Allocating profits in a professional firm
Allocating Profits within Professional Firms The allocation of profits within Professional Firms, such as accounting, architectural, engineering, financial services, legal and medical professions, continues to be under close scrutiny by the ATO. In 2015 the ATO issued guidelines for practitioners outlining how its general anti-avoidance legislation could apply to professional firms that allocate profits from […]
Dissolving a business partnership
A business partnership can break down for a number of reasons, but knowing what to do next, including your legal and financial obligations, is important. The termination of a partnership is referred to as a ‘dissolution’. If you’re looking to dissolve your business partnership, here’s everything you need to know, whether you have a partnership […]
Super guarantee health check
We thought it would be a good idea to remind employers of their obligation to pay superannuation guarantee contributions – currently at a minimum rate of 9.5% of ordinary time earnings on behalf of all eligible workers earning $450 or more before tax in a calendar month. Employees include company directors who receive payments in […]
Debt review and analysis
What is debt review? Debt review aims to restructure the process of paying your debt. A professional will assess your outstanding debt and will implement a restructured debt repayment plan. This can be done by renegotiating interest rates with credit providers and extend your debt repayment terms. It is important that you are honest during […]
Deed of Company Arrangement
What is a deed of company arrangement? A deed of company arrangement (DOCA) is a binding arrangement between a company and its creditors that governs how the company’s affairs will be handled if the company is at a risk of becoming insolvent or has already entered into voluntary administration. A DOCA can be used to […]
Cash flow management ideas
What is cash flow and why is it important? Cash flow is the total amount of money that you have coming in to your business from revenue and going out for expenses. Managing cash flow is an essential part of running a business. It is particularly important for new businesses because if you can’t manage […]
What qualifies for safe harbour protections?
The insolvent trading law, as seen from the eyes of the Australian business community, was verging on draconian, penalising business failure heavily and stigmatising corporate insolvency beyond salvage. If, despite the best of plans, a business was heading for failure, the director had all the incentives to act conservatively rather than take bold decisions to lead the […]
Voluntary Administration for Creditors
Voluntary administration is executed over a series of steps, beginning with the decision to enter into voluntary administration, proceeding with the appointment of an administrator who investigates the status of the organisation, and culminating in creditors meeting to decide future courses of action. Let’s consider these processes in detail. Why is voluntary administration necessary? The […]
How much to retire?
The question of how much a person needs to have saved before confidently launching into their retirement years very much requires an individual answer. The more the better may seem to be an obvious response, but then again each one of us lucky enough to reach the brink of those golden years will feel a […]
Safe Harbour for Directors
It’s not unusual for company directors to fall into the trap of insolvent trading in an attempt to save their company from liquidation. And while this practice is illegal, in recent years new legislation has been introduced to protect company directors who are trying to turn their business around. This legislation is called ‘Safe Harbour’. […]
