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  • Understanding Australian Accounting Standards

    Understanding Australian Accounting Standards

    Australia’s financial reporting landscape is shaped by a robust framework known as the Australian Accounting Standards (AAS). These standards ensure transparency, consistency, and comparability across financial statements, helping investors, regulators, and other stakeholders make informed decisions. Whether you are an accountant, business owner, or law professional, understanding these standards is essential for navigating the Australian financial environment.

    What Are Australian Accounting Standards?

    Australian Accounting Standards are a set of guidelines and principles that govern how financial statements are prepared and presented in Australia. They are developed and maintained by the Australian Accounting Standards Board (AASB), an independent body under the oversight of the Financial Reporting Council (FRC).

    Australia has fully adopted the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), meaning that most Australian Accounting Standards mirror IFRS, often with some additional guidance tailored to the Australian context.

    Key Objectives of the Standards

    The main goals of the AAS are to:

    • Promote uniformity in financial reporting across industries.

    • Enhance comparability of financial statements internationally.

    • Provide clear guidance to ensure the financial position, performance, and cash flows of businesses are presented fairly.

    • Protect stakeholders such as investors, creditors, and regulators by ensuring reliable information.

    Structure of Australian Accounting Standards

    The AASB issues several types of standards, including:

    • Accounting Standards (AASB standards): Formal rules businesses must follow when preparing financial reports.

    • Interpretations: Guidance on how to apply the standards in specific situations.

    • Framework documents: Broad principles outlining the purpose and foundations of financial reporting.

    Each standard typically addresses a specific area such as:

    • AASB 16 – Leases

    • AASB 15 – Revenue from Contracts with Customers

    • AASB 9 – Financial Instruments

    • AASB 101 – Presentation of Financial Statements

    These standards align closely with the corresponding IFRS but may include Australian-specific additions (e.g., reporting obligations for not-for-profit entities).

    Who Must Comply?

    Compliance with Australian Accounting Standards is mandatory for:

    • Companies registered under the Corporations Act 2001.

    • Listed companies on the Australian Securities Exchange (ASX).

    • Certain government agencies and not-for-profit organizations.

    Some small businesses and entities that are not reporting entities may be allowed to prepare simplified financial reports under the Reduced Disclosure Requirements (RDR) framework.

    Recent Developments

    The AASB regularly updates standards to keep pace with changes in global accounting practices and to address emerging economic realities, such as:

    • Climate-related financial disclosures.

    • Digital assets like cryptocurrencies.

    • Sustainability reporting initiatives.

    In recent years, there has also been a focus on simplifying financial reporting for smaller entities to reduce compliance costs while maintaining transparency.

    Conclusion

    Australian Accounting Standards form the backbone of financial reporting in Australia. They not only uphold the integrity of financial information but also ensure Australia’s financial reporting practices remain globally relevant. For businesses, legal professionals, and investors, understanding and applying these standards correctly is critical to operating successfully in the Australian economy.

    If you are in need of an accountant, please contact S & H Accountants, we are based in Cranbourne and Cheltenham. We have a team of very well qualified, extremely professional and vastly experienced individuals who prioritise your needs and understand your tax obligations. To book an appointment please contact us on 03 8759 5532 or you can call us on info@sahtax.com.au

  • The Importance of Accountants in Australia

    The Importance of Accountants in Australia

    Accountants play a crucial role in the financial landscape of Australia, contributing to the smooth functioning of businesses, individuals, and the nation’s economy as a whole. From small businesses to large corporations and individual tax returns, accountants provide essential services that ensure financial accuracy, compliance with regulations, and strategic advice that drives growth. Their expertise is indispensable across various sectors, highlighting the immense value they bring to the table.

    The Role of Accountants in Australia

    Accountants in Australia are responsible for a wide range of financial services, including bookkeeping, auditing, tax preparation, financial reporting, and consulting. They act as trusted advisors, helping individuals and businesses navigate the complexities of the Australian financial system. Below are some of the key areas where accountants have a significant impact:

    1. Taxation Services

    One of the primary responsibilities of accountants is managing taxation matters. In Australia, tax laws can be intricate and subject to change, which can be a challenge for individuals and businesses to navigate without expert help. Accountants ensure that their clients comply with the Australian Taxation Office (ATO) regulations, avoid penalties, and take advantage of any tax deductions or incentives available.

