s a chance to refresh your business strategy. Use this time to:
• Set goals for the new financial year
• Review your budget and cash flow forecasts
• Consider any structural changes or tax planning opportunities
A proactive conversation with your accountant now can unlock benefits that carry through all year.
At Attune Advisory, we help businesses across Australia navigate EOFY with confidence. Our team of experienced accountants and business advisors can help you:
• Understand your financial position
• Identify opportunities for savings
• Stay compliant and in control
Don’t wait until June 30 to start preparing. Let us help you tune into what matters most—your business growth.
Book your EOFY review via email or call the team on 1300 866 113 and let’s make sure you’re all set.
Between public holidays, shifting workloads and EOFY preparations, the April–June quarter can feel like a stop-start sprint. For many business owners, it's a time of disruption — a mix of long weekends and looming deadlines that can leave cash flow, operations and planning in a state of flux.
This seasonal unpredictability makes financial agility more important than ever. So how can you stay proactive, flexible, and in control when business momentum becomes inconsistent?
Here are some practical strategies to keep your business financially agile through a choppy quarter:
A clear, up-to-date view of your cash position is essential — especially when revenue may dip due to reduced trading days or delayed payments.
If you haven't reviewed your cash flow forecast recently, now's the time. Adjust for:
Mapping out your expected inflows and outflows for the next 90 days helps you avoid surprises and make more confident decisions.
Stop-start periods can skew your monthly budget. You might be overspending in one area (e.g., staffing) and underspending in another (e.g., marketing) without realising it.
Review your budget alongside actual performance to identify any discrepancies. Look at:
Regular check-ins — even mid-month — can help you course-correct early and avoid larger issues down the track.
Rather than fighting against the patchy nature of the quarter, try building your activity around it. Consider:
By anticipating disruptions and weaving them into your planning, you create breathing room — without losing momentum.
Lean into tools that help you stay across your numbers, even when you're not at your desk. Cloud accounting software, cash flow apps, and real-time dashboards can give you instant visibility over your finances.
This lets you:
Financial agility often comes down to having the right data at your fingertips — and acting on it. The Attune team can assist with putting some tech in place to help you with your automation and assessments, so reach out to the team if you’re considering upgrading how you manage your numbers.
The end of financial year creeps up quickly, especially when you’re juggling interruptions. Now is the time to:
A little preparation now can smooth the transition into the new financial year — and help you end this quarter on a strong note.
At Attune Advisory, we work with business owners year-round to build financial strategies that flex with the seasons. Whether you're looking to stabilise cash flow, refine your structure, or plan for EOFY, we’re here to help.
Let’s make this quarter count — even with a few stop signs along the way. Give the team a call on 1300 866 113 or send us an email to start the conversation – you’ll be glad you did.
