Connecting the Dots | March 2024

Welcome to this month's edition, where we celebrate

Women's Day and RADA (Raise And Develop Association) Annual Day

Embracing the theme "Educate, Empower, Elevate," we acknowledge that "Bright is the new beautiful". This signifies the idea that as we educate and empower, we elevate ourselves and others to new levels of brilliance and beauty.

Wealth Management Insights ??

World of Asset Classes within Hybrid Investments

As investors increasingly seek diversified portfolios, understanding the nuances of each asset class becomes paramount for effective wealth management.

1. Equities: Unleashing the Power of Ownership

• Core Characteristics: Stocks represent ownership in publicly traded companies, entitling investors to a share of profits and voting rights.
• Potential Rewards: Equities offer the potential for substantial capital appreciation, making them a key driver of long-term portfolio growth.
• Considerations: Volatility is inherent in equity markets, requiring investors to navigate market fluctuations with a strategic approach.

2. Fixed Income: Navigating Stability in a Sea of Volatility

• Core Characteristics: Bonds and debt instruments provide regular interest payments and return of principal at maturity.
• Risk Mitigation: Fixed income is often considered a more stable asset class compared to equities, offering a cushion during market downturns.
• Interest Rate Sensitivity: Bond prices are inversely correlated with interest rates, necessitating a nuanced strategy in changing rate environments.

3. Alternative Investments: Exploring Beyond Tradition

• Diversification Benefits: Real estate, commodities, hedge funds, and private equity introduce low correlation, enhancing portfolio diversification.
• Risk-Reward Dynamics: Alternatives often carry unique risk profiles, requiring a thorough understanding of illiquidity, complexity, and potential for enhanced returns.
• Due Diligence: Robust due diligence is essential when venturing into alternative investments to grasp their intricacies and align with overall goals.

4. Dynamic Duos: Strategies for Hybrid Bliss

• Strategic Asset Allocation (SAA): Setting target allocations based on risk tolerance and financial goals, providing a roadmap for long-term success.
• Tactical Asset Allocation (TAA): Adapting to short-term market conditions, allowing for adjustments to optimize returns in response to changing economic landscapes.

5. Tax Efficiency: Navigating the Fiscal Landscape

• Tax-Advantaged Accounts: Leveraging tax-advantaged accounts, such as IRAs and 401(k)s, to enhance overall tax efficiency.
• Strategic Harvesting: Employing tax-loss harvesting to offset gains and minimize tax liabilities.

6. Risk-Return Symphony: Harmonizing Goals and Volatility

• Risk Tolerance Assessment: Tailoring asset allocation to individual risk tolerance, aligning portfolios with investors' comfort levels.
• Return Expectations: Striking a delicate balance between pursuing higher returns and managing risk to achieve financial objectives.

7. Performance Metrics: Decoding the Language of Returns

• Sharpe Ratio: Assessing risk-adjusted returns to evaluate the efficiency of a hybrid portfolio.
• Alpha and Standard Deviation: Delving into performance metrics that offer insights into risk and return dynamics.

Industry Insights ???

• The ATO has indicated its compliance activity has identified the type of practitioners who are most likely to be in breach of the auditor independence standards stipulated in the APES 110 Code of Ethics for Professional Accountants.
• Restrictions on the number of death benefit lump sums from superannuation should be removed in recognition of the fact benefit payments may require multiple transfers to a beneficiary and the law is too restrictive in its treatment of them.
• The December 2023 quarter CPI figures showed that there was a rise of 0.6 per cent in inflation during the quarter, down from 1.2 per cent in September 2023. This took the annual inflation rate to 4.1 per cent, down from the 7.8 per cent peak in December 2022.
• Proposed changes to the process of registering a fund have raised concerns for the SMSF Association, which has questioned whether shifting oversight powers from superannuation law to regulations will grant extra powers to the ATO.
• The new breach reporting rules will create a challenging environment for tax agents and could see practitioners falsely accused of misconduct.
• ATO closes $105m Plutus payroll case with final fraudster jailed, Sutherland man who pleaded guilty to dealing with the proceeds of crime gets four-and-a-half years.
• The ATO has defended its revised client linking regime against a barrage of complaints from the tax profession by saying its phone staff are ready to help when anyone has “difficulties”.
• The Australian Securities and Investments Commission (ASIC) has taken action against nine SMSF auditors, resulting in the disqualification of five, the cancellation of registrations for two and conditions imposed on two others.

ATO UPDATE Mar 2024

• Highlights: SMSF quarterly statistical report December 2023.
• Check your SMSF Bank Account Details are up to date.
• Correct Bank Account information is critical for the receipt of super payments.

Read More >

Vertical-Wise Blogs ????

The Role of Financial Institutions in Encouraging Responsible Investing

by Wealth Management

Financial Institutions play a vital role in promoting responsible investing, impacting both individual investors and the broader market. Read More >

New Contribution Caps – FY2024-25 by Smart SMSF

Following the release of the latest Average Weekly Ordinary Time Earnings (AWOTE) index, the anticipated increase to the contribution caps from 1 July 2024 has been confirmed. Read More >

Determination of Personal Service Income (PSI) by Services Management

Personal Services Income (PSI) is income produced, mainly from your personal skills or efforts as an individual. Only individuals can have PSI. Read More >

Fringe Benefits Tax (FBT) by One Business Services

As we near the end of the FBT year 2024, it’s important for businesses to stay updated with any changes in FBT regulations. This blog post will cover the crucial information that businesses need to know. Read More >

February Highlights ?

Meet our CS Titan For March????

RATHEESH

My journey with Carisma Solutions began more than a decade ago, I joined in 2010 as a Junior Accountant in a small and cozy office with just a few associates. My early days were filled with a lot of learning, I gained invaluable knowledge which laid a foundation for the rest of my career.

Fast forward to 2024, we have over 500+ associates across India and Australia; I’m grateful and proud to say, I've had the opportunity of participating and enabling the organization to grow under the guidance of Jonah Stephen and Prasoon Veerath.

As the company continues to grow in strength, I’m happy to see that we continue to hold a cohesive culture amongst us each day.

Over the years, I’ve consistently upskilled myself and worked towards nurturing a happy team and delivering top-notch services keeping our client’s satisfaction in mind.

Currently, I head the Wealth Management vertical. In a short time, we've made our mark in the Wealth Management industry.

I believe that learning is a continuous part of a leader's life, I will continue to learn from those around me and pass that on to my team. Leveraging both my experience and the team's passion, my focus remains on achieving meaningful milestones and leading the team towards continued success.

Key Dates ??

21 Mar 2024

• Lodge and pay February 2024 monthly business activity statement.

31 Mar 2024

• Lodge tax return for companies and super funds with total income of more than $2 million in the latest year lodged , unless the return was due earlier.
• Payment for companies and super funds in this category is also due by this date.
• Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more, excluding large and medium trusts.

Stay connected with our Client Success Executives

?????? Prasoon Veerath ?????? Roshan Carvalho ?????? Pooja Tattia

To discuss, please contact us?at?(61) 39075 6705?or?write to

[email protected]

Disclaimer:?The Client Newsletter?is issued as a helpful guide to clients and is sent for their private information. You are advised?not to act solely on the basis of the material contained in the Newsletter as changes in regulations?may occur quickly.

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