    Taxation services also include preparing and filing personal income tax returns, business activity statements (BAS), and ensuring that businesses remain tax-efficient. Accountants can also advise on complex matters such as Goods and Services Tax (GST), payroll tax, and superannuation contributions.

    2. Financial Reporting and Analysis

    Accountants assist businesses with accurate financial reporting, which is crucial for decision-making and operational efficiency. These reports include profit and loss statements, balance sheets, and cash flow statements, which provide an overview of a company’s financial health. Accurate financial reports help management assess performance, make informed decisions, and present data to stakeholders such as investors and creditors.

    For larger businesses, accountants often help with financial forecasting and budgeting, ensuring that the organization remains on track and adapts to changing market conditions.

    3. Business Advisory Services

    Beyond traditional accounting tasks, many accountants in Australia act as business advisors. They provide valuable insights into business strategy, cost management, and growth opportunities. Accountants work closely with business owners to develop strategies for increasing profitability, managing risks, and improving operational efficiency. They may also advise on business structures, mergers and acquisitions, or financing options to help companies grow sustainably.

    4. Audit and Assurance Services

    Auditing is another key function of accountants in Australia. An audit is an independent evaluation of a company’s financial records and processes to ensure they are accurate and in compliance with accounting standards and regulations. For many companies, especially public-listed companies, audits are a legal requirement to ensure transparency and accountability to stakeholders. Accountants also provide assurance services that give stakeholders confidence in the integrity of the financial information being presented.

    5. Compliance and Regulatory Guidance

    Australia has a rigorous regulatory framework for businesses and individuals, and accountants are essential in ensuring compliance with various laws and standards. This includes adhering to the Corporations Act, Australian Accounting Standards, and tax regulations, as well as specific industry requirements. Accountants help businesses avoid costly mistakes by ensuring they comply with regulatory requirements, reducing the risk of legal issues or financial penalties.

    6. Superannuation Management

    For individuals, managing superannuation (Australia’s pension system) is another key area where accountants play an important role. Accountants assist individuals with superannuation contributions, investment strategies, and retirement planning. They ensure that individuals are meeting their superannuation obligations while also maximizing the value of their superannuation savings for a comfortable retirement.

    Why Accountants Are Crucial for Australian Businesses

    Businesses in Australia, from startups to established enterprises, rely heavily on accountants to maintain financial health and comply with the law. Without the expertise of accountants, businesses would struggle to stay afloat in an ever-evolving financial and regulatory environment.

    Some of the key benefits accountants bring to businesses include:

    • Financial Management: Accountants help businesses maintain proper bookkeeping, manage cash flow, and ensure accurate financial reporting, which is essential for sustainable growth.

    • Strategic Advice: Accountants offer insights into cost reduction, investment opportunities, and strategic planning, helping businesses remain competitive in their industry.

    • Tax Efficiency: Accountants can help businesses minimize their tax liabilities through proper planning, tax-effective investment strategies, and identifying eligible deductions and credits.

    • Risk Management: Accountants are skilled in identifying and managing financial risks, ensuring that businesses are well-positioned to weather economic downturns or unexpected challenges.

    The Value of Accountants to Individuals

    For individuals, accountants offer more than just tax preparation. They are key players in personal financial planning, helping with wealth management, estate planning, and investment strategies. Accountants guide individuals in optimizing their financial decisions, such as when to make significant investments or how to structure personal finances to reduce tax liabilities.

    Additionally, accountants assist individuals with retirement planning by offering advice on superannuation and creating a comprehensive plan to ensure financial security in later years.

    Conclusion: Accountants as Pillars of the Australian Economy

    Accountants in Australia are indispensable for the smooth operation of businesses and the financial well-being of individuals. They ensure tax compliance, provide strategic advice, manage financial reporting, and help businesses thrive in an increasingly complex financial landscape. With their deep expertise, accountants not only help their clients achieve financial goals but also contribute to the overall economic stability and prosperity of the nation.

    Whether it’s through efficient tax management, providing business advice, or guiding individuals toward better financial decisions, accountants play a central role in shaping the financial future of Australia. Their services remain vital to ensuring that individuals and businesses remain compliant, financially healthy, and positioned for long-term success. If you are in need of an excellent accountant, contact S & H Accountants on 03 8759 5532 or you can also email us on info@sahtax.com.au.

