Businesses should start reviewing whether their accounting systems are keeping track of all revenue and expenses, together with any private use of business assets.
Planning ahead can save significant tax penalties, which start at 25 per cent of the unpaid tax to as high as 75 per cent.
There are a few key areas business owners should focus on.
– Go through each employee and check whether contractors are actually employees, as the ATO has flagged this as an issue they will be cracking down on.
– Look at whether any new business equipment needs to be bought in order to take advantage of the new $6,500 instant write off.
– Review quarterly PAYG instalments. If profit is down considerably from last year businesses may wish to reduce their instalments.
– Businesses may also wish to review personal loan agreements and trust deeds to make sure they comply with the law and that company distributions to owners are properly treated for tax purposes.
Setting up an SMSF fund is the simplest step. Establishing a fund which delivers you consistent returns from your investments is much more difficult.
Investing successfully involves determining precise goals and picking investments which will effectively achieve those goals. The advantage of SMSFs is that you can build a portfolio which reflects your short-term and long-term goals in response to changing market conditions.
In an SMSF fund, your investment options are:
Australian and international shares (listed and unlisted)
Residential or commercial property
Cash and term deposits
Fixed income products
Physical commodities
Property
Collectibles
Before you begin investing, consider what might be the best way to diversify your portfolio. How you portion your investments will depend on your funds, the market, and your goals. Regardless of what your plan is, diversification should be a priority.
Choosing an SMSF as opposed to an industry or retail super fund provides you with more flexibility, but also with more responsibility. Researching before investing is key if you want the best out of your SMSF.
