Investing for Children

By on 15 Jun, 2024

Overview and Taxation Investing in your child’s future and teaching your child to do so represents not just a financial commitment, but a profound gesture of love and foresight. In Australia, parents and guardians are fortunate to have a myriad of options at their disposal for securing their children’s financial future. From educational savings accounts to trust funds, the choices are diverse and can be tailored to suit different needs and aspirations. However, navigating this landscape requires a keen understanding of investment strategies, tax laws, and the nuances of financial planning for minors. This guide is crafted to demystify the process of investing for children in Australia, offering a comprehensive overview of the available options, alongside key considerations, and strategies to maximise your investments’ potential while staying compliant with tax...

Company Evaluation

By on 27 Feb, 2024

A Comprehensive Guide to Evaluating Private Companies in Australia Evaluating a private company or a business in Australia can be a complex task due to the limited availability of financial information compared to publicly listed companies. However, a systematic approach to assessing a company’s financial health, industry positioning, and growth potential can provide valuable insights for business owners, investors as well as accountants, and advisors. This article will guide you through the key steps and considerations for evaluating a private company or business in Australia, helping you make well-informed decisions. It also aims to equip business owners with the knowledge of the basics that contribute to enhancing their business value, in preparation for their succession planning or business sale. 1. Understand the Company and Its Industry Before diving into financial...

Types of Shareholders

By on 31 Oct, 2023

Understanding the Different Types of Shareholders in a Company Introduction Shareholders play a crucial role in the structure and governance of companies, as they own a portion of the company through their investment in shares. In Australia, the two primary types of shareholders are common shareholders and preferred shareholders. Both shareholder types possess distinct characteristics, rights, and benefits. This article aims to provide an in-depth analysis of the differences between common and preferred shareholders in Australian companies. Common Shareholder Common shareholders are the most prevalent type of shareholders in Australian companies. They own what are known as ordinary shares, which represent an equity interest in the company. Common shareholders have several rights and privileges, which are outlined below. a) Voting Rights One of the most significant distinctions between...

Appointing and Removing Company Directors in Australia

By on 22 Sep, 2023

In Australia, companies are required to have at least one director who is responsible for managing the company’s affairs and making decisions on behalf of the company. Appointing and removing company directors is an important process that requires careful consideration and adherence to legal requirements. Compliance with legal obligations, adherence to the company’s constitution, and consideration of shareholders’ views are essential throughout these processes. In this article, we will discuss the steps involved in appointing and removing company directors in Australia. Before taking any action to remove a director from office, you should consult your company’s governing documents such as: your constitution, the shareholder agreement; and the rules under Part 2D3 of the Corporations Act 2001, or the Replaceable Rules under Part 2B4. It is important that your directors...

Technology and Skills Training – The 120% Deduction Rules

By on 26 Aug, 2023

Small Business Technology and Skills Boost – A Deeper Dive for SMEs Navigating the business landscape requires agility, especially when it comes to capitalising on financial opportunities. The recent 120% deduction on skills training and technology costs is one such opportunity for SMEs. To maximise its benefits, businesses must understand and act upon its nuances. Understanding the Significance This legislation isn’t just about tax reductions. It reflects a broader push for businesses to embrace digital transformation and invest in workforce development, aligning with global trends towards digitalisation and continuous learning. Eligibility Insights Business Turnover: The focus on SMEs with aggregate annual turnovers of less than $50 million ensures that budding enterprises, often with limited resources, can leverage technology and training to compete effectively in the...