Beware of the tax implications of participating in employee share schemes(Part 1 securities acquired pre-2009 Financial Year)
An employee share scheme (ESS) provides employees or their associates with the opportunity to acquire 'securities' (in the form of shares or rights) in their employer's company by virtue of their employment relationship. These securities are either offered as part of an employee's remuneration package, or under a broad based employee share plan offered to the employees of the company at a particular point in time.
The Importance of a Valid WillA Will is one of the most important documents that you will sign in your lifetime. Creating a valid Will is not as simple as most people think, and as a result we advise that it is not wise to utilise the 'home-made' or 'newsagents' Will. This document will state how you wish for you assets to be distributed after death, as well as other provisions such as the care of your children if they are under 18 and any other special requests. Simple mistakes, such as style of wording, signing incorrectly or not having the Will witnessed properly can cause a Will to be invalid.
Keeping Good Financial RecordsThe New Year is now in full swing and many business owners are resolving to make a fresh start with their business by creating and maintaining good financial records. It is vital that you keep records of the amount of money coming in and out of your business, as it can give an indication of how well your business is going.
How does Bankruptcy affect you?Bankruptcy refers to the situation where an individual is unable to meet their financial obligations and repay accrued debt. It occurs when an individual does not have enough money/assets to pay creditors or a debt that is owed. However, it is not to be confused with the American term in which 'bankruptcy' is used for companies and not individuals.
Contesting A WillThe passing of a loved one is a particularly emotional and devastating time. This can be made all the more horrific if there is any kind of dispute against the Will of the deceased. Disputes often arise when parties that are associated with the deceased person disagree with the intentions as contained in the Will.
Thinking of Investing in Property?The decision over what type of property is the most beneficial, when it comes to investment properties, is one that has been debated for many years. Levels of capital growth, purchase prices, the amount of rent the property is expected to bring in and the current Australian economy are all factors that need to be taken into consideration.
Steps in the Bankruptcy ProcessBankruptcy occurs when an individual does not have enough money/assets to pay creditors or debt that is owed. If you find that you are unable to repay your debts, you can not just say that you are bankrupt. You must go through a formal process and be deemed eligible, and hence legally declare it; that is if the bankruptcy is voluntary.
The ATO's view on borrowing in Self Managed Superannuation Funds (SMSFs)The ATO's view on Limited Recourse Borrowing Arrangements (LRBA) within Self Managed Superannuation Funds (SMSF's) has been clarified with the release of the Draft Self Managed Superannuation Funds Ruling (SMSFR 2011/D1) on 14 September 2011.
Changes to NSW retail leases legislationThe Retail Leases Act 1994, is the primary legislation which governs retail leasing in NSW. In January 2011 the NSW Government released a draft of the Retail Lease Amendment Bill 2011 in a bid to implement further amendments to the Act. It is highly important that all landlords and tenants of retail premises are aware of the impacts of these potential changes to the current retail leases legislation.
Changes to the Director Penalty Regime - URGENT action may be necessaryThe Government has released the draft legislation on how the new director penalty regime will operate. In some cases directors may be personally liable for company Superannuation and PAYG (Withholding) debts which are in existence before the amendments come into operation. Directors should take immediate steps to avoid, where possible, the imposition of personal liability.
Think Twice Before Going GuarantorHas a family member or friend asked you to be a 'co-borrower' or guarantee a loan for them? Before you say yes, think carefully - you could lose not only your money, but valuable assets such as your house or car.
Payroll Tax Rebate Scheme - Jobs Action PlanThe Jobs Action Plan targets the creation of 100,000 new jobs in NSW from July 2011 and gives businesses the incentive to employ new workers and expand their enterprises. The plan provides a payroll tax rebate of up to $4000 per employee for the first 100,000 new payroll tax paying jobs created in NSW on or after 1 July 2011. 40,000 of the new jobs will be prioritised for non-metropolitan areas of NSW with the remaining 60,000 in metropolitan areas.
5 Smart Investment OptionsEveryone wants to have a secure financial future, whether it is for your retirement, a back up plan or simply to get to that next stage in life. Regardless of why you are saving and investing your money, it is a good feeling to know you have funds should you ever require them. Below are five smart investment strategies that you can implement into your financial plans to potentially secure your future and grow your wealth.
