The ATO published the data on larger companies who pay or don't pay income tax. But there's a catch (not surprisingly); you have to download the data to convert it to view the 1,541 companies on the list! Interestingly the 3 largest technology companies are on the list and they paid no more than 5.5% tax on turnover. See: http://data.gov.au/dataset/corporate-transparency to start the process!
See ATO site: https://www.ato.gov.au/business/large-business/corporate-tax-transparency/ Brett Lamond Updated 17 Dec 2015 [20151217] Last updated 17 Dec 2015 Revised 7 Aug 2018
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The Superannuation Guarantee Rate is now 9.5%. (From 1 July 2014)
As an employer please ensure all systems have been adjusted to reflect this change. As an employee and IF you are on a TEC - Total Employment Cost 'package', check that the increase from 9.25% to 9.5% won't decrease your take home pay. That is, as Super increases the salary component reduces (in a simple example package of "TEC is $109,000", = $100K salary, $9K Super); but if super rises to 9.5% then the salary goes down to $99,544 and super rises to $9,456, total $109,000. It may not be much, but as Super is slated to rise to 12% over time, this is just the start. Whilst many TEC employers may not enforce this type of change it would be prudent to check that automated pay systems don't automatically adjust your pay. Brett Lamond Updated 8 Dec 2015 [20130705, 20151208] Last updated 8 Dec 2015 The Australian Taxation Office announced on 26 February 2013 that individuals who met certain criteria could apply online and fill out an online joint Australia Post/ATO form to apply for a Tax File Number (TFN) and then arrange to go to an Australian Post Office to have their identity verified. It appears to be a simpler system and you don't lose control of your original documents. Note, if you are at secondary school there is an alternative system via the school. See: https://www.ato.gov.au/Individuals/Tax-file-number/Apply-for-a-TFN/Australian-residents---TFN-application/ Brett Lamond
5 March 2013 [Last Edit 8 August 2018] [20180808] This is based on an interesting article on the "..10 of the most common Buffett quotes, and some lessons we can learn from them." The article source is at the end of the blog. I've used the article and pulled the essentials from it and added some of my own comments. Note, this is not investment advise.
1. "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." It's a handy rule to follow, but even an expert such as Buffett lost billions in the global financial crisis and said he did some "dumb things" which he freely admits. (Read his letter to Shareholders in every Annual Report where he reviews his performance over the previous year). However, over the long term he has benefited by being conservative with his share investments and avoiding fads. 2. "It is better to hang out with people better than you ... you'll drift in that direction." People should never be afraid to ask successful investors what they did and how they got there. In many cases experts are willing to help out where possible and you should look for attributes or skills others have that can guide you. You should avoid people who like to point out they are better than you. 3. "I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over." That is, large gains often only come from taking huge risks where the chances of losing everything are magnified. (Risk and Return truism). Too often investors go for a single big win rather than do the many small things that are already available such as having a strategy, reviewing regularly and diversifying. 4. "I buy on the assumption that they could close the market the next day and not reopen it for five years." The quote truly tests your decision-making and your ability to think long term. Long term thinking all the time. 5. "Someone's sitting in the shade today because someone planted a tree a long time ago." This is why taking a long-term view is important. You should never forget why we enjoy some of today's luxuries - most of them are because someone else had a long-term vision and was prepared to invest for the future. 6. "Price is what you pay. Value is what you get." The price of an investment can mask its true value because of factors such as emotion, market booms or busts, and even tax considerations. Many people just see the price and give it priority and are often unable to perceive value because they don’t think or analyse why they are buying or do their homework so they cannot see past the price. If price is your only guide then there is no wider analysis. 7. "We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful." This is probably Buffett's most famous quote and is at the heart of his belief in avoiding the herd mentality. Remember sharemarkets are often priced on emotional reaction and not logic. Buffett sticks to value. 8. "The investor of today does not profit from yesterday's growth." Many investors like to jump on an investment that's doing well - that's why we have booms and busts - but they really should look to the future. That’s not to say you shouldn’t still use historical trends, past performance and research data as important tools for making investment decisions. But it is looking backwards to go forwards and should only be a part of your decision process. 9. "Whether we're talking about socks or stocks, I like buying quality merchandise when it is marked down." Seems obvious doesn’t it. But it is how Buffett identifies the value you should look at also. 10. "If a business does well, the stock eventually follows." Buffett is famous for finding well performing companies that have strong management teams with a clear vision and then leaving the management to do what they have been doing well. Source: Accessed 19/10/2012: http://www.couriermail.com.au/money/warren-buffetts-wise-words/story-e6freqpf-1226496064311 Dated 15 October 2012. Brett Lamond 19 October 2012 [20121019] Superannuation complexity increases. So will SMSF's costs.