  • What are the different type of taxation obligations in Australia

    What are the different type of taxation obligations in Australia

    Different Types of Taxation Obligations in Australia

    Australia, like many countries, relies on a robust tax system to fund essential public services, infrastructure, and social welfare programs. The Australian taxation system is progressive and multifaceted, with different taxes imposed at the federal, state, and local levels. Understanding the various types of tax obligations is essential for individuals, businesses, and organizations to ensure compliance and optimize their financial planning. In this article, we’ll explore the different types of taxation obligations in Australia, highlighting the major taxes and how they affect taxpayers.

     

    1. Income Tax

    Income tax is one of the primary forms of taxation in Australia. It is levied on the earnings of individuals, businesses, and corporations, and is a major source of revenue for the government. The Australian Taxation Office (ATO) is responsible for administering income tax.

    • Personal Income Tax:
      • Individuals in Australia are taxed on their taxable income, which includes wages, salaries, business income, investment income, and certain government benefits.
      • The income tax system in Australia is progressive, meaning the rate of tax increases as income rises. The rates for individuals (as of the 2023-2024 financial year) range from 0% for income below a certain threshold, to 45% for income above AUD 180,000. There is also a Medicare Levy of 2% applied to most taxpayers’ income, which helps fund the country’s public health system.
      • Taxable income can be reduced by deductions for work-related expenses, charitable donations, and certain other expenses, as well as tax offsets for eligible individuals.
    • Corporate Income Tax:
      • Australian companies pay tax on their profits, with the standard corporate tax rate being 30%. Small businesses with an annual turnover of less than AUD 50 million may qualify for a lower tax rate of 25%.
      • Companies can also claim deductions for legitimate business expenses, such as wages, rent, and operating costs, to reduce their taxable income.

    2. Goods and Services Tax (GST)

    Goods and Services Tax (GST) is a value-added tax applied to most goods and services sold in Australia. It is one of the most widely encountered taxes for businesses and consumers alike.

    • GST Rate: The standard rate for GST is 10%, which is added to the price of most goods and services.
    • Who Pays GST: The tax is ultimately paid by the consumer, but businesses are responsible for collecting and remitting it to the ATO. Businesses that are registered for GST must charge GST on their taxable sales and can claim GST credits for the GST paid on business-related purchases.
    • GST Exemptions: Some goods and services are exempt from GST, including certain healthcare services, educational courses, and basic food items.

    3. Payroll Tax

    Payroll tax is a state-based tax levied on businesses with a certain level of payroll. This tax is paid to the state or territory in which the business operates, not the federal government.

    • Who Pays: Employers are required to pay payroll tax if their total taxable wages exceed the threshold set by the state or territory in which they operate. This threshold can vary significantly from state to state, but in many places, it starts around AUD 1.5 million annually.
    • Rate: The payroll tax rate typically ranges from 4% to 6%, depending on the jurisdiction. For example, in New South Wales, the rate is 5.45%, while in Victoria, it is 4.85%.

    4. Capital Gains Tax (CGT)

    Capital Gains Tax (CGT) is a tax on the profit made from the sale of certain assets, such as real estate, shares, and business assets.

    • Who Pays CGT: Both individuals and businesses are subject to CGT when they dispose of an asset and make a capital gain. The tax is calculated on the difference between the asset’s purchase price (or cost base) and the sale price.
    • Exemptions: Primary residences are generally exempt from CGT (though there are exceptions), as are certain assets held for longer than 12 months, which may qualify for a 50% discount on the capital gain.
    • Taxable Event: The tax is triggered when the asset is sold or otherwise disposed of, such as when it is gifted or transferred.

    5. Fringe Benefits Tax (FBT)

    Fringe Benefits Tax (FBT) is a tax paid by employers on certain non-cash benefits provided to their employees or associates. This tax is designed to capture benefits that are provided in lieu of salary or wages, such as company cars, low-interest loans, or subsidized housing.

    • Who Pays: The employer is responsible for paying the FBT, not the employee. However, the cost of FBT can influence an employer’s decision to provide fringe benefits.
    • Rate: The current FBT rate is 47%, which reflects the total grossed-up value of the benefits provided to employees.

    6. Stamp Duty

    Stamp duty is a tax levied by state and territory governments on certain legal documents and transactions, such as the transfer of property and vehicles.

