When a family member changes their tax residency
If a member of a family (in business) changes their tax residency they have a lot of short-term tax issues and strategic tax issues. The mere act of relocating to Perth or moving away from Perth is significant: however, the careful management of your tax profile can generate significant savings and opportunities for a family […]
How to reduce your $1.6m transfer balance cap
If you are near retirement you will know about the $1.6m transfer balance. It is the amount of money a person can put into their pension phase and enjoy tax-free earnings later on. For example Cosimo and Agathe live in Perth, they are over 60 and contemplating retirement. They have $1.5m and $1.4m in their […]
Getting a conversation started on wealth succession
For many family business owners the pathway to success has been a very purposefully driven process. Key targets have been set, goals have been identified and actions have been carried out to achieve a degree of success. For many, the success of the family business has generated in wealth for the family. However, the difference […]
How to deal with conflict in the family business
If you are a family running a business you will inevitability have conflict. The conflict might be over financial matters, the tax structuring, how you talk to each other, the business strategy, remuneration or just the colour of your business cards. Conflict is normal. And conflict is a good thing. It challenges how the business […]
The R&D Tax Incentive: What is it and how do I get it?
Many family businesses in Perth are doing incredible work. And it is great to know that the research and development tax incentive or the research and development tax offset are specifically designed to assist these family owned businesses in Perth. How much is the R&D Incentive worth? In effect: if you turnover less than $20m […]
Five Things the ASX 200 can Learn from Family Businesses
We often find advisors will shine a light on mega-corporations and tell family-owned businesses that “this is what you need to do!!”. Sadly the basic concept that publicly listed companies are ‘better’ than the family governance model is simply wrong. In fact, the opposite is actually true. In 2012, researchers Nicolas Kachaner, George Stalk and […]
Helping the kids buy their first home: taxation and superannuation
Many families will have systems in place when their kids buy their first home. Just like they help with all taxation, investment and superannuation concessions. Because the purchase of the first home is a large investment decision and the success of the child’s home ownership will impact on how the legacy is transferred. And with […]
Government tax attack on testamentary trusts changes estate plans
The use of a testamentary trusts for estate planning has been common practice for many Perth business families. The testamentary trust has fantastic taxation, asset protection and estate planning flexibility. However from 1 July 2019 the government is intending to strip down the tax benefit that people enjoy in a testamentary trust. However to understand […]
The rule of 72: An old diamond in finance
As accountants we typically have to do numbers on the spot. We are often visiting family businesses around Perth and regional towns and the rule of 72 is a great tool for everyday financial calculations. In short if you want to know how long something will take you to do double your money use the […]
Preparing for the new Goods and Services Tax (GST) on low-value goods imports
From July 1st, 2018 any product, such as toys, linen, cosmetics, or clothing will incur GST on the full price of the goods sold on importation into Australia. What are the GST changes for low value imported goods? So from 1 July 2018, GST applies to low-value physical goods that have been imported to Australia […]