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Millenial & Gen Z – Preparing For The Future With Superannuation

Posted on May 12, 2024 by admin

Millennials and Gen Z are facing some of the most difficult challenges when it comes to financial priorities.

Between paying off HECS debts/HELP loans and saving for a first home, these immediate concerns can often overshadow long-term goals like retirement planning.

Amid these immediate concerns, it’s easy to overlook long-term goals like retirement planning.

However, when it comes to securing our financial future, superannuation planning should be a top priority. Superannuation planning is crucial for millennials, and starting early can significantly impact your retirement security.

Starting Early: The Power of Compound Interest

One of the most compelling reasons millennials and Gen Z should prioritise superannuation planning is the power of compound interest. You can use compound growth over time by starting early and consistently contributing to our superannuation funds.

Compound interest allows savings to grow exponentially, as interest is earned not only on the initial contributions but also on the accumulated interest over time. This means that the earlier you start contributing to our superannuation funds, the more time our investments have to grow, ultimately leading to a larger retirement nest egg.

Maximising Savings: Strategies for Building Wealth

While starting early is key, maximising our superannuation savings requires strategic planning and disciplined saving habits. Millennials and Gen Z can use various strategies to boost their superannuation balances, such as salary sacrificing, making additional voluntary contributions, and taking advantage of government contributions.

Contributing more to your superannuation funds can set yourself up for a more financially secure retirement later.

Long-Term Impact: Building Retirement Security

Beyond the immediate benefits of starting early and maximising savings, superannuation planning is crucial in building long-term retirement security.

As millennials and Gen Z are undoubtedly aware, the advantage of time is on their side, allowing them to weather market fluctuations and take a long-term approach to investing.

By consistently contributing to your superannuation funds throughout your working lives, we can create a reliable source of income to support us in retirement and enjoy a comfortable lifestyle in our later years.

Moreover, with the rising cost of living and uncertainty surrounding government pension schemes, it’s more important than ever for millennials to take control of their financial futures through superannuation planning.

With active management of your superannuation investments and staying informed about changes in regulations and market trends, you can ensure that you are on track to achieve your retirement goals and maintain financial independence in your golden years.

Superannuation planning is a crucial component of financial planning for millennials and Gen Z alike, offering the opportunity to build wealth, take advantage of compound interest, and secure our financial futures.

By starting early, maximising savings, and taking a proactive approach to retirement planning, you can set yourself up for long-term financial success and enjoy a comfortable retirement lifestyle.

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The Instant Asset Write-Off Continues To The 2024-25 Financial Year

Posted on May 28, 2024 by admin

In a move aimed at bolstering small business cash flow and reducing compliance costs, the Government has announced an extension of the $20,000 instant asset write-off for another 12 months.

This extension, part of the 2024–25 Budget released on 14 May 2024, will see the measure continue until 30 June 2025.

This initiative allows small businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible assets costing less than $20,000. To qualify, these assets must be first used or installed and ready for use between 1 July 2023 and 30 June 2025.

Eligibility

Eligibility to use instant asset write-off on an asset depends on:

You are not eligible to use the instant asset write-off on an asset if your aggregated turnover is $500 million or more.

If temporary full expensing applies to the asset, you do not apply the instant asset write-off.

How Does It Work?

The $20,000 threshold applies on a per-asset basis, providing substantial flexibility for small businesses to acquire and immediately write off multiple assets. This can be particularly beneficial for businesses looking to upgrade equipment, invest in new technology, or make other capital improvements without the burden of prolonged depreciation.

The immediate deduction is unavailable for assets valued at $20,000 or more. However, these higher-cost assets can still be placed into the small business simplified depreciation pool. This method allows businesses to depreciate the asset at a rate of 15% in the first income year and 30% each year thereafter, providing a structured yet advantageous depreciation timeline.

The continuation of this measure is designed to aid small businesses by improving their cash flow and reducing the administrative burden associated with asset depreciation.

By allowing immediate deductions on lower-cost assets, the government aims to incentivise investment and growth within the small business sector. However, this will be dependent on the individual circumstances of businesses as to whether or not they may benefit from this measure.

What About The Legislation Of This Measure? 

It’s important to note that while these measures have been announced, they are not yet law. The Treasury Laws Amendment (Support for Small Business and Charities and Other Measures) Bill 2023, which includes provisions for the $20,000 instant asset write-off for the 2023–24 income year, is still before Parliament.

Once passed, this legislation will formalise the extension and ensure small businesses can continue to benefit from these deductions through to the new deadline of 30 June 2025.

The $20,000 instant asset write-off extension could be a significant boost for small businesses, providing immediate financial relief and encouraging ongoing investment in business growth and development.

Small business owners should monitor the legislative process to ensure they can take full advantage of these provisions once they become law.

Speak With Us

If you have any questions about this measure or if it would be suited for your business, why not speak with one of our trusted team for answers? We are here to assist you with any questions or enquiries you may have in the lead-up to the end of the financial year.

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