    • Property Stamp Duty: When purchasing property, buyers must pay stamp duty, which is calculated as a percentage of the property’s purchase price or market value. The rate varies between states and can be a progressive tax, where the rate increases as the property value rises.
    • Vehicle Stamp Duty: Buyers of new or used vehicles must also pay stamp duty, based on the value of the vehicle or its market price.

    7. Superannuation Contributions Tax

    In Australia, superannuation is a system that requires employers to contribute a portion of employees’ wages into a superannuation fund to support the employee’s retirement. Contributions to super are taxed at a lower rate than ordinary income.

    • Employer Contributions: Employers must contribute 11% of an employee’s earnings (as of 2023) into a superannuation fund. This is known as the Superannuation Guarantee (SG).
    • Tax on Contributions: Contributions made by employers to employees’ super accounts are taxed at a flat rate of 15% for most people, which is lower than the individual income tax rates. However, individuals earning more than AUD 250,000 per year are subject to an additional 15% tax on contributions above this threshold.

    Conclusion

    Australia’s tax system is comprehensive and designed to cater to various aspects of personal, business, and economic activity. Understanding the different types of tax obligations—such as income tax, GST, payroll tax, and others—is essential for ensuring compliance with the law and minimizing the risk of penalties. For individuals, businesses, and investors alike, staying informed about the changing tax landscape and seeking professional advice when needed can help make the most of available tax deductions and exemptions, ultimately contributing to a more efficient and fair tax system for all Australians.

    If you need assistance in makings sure which tax obligations are eligible for you, then please contact S & H Tax Accountants today. We have an excellent team of well-qualified, vastly experienced and very professional individuals. Book an appointment today with S & H Tax Accountants as we prioritise your growth, call us on 03 8759 5532 or you can email us on info@sahtax.com.au

  • Australian Securities and Investment Commission (ASIC)

    Australian Securities and Investment Commission (ASIC)

    The Australian Securities and Investments Commission (ASIC): Ensuring Fair and Transparent Financial Markets

    The Australian Securities and Investments Commission (ASIC) is the national regulatory authority responsible for overseeing and regulating financial markets, institutions, and consumer protection in Australia. As one of the key pillars of Australia’s financial regulatory framework, ASIC plays an essential role in maintaining the integrity and stability of the country’s financial system. This article will explore ASIC’s key functions, responsibilities, and impact on the Australian financial landscape.

    Overview of ASIC

    ASIC was established in 1998 following the consolidation of several earlier regulatory bodies. It operates under the Australian Securities and Investments Commission Act 2001 and reports directly to the Treasurer of Australia. The Commission’s headquarters are located in Sydney, with offices across the country, ensuring its ability to supervise and regulate Australia’s diverse and dynamic financial environment.

    ASIC is an independent statutory body that is empowered to enforce laws and regulations, monitor financial markets, and protect investors. It has broad authority over a range of financial entities and activities, including stock exchanges, investment banks, insurance companies, financial advisers, and superannuation funds.

    Key Functions and Responsibilities

    ASIC’s role is multifaceted, but its key responsibilities can be broadly categorized into regulation, enforcement, and consumer protection.

    1. Regulation of Financial Markets

    ASIC oversees Australia’s financial markets to ensure that they operate fairly, efficiently, and transparently. It is responsible for enforcing market rules that promote integrity and prevent market manipulation, insider trading, and other unethical practices. ASIC works closely with other regulatory bodies, including the Reserve Bank of Australia (RBA), Australian Prudential Regulation Authority (APRA), and Australian Competition and Consumer Commission (ACCC), to maintain a stable financial environment.

    One of ASIC’s most important roles is its oversight of the Australian Securities Exchange (ASX), the primary securities exchange in Australia. The Commission ensures that listed companies comply with corporate governance rules, disclosure requirements, and financial reporting standards. It also monitors trading activities to detect and prevent illegal practices like insider trading and market manipulation.

    2. Financial Services Licensing and Supervision

    ASIC is responsible for granting licenses to financial services providers in Australia. This includes investment advisers, brokers, fund managers, and insurance companies. To receive a license, these entities must demonstrate compliance with rigorous standards relating to honesty, competence, and financial soundness.

