The metaphors we use when talking about money are both intriguing and revealing. When we overspend, we say we're "bleeding" cash; when it arrives out of the blue, it's "pennies from heaven." Money holds such importance in our lives, yet so many businesses seem to throw it around without a clear budget. Sticking to a budget is a fundamental aspect of financial health. It also signals to others that you're in control and on top of things. Keeping your business on budget doesn’t have to be a hassle—think of it as a creative challenge. If you're open to putting in the work and making some tough choices, sticking to a budget can be the best workout for your business mind. Do you know how to build a budget that keeps your business safe from financial troubles? We do, and we’re here to help you create a budget that works—and ensures you stick to it. If you need help with your budget give us a call today 4688 2500.

From 1 January 2025 all Australians selling property need a clearance certificate to prevent a portion of the sale price from being withheld. While it is understood that most lawyers are handling this process for their clients, it’s important for everyone involved to be aware of this requirement. Clearance certificates for Australian residents All Australian residents (for tax purposes) selling or disposing of Australian real property (property) must have a clearance certificate and give it to the purchaser at, or before settlement. Without a clearance certificate, the purchaser must withhold up to 15% of the sale (or market value if not sold at arm's length) for foreign resident capital gains withholding (FRCGW) purposes. Example: the importance of getting a clearance certificate early – 15% withheld from sale Willow and Stanley are Australian residents for tax purposes. On 1 September 2024 they decide to sell their family home, their main residence. They need the funds from the sale to purchase a new residence. They are both listed as owners of the property on the certificate of title, so both must apply for their own clearance certificate. They find a purchaser on 8 January 2025 and sign the contract of sale, with a settlement 30 days later on 6 February. They don’t apply for a clearance certificate until 15 January and don't have both of their clearance certificates at, or before settlement. The property sold for $600,000, however: • Willow's clearance certificate issued and was given to the purchaser • Stanley was still waiting for his clearance certificate. The sale goes through and settlement occurs. As Stanley didn't have a clearance certificate at settlement, 15% of Stanley's share of the sale ($90,000) must be withheld by the purchaser and paid to us. Stanley must wait until his 2025 tax return is lodged and processed for a refund. As the purchaser had received a clearance certificate from Willow, there's no withholding required on her share of the sale. (Example provided by the ATO website) If you would like to read more about Clearance Certificates, please click on the below link: https://www.ato.gov.au/individuals-and-families/investments-and-assets/capital-gains-tax/foreign-residents-and-capital-gains-tax/foreign-resident-capital-gains-withholding/australian-residents-and-clearance-certificates#ato-ClearancecertificatesforAustralianresidents

We wanted to bring to your attention some important changes regarding student and training loan indexation that have just passed through Parliament. The law is changing how the indexation on student loans is calculated. In the past, indexation has been based solely on the Consumer Price Index (CPI) . However, moving forward, the indexation rate will be based on the lower of either the CPI or the Wage Price Index (WPI) . This new rule will be backdated to 1 June 2023 , which means it will affect loans from that date onward. Here’s how the updated indexation rates break down: 3.2% for 1 June 2023 (reduced from 7.1%) 4% for 1 June 2024 (reduced from 4.7%). Impact on Your Loan If your loan has been over-indexed in the past two years, you may be entitled to a refund . The Australian Taxation Office (ATO) will automatically adjust your account to reflect the new, lower rates and will process refunds for any excess amounts already paid. This means: If after the adjustment, your account is showing a credit (i.e., you've paid more than required), this excess will be refunded to your nominated bank account provided you have no outstanding tax or other Commonwealth debts . If your loan is in credit after the adjustment, any remaining funds may be transferred to offset your income tax account (if applicable), and the remainder will be refunded to you. What You Need to Do For most clients, there’s nothing you need to do at this stage. The ATO will automatically recredit excess amounts to your account once the legislation receives Royal Assent , and this process will begin soon after. You should expect to see these credits applied to your account by the end of January 2025 . However, in some cases, due to the complexity of individual accounts, it might take a bit longer. Unfortunately, the ATO cannot provide a list of exactly which clients will receive refunds, as they will only know once all recredits are processed. We drew inspiration to write this article from the ATO

