As we embark on the financial journey of FY2025, it’s an opportune time for executives, leaders, professionals, and business owners in the mining and resources sector to set strategic financial goals for the forthcoming year and beyond. In an industry marked by complexity and constant change, having a clear plan and professional guidance can be the difference between mere survival and thriving success.
Navigating the financial landscape of the mining and resources sector requires more than just instinct – it demands a well-defined and considered strategy. This financial year, resolve to transform your financial future by setting clear, actionable goals and assembling a team of trusted advisors.
Unlock Your Financial Potential: A Blueprint for Wealth and Security
Define specific financial objectives for the year and create a plan to achieve them. Set short-term and long-term goals to ensure financial stability and growth. Regularly review and adjust these goals to stay on track.
Short-Term Goals:
Start by defining immediate financial objectives. These can include increasing revenue, minimising unnecessary costs, optimising cash flow, meeting tax obligations, and ensuring compliance with superannuation contributions. Regularly reviewing and adjusting these goals can help maintain or enhance financial stability and provide a clear roadmap for the year ahead.
Long-Term Goals:
Equally important is spending time on your long-term goals for your personal and business affairs. Identifying these goals and then establishing strategies to achieve these objectives will ensure sustained growth and security. For business owners, consider business succession planning. Assess your internal structures and procedures and implement improvements to enhance future succession. If you’re looking to sell or pass on your business in the next 3-5 years, reviewing your succession process with advisors can identify potential improvements and minimise value gaps. Undertaking an independent business valuation can be particularly useful in this regard.
Enhancing Your Superannuation Contributions
Following strategic goal setting and professional guidance, optimising your superannuation contributions is a crucial step to securing a secure and comfortable financial future. By carefully planning and utilising the opportunities available, you can significantly enhance your retirement savings while potentially reducing tax liabilities.
Key Actions:
- Catch-Up Contributions: Utilise the catch-up provisions for concessional contributions from previous years if you weren’t able to maximise your caps.
- Bring-Forward Contributions: Eligible individuals can make additional non-concessional contributions using the bring-forward rule.
- Downsizer Contributions: If you’re over 55 and planning to sell your family home, consider making a downsizer contribution to superannuation.
- Early Contributions: Pay concessional super contributions early in the financial year to avoid a rush or cash flow crunch in June.
- Employee Contributions Rate Increase: Note the superannuation guarantee rate increase to 11.5% from July 1, 2024.
- Personal Contributions: Consider making additional personal super contributions from after-tax income, while ensuring compliance with contribution caps and deadlines.
While these actions offer potential tax benefits and contribute to a more secure retirement, it’s important to consider the impact on short-term cash flow and ensure the strategy aligns with your tax position. It is also important to consider the relevant thresholds and eligibility requirements for the above, and as such we strongly recommend discussing these strategies with your advisors before committing to a course of action.
Proactive Tax Planning and Obligations for Business Owners
Early tax planning is essential to maximise benefits and avoid last-minute stress. By creating a comprehensive 3-way forecast (P&L, Balance Sheet, and Cash Flow), you can estimate taxable income and plan for tax liabilities effectively. Additionally, taking advantage of the $20,000 instant asset write-off for eligible businesses can provide significant tax relief. Regularly monitoring and forecasting your cash flow ensures timely tax payments and smooth financial management. Engaging professional help can alleviate the burden, allowing you to focus on strategic planning while managing your compliance obligations with confidence.
Ensuring Compliance with Employee Superannuation
Staying compliant with superannuation obligations is crucial for avoiding penalties from the ATO. Ensuring all contributions are up to date not only prevents regulatory issues but also enhances employee satisfaction through timely payments. This proactive approach protects your business from potential fines and fosters a positive work environment. Engaging professional help can streamline this process, allowing you to remain compliant and focus on your core business activities.
Assemble Your Professional Advisory Team
Managing complex financial affairs requires a team of trusted advisors. Without expert guidance, navigating complicated issues such as tax regulations, investment strategies, and succession planning can be overwhelming and lead to costly mistakes. By building a team that includes an accountant/tax advisor, financial advisor, and legal advisor, you ensure comprehensive coverage of your personal and business affairs. Additionally, insights from a business coach, bookkeeper, or industry experts can provide tailored advice, helping you avoid pitfalls and capitalise on opportunities. This holistic approach ensures a more secure and prosperous financial future.
Next Steps
As you embark on the year ahead, remember that proactive planning and expert guidance are your greatest allies. By setting clear goals, optimising your superannuation contributions, engaging in early tax planning, and assembling a robust advisory team, you can navigate the complexities of the mining and resources sector with confidence.
Don’t leave your financial success to chance – partner with us and get more reward for your success. Take the first step towards a prosperous future by contacting Craig Barry for a 20-minute no-obligation discussion, contact us on +61 (0) 7 3007 2000 or email contact@resourcesunearthed.com.au. For more information about Craig and Resources Unearthed, visit our website.
To learn more about Craig you can read his profile here.
Resources Unearthed is a solutions hub that connects senior executives, established professionals and business owners in mining and resources with proven specialist advisers.