    Once licensed, financial service providers are subject to ASIC’s ongoing supervision. This includes ensuring they adhere to Corporations Act provisions, such as those concerning disclosure of fees, conflicts of interest, and fiduciary duties. ASIC also works to ensure that these businesses maintain appropriate conduct when dealing with investors and consumers.

    3. Consumer Protection

    One of ASIC’s central objectives is to protect consumers from financial harm. This includes safeguarding individuals from misleading financial advice, fraudulent investment schemes, and other unfair practices. ASIC enforces strict rules governing advertising and financial promotions to ensure they are not deceptive or misleading.

    ASIC also educates consumers about their rights and responsibilities in financial transactions. It provides resources on topics such as investment risk, superannuation, credit, and financial literacy. Its MoneySmart website is a key tool for empowering Australians with the knowledge to make informed decisions about their finances.

    In addition, ASIC handles consumer complaints and disputes regarding financial services. It has the authority to take action against businesses that engage in unethical conduct or fail to meet their obligations under the law.

    4. Enforcement of Financial Laws

    ASIC is empowered to take enforcement action against individuals and entities that violate Australian financial laws. This includes initiating investigations into suspected corporate wrongdoing and bringing enforcement actions before the courts.

    ASIC’s enforcement powers are broad and include penalties such as fines, disqualification from director positions, and criminal charges. It can also take civil action to seek financial compensation for affected investors. Over the years, ASIC has successfully prosecuted high-profile cases involving corporate fraud, market manipulation, and breach of fiduciary duties.

    ASIC’s Approach to Regulation

    ASIC employs a risk-based approach to regulation. This means it prioritizes its efforts based on the potential risk posed by financial products, services, and practices. By identifying areas of high risk, ASIC can allocate its resources effectively to protect investors and ensure the stability of the financial system.

    ASIC has also embraced technological advancements and modern regulatory practices. For example, it has adopted data analytics tools to monitor market behavior in real time and identify unusual trading patterns. Additionally, it is increasingly focused on fintech (financial technology) and regtech (regulatory technology), leveraging technology to streamline regulatory processes, improve compliance, and promote innovation in the financial services industry.

    Key Achievements and Challenges

    Achievements:

    • Stronger Corporate Governance: Through its oversight, ASIC has contributed to significant improvements in corporate governance standards across Australian companies. It has worked to ensure that listed companies meet high standards of transparency and accountability in their financial reporting.
    • Prosecution of Financial Misconduct: ASIC has led numerous high-profile legal actions against entities involved in financial misconduct, including corporate fraud, insider trading, and breaches of duty. This enforcement has sent a strong message that financial misdeeds will not be tolerated.
    • Investor Education and Protection: ASIC’s commitment to consumer education through initiatives like MoneySmart has empowered Australians to make better financial decisions and protect themselves from scams and fraud.

    Challenges:

    • Adapting to Technological Change: The rise of fintech and cryptocurrency markets has presented new regulatory challenges for ASIC. It has had to adapt its regulatory frameworks to keep pace with these emerging technologies while ensuring the protection of consumers and the integrity of financial markets.
    • Resource Constraints: Despite its broad mandate, ASIC has sometimes faced criticisms about insufficient resources to tackle the scale and complexity of its regulatory responsibilities. Some stakeholders argue that ASIC could do more to prevent misconduct before it happens, rather than reacting after the fact.

    ASIC in the Global Context

    ASIC is an active participant in the international regulatory community. It is a member of key global bodies such as the International Organization of Securities Commissions (IOSCO) and the Financial Stability Board (FSB), and it works collaboratively with regulatory authorities in other countries. This international cooperation is particularly important given the increasingly global nature of financial markets and cross-border financial crimes.

    Conclusion

    The Australian Securities and Investments Commission (ASIC) plays a crucial role in maintaining the integrity, stability, and fairness of Australia’s financial markets. Through its regulatory oversight, enforcement activities, and commitment to consumer protection, ASIC ensures that financial markets operate efficiently and transparently. While the challenges facing ASIC are evolving, particularly with the advent of new technologies, the Commission remains an essential body for safeguarding the interests of Australian investors and consumers, ensuring a robust and well-functioning financial system for the future.

