We may have just faced yet another leadership change and cabinet reshuffle. But our political musical chairs hasn’t seemed to affect our ability to be an appealing investment prospect. With record low interest rates and stable unemployment we are a country with a lot going for it.
Australia is an economy that has proven it is resilient, adaptable and safe. As the world’s 13th largest economy it has a AAA rating by all three global rating agencies and is forecast to have an average annual read GDP growth of 2.9 per cent over the next five years.
Invest in Australia
Starting a business can be costly. Most of the time there are significant set up costs before you have even started generating an income. So how can you claim costs when you don’t have an income to offset it?
As a general rule capital costs such as the purchase of a business is not claimable, however, the costs associated with maintaining and running a business are tax deductible.
How the Royal Commission is influencing the general perception of Financial Advisors
Some commentators on the current banking Royal commission paint a picture suggesting you can’t trust any financial advisor. Most reporters suggest Financial Planners lack best practice values, which to my belief is a sweeping generalist view.
A couple of years ago we were in the golden age of borrowing and investing. Interest rates were at record lows and as an investor you could have as many properties as you liked on interest only loans with these ridiculous interest rates. Have you noticed the interest rate landscape is changing?
As you’re probably aware, certain investments into a qualifying Early Stage Innovation Company (ESIC) from 1 July 2016 may entitle a taxpayer to tax incentives including a non-refundable tax offset equal to 20% of the investment (up to a $200,000 limit each income year for “sophisticated investors”) as well as capital gain tax exemption on shares held between 1 and 10 years.