YML Insight March 2015

From Your Trusted Accountant
Why should I consider creating a new entity?
Formalize informal partnerships Business partnerships are ticking time bombs as you are responsible for the actions of your partner. But unlike a joint account, a lawsuit against your partner can put all of your assets at risk. Form an entity to provide you with legal protection.Create business entities to shield assets If you have a small business or do part-time work on the side without having a formal business structure, you are operating as a sole proprietorship. The “sole” means it’s just you, but all of your personal assets are at risk if you are sued. Create a business entity that shields your personal assets from lawsuits against your company.A new entity could also allow wealth creation and better tax planning.
From Your Finance Specialist
How do I borrow for my business and get a cheap home loan rate?
Many business owners who are looking for a business loan, let the bank take their home/ investment property as a security.Business rates are usually 1%-1.5% higher than normal home loan rates. On a Million dollar loan we can save a client $10k-$15k per year! If you pay the higher loan rate, we can help you refinance to receive a cheaper loan rate.
From Your Fincancial Adviser
Where is my super?
If you have held several jobs over your working life chances are you have a number of superannuation accounts you know little about. You should consolidate them, save on unnecessary fees and have the combined funds invested in the correct portfolio. Personal insurance policies may be offered by these accounts, so before your consolidate, these need to be analysed. We, the financial planning division at YML Group, will be glad to assist in this.
From Your Business Partner
How can I understand how my business is performing at a glance?
Understanding my business at a glance is not just possible but is essential in making efficient informed decisions.A combination of historical and forecast information, condensed into a dashboard report that is prepared daily or weekly, allows you to see how the business is performing.Focussing on key business drivers such as sales, cash flow and significant costs can minimise surprises at month end and prevent poor decisions affecting the business over the longer term. A dashboard report tailored specifically to your business needs, that is reviewed and updated at regular management meetings is an essential tool in any business.

YML Insight February 2015

From your Finance Specialist

How much can I borrow?

To know how much you can borrow without changing your lifestyle, check how much you can save per week after paying all your bills.
For every $100 savings you can borrow approximately $70,000. Include the rent you are currently paying as a saving as when you move to the new property you will no-longer pay it.
This rough estimation will ensure you do not over-commit. This week’s rate starts from 4.6% variable (not honeymoon loan), depending on the loan amount. The fixed rate starts from 4.59%.

From your Trusted Accountant

How do I save on my tax?

The first step is to choose the right entity structure as this could not only help you save on tax, but also provide flexibility and asset protection.

What can a claim as a deduction?

Donations to registered charities, management fees paid to a financial planner and/ or tax agent, cost of income protection or sickness and accident insurance premiums,
work related expenses including books, magazines, uniform, equipment, parking, tolls, taxis, public transport, etc. If you are maintaining a home office you can claim the cost of electricity,
internet, home phone, mobile etc, depending on how many hours per week you spend working from your home office.

From Your Financial Adviser

Do you have a savings goal, or a plan to reduce your mortgage this year?

Do you and your family know how you spend your after tax money each month? Why not start the year reviewing your household budget and get to understand just exactly where all the money goes.
We suggest, with a glass of wine in hand, spend some time one evening with your spouse reviewing your spending. If you would like we can assist you with our online tool.

From your Business Partner

Why do I need a CFO?

Maintaining books for your business is purely a gathering of information. It is what you do with that information that counts. The CFO is the sounding board for your business and develops the relationships
needed to ensure the confidence of you banks, investors, suppliers and the ATO. The CFO will be your link between the historical results and planning and strategy.
The CFO will partner with you to ensure that you have the accurate and timely information to make informed decisions. If you don’t need a full time CFO think about outsourcing options. page…

Federal Budget 2014-15 Update

On Tuesday 13 May 2014, the Commonwealth Treasurer, The Honourable Joe Hockey MP delivered Australia’s 2014 Federal Budget.
This year, the Budget announcement has garnered particular attention following a recent change of government and the recommendations of the National Commission of Audit.
In essence, the government ‘s strategy centres on expenditure savings in the areas of health services contribution, foreign aid, education, loan programs, family and other welfare benefits. Coupled with the reintroduction of fuel excise indexation and a personal tax increase.

Health

All Australians to pay at least $7 for GP visits, blood tests and X-rays.
General patients to pay $5 more and concessional patients 80¢ more for prescription drugs.
Billions slashed from hospitals, which will be free to charge for emergency department

Foreign Affairs

Foreign aid frozen at current levels for two years, helping save $7.6 billion over five years
International commitment to spend 0.5 per cent of gross national income on foreign aid abandoned
$400 million saved over four years by folding the former AusAID into the Foreign Affairs Department

Education

Complete deregulation of university fees
Commonwealth funding extended to students at TAFEs, private colleges and sub-bachelor degrees at a cost of $820 million over three years
Labor’s ‘Gonski’ school funding commitments scrapped from 2017-18 with school funding indexed to inflation from 2018
School chaplaincy program continued at a cost of $243.5 million over five years

Retirees

Age pension age to reach 70 by July 1, 2035
Pension means test thresholds to be frozen for 3 years
Tougher income test for self funded retirees to receive Commonwealth Seniors Health Card

Welfare

Enforced six month waiting period for under-30s signing on for the dole. After first six months on dole they will again be cut off for a six month period
Tightened eligibility criteria for disability support pensioners under 35
New start recipients aged between 22 and 25 will be pushed back onto the lower-value Youth Allowance (other) payment

Fuel

The government will reintroduce the twice annual indexation of fuel excise to the Consumer Price Index from August 1 this year.

High income earners levy

A  2% levy will apply to those earning income above $180,000. The impost is for three years only from 1 July 2014 to 30 June 2017 and means that those earning above $180,000 will pay the extra 2% levy on all income in excess of $180,000.

Business gains and losses

The Government remains committed to cutting the company tax rate by 1.5% from 1 July 2015. For large companies this will offset the cost of the Government’s Paid Parental Leave Levy. For the SMEs it will provide a boost to profits.

The Government has also reinforced its promise to repeal the Minerals Resource Rent Tax (MRRT) and Carbon Tax.

For more information please click on The Federal Budget Webpage