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In an ever-evolving business landscape, staying ahead requires adaptability and proactive planning. Significant shifts, whether internal or external, necessitate a reassessment of your financial goals. Relying solely on annual reviews can leave you financially vulnerable. But, by regularly resetting your financial goals, you ensure they remain relevant to your current circumstances, enabling you to stay competitive and responsive to changes.
Checking in and updating goals helps us keep on top of our strategy and ultimately keeps you on the path to the kind of success you seek. With that in mind, we thought we’d share a step-by-step guide on how to effectively reset your financial goals.
The first step in resetting your financial goals is to assess your current financial situation. This involves a thorough examination of your Key Performance Indicators (KPIs) and the targets you've set for them. Ask yourself:
By scrutinising your KPIs, you gain a clear understanding of your current standing. This foundational step ensures that any adjustments you make are based on accurate, up-to-date information.
Once you have a clear picture of your current financial situation, the next step is to forecast how recent changes will impact your finances and indeed if you’ll need to adjust KPIs to suit. Consider how these changes might affect your cash flow, profit and loss statements, and balance sheet. This forecasting is critical as it forms the basis for your revised goals. When making these forecasts:
Accurate forecasting helps in setting achievable and relevant financial targets, providing a roadmap for navigating future challenges and opportunities. It allows you to approach the future with a strategy that’ll give you the best chance of success.
Collaboration is a crucial element in refining your financial goals. Engage your team members and advisors in the goal-setting process. Depending on your goals, the Attune Advisory team can be part of your collaborative team, offering tailored advice that can drive you forward. A collaborative approach like this has several benefits:
Regularly resetting your financial goals is not just a recommended practice but a necessary one in today’s dynamic business environment. By being proactive, agile, and responsive, you can ensure your financial goals remain aligned with your current circumstances.
At Attune Advisory, we understand the challenges businesses can face as the landscape moves around us and are here to help you assess your financial situation and set achievable goals. Whether you are new to goal setting or facing significant changes in your business, we offer the guidance and support you need to stay on track.
For more information and tailored, professional advice, call the team on 1300 866 113 or contact us via email to start the conversation – you’ll be glad you did.
As part of your job or the running of your business, you may be eligible to claim deductions for travel expenses incurred when travelling and staying away from home overnight for work purposes. Understanding the eligibility criteria and knowing which expenses you can claim can help you maximise your tax return.
At Attune Advisory, we specialise in tax – both personal and business – and can guide you on how to ensure you’re doing everything you can to improve your tax position.
With that in mind, we thought we’d cover what you need to know about claiming travel expenses as part of your tax lodgements.
To claim travel expenses, you must meet specific conditions. You can claim a deduction for travel expenses—accommodation, meals, and incidental costs—if you travel and stay away from your home overnight in the course of performing your employment duties. Here are the key criteria:
For instance, if you need to travel interstate for several days to meet clients, you qualify for these deductions. However, if your travel is due to personal circumstances, such as living far from work or choosing to stay near your workplace rather than commuting home, these expenses are considered private and are not deductible.
You can claim a variety of travel-related expenses:
It’s important to note that if your travel includes both work and private purposes, you can only claim the portion related to work. For instance, if you extend a business trip to include a holiday, you must apportion the expenses accordingly.
To claim these deductions, maintaining accurate records is crucial. Keep all receipts or other written evidence of your travel expenses. You will need to submit these when claiming your deduction under “Work-related travel expenses” in your tax return.
In rare cases, you might be able to claim expenses for accommodation you rent or buy for temporary work-related travel. These expenses must be proportionate to the cost of suitable commercial accommodation for the period and must not arise from personal choices, such as maintaining a separate residence. We can guide you through the specific rules to ensure compliance when we speak.
Certain travel expenses are not deductible:
If you are living at a location where you work, such as in a unit or house, and your regular place of work changes, these expenses are not deductible as they are considered private.
When travel is for both work and personal purposes, you must apportion the expenses. For example:
If the personal part of your travel is incidental, such as a brief holiday after a work trip, you may not need to apportion your costs. However, clear documentation and careful record-keeping are essential to substantiate your claims.
Navigating travel expense claims need not be confusing but it’s important it’s done right. And, doing it correctly can allow you to maximise your deductions and ensure compliance. For personalised advice and expertise, contact us the Attune team on 1300 866 113 – we are here to help you make the most of your tax position while ensuring you’re adhering to all necessary regulations.
Retirement planning often seems like a distant concern until it’s suddenly upon us. The realisation that you might not have enough money or assets to maintain your lifestyle post-retirement can be alarming.
For some, a Self Managed Super Fund (SMSF) can be an effective solution to ensure financial security in retirement. Here’s how to determine if you’re ready to take on the responsibilities and benefits of an SMSF.
A Self Managed Super Fund operates similarly to other superannuation funds, with the primary difference being that the members are also the trustees. This means you have direct control over how your superannuation is invested, but also bear the responsibility of managing the fund in compliance with regulatory requirements. Each SMSF must be audited annually by an accredited auditor and adhere to Australian Taxation Office (ATO) rules.
1. You Want More Control Over Your Finances
The main appeal of an SMSF is the control it offers. If you value being directly involved in the investment decisions that affect your retirement savings, an SMSF might be the right choice. You can tailor your investment strategy to suit your preferences, whether it’s in property, shares, or other assets. This level of control allows you to potentially maximise your retirement income stream according to your specific goals.
