OUR BLOG

Private Capital Management's weekly blog articles on taxation, business issues, superannuation, service entities, financial planning, investments and more.
20 September 2017

Marriage and your will

Marriage usually means you need a new will. And if this is not your first marriage, then you may need a will that reflects that you have obligations in different directions.
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6 September 2017

Superannuation and Estate Planning

Superannuation is an often-forgotten area of estate planning. This article discusses the best ways to make sure your super goes where you want it to go when you don’t need it any more.
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23 August 2017

You and your business: time is your scarcest resource

One of the hardest things about running your own business is changing your mindset from what works for employees to what works for employers. Employees are usually paid for their time, and so they use time to measure how much work they get done. For the person owning the business, time is the wrong metric.
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9 August 2017

Your own business should be your most important investment

If you run a small business, or if you are thinking about doing so, then that business needs to be the foundation of all of your financial planning. After all, get the business right and you make all the other parts of your financial plan – your investing, your debt management, your super, your insurances – much more likely to succeed. This article gives you a little illustration of the powerful impact that effective business planning can have.
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26 July 2017

There’s no need to salary sacrifice any more…

Until now, salary sacrifice has been one of the only ways that an employee can make an extra tax-advantaged contribution into their super fund. But that changed on 1 July 2017. Now, almost everyone can make additional contributions without their employer even knowing – which might come in handy next time you ask for a pay rise!
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12 July 2017

Hitting your Superannuation Sweetspot

Recent changes to the assets test have increased the rate at which the aged pension is reduced when assets exceed a certain level. This has led to what some people describe as a superannuation sweetspot. Hitting this sweet spot can make a big difference to your retirement, so read on and contact us if you would like to discuss how you can hit your own sweetspot.
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29 June 2017

All about Super in 2017/2018

As the financial year draws to an end, our thoughts turn to the next one. Superannuation will look quite different in 2017/2018, and so we want to start the new financial year with a summary of the various rules that apply to your super. Please feel free to download our ‘Super summary’ and send it to anyone you think would benefit from it.
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22 June 2017

2017 Budget – Winners and Losers

Compared to previous years, the 2017 Budget was a bit of an anti-climax. In previous years, there have been a number of big-ticket changes - such as the big changes to superannuation that we have been discussing in recent articles. But this year there have simply been a whole lot of small changes, some of which will be of benefit and others will represent a small loss.
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2 June 2017

Superannuation changes from 1 July 2017 – Part 2

The 2016 Federal budget introduced a number of changes to superannuation. Many of these changes take effect on 1 July 2017. This week’s article follows on from our article of a fortnight ago. We continue to explore the coming changes and how you can ensure you are prepared for them. We hope you enjoy it!
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24 May 2017

Superannuation changes from 1 July 2017

The 2016 Federal budget introduced a number of changes to superannuation. Many of these changes take effect on 1 July 2017. This is just a few weeks away, so this is a good time to review the changes and decide if you need to make any adjustments to your super to minimise any negative effects of the changes.
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10 May 2017

Who gets your super when you no longer need it?

Most people do not own their super benefits. The benefits are owned by the trustee/s of the fund. You can organize things to make sure that these trustees do what you want with your super when you die. You can also organize things so that the people who end up with your benefits pay as little tax as possible. Read on to find out how.
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25 April 2017

ASIC’s review of life insurers and their payment of claims

In 2016, ASIC reviewed the performance of the major insurers when it came to paying insurance claims. The report makes for troubling reading, especially for people who organise their own insurances. The news was much better for people who used a financial adviser to help them arrange their insurances.
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11 April 2017

Insurance that you never knew you had

Many working Australians – or Australians who used to work – have insurance of which they are unaware. This can be a huge relief if ever something goes wrong and you cannot work. If you or someone you know has become unable to work, then this article is a must-read. And if you think you might need help with a claim, please make sure you contact us.
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28 March 2017

Positive Gearing. What is it, how does it happen and do you want it anyway

In property investing positive gearing is where the rent received exceeds the interest on money borrowed to finance the purchase. You often hear about positive gearing – especially from people with a property they want you to buy! But is positive cash flow property actually worth pursuing? The answer depends on what is creating the positive cash flow situation. Sometimes, these factors combine to make positive gearing a wonderful way to reduce risk. But at other times, the factors creating the positive gearing can make an investment very risky indeed. This article shows you how to tell the difference.
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23 March 2017