Starting from 1 July 2026, employers will be required to make Superannuation Guarantee (SG) contributions to employees with every pay cycle, rather than on a quarterly basis. This reform aims to strengthen Australia’s superannuation system by ensuring employees receive their contributions more regularly, which helps mitigate unpaid super issues. Frequent SG payments will enable employees to better track their entitlements while also streamlining payroll management for employers. To facilitate a smooth transition, best practice would be to begin implementing these super changes now. This proactive approach will help businesses adapt to the new requirements ahead of the deadline. Legislative design will progress through the second half of 2024 ahead of draft legislation being released for consultation. This change is part of a larger government initiative focused on improving retirement outcomes and tackling superannuation theft. By starting early, employers can enhance their compliance and support their employees’ financial security more effectively. Example: By switching to payday super, a 25‑year‑old median income earner currently receiving their super quarterly and wages fortnightly could be around $6,000 or 1.5 per cent better off at retirement. 

Monitoring your financial performance is like checking your businesses financial heartbeat. It’s all about tracking those crucial metrics and indicators to see how well your financial engine is running. Ready to dive in? Here’s how to keep your financial game strong and your money matters on point!: Set Clear Objectives and Metrics: Define specific financial goals and key performance indicators (KPIs) that align with your business strategy. Examples include revenue growth rate, profit margins, cash flow, and return on investment (ROI). Regular Financial Statements: Review and analyse financial statements regularly. The main documents include: Income Statement: Shows revenue, expenses, and profitability over a period. Balance Sheet: Provides a snapshot of assets, liabilities, and equity at a specific point in time. Cash Flow Statement: Tracks cash inflows and outflows to assess liquidity. Financial Ratios: Calculate and analyse financial ratios to gain deeper insights into different aspects of financial performance: Liquidity Ratios (e.g., current ratio, quick ratio) measure the ability to meet short-term obligations. Profitability Ratios (e.g., gross profit margin, net profit margin) assess the profitability of the business. Activity Ratios (e.g., inventory turnover, accounts receivable turnover) evaluate operational efficiency. Debt Ratios (e.g., debt-to-equity ratio) indicate the level of financial leverage. Budget Variance Analysis: Compare actual financial results against budgeted figures to identify discrepancies and understand the reasons behind them. Trend Analysis: Track financial trends over time to spot patterns, opportunities, or potential issues. This involves comparing current performance with historical data. Benchmarking: Compare your financial performance with industry peers or competitors to understand your relative position and identify areas for improvement. Cash Flow Management: Monitor cash flow regularly to ensure sufficient liquidity for operational needs and to support growth. Risk Assessment: Identify and assess financial risks that could impact performance, such as market risks, credit risks, or operational risks. Management Reporting: Develop concise and informative reports for management and stakeholders, highlighting key financial metrics, trends, and insights. Use of Financial Software: Leverage accounting and financial software systems to automate data collection, analysis, and reporting processes, improving accuracy and efficiency. Regular Reviews and Adjustments: Conduct regular reviews of financial performance and adjust strategies as needed to achieve financial goals and improve overall performance. By following these steps and methods, businesses can effectively monitor their financial performance, make informed decisions, and drive sustainable growth and profitability. If you require assistance with designing, implementing, or understanding any of these steps, please contact Clear Vision Accountancy Group, 4688 2500, and allow us to assist you.

Now, this topic might not sound thrilling at first, but stick with me. Mastering this aspect can turn your business into a success story worth every initial yawn. Why? Because effective Financial Performance Monitoring is crucial for achieving goals. Without it, that dream vacation, new home, or luxurious pool might remain just that – a dream. For those aiming to expand their business, metrics like sales, profit margins, and cash flow reign supreme. Neglecting to track these indicators means missing out on crucial insights into where bottlenecks exist and how to overcome them. Financial Performance Monitoring encompasses a wide array of critical areas such as Profit Drivers, Inventory Management, Accounts Receivable, Accounts Payable, Sales and Invoicing Practices, Cash Flow Projections, and Sales Analysis.  Without accurate, consistent, and diligent reporting, businesses risk falling into disarray – a tough reality. After all, how can you enhance what you don't measure? Contact us today on 4688 2500 to discuss your specific needs and find out how we can help you achieve your financial goals.

