Forsyths Newsletter July 2015
2015 Tax – ATO Advice
As normal, the ATO is cracking down on certain occupations and particular deduction categories in 2015.
These are the areas that the ATO is targeting:
1) The occupations getting most attention will be:
• Tradespersons and labourers in the building and construction industry
• Construction Supervisors, project managers and marketing managers
• All Sales and Marketing Managers
2) Deductions being focused on include:
Nine Building Blocks that should be part of everyone’s Retirement Plan
The best way to approach and save for retirement will vary, but these are the basic building blocks that should be included in everyone’s retirement plan.
1) Start Early. The majority of people wait until they are in their 40s or 50s to start seriously planning for life after work, and that is just way too late. Invest small amounts of money now for retirement so it will grow into a sizeable nest egg when it comes time to retire.
2) Create a Retirement Budget. To help you stay on track you need a current budget.
LEARN MORE…
Surviving through the economic downturn
So the boom has ended and now a recession has been predicted, but why?
There is a multitude of reasons, but major businesses have been reluctant to invest which is driving the rest of the economy down.
Businesses only tend to invest when their rate of return is over 10% (based on long-term rates of returns when interest rates were between 4-6%).
Having an interest rate of 2% is distorting their calculations. Also, most businesses
are looking to cut spending, not increase spending.
So what does that mean?
It means that growth rates won’t improve unless non-mining investments pick up. So cutting the interest rates does little for businesses and actually could be a detriment to the economy.
Customer confidence must be lifted but, without the investment by business or government, we must expect a period of gradual decline for the Australian economy.
One-third of Australia is already in recession with trends of falling incomes weighing down on household wealth. Less than 0.5% of regions generated 20% of national income which shows growing inequality and dependency on the success of these few, which is worrying indeed.
So what do YOU do to protect yourself, your family and your business?