COMPLETE FINANCIAL CARE
NEWSLETTER
DECEMBER 2011
NEWSLETTER
December 2011
HIGHLIGHTS
Carbon Tax
RBA Interest Rate
Cut
Proactive Spotlight
- Profitability
Relay for Life
Audit Shield
Client Corner Richard Wise
Solicitor
Carbon Tax - What will it mean to you?
1 July 12 key impacts for houseFrom 1 July 2012, Australia From
holds include:
will have a Carbon Tax. •
all taxpayers earning up to
$80K will receive a tax cut,
Like it or not, it’s here. But
Aged & Disability Support
what does that mean for •
Pensioners will receive a
you as an individual or
1.7% increase in their pension
business?
From the information available on the
Governments
website
.
www.cleanenergyfuture.gov.au
the
message being pushed is that most
people will be compensated for cost
increases either via tax cuts or increases to benefits.
\
HOUSEHOLDS
The Household Assistance package is
estimated to return more than half of
the money raised by the tax to households to assist in cost of living increases. Estimated average assistance
will be in the order of $10.10 per
week vs a cost increase of $9.90 for
the average household.
•
Student Allowances & Jobseeker allowances will also
increase by 1.7%
•
Self funded retirees will also
receive tax cuts.
The Government asserts that
approx. 40% of the carbon price will
be directed to assisting business &
supporting jobs in industries directly
impacted by the tax & developing
new ’clean technologies’.
On a broader scale, the question as
to what the impact will be to our
domestic economy remains unanswered. What impact it will have on
consumer & investor confidence &
what impact it will have on inflation
we just don’t know.
Perhaps the biggest question of all
relates to the efficacy of the Carbon
Tax in directly reducing Australia's
Carbon emissions. We’re going to
have to wait and see.
One thing we do know is that the
Carbon Tax creates more bureaucracy - and that rarely creates efficient outcomes for the taxpayer.
BUSINESS
According to the Government, only
those businesses that fall within the
top 500 polluters will be directly
impacted with compliance & accounting activities by the Carbon Tax.
However, there will be cost increases
passed down the line from suppliers.
The small business instant asset write
off will be increased to $6500 for the
2012/13 year.
An online estimator can be found
at: www.cleanenergyfuture.gov.au
RBA Interest Rate Cut - Again
Nov-2011
Jul-2011
Nov-2010
Mar-2011
Jul-2010
Nov-2009
Mar-2010
Jul-2009
Nov-2008
Mar-2009
tiousness; maintaining underlying
inflation at approximately 2-3%; the
non-resource sector being currently
subdued and maintaining consumer
confidence.
Jul-2008
Nov-2007
Mar-2008
Jul-2007
Nov-2006
Mar-2007
With respect to the Australian economy, the RBA has signalled that they
made the decision based on many factors including; slowing global growth,
particularly China; European potential
for economic challenges; a softening of
commodity prices; householder cau-
Jul-2006
Listen to any commentary on interest
rates, the use of ‘monetary policy’ as a
lever to influence the Australian economy and many people become disengaged due to the jargonistic discussion.
Nov 2005-Dec 2011
8.00
7.00
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Nov-2005
Since the GFC crash, rates fell 3% in Apr
09, increased by 1.75% and now a fall
back to 4.25%, so our rates have remained stable.
RBA Cash Rate
Mar-2006
Melbourne Cup Day saw
jubilation - on and off the
track. A 0.25% cut in the
official cash rate, the first cut
in 2 1/2 years and one year
since the last movement.
Now add the 0.25% announced today. Significant?
Yes, but what does it mean?
with the interest rate as it applies to
your loan(s).
In short - they think the economy
could run a little warmer than it
currently is and not blow our inflation targets.
It may be worthwhile to contact
your bank & ask a) what your current interest rate is, b) if you current repayments are adequate to
keep you on track & c) if there is a
mortgage product that would be
better for your financial situation.
For any mortgage holder, not only is
the RBA rate change important, but
it is also critically important that you
understand what your bank is doing
Does it mean that it’s time to go spend
crazy at Christmas? The media may
say yes, but don’t believe everything you
see and hear on TV.