It's that time of year to revisit the budget you crafted last year. Do you even remember where it is? Don’t worry—help is here. Creating and maintaining a budget on your own can be daunting, and it’s easy to lose motivation. However, with a little time and focus on a few key areas of your business, you can get back on track in no time. We all know that a budget is a vital tool for managing finances, but it often doesn’t get the attention it deserves. So, what do you need to do to get back on track? Start by reviewing the following aspects of your business: Time Frames: Ensure your budget aligns with your business’s operational timeline. Fixed & Variable Costs: Identify and categorise your expenses. Income: Track your revenue streams. Actuals: Compare your budgeted figures with actual performance. Business Tracking: Monitor key performance indicators to gauge your business's health. Need some guidance? Give us a call 4688 2500. We’ll provide you with a comprehensive checklist of what your budget should include and help you create a plan that considers all the factors affecting your bottom line. Our goal is to help you feel in control and confident about where your money is going.

Concessional contributions are payments made into your Self-Managed Super Fund (SMSF) that count towards the SMSF's assessable income. These contributions are taxed at a concessional rate of 15%, often called the 'contributions tax'. The most common types of concessional contributions include employer contributions, such as super guarantee and salary sacrifice contributions. They also include personal contributions made by members for which an income tax deduction is claimed. Annual Cap on Concessional Contributions Concessional contributions are subject to an annual cap: · From 1 July 2024: The general concessional contributions cap is $30,000 for all individuals regardless of age. · For the 2021-22, 2022-23, and 2023-24 financial years: The cap was $27,500 for all individuals regardless of age. · For the 2017-18, 2018-19, 2019-20, and 2020-21 financial years: The cap was $25,000 for all individuals regardless of age. · For the 2014-15, 2015-16, and 2016-17 financial years: The cap was $30,000 per financial year, increased to $35,000 for members aged 49 or over. Since the 2013-14 financial year, if your contributions exceed the cap, the excess amount is included in your assessable income and taxed at your marginal tax rate instead of being subject to excess contributions tax. Unused Concessional Cap Carry Forward Starting from 1 July 2018, you can make 'carry-forward' concessional super contributions if your total superannuation balance is less than $500,000. You can access your unused concessional contributions caps on a rolling basis for five years. Amounts not used within five years will expire. For example, if you have an unused cap amount from the 2019-20 financial year, it will expire if not used by the end of the 2024-25 financial year.

In a world that often feels chaotic and uncertain, it's easy to get caught up in the hustle and bustle of life, forgetting to pause and appreciate the simple joys that surround us. But amidst the challenges and hardships, there is always a glimmer of light waiting to shine through the darkness. Today, let's embark on a journey to explore the uplifting and positive aspects of life, reminding ourselves of the beauty that exists in every moment. Gratitude: A Key to Happiness Gratitude is a powerful tool that can transform even the most mundane of days into something extraordinary. Take a moment each day to reflect on the things you're grateful for, whether it's the warmth of the sun on your face, the laughter of loved ones, or the beauty of nature. By shifting your focus to the blessings in your life, you'll find that joy naturally follows. Embracing Imperfection Life is messy, unpredictable, and imperfect – and that's what makes it beautiful. Instead of striving for perfection, embrace the flaws and quirks that make you unique. Celebrate your successes, no matter how small, and learn from your mistakes with grace and humility. Remember, it's okay to stumble along the way – it's all part of the journey. Finding Joy in the Little Things Happiness doesn't always come from grand gestures or monumental achievements. Often, it's the little things that bring the most joy – a kind word from a stranger, a hug from a friend, or a quiet moment spent watching the sunset. Pay attention to the small moments of beauty and wonder that pepper your day, and you'll find that happiness is never far away. Spreading Kindness and Love In a world that can sometimes feel cold and indifferent, kindness is like a ray of sunshine breaking through the clouds. Make it a priority to spread love and positivity wherever you go, whether it's through a simple act of kindness or a heartfelt compliment. By lifting others up, you'll find that you lift yourself up in the process. Cultivating Inner Peace True happiness comes from within, rooted in a sense of peace and contentment that transcends external circumstances. Take time each day to nourish your mind, body, and spirit – whether through meditation, mindfulness, or simply taking a walk in nature. Cultivate a sense of inner peace that will sustain you through life's ups and downs, allowing you to navigate challenges with grace and resilience. Embrace the Journey Life is a journey filled with twists and turns, highs and lows, but it's also a journey filled with beauty, wonder, and endless possibilities. By embracing the bright side of life, finding joy in everyday moments, and spreading love and kindness wherever we go, we can create a world that is a little brighter, a little kinder, and a little more beautiful for us all. So let's embark on this journey together, with open hearts and open minds, ready to embrace all that life has to offer.