This issue explores key financial topics for businesses and individuals. It covers the ATO’s actions against the misuse of company resources, insights into Division 7A, and guidelines on superannuation access. We also discuss the financial implications of supporting family members in buying homes and the challenges of business succession. Stay informed on these essential financial management and planning topics.
Company money crackdown
The ATO is intensifying efforts to address business owners improperly using company funds and resources for personal gain. Misuse often blurs the lines between business and personal life. In response to frequent violations, the ATO has initiated an educational campaign to highlight these issues and the significant tax repercussions they trigger.
Accessing Money in Your SMSF
The ATO has made a call to professional accountants to help identify and manage illegal early access to superannuation by members of self-managed superannuation funds (SMSFs). In general, access to your super is only possible if:
- You retire and turn 60; or
- You turn 65 (regardless of whether you’re working).
Should You Be the ‘Bank of Mum & Dad’?
The wealth transfer from baby boomers is underway, with home ownership as a key driver. Home prices range from NSW’s high of $1,184,500 to the Northern Territory’s low of $489,200. With 2024’s cash rate projected to stay at 4.35%, families are increasingly pressured to assist the younger generation in buying homes.
Do Your Kids Really Want to Take Over Your Business?
Generational succession – handing your business across to your kids or family – sounds simple enough but, many families end up in a dispute right at the point when the parents, business, and children are most vulnerable. It’s important that generational succession is managed as closely and diligently as if you were selling your business to a stranger to avoid misunderstandings and disputes.
At The Pen Accounting, we pride ourselves on helping Australia’s creatives and freelancers thrive. Don’t let taxes weigh you down. Reach out, and let’s get your books in order!
Disclaimer: This is general information only and is not advice of any sort. No warranty or representation is provided by The Pen Accounting as to the accuracy, currency or completeness of the information contained in this blog. Readers of this blog should not act or refrain from acting in reliance upon any information contained herein and must always obtain appropriate taxation and / or other advice as may be appropriate having regard to their particular circumstances.