  • Business Activity Statement

    Business Activity Statement

    Understanding the Business Activity Statement (BAS) in Australia

    In Australia, businesses registered for Goods and Services Tax (GST) are required to lodge a Business Activity Statement (BAS) periodically. The BAS is a key document for reporting tax obligations, including GST, Pay As You Go (PAYG) withholding, PAYG instalments, Fringe Benefits Tax (FBT), and other levies to the Australian Taxation Office (ATO). It helps ensure that businesses comply with their tax responsibilities and avoid penalties for late or incorrect reporting.

    In this article, we will explore what the BAS is, why it is important, how to complete it, and the deadlines for lodging it.

    What is a Business Activity Statement (BAS)?

    A Business Activity Statement (BAS) is a form that businesses use to report their tax obligations to the ATO. Depending on the size and type of business, it can be lodged monthly, quarterly, or annually. The BAS provides a way for the ATO to track taxes collected and paid by businesses, such as GST, as well as other tax liabilities.

    Key Purposes of the BAS:

    1. Reporting GST: Businesses collect GST on their sales and pay GST on their purchases. The BAS allows businesses to report the difference between the GST collected and the GST paid.
    2. PAYG Withholding: Employers must report amounts withheld from their employees’ wages for income tax purposes.
    3. PAYG Instalments: Businesses may be required to make periodic tax payments based on their income or profits.
    4. Fringe Benefits Tax (FBT): If a business provides fringe benefits to employees, such as cars or other non-salary benefits, they must report and pay any applicable FBT.

    Why is the BAS Important?

    1. Tax Compliance: The BAS helps businesses meet their legal obligations for taxes like GST, PAYG, and FBT. Failing to lodge a BAS on time or incorrectly reporting tax can lead to penalties and interest charges.
    2. Cash Flow Management: The BAS provides a clear overview of taxes owed and taxes paid, helping businesses manage their cash flow. By regularly submitting the BAS, a business can stay on top of its financial position.
    3. Avoiding Penalties: The ATO imposes penalties for late submission or inaccurate reporting. Lodging your BAS on time ensures your business avoids these financial consequences.
    4. Claiming GST Credits: By reporting the correct GST on purchases and sales, businesses can claim GST credits for the tax they’ve paid on business-related expenses. This can reduce the amount of GST payable to the ATO.

     

    BAS Lodgement Frequency

    Businesses must lodge their BAS according to the frequency set by the ATO. The frequency depends on the business’s annual turnover and its GST registration status.

    1. Monthly: Larger businesses with an annual turnover of $20 million or more generally lodge their BAS monthly.
    2. Quarterly: Most businesses with a turnover under $20 million lodge their BAS quarterly. The quarters are:
      • 1st quarter: July – September
      • 2nd quarter: October – December
      • 3rd quarter: January – March
      • 4th quarter: April – June
    3. Annually: Some small businesses with a turnover under $75,000 (for non-GST registered businesses) or those that are specifically approved can lodge their BAS annually.

     

    Penalties for Late BAS Lodgement

    Failing to lodge your BAS on time can result in penalties from the ATO. The penalty depends on factors like the size of the business, how late the submission is, and whether the business has a history of non-compliance.

    The ATO may also charge interest on unpaid taxes or late payments, which can add up over time.

    If you are unable to meet the BAS deadline, it is advisable to contact the ATO and explain your situation. In some cases, the ATO may grant an extension or offer a payment plan to help with cash flow issues.

    Conclusion

    The Business Activity Statement (BAS) is a vital component of tax reporting for Australian businesses. It ensures compliance with GST, PAYG, FBT, and other tax obligations. Whether you are a small business owner or part of a large corporation, understanding how to correctly complete and lodge your BAS is crucial to avoid penalties, maintain good standing with the ATO, and manage your business finances effectively.

    By staying organized, keeping accurate records, and ensuring timely lodgement, businesses can not only meet their tax obligations but also gain a better understanding of their financial position, which helps them plan for future growth. Need assistance with your Business Activity Statement’s call S & H Tax Accountant’s today. We offer great service to all of our client’s and have a well equipped team. Book an appointment today, call us on 03 8759 5532 or you can send us an email on info@sahtax.com.au

  • NDIS PLAN MANAGEMENT

    NDIS PLAN MANAGEMENT

    Understanding NDIS Plan Management: A Guide to Maximising Your Supports

    The National Disability Insurance Scheme (NDIS) is Australia’s leading disability support program, designed to help individuals with disabilities live more independent and fulfilling lives. One of the key features of the NDIS is the flexibility it offers in how participants manage their funding and access the supports they need. For many, understanding the different ways to manage an NDIS plan is crucial to ensuring that the full potential of the scheme is realised. This article explores NDIS Plan Management—what it is, how it works, and how it can benefit NDIS participants.

