In the right hands, a self-managed superannuation fund (SMSF) can be a beneficial way to build wealth for retirement. Whilst they are not for everyone, it is important that when thinking of starting an SMSF, individuals need to understand the benefits and responsibilities they take on by having an SMSF.
Market performance in the wake of the US election has been overwhelmingly positive, with Australian and US shares up 11% in November, Japanese shares up 16% and Eurozone shares up 17%. It’s somewhat of an ironic note, given Donald Trump’s fondness to cite stock market strength as indicators of his own economic success, and yet it’s gone up on news of his election loss.
The challenges of an ever-changing labour market have prompted the federal government to consider tax incentives for Australians to change careers. A discussion paper published on Friday is calling for stakeholders’ views on whether tax deductions on education and training expenses unrelated to a person’s current job could support their future employment.
It’s only been a couple of months since Treasurer Josh Frydenberg handed down his deficit-laden 2020/21 federal budget but already Australia’s fiscal position is beginning to brighten. Economist Chris Richardson, who always keeps a keen eye on developments in federal budgets, expects this week’s mid-year review will show a better bottom line
At the start of the COVID-19 pandemic, the federal government announced a program allowing Australians in financial distress to withdraw up to $20,000 from their superannuation funds to help them cover their expenses during this difficult year.
Before you hire a worker, you should decide if they’re considered an employee or contractor. You can use our Employee/contractor decision tool to help guide your decision. This will make it easier for you to provide the right entitlements for that worker. It’ll also help you meet your tax and super obligations.
Diversification is your best defence against a single investment failing or one asset class performing poorly (for example, the share market falling or one fund manager failing).
If you diversify your investments, when some fall in value, others may rise and balance out the fall. Diversification lowers your risk because, no matter what the economy does, some investments are likely to benefit.
