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Stay up to date with what's happened in Australian markets over the past month.

The war in Ukraine added a major new source of uncertainty to the local and global economic outlook in March.

Inflationary pressure continued as global economies recover from the pandemic and as crude oil prices surged due to economic sanctions against Russia.

Australian shares are popular investments with self-funded retirees and anyone who depends on income from their investments, due in part to the favourable tax treatment of franked dividends.

After falling off in the early days of the COVID pandemic, share prices and dividends bounced back strongly in the year to June 2021.
Investors who depend on income from their shares also have more certainty now that the Labor Party has dropped its opposition to cash refunds of excess franking credits, a policy that attracted fierce resistance from retirees at the last federal election.

It was hard to miss the media splash about international tax evasion when the Pandora Papers were released, with local interest focussing on what Australian tax authorities would do with this massive trove of information.

But it seems the ATO is relaxed. Deputy Commissioner and Serious Financial Crime Taskforce Chief Will Day responded that the tax man doesn’t “rely on data leaks to do our job. We detect, investigate and deal with offshore tax evasion year-round.”

So where does the ATO get its data from and how is it being used?

The Director Identification Number regime came into force late in 2020 as a tool for the government to reduce phoenixing and black economy activities. Broadly, the regime will require all directors to confirm their identity with the ATO, at which time they will be issued a unique identifier. This identifier will then be permanently linked to the individual even if they cease to be a director.

Buying your first home is always a big step, but with property prices rising faster than pay packets taking that first step seems more challenging than ever.

National house prices rose 20 per cent in the year to September, the fastest growth since 1989. Higher prices have also fanned out from capital cities to the regions, as city folk discover the country lifestyle and cheaper housing during the pandemic.ⁱ

With business conditions picking up in Australia, many business owners are thinking about the equipment they will need in order to evolve in the years ahead.

Whether it’s a new delivery van or a high-end digital printer, up-to-date equipment and tools are essential for business success. In the May 2021 Federal Budget, the government announced full write-off of eligible business assets will be available for another year, so the opportunity to tool up is even more attractive.

For many people, the idea of managing and investing your own retirement savings is very appealing.

But there is debate over whether running your own self-managed super fund (SMSF) is cost effective. So, what are the arguments for and against having your own fund?

Stay up to date with what's happened in Australian and global markets over the past month.

Our May update video takes you through key economic indicators so you can understand how the Australian economy is faring as we recover from the COVID-19 induced recession of 2020.

Stay up to date with what's happened in Australian and global markets over the past month.  

Stay up to date with what's happened in Australian and global markets over the past month.  

Our February update video also takes you through key economic indicators so you can understand how the Australian economy is faring as we recover from the COVID-19 induced recession of 2020. Please get in touch if you’d like assistance with your personal financial situation.

Building a bridge to recovery

If you’re one of the many Australians that has taken up loan payment deferrals for their homes or businesses, beware as the repayment holiday for most financial institutions is due to end in September. According to APRA data, 11% of housing loans were deferred and 17% of small business loans were deferred as at 30 June 2020.

After 28 years Australia’s record economic expansion ended due to the COVID shutdowns, below is a video to assist you to stay up to date with the latest indicators.
 

Over 17,000 SMSFs that are heavily invested in one asset class will soon receive a “please explain” from the ATO to check whether they can justify their diversification risk.

We are proud to be celebrating our 25th year during 2019. Founded by the Late Peter Bodycoat in 1995, the past 25 years have seen many changes in our business, industry and local economy.

The role that small business plays in the economy is generally well understood but how well do the owners of those businesses understand their true worth? The large number of business owners fast approaching retirement will need to do some careful planning if they are to maximise the fruits of their labour.

As part of the ATO’s move towards a paperless system, the ATO encourages more and more taxpayers to report and manage their tax affairs electronically using their online services.

In an effort to keep up to date with technology and improve its service delivery, the ATO has started moving their communications and interactions with taxpayers away from paper correspondence and towards other methods, such as email and mobile phones (via SMS), for updates and notifications.