Eliminate bill shock in 3 easy steps

We all have those big bills that seem to come around quickly, like our energy bills, car rego and insurance, private school fees etc.

For many of us, it doesn’t matter how well we think we’re going, there will always be those bills that seem harder to budget for.

So here’s a great savings tip to eliminate bill shock. All it takes are 3 easy steps!

Step 1
Work out how much you need to put aside each pay period to cover the annual cost of each large bill.

Step 2
Add 5-10% to cover price increases.

Step 3
Each pay, put this money aside in a separate bank account. Ideally look for one that earns better interest than your everyday account. Treat this account as untouchable and avoid temptations like using it to pay for weekends away or extra holiday spending money. Then, when those big bills come in, you’ll have enough savings to comfortably cover them.

If you find accessing these savings too tempting, check with each service provider to see if you can make regular advance payments. Then, when your bill arrives, the final amount payable will be greatly reduced because you have made those pre-payments.

Self-employed?
If you’re self-employed, try paying yourself a regular amount each week, fortnight or month. Consider this as your wage and follow the same steps as above.

 

For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388.

Congratulations to our client & friend, Jen Harwood

We are so excited for our client and friend, Jen Harwood. Earlier this month, in front of almost 1000 people, she won the 2019 Australian Small Business Champion Award for New Business.

A single mum and highly accomplished business woman, Jen decided there had to be a better way to brush and style her daughter’s long hair.

Many parents will relate to the tears, arguments and stress of brushing their kids’ hair each day. But rather than persevere, Jen decided she would find a way to eliminate it from their daily routine. Called the Happy Hair Brush, it has now solved the problem for many, many parents. Learn more about it here.

We are so proud of Jen’s achievement that we wanted to share it with you. If you or your business has an achievement to share, please let us know.

ATO clarifies GST withholding steps for new residential properties and subdivisions

From 1 July 2018, anyone purchasing a new residential property or subdivision is required to pay the GST component directly to the ATO as part of the settlement.

These changes have had some teething problems.

To help clarify things, the ATO has set out a 5 step process that must be followed. Here are the steps:

Step 1
The developer must provide accurate supplier details to the purchaser, including:

  • Their name and ABN
  • The GST-inclusive value of the property
  • The date the purchaser must pay the withholding amount to the ATO
  • How much the purchaser must pay

Step 2
On the Form One (GST Property Settlement Withholding Notification), the purchaser needs to enter these supplier details

Step 3
On settlement, the purchaser needs to pay the withholding amount and lodge a Form Two (GST Property Settlement Date Confirmation)

Step 4
If the details provided in Form One match those of the developer’s GST property credits account, the ATO will then allocate a credit to this account

Step 5
The developer must lodge their BAS, declaring that property transaction

Once all of these steps have been fully and accurately completed, the ATO will process the developer’s BAS and transfer the relevant credits to the developer’s activity statement account.

 

For more information and advice contact us on 02 8850 0388

Downsizing your home? Changes you need to know

Since 1 July 2018, the ‘Contributing the proceeds of downsizing into superannuation” reform came into effect. In essence, it means if you have sold or are selling your home after that date AND meet the eligibility requirements, you may be able to contribute up to $300,000 into your superannuation fund from the proceeds of the sale.

The ATO has now released guidelines on the eligibility to make this type of superannuation contribution.

Could you be eligible for making a downsizer super contribution?

To meet the eligibility requirements, you must:

  • Be 65 years or older
  • Have exchanged the sale of property contract on or after 1 July 2018
  • Be selling an eligible Australian dwelling that you (or your spouse) have owned for at least 10 years which qualifies for a full or partial capital gains tax exemption as your main residence
  • Submit the approved form to note that this is a downsizer contribution either before or at the time of making the contribution
  • Make the contribution within 90 days of receiving the funds from the sale
  • Not made a downsizer contribution in the past

It’s important to note that downsizer contributions are not tax deductible. They will also be considered when determining your eligibility for the age pension.

If you are considering downsizing your home or have recently done so, contact us for more specific advice based on your situation.

 

For straight-forward, practical accounting, taxation and financial advice
contact our knowledgeable team at SVA and WPA by calling 02 8850 0388