Setting up an SMSF fund is the simplest step. Establishing a fund which delivers you consistent returns from your investments is much more difficult.
Investing successfully involves determining precise goals and picking investments which will effectively achieve those goals. The advantage of SMSFs is that you can build a portfolio which reflects your short-term and long-term goals in response to changing market conditions.
In an SMSF fund, your investment options are:
- Australian and international shares (listed and unlisted)
- Residential or commercial property
- Cash and term deposits
- Fixed income products
- Physical commodities
Before you begin investing, consider what might be the best way to diversify your portfolio. How you portion your investments will depend on your funds, the market, and your goals. Regardless of what your plan is, diversification should be a priority.
Choosing an SMSF as opposed to an industry or retail super fund provides you with more flexibility, but also with more responsibility. Researching before investing is key if you want the best out of your SMSF.
It can be tempting to treat yourself on payday, but in the long run, planning your spending will be more rewarding. Creating a payday routine will help you pay your bills on time and save more money to put aside.
The very first step needs to be completed the night before payday. Transfer any funds you have leftover from the previous payday to your savings account. This will allow you to spend less money you consider ‘extra’ and save it for your long-term goals.
The second thing you need to do is pay as many bills as possible, rather than wait till the ‘due date’. As it is, once money comes into the account, a lot of it is earmarked for bills and payments that need to be made, so rather than holding off on them, you should pay them immediately. This will also give you a clear indication of how much money you have.
Finally, creating a to-do list on the day of your payday is an effective method of viewing or planning your expenses. This will give a clear indication of small and large expenses that need to be paid before your next payday. They will also help identify unnecessary expenses or when extra money is being spent when it shouldn’t be.
These are simple techniques that anyone can apply to get ahead of over-spending on payday.
Effective shipping is essential in a world where online shopping is so popular. Businesses can suffer if their orders are not being shipped on time or if they are not regularly updating their customers. The following are some ways you can improve shipping.
- Improve your communication with your shipping facility: Communicating with your warehouse and shipping team or company regularly will mean that they are updated with orders and avoid delays.
- Offer order tracking and estimated delivery times: Letting customers track the progress of their orders and track shipping reassures customers that their package is on the way. Estimate delivery times are particularly useful so that customers can plan ahead for delivery if possible.
- Shipping costs should be built into the budget: Shipping rates will change regularly, but this should not change what your customers have to pay. When creating your budget, allocate more money to shipping than you have calculated to account for potential rate changes.
- Streamline your packaging process and do standard quality checks: Invest time into creating a process which works efficiently for your business. For example, you could find software which communicates with the warehouse and creates documents which make collecting and shipping the packages easier for staff. Quality checks should also be conducted regularly to guarantee that the product the customer will receive is what they were looking at online.
- Declare items for customs ahead of time: This is especially important if you offer and regularly conduct international shipping. Declaring your package online when the order is placed will help it get through customs faster, and to your customers earlier.
When your job ends, whether there has been a termination of employment or redundancy you will receive a payment for unused leave. This payment will be taxed differently from your normal income.
The taxation will vary depending on the reason why you left the job and any unused entitlements that have been accrued over your employment (long service leave or sick leave).
Lump sum payments that you receive for unused annual leave or unused long service leave are taxed at a lower rate than other income. These lump sum payments will appear on your income statement or payment summary as either ‘lump sum A’ or ‘lump sum B’.
These payments may also be taxed differently if you lost your job as a result of Covid-19.