Predictions and realities for the new financial year – What you need to know in 2011/2012
It’s a new financial year and with it comes a series of changes and challenges. The central message for the new financial year is ‘cash is king’ and will remain so for some time to come.
While the economy is performing well, consumers are wary about parting with their cash. Part of the problem is that around 50% of Australia’s growth is coming from 10% of the economy. For the rest of the economy, petrol prices are high, interest rates are likely to rise, and the rate of debt default is at record highs.
Consumer sentiment shows that no one really feels as secure as the headline economic data indicates so discounting and long decision making processes are likely to continue.
For business, take the ‘cash is king’ message to heart. Some very high profile and established businesses have dissolved recently so stick to your trading terms and watch your debtors or you may be caught out by someone else’s problem.
Superannuation pension relief extended
At the start of the financial crisis in 2008, the Government announced that they would halve the minimum pension payment amount – that is the minimum amount of pension that you have to take from your superannuation fund. This concession was extended through to the 2009 financial year. The Government recently announced that they will again reduce the minimum pension amount for the 2010/2011 financial year.
In practice what this means is that if you are say 65 years of age on 1 July and receive an account based pension from your superannuation fund, the minimum you have to withdraw is 2.5% of the account balance (instead of 5%). The continued relief means that retirees do not have to sell investments at an inopportune time simply to comply with the regulations.
FIND OUT MORE
Above all talk to your accountant. Every business is different and you need to take advice from someone who understands your current position.
Having said that, there are some good ‘housekeeping tips’ that almost every business should review. Here are 7 of them.
FIND OUT MORE
Changes for the new financial year
The start of the new financial year brings with it a range of legislative and regulatory changes from the Government. Hayes Knight SA Tax Manager Rachel Rowett covers the changes and their implications in this comprehensive article.
FIND OUT MORE
Loading ...
