Cashflow Management, Key Financial Controls & Funding: Construction Industry
Effective solutions for builders/large trades facing with challenges in ensuring that projects meet time and financial constraints. Historically, the construction industry has been a backbone of the economy of Western Australia and the recently announced home stimulus package has been received with much enthusiasm.
However, builders and large trades are often faced with challenges in ensuring that their projects meet time and financial constraints. To do this effectively, we will address key challenges in this webinar.
Key Take-Aways:
- What are some cashflow management issues pertinent in the industry?
- How do you ensure that your project does not over-run on costs?
- What are key financial indicators that project managers must keep a watchful eye on?
- How do you put in control measures to ensure that your project is ON budget?
- How can technology such as BuildXact help deliver cost controls and projections effectively for optimum job estimation and project management?
Our expert speakers delivered a webinar that will truly change the way you manage your projects and provide great ideas and insights to help you be on budget and keep you profitable.
JobKeeper 2 0 - Expert Updates with LIVE Q&A
The Federal Government has announced extensions of the JobKeeper payment to 28 March 2021 and there are many questions surrounding the updated legislation. Join us on our FREE webinar as we present updates on the newly tightened Australian government stimulus package.
Key Take-Aways:
- Are you or your employees eligible for the tightened JobKeeper 2.0?
- How the restricted eligibility rules (turnover reduction) apply
- How to determine the JobKeeper payment amount for employees
- How the new decline in turnover tests apply beyond September
- What are the changed JobKeeper payment rates?
- How do I continue to claim?
The recording of the LIVE Q&As are available at the end of the presentation.
Background of Fortuna Presenters:
Stephen Gethin, Fortuna Legal
Stephen specialises in tax, business, property and self-managed superannuation law. He has over 16 years’ major law firm and international ASX-listed company experience. He excels in structuring and documenting complex transactions, particularly where challenging tax issues are involved. His “in house” experience has given him a deep understanding of the issues faced by business and the ability to explain complex legal issues in clear language.
Dinesh Aggarwal, FCPA, CA, CMA, FTI, Fortuna Advisors
Honoured as one of Australia’s top three SME Tax Advisers of the Year 2015 by the Tax Institute, Dinesh is also winner of the prestigious 40 Under 40 Young Business Leader 2012 and 2013 titles by CPA Australia. With about 20 years of experience in Accounting, Finance and Business Management in top corporate positions, both in Australia and overseas, he is a well-known professional, rendering advice to clients in Australia and overseas on tax matters and business services. Dinesh not only manages major international clients but also helps new clients set up businesses in Australia. Dinesh is the former Chairman of the Public Practice committee of CPA Western Australia, and is currently a member of CPA Australia Public Practice Board.
- Demystifying the Home Owner Grants & Home Builders Grants
The Australian Federal and Western Australian State governments have recently released a stimulus package to aid the construction industry. Our Finance and Legal Experts presented a LIVE webinar followed by a Q&A section to cover the most important aspects of the Home Ownership and Home Builders Grants available.
Key Take-Aways:
- Home Builders Grant: what does the stimulus really mean?
- What are the different Federal and Local Grants available?
- What are the differences between the Federal and Local Grants?
- How do you best consider financing by combining FHOG + Home Builders Grant?
- How can I maximise my borrowing potential?
- How do I know what my borrowing capacity is? What do lenders look for?
- What are some key legal considerations to consider?
Hosted by Fortuna's Managing Director, Dinesh Aggarwal, our team of experts includes Eric Maroni, Head of Smart Finance/ Mortgage Broking and Stephen Gethin, Director, Fortuna Legal / Lawyer / Migration Agent.
- Rebuilding Your Business - Reposition, Pivot, Collaboration Strategies Webinar
This webinar which features a LIVE interview by Shil Shanghavi, Founder & Director of Chatterbox Public Speaking with Dinesh Aggarwal, Managing Director of Fortuna Advisory Group explores on how businesses can strengthen and grow their businesses.