Borrowing to pay super contributions

Super contributions are a legitimate expense of a business. As long as the business uses a company structure, it can even borrow to make contributions on behalf of all of the staff – including the company directors. This can create a nice little tax saving that might not otherwise be possible.
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8 March 2017

Tax deductible debt

Did you know you can pay the same rate of interest to a bank – but that the actual cost to you of that debt will differ depending on whether the interest is deductible or not? This makes managing debts for tax effectiveness one of the most useful things any business owner or investor can do. This is a simple idea but it is important that you get the detail right. So, please read on and don’t hesitate to contact us if you would like to hear how you can take advantage of this simple mathematical truth.
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23 February 2017

A home for every child

If you already own a home, then the last 20 years have been wonderful. For you. But what about your kids? Around Australia, house prices have risen by more than 500% in the last 20 years. How will your kids be able to buy their home? Here is one simple solution.
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9 February 2017

Homes are the best investments for you and your kids

A family home is the starting point for any financial plan. It is also a fundamental part of a happy lifestyle – like your home, like your homelife, as they say. Over the next month, we will be showing you ways to get the most out of home ownership – both for yourself and for other people you might be worried about, like your adult kids. This article sets the scene.
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26 January 2017

Business Owners and Deductible Overseas and Interstate Travel

This article is a must-read for any business owner thinking about travel. Claiming a tax deduction for travel costs can make a huge difference to the effective cost of that travel. The Australian Taxation Office’s general position is that the cost of travel is tax deductible to the extent that the travel relates to the business' purpose of deriving assessable income from an existing business activity. A business can't claim costs for travel related to speculative business activities that you have not yet entered. But travel that relates to work that your business is already doing will usually be fine.
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19 January 2017

Tax Deductible On-Site Meals for Business Owners

Here is a great little tip to keep in mind for 2017. Most businesses owners work long or irregular hours and usually eat at least one meal a day at work. Provided it uses a company or trust, a business can often claim a tax deduction for meals that are eaten at work. Just make sure you eat your meal on site and do not serve alcohol with the meal.
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22 December 2016

The power of deductibility

At this time of year, many people are keen to make some sort of donation to charity. Here is a simple but powerful idea that will ensure any donation you give does as much good as possible
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12 December 2016

The list we all want to be on (and what it tells us about wealth)

Lists of the highest paid professions can be good fun. But they also tell us some fundamental truths when it comes to making money, whether we are running a business or deciding on investments. So, take a look and have a think about the most recent list of Australia’s best paid.
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2 December 2016

Market Update December 1 2016

If presidential elections are hard to predict, then how much harder is it to predict market reactions to those elections? The share market’s reaction to the Trump presidency might have ended well, but it defied logic along the way. The next four years could be very interesting.
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25 November 2016

Tax-free gifts for Christmas/End of year

The end of the year is almost here. Here is a great way to reward your staff - with a little bit of help from the taxman.
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18 November 2016

What is a median house price anyway?

You hear a lot of commentary about median house prices. But what is the median, exactly?
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11 November 2016

Listed but not tested

Companies don’t need to be profitable to list on the stock market. So, don’t be fooled into thinking that every share market listing is a sure thing.
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3 November 2016

Market summary – October 2016

A bad month for sellers is a good month for buyers. But you would never know from the headlines.

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28 October 2016

Non-aligned versus much (m)aligned

It is estimated that as few as 15% of financial ‘planners’ are not aligned with large institutions. A pity: being non-aligned is the only way to be a genuine adviser.
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19 October 2016

Shirley’s story

Where do you want to be when you turn 75?
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13 October 2016

ASIC review of life insurers paying claims

ASIC has recently found that some insurance companies are rejecting up to one-third of life insurance claims. Make sure yours is never one of them.
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7 October 2016

Share Market Update September 2016

The share market did very little for the month of September. But it was a different story when you expand your horizons a little bit further than that.
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29 September 2016

What will you do now
that interest rates are so low?

Why not make some hay while the sun is shining?
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21 September 2016

Flip-flopping on super

They changed the rules on non-concessional contributions. Then they changed them back. Sort of. But they did make them better. Than the new rules. Not the old ones.
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16 September 2016

Is the full aged pension going to be As Good As it Gets?

