Capital Reductions: What you need to know

What is a capital reduction? A company may reduce its share capital in two ways: Share cancellation; or Share buy-back. Generally, the purpose is to improve the capital structure of the business (debt and equity) in order to maximise value to its shareholders. Capital...

Cash Flow vs Capital Growth

There has been much debate over which investment strategy is the best when it comes to purchasing a property. The cash flow strategy involves identifying properties with a high rental yield. The objective is to receive more income than the total amount of your...

Potential ASIC crackdown on “Car Yard” Insurance

In Australia, the majority of life insurance policies are sold through superannuation funds, financial advisers or online websites. Some of the major insurers include AMP, TAL, CommInsure, MLC and AIA.  However, many car dealers are also providing life insurance to...

I’ve lost my Trust Deed, What can i do?

A trust does not cease to exist even though you have lost your trust deed. The trust relationship will continue as long as there is a trustee holding trust property on behalf of the beneficiaries. The issue that arises is the ability of the trustee to administer the...

Work Related Expenses under the Spotlight

Each year the Australian Tax Office (ATO) places extra emphasis on particular areas of individual tax returns. This years the ATO will be focusing on work related expenses and claims made by owners of investment properties and holiday homes. With the increase of work...