2. Your Superannuation or Savings Can Handle the Fees
Managing an SMSF incurs costs, and it’s essential to ensure that your fund can handle these without depleting your savings. A general benchmark is having around $200,000 in superannuation to justify the costs of running an SMSF. While this might seem high, those with substantial professional or business experience may find they have accumulated sufficient funds. Ensuring that your savings are adequate to cover the fees is crucial for the sustainability of your SMSF.
3. You’re Prepared for the Administrative Work
With greater control comes greater responsibility. An SMSF requires diligent management to remain compliant with ATO regulations, including annual audits and detailed record-keeping. Partnering with a knowledgeable accounting firm is often necessary to navigate these administrative tasks effectively. Assess whether you have the time, resources, and willingness to manage these additional responsibilities. If not, professional support is essential to ensure your SMSF operates smoothly.
4. You’re Ready to Handle the Tax
Tax compliance is a significant aspect of managing an SMSF. To avoid the maximum tax rate of 15%, you need a solid understanding of tax laws and ATO regulations related to SMSFs (this is where the Attune team can help most). This includes making strategic decisions to minimise tax liabilities. Engaging Attune Advisory can provide the expertise needed to manage the tax aspects of your SMSF, ensuring that your fund remains tax-efficient and compliant.
5. You Have an Understanding of Investing
Successful SMSF management requires a good grasp of investment principles. While you can seek advice from financial experts, having a foundational understanding of how your investments work is beneficial. If you have previous investment experience, you’ll be better equipped to make informed decisions that enhance the performance of your SMSF. If investing is new to you, now is the time to start learning. Understanding your investments will help you maximise the returns on your superannuation.
Taking on an SMSF can be a rewarding way to secure your financial future, provided you’re prepared for the responsibilities it entails. Regular assessment of your readiness in terms of control, costs, administrative work, tax management, and investment knowledge is crucial.
At Attune Advisory, we specialise in guiding our clients through the complexities of SMSFs, offering the support and expertise needed to make informed decisions. Contact us today to learn more about how we can assist you in setting up and managing an SMSF, ensuring your retirement is as comfortable and secure as possible.
For more information and tailored, professional advice, call the team on 1300 866 113 or contact us via email to start the conversation.
The Australian Federal Budget announced on May 14, 2024, has changes that will impact various segments of society differently, but it certainly will impact each of us. We thought it worthwhile giving you a brief breakdown of some of the key winners and losers from the budget as we viewed it.
The below is designed to be a snapshot, so if you’re wondering how any of the below changes might impact you this coming tax year, reach out to the Attune team for a chat.
Low and Middle-Income Earners: The budget provides considerable relief to low and middle-income earners through Stage 3 tax cuts. These cuts reduce the tax rates for incomes up to $135,000, increasing take-home pay from July 2024.
Some changes to the previously proposed stage 3 tax cuts means that the outcome is a reduction in the 19 per cent tax rate to 16 per cent, a reduction in the 32.5 per cent tax rate to 30 per cent, and a raising of the threshold at which the 37 per cent tax rate applies.
Households: Significant measures have been introduced to ease the cost of living. Over 10 million households will benefit from a $300 rebate on electricity bills. Additionally, there's a freeze on Pharmaceutical Benefits Scheme (PBS) co-payments and increased support for renters, with the Commonwealth Rent Assistance maximum rates increasing by 10%.
Healthcare: The budget allocates $5.7 billion to strengthen Medicare, including higher bulk billing incentives and funding for new Medicare Urgent Care Clinics. This will particularly benefit pensioners, children under 16, and concession card holders.
Students and Recent Graduates: The government will cut $3 billion in student debt, impacting over three million Australians. The annual indexation of HECS-HELP debts will now be limited to the lower of the Consumer Price Index (CPI) or Wage Price Index (WPI), easing financial pressure on graduates.
Veterans: Veterans will see improved support with $64.1 million to address the backlog of claims and $250 million to upgrade veteran services' IT systems. An additional $4.8 billion is allocated for future compensation and support payments.
Small Businesses: Small businesses will benefit from a $290 million support package, including an instant asset write-off of $20,000 for eligible assets, helping to boost cash flow and investment in new equipment.
Environmental Initiatives: Tradies specialising in eco-friendly upgrades will see increased demand, thanks to the $1.3 billion Household Energy Upgrades Fund. This initiative offers low-interest loans for households to install energy-efficient measures like solar panels and double-glazed windows.
High-Income Earners: The budget does not favour high-income earners as much as first suggested in the Stage 3 tax-cuts announced earlier this year, but there are other areas high-income earners will be impacted. Those with superannuation balances over $3 million will lose the ability to make concessional contributions at a reduced tax rate. This move aims to ensure that tax benefits are more evenly distributed.
Vapers and Smokers: Smokers face a 5% annual increase in tobacco taxes over the next three years. Recreational vaping is also being heavily regulated, with new national campaigns highlighting the dangers of smoking and vaping.
Alcohol Consumers: Drinkers will see higher prices for alcohol due to increased taxes on beer and spirits, impacting those who frequently purchase these products.
To conclude, the 2024 Federal Budget is a bit of a mixed bag, offering significant support to lower and middle-income Australians, students, small businesses, and those in need of healthcare improvements, while imposing more stringent measures on higher-income earners, smokers, and alcohol consumers.
If you’d like to discuss how any of the above changes will impact you this year, reach out to the Attune team on 1300 866 113 or contact us via email.
