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With fanfare, the Federal Government announced on October 1st that it has expanded the 5% deposit scheme. The rules for the First Home Buyer Guarantee now allow eligible buyers to avoid lender's mortgage insurance and to purchase a property with just a 5% deposit. And for those previously excluded, the strict income caps will now disappear, providing an opportunity for more potential buyers.
A win for first home-buyers! Alas no!
As many of us who have been around longer will know that historically, politically driven economic policy that throws incentives or cash into the property market has led to property prices increasing.
Already this is happening.
'Parting is such sweet sorrow'! a famous sentiment by Shakespeare. How true, and whether in our personal or professional lives parting ways plays out in different scenes. Let the story begin!
Family Businesses are usually built on a common purpose, commercial activities and a web of intricacies, including kinship and history. All merge, converge and sometimes diverge.
Diverging, the parting of ways! This can be a time of celebration, planned retirement, and popping the champagne bottle. But on other occasions, it is a more tumultuous time. Divorce, internal disputes or partnership breakdowns can bring irreparable damage. Damage requiring professional financial and legal advice to deal with the complexities.
Parting on good terms. Early Succession Planning is usually at the heart of this scenario. A typical situation, the Business founders are ready to retire and hand over to the next generation. Time to step away, take and enjoy that well-earned retirement.
This Business has a strong structural framework, formal governance practices, along with backup contingency plans. These arrangements are developed to support what’s good for the Business and family members. Members’ roles, responsibilities and skills are defined and recognised. Importantly, these arrangements are legally sound and documented.
Parting on bad terms. Business breakups are painful and costly and if you have experienced one I am sure you will agree. Divorce of Business partners, generational conflict and sibling rivalry are common examples. The stakes can be high, and emotions are elevated, particularly when the interplay of professional and personal dynamics clash!
There have been some spectacular publicly exposed examples, corporate giants in disarray but family Businesses too can experience breakups. Dissolution and despair are words that come to mind. Professional help and intervention are usually needed in these situations. Legal advice, Lawyers, and financial experts are engaged to deal with the problems and ideally find solutions.
7 Key Foundations to build harmony.
Case Study: Scenario 1:
A good news story!
A Family Business of 50 years is enjoying the benefits and reaping the rewards of a smooth transition as the next generation takes the reins.
The founders, parents Mike and Mary, are stepping back confident that their early Succession Planning is paying off. Their legacy is embedded. A local Business, the brand remains family-owned, WA-based, providing locally crafted goods. And the next generation is passionate about keeping it that way. It is Business as usual for all concerned, staff, customers and suppliers. Everyone is a winner in this situation.
Scenario 2:
Cashflow Management
Proactive Financial management is key to keeping your Business in a healthy financially viable state. Hoping things will solve themselves isn't the answer nor is avoiding the issue.
Tips:
- Set up a Cash management system that includes budgeting, forecasting and financial planning.
- Ideally implement automated payment and processing options.
- Monitor your cashflow diligently and regularly. Daily if needed.
- Seek expert help if required.
- These measures can help small Business foresee future obstacles by predicting cashflow crunch periods.
- This allows Business to build up cash buffers in advance.
- Contact Blackburn Accounting to assist.
It brought together Business groups, economists, employers, civil servants and unions, not to forget the Prime Minister Albanese and Treasurer Jim Chalmers.
A collection of sectors, mining, universities, banking and superannuation, prepared to tackle topics, such as building and construction, taxation and artificial intelligence.
Three days of discussions, debate and conversations concerned with and aimed at lifting living standards, mainly by boosting productivity. Productivity has stagnated in recent years in Western countries, including Australia. The PM in his opening address, promised to strive for consensus to achieve long-lasting change. Let the forum commence!
Outcome: For struggling small Business it delivered few instant solutions, but the Government has offered support for longer term tax reform and policies to boost Business investment.
Small Business – Tax Reform
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