Research shows that the aged pension is all we have to look forward to, unless we act now.
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8 September 2016

25 years of economic growth

Australia’s economy is the strongest in the world. It makes sense to buy a piece of it.
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7 September 2016

Some good advice that’s boring

The problem with saving is that spending is so bloody easy. Make it harder to spend and watch your savings skyrocket.
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25 August 2016

A simple way to keep track of small business expenses

Dedicated-use credit cards make for a simple way to keep track of business expenses.
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18 August 2016

Helping adult kids buy homes

Most parents are keen to help their kids buy a home. There are good ways and not so good ways to do so.
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11 August 2016

Interest rate announcements

Ever wondered why interest rates go up and down?
Here’s why.
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4 August 2016

Business owners must start investing sooner rather than later

when you start investing is often more important than how much you start investing with.
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22 July 2016

Common tax deductions for business owners

Many business owners do not realise that their cars and travel are frequently deductible.
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22 July 2016

The best tax-free investment there is

Few people get anywhere financially without owning a tax-free property also known as a home.
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22 July 2016

When should you retire

A small delay in retirement has a large impact on your wealth.
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22 July 2016

What Australians do with their super

Australians are actually really sensible about accessing their super.
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22 July 2016

Super Splitting

Couples who stay together can still split their super – and end up better off by doing so.
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22 July 2016

Income protection insurance in super

Risk insurances need to be properly structured and insurers often need to be handled assertively.
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22 July 2016

Continuity of Cover

If there is no such continuity, the insured person may find themselves unable to make a claim.
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22 July 2016

Risk insurance mistake number 1…

Partial insurance is better than no insurance at all.
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22 July 2016

Choosing the Family Home

Things to consider when buying your family home.
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22 July 2016

Estate planning and family law

Marriages usually nullify wills, but divorces may not.
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22 July 2016

Superannuation and estate planning

Super benefits need to be managed separately to your other estate planning
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21 July 2016

Dollar cost averaging

Banks are like supermarkets. Write a list before you go shopping.
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21 July 2016

Investing is not a race

Active investment needs to beat the lying-down option.
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21 July 2016

Managing Student Loans

Banks are like supermarkets. Write a list before you go shopping.
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21 July 2016

Interest Offset Accounts

Sometimes debt does not need to be paid off; it simply needs to be offset.
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21 July 2016

Don’t Let the Bank Advise on Debt

Banks are like supermarkets. Write a list before you go shopping.
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21 July 2016

Marriage and The Family Business

Family businesses are often best-owned by someone who is already paying a high rate of tax.
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21 July 2016

Living to 100

Conservative is not what you think.
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21 July 2016

The Family Home and Residential Aged Care
Things to Consider

There are a number of things to think about when deciding whether and how to keep or sell the family home when you move into aged care.
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21 July 2016

The Family Home and Residential Aged Care
To Keep or not to Keep?

Keeping the family home when you move into aged care is well worth considering.
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17 July 2016

Russell Long Term Investing Report Property

Property remains a well-performed asset class – but you have to take a long-term view.
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8 June 2016

Insurances and superannuation

Some forms of risk insurance do well inside super. Some don’t. It is important to know which is which.
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1 June 2016

Russell Long Term Investing Report Shares

Shares. Long-term. Good results. Here’s why.
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26 May 2016

Budget 2016

Yep. It’s that time of year when they hand down the Federal Budget. See how it affects your finances.
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26 May 2016

What about the 4%ers?

The recent budget meant little for 96% of the population. But things will change for the 4% remaining.
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26 May 2016

Ten Steps to Great Financial Plan

Just what does it take to get your finances in order? Here is a simple ten point plan for doing just that.
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26 May 2016

Real Risks

Let’s take a look at the things that can really go wrong for you financially.
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17 May 2016

Why only some business owners end up wealthy

Owning your own business is the best way to become wealthy – but you have to get things right.
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1 May 2016

Business Advice

It is your most important asset. So, take a look at how your business is tracking. Is it as good as it could be?
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19 April 2016

Non-financial Financial Advice

Financial advice is more than just insurance and super. It is everything you do that involves money. Which means it is everything that you do.
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2 April 2016

Disabled children

Having disabled children can be expensive as well as demanding. But there is some tax relief that many people are not aware of.
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15 March 2016

A win on trees

“Agricultural” investments were terrible on all levels. But here is how one investor got their money back.
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1 March 2016

A child in every home

How much wealth should you aim for? Here is a simple rule of thumb.
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