The webinar "Rebuilding Your Business" outlines effective strategies during these extraordinary times, and discusses how to engage one of these much discussed strategies: reposition, pivot & collaboration.
Key Take-Aways include:
• The difference between pivoting and repositioning in regards to business infrastructure and market opportunities
• How to apply the different strategies to business opportunities and times of change
• How to use collaboration as a business mitigation strategy so that you can tap into markets without a huge initial overlay of risk
• What strategies to consider for expansion and diversification
• What is post-Covid19 going to look like for businesses Interesting case studies for various industries are presented.
Learn from multinational and leading brands as well as local Australian businesses affected by the COVID in the trades, catering, building & construction and personal fitness industries.
- Year-End Tax Planning Strategies
Strategy 1 - Instant Asset Write-Off of $150,000
Tax planning before the financial year-end is a crucial time for businesses. During this time businesses can adopt certain strategies and plan methodologies available in the tax legislation to legitimately reduce tax. Dinesh Aggarwal, the Managing Director and Founder of The Fortuna Advisory Group will take you through the top five tax planning strategies.
Here's strategy one that's about the Instant Asset Write-Off of $150,000 and Accelerated Depreciation.
Currently, this is the most talked about recent strategy due to the concessions allowed. This is a concession available for the purchase of multiple assets (e.g. plant, equipment, vehicle etc) and you can make a claim for each asset, both new and second hand. There are certain categories of asset that are exempt, explained in this webinar.
The various Eligibility Criteria discussed include assets that are purchased, first used and/or installed between 12 March to 30 June. However, the Treasury has announced the extension of the write off until 31 December 2020, which covers another 6 additional month. For assets purchased before 12 March, you can claim under an earlier threshold of up to $30,000 (1 July 2019 to 12 March 2020). Other examples discussed include the luxury car limit and what happens if you purchase an asset above $150,000 or if the asset was delivered after 30 June 2020.
Strategy 2 - Contribution into your Superannuation Fund
Tax planning before the financial year-end is a crucial time for businesses. During this time businesses can adopt certain strategies and plan methodologies available in the tax legislation to legitimately reduce tax. Dinesh Aggarwal, the Managing Director and Founder of The Fortuna Advisory Group will take you through the top five tax planning strategies
Strategy 2: Contribution to the SuperFund So how do you use your contributions to your superannuation fund to get the best tax outcome?
Firstly, we need to distinguish between:
- Concessional contribution: this is when an employee contributes to the Superfund on a PRE-TAX income (above the mandatory Superfund Employer Contribution of 9.5%).
- Non concessional contribution: this is when you make a a POST TAX contribution to your Superfund.
The additional concessional contribution is voluntary from the Employer or Employee of up to a cap of $25,000 and must be made and received by 30 June 2020.
Now, an employee can make a lump sum contribution to the superfund directly and there is no need to go through the employer. This is useful if you have a sudden gain in received dividends, a bonus, a capital gain on a sale of an asset etc.
In addition to that, any unused Super cap fund of $25,000 can be carried forward for 5 years provided that the super balance is less than $500,000.
Another exciting new change is that there is no longer a 10% Income Test Applicable. For those earning between $38,000 to $53,564, you can make an after-tax contribution where the government will make a 50% co-contribution of up to $500.
Strategy 3 - Prepay your expenses and move incomes between financial years legitimately
Strategy 4 - Bad debts and trading stock
Strategy 5 - Optimise your tax rate while operation under different structures
Tax planning before the financial year-end is a crucial time for businesses. During this time businesses can adopt certain strategies and plan methodologies available in the tax legislation to legitimately reduce tax. Dinesh Aggarwal, the Managing Director and Founder of The Fortuna Advisory Group will take you through the top five tax planning strategies.
Strategy 5: How to Optimise Your Tax Rate while Operating Under Different Business Structures
- Companies, Trusts and Partnerships.
This strategy evaluates how you can optimize your lowest possible margin tax rate while under different structures for example companies, trusts, and partnerships.