     

    What is NDIS Plan Management?

    Plan management refers to the way in which NDIS funding is administered and the supports are accessed by participants. Under the NDIS, there are three primary ways to manage your plan:

    1. Self-management: You take full responsibility for managing your NDIS funds and engage with service providers directly.
    2. Agency management: The NDIS agency (NDIA) manages your plan, and service providers are paid directly by the NDIA.
    3. Plan management: A third-party provider (a Plan Manager) helps you manage your NDIS funds. This is a middle ground between self-management and agency management, offering greater flexibility without the full responsibility of self-management.

     

    How Does NDIS Plan Management Work?

    When you choose plan management, a registered Plan Manager is appointed to help you manage your funding. The role of the Plan Manager is to support you with:

    • Financial Administration: The Plan Manager handles all the invoicing, payments, and budget tracking. They ensure that your service providers are paid promptly, helping you stay on top of your NDIS budget and reducing administrative burden.
    • Budgeting and Reporting: Your Plan Manager provides you with regular updates on how much of your NDIS budget you have spent and what remains. This ensures that you can track your expenses and adjust your spending to avoid running out of funds before the end of the plan.
    • Accessing Providers: While you still choose your service providers, your Plan Manager can help you identify appropriate providers, negotiate prices, and ensure that they meet the requirements of the NDIS. They also handle the processing of claims to ensure that providers are paid correctly.
    • Support and Guidance: Plan managers often offer advice on how best to use your NDIS funding, navigate the NDIS system, and explore all available options for support. 

    Conclusion

    NDIS Plan Management offers an ideal balance of flexibility and support for many participants. It simplifies the administrative and financial side of accessing disability services while allowing you to maintain control over your supports and budget. By choosing a registered Plan Manager, you can ensure that your NDIS plan runs smoothly, making it easier to focus on achieving your goals and living an independent life. If you need assistance with NDIS Plan management then please contact S & H Tax accountants, you can book in appointment with us, call us on 03 8759 5532 or you can send us an email on info@sahtax.com.au

     

     

     

     

  • 4 end of the year financial planning tips

    4 end of the year financial planning tips

    The end of the year is typically a reflective time. Something about that lull between holiday festivities and New Year’s Eve sets the stage for introspection and review. While you’re busy reflecting on the year that’s ending and the new one about to begin, make sure you take some time to consider your finances.

    Here are some financial tasks that should be on your must-do list before the calendar rolls over. Read on for some items that really can’t wait.

    1. Take stock of your financial plans

    If you have formal financial plans, take a step back and assess how they’re working for you. If you have a real document in place, that’s great. If your financial plan consists of a loose set of ideas in your head, that’s okay – but consider making that plan a little more concrete for the new year.

    Has anything in your life changed since the beginning of the year? Marriage, the birth of a child, or a change of career are all reasons to revise your financial plans. Or maybe you’re navigating a job loss, an unexpected illness, or the loss of a loved one. Your plan from the beginning of the year may not resonate anymore, for a variety of reasons.

    A lot can change in the course of a year. It’s okay if things change, but it’s important for you to shift as necessary. Your financial plan is a living document and should be updated accordingly. Take some time to reassess and adjust your plan as needed based on what’s happened in the past year.

    2. Check your progress on your goals

    If you’ve been saving for a large purchase or committed to making contributions to a savings account, check how that’s going. It’s easy in January to say that this is the year it’s finally going to happen for you. But it doesn’t mean a lot if you don’t check how you’re doing by year’s end.

    If you made your goals, that’s great! If they fell by the wayside, take a look at what you could have done differently. Or, take some time to set a goal that’s more manageable so that you can get that sense of accomplishment next December.

    3. Review your spending and saving habits

    This is going to be a lot of fun if you made significant contributions to your savings accounts this year. The sense of accomplishment will give you some much-needed momentum to carry those habits into the new year.

    If, however, you were a little more skilled at spending than saving, it might be time to have a talk with yourself. Take a look at where your money went, and if it didn’t go to something that makes you proud, reconsider those habits for next year.

