A former business hard man once said ‘anyone paying more than they have to should have their neck rung’ … (or words to that affect)
Taxation and Compliance….. the necessary obligation in order to prosper. The price we pay for living in a civilised society.
To achieve this, as an advisor, I bring this aspect of our lives back to 3 broad principles:
1. Declare the right income and claim the right deductions. Our laws don’t make it easy to calculate all of these however talking to your accountant will help you understand the foundation of our system.
2. Financial structure. Establishing the right structure at the start is necessary to obtain taxation benefits. It’s never too late to restructure your financial practices however doing a cost v benefit analysis will help this process.
3. Then the fun bit: Investment of funds. This is often less rigid and open to professional judgement.
It is worth considering engaging an advisor with the relevant training, knowledge and experience, in the application of informed decisions about the courses of action that are appropriate to your circumstances. Ask yourself and your advisor – Should I invest the profits from my efforts … back into my business, into a term deposit, into the share market, reduce debt, as a deposit towards our own business premises, into Superannuation, into our own home?????? The list is endless and evolving; taxation consequences are vital in the discussion as are expectations with regard to risk, return and timing of cash flows.
Due consideration of these 3 aspects is a key component towards financial wellness, a theme we want you to be getting used to.