Proactive Accounting & Financial Services

At Proactive Accounting, one of the biggest myths we hear is that choosing a business structure is simply about paying less tax. Tax is certainly a big part of the conversation but it's rarely the whole conversation.

A good business structure also considers:

🔷 Asset protection

🔷 Cashflow requirements

🔷 Risk management

🔷 Future investment and re-investment into the business

🔷 Succession planning

🔷 Business partners

🔷 Government incentives and funding

🔷 Retirement planning

🔷 Selling your business and your exit strategy

Every one of these factors influences what may be the most appropriate structure for your circumstances. So if you aren’t sure if your business structure is the right one for you or it’s been over 5 years since you’ve reviewed it reach out for a no-obligation chat.

Most business owners spend more time choosing their business software than they do choosing their business structure.

Yet one decision can influence your tax, asset protection, cash flow, ability to grow, succession planning and even how you eventually exit your business.

The reality is your business structure isn't something you choose once and forget about.

As your business evolves...
As legislation changes...
As your personal circumstances change...

…your structure should be reviewed to make sure it's still working for you.

There is no "best" business structure, there is only the structure that's right for your goals and situations.

In this month's article, we explore the questions every business owner should be asking at each stage of their journey, from startup through to growth and eventually planning an exit.

👇 Read the full article below and ask yourself one question:

Is your business structure still fit for where you want to be in the next 5–15 years?

https://proactivefs.com.au/your-business-structure-isnt-a-set-and-forget/

“𝘛𝘩𝘦 𝘮𝘰𝘮𝘦𝘯𝘵 𝘣𝘦𝘧𝘰𝘳𝘦 𝘺𝘰𝘶 𝘨𝘪𝘷𝘦 𝘶𝘱 𝘪𝘴 𝘰𝘧𝘵𝘦𝘯 𝘳𝘪𝘨𝘩𝘵 𝘣𝘦𝘧𝘰𝘳𝘦 𝘺𝘰𝘶 𝘣𝘳𝘦𝘢𝘬 𝘵𝘩𝘳𝘰𝘶𝘨𝘩”.

So true! Even though things feel rather bleak for small business right now, keep going because nothing lasts forever and can always change for the better.

𝗬𝗼𝘂 𝗱𝗶𝗱 𝗶𝘁. 🙌

30 June is here, another financial year wrapped up.

To every business owner who pushed through, made tough calls and kept going, this is your moment to pause and acknowledge it.

We hope it was your most profitable year yet. The kind where the hard work actually paid off.

And if it wasn’t? That’s okay. A financial year doesn’t define your business, what you do next does.

1 July is achance to tighten things up, get clarity around your numbers, and build a more profitable, sustainable business moving forward.

But take a moment to celebrate how far you’ve come. Then let’s go again.

If this EOFY hasn’t shaped up to be as profitable as you had hoped then maybe a cashflow health check is in order.

Our Cashflow Health Check is designed to help you get a clear picture of your cashflow, understand what’s really going on behind your P&L, and give you actionable insights to improve and grow your business.

We take a clear look at where things are at, what’s working, what’s not, and what to do next.

Your business should be creating freedom not just covering costs.

If things haven’t been as profitable as they should, it might be time to take a closer look.

Book your free initial consultation today

https://calendly.com/cleaj/cashflow-health-check-initial-consultation

👉 People respond to incentives.

If you reward innovation, risk, and investment, people are more eager to try.
If you reduce those rewards and make people fearful of the risks people don’t want to even try.

Looking at this budget, we don’t see a lot of incentive for those starting a business, wanting to investing in growth or attempt building long-term wealth.

That’s the part that concerns us most.

Because small business isn’t a niche part of the economy. It employs a significant portion of Australians, drives local communities and creates opportunity.

So if the system makes it harder to build something eventually, fewer people will try.

We don’t see this as just a business issue but an economic one too. What are your thoughts?

𝗗𝗼 𝗻𝗼𝘁 𝗽𝗮𝗻𝗶𝗰.

Nothing has been legislated. Nothing has taken effect.

Right now, the worst thing you can do in the wake of the budget is make rushed, expensive decisions based on something that may still change.

Speak to your accountant. Get a plan in place based on your goals and then, wait.

There’s still plenty to play out here, it’s going to be ok.

𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅: 𝗧𝗵𝗲 𝗣𝗮𝗿𝘁 𝗡𝗼 𝗢𝗻𝗲’𝘀 𝗧𝗮𝗹𝗸𝗶𝗻𝗴 𝗔𝗯𝗼𝘂𝘁

Capital Gains Tax changes don’t just impact property. They impact shares, investments and business owners.

This is where it gets serious because small business doesn’t work the way many people think it does.

When cashflow is tight staff still get paid (as they should) but the owner often doesn’t.

When things go wrong it’s the owner carrying the risk, not the employees.

That risk has always been balanced by one thing: the reward at the end.

If you increase CGT significantly, that reward shrinks.

We’re now looking at scenarios where tax on the sale of a business could move from around 23% to closer to 47%.

That’s not a small change.

If the outcome isn’t worth the risk, fewer people will take it.

And when fewer people start businesses, innovate, and grow that doesn’t just impact them. It impacts the entire economy.

But we want to share that our small business clients are thriving and if they can, you can too. Everyone just needs a little guidance so speak to your accountant about your growth plans and future goals. Building and growing a business is still worth it.

“𝘐𝘵 𝘢𝘭𝘸𝘢𝘺𝘴 𝘴𝘦𝘦𝘮𝘴 𝘪𝘮𝘱𝘰𝘴𝘴𝘪𝘣𝘭𝘦, 𝘶𝘯𝘵𝘪𝘭 𝘪𝘵’𝘴 𝘥𝘰𝘯𝘦.” - 𝘕𝘦𝘭𝘴𝘰𝘯 𝘔𝘢𝘯𝘥𝘦𝘭𝘢

Keep going. You’re so close.

The budget has proposed removing negative gearing to help first home buyers.

On paper, it sounds like a good idea. In practice? We’re not convinced.

Let’s break it down simply:

If an investment property costs you more than it earns, negative gearing allowed you to offset that loss against your income.

It wasn’t a loophole, it was a strategy.

Now remove that, and what happens?

➡️ Smaller investors are likely pushed out

➡️ Larger investors carry on as usual

➡️ Fewer properties enter the market

➡️ Prices don’t necessarily drop

Many first home buyers didn’t start with their “dream home.” They started by investing, building equity, then upgrading.

That pathway becomes a lot harder without negative gearing.

So while the intention may be to improve affordability, the outcome may be the opposite.

👉 The real question is: are we solving the problem or making it worse? What are your thoughts?