    Yes, it’s hard to deny yourself the things you want. But it’s terrible to be caught without any savings when you need them.

    4. Consider your contributions

    There are many accounts that benefit from a contribution before the year is over. Retirement or education savings plans would be good examples – or a tax-free savings account. This is also a good opportunity to review your charitable giving goals.

    Final Thoughts

    The end of the year is a time of change and new resolutions, but before you do take a look back. Check your progress over the past year – it’s the only way to know if your goals are working out. Before you make new ones, see how you did on the ones you set at this time last year.

    The post 4 end of the year financial planning tips appeared first on Universal Content Master.

    Although the end of the year has finished, it is a good time to sit down with your accountant to make sure that you are ready for the new financial year ahead. S & H Accountants offer tax planning as well all taxation services, we do not only offer this services to individuals but also businesses, trusts and companies. Our staff are very well-qualified, extremely proffesional and vastly experienced. We always aim to provide our clients with the best level of service possible. Book an appointment today, call us at 03 8759 5532 or you can email us on info@sahtax.com.au

  • Finding the right fit: How to choose the right financial planner for you

    Finding the right fit: How to choose the right financial planner for you

    No matter what your financial goals are, consulting with a financial planner can help just about everybody. Not only will they help you refine your goals, they’ll guide you in creating strategies for your money, and keep you accountable to your plan. They’ll also help you navigate different saving and investment strategies, so you know your money is working for you.

    They’ll also make sure you have the information you need to make the best financial decisions for your circumstances, so you can grow your wealth and increase your financial security.

    If you’re looking for a financial planner, these tips can help you find the best person to meet your unique needs.

    Be clear about your goals

    Most people’s big financial goals fall into the following areas:

    • Retirement
    • Buying a home
    • Paying for higher education (for themselves or their children)

    But along the way a lot of other events come up that pull our financial focus, such as buying a car, paying for a trip, or covering expensive home repairs. Whether your goal is to build up your emergency savings account, pay for the trip of a lifetime, or fund your retirement, a financial planner can help you allocate your money wisely.

    Before you start searching for a financial planner, list your financial goals, long-term and short-term. That will give you the framework for finding someone whose expertise matches your objectives.

    Check their qualifications

    There’s no shortage of financial planners out there to choose from – but not every planner is licensed, or has the right credentials, training, or experience to meet your needs.

    With your goals in mind, start researching financial planners in your area who hold relevant professional designations and appropriate qualifications. Check online to see if there’s a complaint record against them, or information that doesn’t match the claims they make. Where you find the complaint record may depend on the government body that oversees their work.

    Ask your friends and family for referrals – ideally people you trust who are in the same stage of life as you are. Visit each financial planner’s website and look for testimonials from people whose circumstances are similar to yours. Double check with the appropriate certifying body that they have the required qualifications.

    Ask questions

    Make a list of candidates and interview at least three financial planners. When you do, ask what qualifications they have, what their approach is, what services they include, and how they can help you achieve your goals.

    Additionally, inquire about

    • what products they offer (and make sure they have the proper certifications to sell them),
    • how they’ll keep you informed,
    • how they decide on appropriate investments or strategies for their clients,
    • whether they’ve ever been disciplined by a regulator (again, you can often verify their answer to this last question online), and
    • how they’ve helped clients in situations similar to yours.

    Find out their payment structure

    Financial planners may charge you for services in a variety of ways, including:

    • An hourly fee
    • A fee based on the value of your assets under their management
    • A commission or trading fee based on buying stock or investments for you
    • A salary from their employer (such as those who work through banks)
    • Statement of Advice fee — A one-off fee for preparing your Statement of Advice. This fee is either paid up-front and deducted from your investments, or added to ongoing fees for service.

    You need to know how they’re paid and what they charge so you can determine if their advice is in any way influenced by outside factors.

    Final thoughts

    Whether you’re looking for help with investment planning, estate planning, retirement planning or other financial guidance, choosing the right financial planner is key to you taking control of your finances. You want someone who understands your financial goals, is experienced in the areas you want guidance, and who you feel comfortable talking openly with. S & H Accountants are the one for you, we offer financial and tax planning, as one of our services. Contact us today to book a consultation with one of our experienced staff members. Call us on 03 8759 5532 or you can email us on info@sahtax.com.au.