URGENT - Important changes to Trust LawOn 2 June 2011 legislation to enable the streaming of franked dividends and capital gains from trusts for tax purposes, as well as targeted anti-avoidance rules with relation to trust law, was introduced into parliament. It is important that all trustees are made aware of this as they may need to act immediately, in order to comply with the potential new laws. These likely changes have come as a result of the Bamford case last year, which raised questions about the ability for trusts to stream capital gains and franking credits to beneficiaries in a tax-effective way.
De-clutter your workspace to maximise efficiencyStudies have shown that a cluttered office commonly reduces levels of productivity and your perceived level of professionalism; while it is said that clearing your office can help to clear your mind and focus on the tasks at hand. Chaotic work spaces can be overwhelming and cause anxiousness, so it makes sense that a clear, organised area has the potential to turn you into a calmer and more efficient worker. Take a look around your business's office or work space, if you see piles of papers and files (and maybe even yesterday's coffee cup) it is time to get organised and de-clutter.
CGT basics for property investorsPerhaps one of the most significant considerations when it comes to investment properties is Capital Gains Tax (CGT). Whilst this is something that only comes into effect on disposal of the asset, it is important to be aware of how it works and the potential effects on your earnings. While investing in property can be an exciting and rewarding experience, it is not something to be undertaken without adequate research and preparation.
Are you aware of your leave entitlements?There have been a lot of changes to employment law over the last few years and it has come to our attention that many people are not aware of all of their leave entitlements. It is important that you know exactly what you are entitled to within your workplace and that you are not treated unfairly.
Maximise your employee's potential with inspirationEvery business owner not only wants hard working employees, but also wants them to be happy, motivated and inspired. While it is good practice to motivate staff, often it is very short lived since they haven't been adequately inspired to reach and go beyond their goals. By getting in touch with your employee's dreams, you as a business owner or team leader can inspire your employees at work, as well as in their everyday lives.
New changes mean easier payment collection for the Building and Construction IndustryOn 28 February 2011, changes to the Building and Construction Industry Security of Payment Act 1999 (NSW) came into effect. The results of these changes have impacted upon many key roles within the building and construction industry, and therefore it is important for members of the industry to review and understand how these changes affect them. These amendments provide subcontractors who are owed money by contractors more incentive to use the adjudication processes to settle disputes.
Is your business eligible for the Critical Skills Investment Fund?The Critical Skills Investment Fund (the Fund) provides Australian Government co-funding for industry partnerships to undertake projects that provide training and employment opportunities in critical industry sectors. The goal of the Fund is to help increase the supply of skilled labour for enterprises in those sectors. To achieve this, the Fund will support projects that train and place job seekers into available positions, as well as those that up-skill existing workers to meet new demands.
Planning for Business GrowthGrowth happens differently in every business and you should prepare well before entering into a significant growth phase by considering the impacts that growth can have. How and when you want to grow your business should form part of your overall business strategy. Working hard to generate positive word of mouth, brand awareness and maintaining an excellent business reputation is essential in opening up opportunities for growth.
Prenups in 2011 - Does your relationship need a binding financial agreement?Binding financial agreements, commonly known as prenups or prenuptial agreements, are legal documents that outline exactly how assets and liabilities will be divided between your partner and yourself should the relationship break down. While the subject is not one of romance, it is important for you and your partner to discuss what will happen to your finances and assets should you split. This is important for not only married and engaged couples, but also for de facto and same-sex relationships.
Know the facts about Power of AttorneyA Power of Attorney is a legal document whereby one person (the appointee) authorises another (the attorney) to act on his or her behalf, generally in relation to financial and property decisions. It is important to be aware that the Power of Attorney cannot be used after you as the appointee passes away and it expires when you lose mental capacity; this is not the case if it is established as an Enduring Power of Attorney.
Manage your debts with debt consolidationIf you are struggling with your debts it may be a good idea to consider debt consolidation. Debt consolidation involves taking out a single loan to pay off your other debts. This can be beneficial since all your debts are in the one place and you will only have to worry about repaying one debt, opposed to many due at different times and at different rates. Another potential benefit of debt consolidation is that you may be able to secure a lower interest rate than what you already have, thus reducing your overall payment and allowing you to be debt free in less time.
Beware of Business ScamsSince the recent floods there has been a rise in the number of scammers claiming to be fundraising for flood victims. You should be extremely cautious and conduct research before you agree to anything. It is important to know how to detect the scammers; who rely on the fact that you are very busy and are more likely to provide information to help them carry out their fraudulent activities.
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