Scenario 1: Companies.
Generally, a company pays a normal tax rate of 27.5% for small-medium businesses (and 30% for larger businesses or companies where their income source is a non-business source such as investments) on its profit on the year that it earns income. The income earned can remain in the company as retained profits and drawn out any time after.
Therefore, it is advisable to draw out only what you need in order to remain in a lower personal income tax bracket. You could also consider a temporary director or shareholder loan instead of drawing cash out as an allocated wage or dividend. There are certain rules and conditions that need to be met under the loan arrangement.
In Scenario 2, if you are Operating as a Trust, the profits must be distributed by the end of the year though this does not mean that you actually need to distribute cash. A common strategy is to distribute to eligible non-working adult children or consider trading companies under your control. The distribution needs to be signed by a Trustee, beneficiaries appointed and minutes prepared accordingly. The accounting profit vs distribution profits may differ due to depreciation or payment of Super.
In Scenario 3, where there is a partnership, the profit is distributed according to the ratio of the partnership. An interesting case is when the partnership is owned both by a husband and wife. Here a partner salary can be provided and the distribution of the profit thereafter can be decided based on the spouse's marginal tax rate.
- In Conversation with Fortuna Advisory and Chatterbox
Watch Dinesh Aggarwal, Founder and MD of The Fortuna Advisory Group talking about Business Strategies, how brands can thrive through COVID-19, and much more.
This interview series was conducted by Shil Shanghavi, Chatterchief of ChatterBox Public Speaking.
Part 1 of 4- The Fortuna Legacy - "We stay with you for life".
Along with providing a one-stop solution for all your commercial needs, we use our distinctive culture based on our organisational values to deliver exceptional services and ensure that you continue your legacy.
Through the journey of life, from a single person to being a couple and then to having a family, we ensure that we walk with you through all your major transitions - be it your risk plans with the right insurances, financing needs, business advisory, tax planning, wealth management, investment strategies, SMSF and business exit strategies - we journey with you so that you will leave a lasting legacy beyond your lifetime.
Part 2 of 4- Pivot Vs Repositioning
The word of the month - Pivot. During COVID-19, we have seen many businesses use the word "Pivot" as a business term that is mentioned quite often. What does it mean for a business? Find out the difference between Pivot and Repositioning.
Although, "Pivot" is used commonly amongst startups and entrepreneurs, it is particularly important through a crisis to ensure the relevancy of product to market changes. A pivot generally takes place when a company makes a fundamental shift to their business after determining (usually through market research) that their product needs are tailored to their targeted market.
Repositioning is a shift in how to position your brand in the market after a phase of market research. Brand repositioning is an important exercise that should take place after a crisis to ensure continued relevancy to the market place.
Both Pivoting and Repositioning are critical for tapping into new opportunities in the market, e.g. moving from one product phase into another and trying to use current business infrastructure to create a product that the market wants.
Part 3 of 4- The Value of Collaboration
Are you making use of the opportunities? Find out how collaboration is going to be key in how businesses run in the future.
Collaboration is key in the post COVID19 world as this gives businesses the opportunity to tap into markets without a huge initial overlay of risk.
Companies considering expansion and diversification through business analysis should first consider collaboration and a business risk mitigation strategy. The value that collaboration can deliver is allowing the company to still have a larger market share and enhancing their core competencies while partnering with other businesses to deliver a higher value offering - all whilst growing their individual niches.
Business example case study: Xero's expansion internationally.
Part 4 of 4- The New Norm
What’s Post-COVID going to look like for businesses? What is the new normal?
During this COVID19 transformational phase, the world is still learning new adaption strategies however it is evident that business risk mitigation processes and plans should be factored into the operational sustainability planning.
Another key learning is that the adaption of digital technology - for example, meetings have been redefined through new online platforms. This has also triggered a change in the thought processes in senior management level, reflecting the wiser use of the business capital and ensuring leanness in business operations.