COMPLETE FINANCIAL CARE
Gift Wrap Relay? Proactive Spotlight - Profitability
NEWSLETTER
December 2011
1 in 2 Australians by the
age of 85 will be diagnosed
with Cancer.
One of the key determinants of whether you have a good
business or not is profitability. Businesses that only pay a
basic ‘wage’ for the owners mean that they effectively
‘own’ a job. Good businesses must deliver profit & a
commercial return on investment to the owners. Here are
4 top tips to profitability:
That’s why our team are getting
behind the Relay for Life. Not to
be content with waiting till the
Relay in May 2012 - Team Captain
Christina Pollard has rallied the
troops to offer a $2 Gift Wrapping
service for Christmas to kick start
the fundraising drive.
1. Increase your price - some businesses go for years without ever increasing costs. At the very least you need to consider CPI increases otherwise your margin is being eroded.
2. Decrease your costs - go through your P&L’s expense
section line by line and assess where you can save money.
3. Sell more to your clients - If a client buys one product
from you, chances are you have other products you could also
sell. You need to talk more to your clients & expose your
products/service to the danger of being sold.
4. Find more clients - what do your GOOD existing clients
look like, age, interests, income level, profession etc. Map that
out and market to other people with similar characteristics.
Raising money to fight
Cancer is a great cause.
Th
Brindleys
87A Market Street
MUDGEE NSW 2850
Phone
(02) 6372 1655
Fax
(02) 6372 1251
E-mail
[email protected]
Web:
www.brindleys.com.au
Did
you
know
Brindleys Chartered
Accountants can
offer you a complete
financial solution?
Aside from traditional accounting,
taxation and business
services, we also
offer:
Financial Planning
Superannuation
and Retirement
Advice
Wealth Protection
Business Loans
and Leasing
Share Buying and
Selling
Bulk Rates are available for bulk
wrapping. Gifts must be picked up
no later than 5 pm, Tues 20 Dec.
This isn’t rocket science - but it does require action. Find time
to do it or accept the same results you’ve been getting. It’s
your choice. Need help -- that’s what we’re here for.
Protect Yourself from the expense of Audits
Wouldn’t
it
be
comforting to know that
if you were audited by a
Govt Agency, that the
professional costs of
preparing & managing
your response were
looked after?
Audit Shield is the answer. We
recently sent an invitation to
all our clients to participate in
Audit Shield. Audit Shield is an
insurance policy that effectively
covers you for the cost of
eligible professional fees should
you have an audit by the ATO
or any Government Agency (eg
Workcover, Payroll Tax).
We’ve had a number of clients
participate in this service and
have had some enquiries as to
whether clients can still
Client Corner
As Mudgee's newest Law
Firm, Richard Wise
Solicitor is blazing a new
trail in the regions legal
industry, unhampered by
the ‘way things have
always been done’.
When Richard & Kayla first
came to discuss their newly
formed Chambers practice and
their vision, it was apparent we
had a great opportunity
developing.
They were
extremely excited about doing
law differently.
Brindleys were glad to be
invited to assist in the
formalisation of their business
plan through fac i l ita ted
workshops.
participate. Yes is the answer but
you need to act quickly. The
policy must be paid for and in
place at least 24 hours before
receiving a notice regarding an
audit.
Audit Shield is absolutely
voluntary & up to each client to
assess their own level of risk with
respect to an audit. Questions
contact us on 6372 1655.
‘Brindleys helped us take our
vision and pull it apart, piece by
piece till we’d reduced it down
to daily activities & plotted it
out on the calendar. The helped
us identify the key performance
indicators & map out the plan
for us to get where we want to
be” said Richard.
Richard Wise Solicitor services
the Midwestern Region &
provides Conveyancing, Family
Law, Traffic & DUI, Criminal &
Local Court matters, Wills &
Estates. 02 6372 3388
If you require any further information or advice in respect of the matters
referred to in this newsletter or any other matters regarding your business
and financial circumstances do not hesitate to contact us on (02) 6372 1655
or email us at [email protected]
Take charge of your
finances today.