A new Superannuation Industry (Supervision) Amendment Regulation 2012 has been legislated. I will quote from the Explanatory Memorandum (EM) then add my comments. "Paragraph 4.09(2)(e) is intended to ensure that trustees of SMSFs consider whether they should hold a contract of insurance that provides insurance cover for one or more members of the fund." What is not clear is what insurance cover is to be considered. Given the wide range of policies available this may necessitate a specialist review of the Members insurance needs apart from an Investment Review. Also, is it supposed to duplicate or augment any insurance the Member holds? But note, it says "consider" so you do not have to take out insurance. However I would suspect no-one has enough insurance. "Trustees of SMSFs are expected to be self-reliant in determining the type and level of insurance cover members might require whether within or outside their SMSFs." Again, this means that eventually the ATO (Australian Taxation Office) will issue a Ruling when 'self reliance' is considered not enough. This will probably happen 3 years from now and be backdated to the start of this requirement as 'self evident'. "The Super System Review panel noted that less than 13 per cent of SMSFs have insurance and that SMSF members were more likely to hold appropriate levels of insurance, or be able to hold insurance outside their superannuation, than members of other superannuation funds. In making its recommendation, the panel wanted to ensure that trustees appropriately consider the holding of insurance for SMSF members." Two comments here. First: What are 'other superannuation funds' and why is the comment "dropped in" to the statement? So if a Member of a SMSF can hold more insurance than "other funds", then the implication is "let's make them hold more!" Secondly: So, if a Member is well covered outside the Fund does this become another cost to bear by the Fund to either document the insurance a Member already has and the Fund has to keep a list of external insurances up to date as well as insurances it takes out for a Member, along with an Asset Register? The list will also be diverse and complex if each Member's requirement is different to another Member's and a Register of what the Member's ENTIRE insurance holdings are kept. "SMSF trustees will be required to consider whether to hold insurance, for their members, such as life insurance when they formulate, regularly review and give effect to the fund’s investment strategy. Trustees may evidence this requirement by documenting decisions in the fund’s investment strategy or minutes of trustee meetings that are held during the income year." To date no guidance has been proposed or mentioned by the ATO. It seems the SMSF sector will have to work this out at additional cost of seeking out their professional adviser for an opinion on the interpretation of the meaning of this explanation. A lot of duplicated work. It appears that SMSFs will gradually be regulated to a point that starting a SMSF will involve so much paperwork and ongoing updates to the paperwork that time to deal with the primary purpose - providing for a person's retirement, may become a secondary activity. The comment is an example of Reductio ad absurdum, but the point is - when is enough regulation, enough? Paragraph 4.09(2)(e) came into effect 1 July 2012, so will be part of any audit of a SMSF for the 2013 year. Brett Lamond [20120918] Source: Quotes are from http://strongersuper.treasury.gov.au/content/exposure_drafts/smsf_insurance/downloads/Explanatory_Material.rtf Last Edit: 20 September 2012 One of our clients, Janine Shepherd, spoke at TEDxKC, watch below for a truly amazing talk: www.ted.com/talks/janine_shepherd_a_broken_body_isn_t_a_broken_person - it will change your perspective on what is possible for you!
Brett Lamond 30 August 2012 [20120830] Last Edit: 8 August 2018 Neil Armstrong, the First Man on the Moon died this weekend. He achieved so much in his life and did it with humility and grace.He also acknowledged those who worked at NASA and elsewhere who helped him become such a symbol.
He was 82 and lived in Cincinnati. His death was unexpected by everyone. He represented what Excellence is and what we can aim for. The words he spoke when he stepped on to Moon's surface on (US date) July 20 1969 - “That’s one small step for [a] man, one giant leap for mankind” - were beamed live across the world, (courtesy of Australian links) and immediately became a symbol of America’s resolve and ingenuity. The Apollo Program set down by NASA was also a symbol of what excellence can be achieved when people come together for a common purpose and for high ideals. It was not without some tough times for NASA with the loss of the lives in getting to the Moon with tragedies like the Apollo 1 fire. Like so many things in life, you pick yourself up, look at what happened, learn from it and grow and improve. All signs of Excellence. Excellence is not about perfection - it is about a state of being. NASA lives on the edge and continues to grow and learn; it has had more lives lost, living on the edge in the Shuttle missions that followed the Apollo Program. A forgotten fact these days is that a Shuttle style program was planned before the Moon missions, with a staging point in orbit around the Earth; but President Kennedy changed all that. I think we can all learn from what Neil Armstrong achieved and how his life and achievements can be admired for excellence. Brett Lamond 26 August 2012 [20120826] Last Edit: 30 August 2012 |
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