It’s SUPER THEFT!

RON LESH, FOUNDER AND MANAGING DIRECTOR OF BGL CORPORATE SOLUTIONS (BGL), AUSTRALIA'S LEADING PROVIDER OF COMPANY COMPLIANCE, SELF-MANAGED SUPERANNUATION FUND (SMSF) AND INVESTMENT PORTFOLIO MANAGEMENT SOFTWARE, HAS CALLED THE LATEST RAID ON OUR SUPER BY THE ALBANESE GOVERNMENT SUPER THEFT.

On Tuesday 28 February 2023, the Albanese government announced that earnings on superannuation balances above $3 million will be subject to a 15% tax rate hike to 30% up from the current rate of 15%. This is not a modest change. It is a substantial change to your super.

“The politicians are quick to label companies that make an error in their payroll wage theft - well, I’m calling them out now for Super Theft,” said BGL's Managing Director Ron Lesh. “Apart from breaking an election promise, this new tax would appear to have been their intention before the election. It is unfair to hard-working Australians who have legally saved for their retirement and have accumulated balances through making contributions and smart investing. And just another example of the Albanese government’s total disregard for the...

Read more

WHENEVER YOU DO BUSINESS WITH OVERSEAS SUPPLIERS OR BUYERS, YOU WILL LIKELY BUY OR SELL GOODS OR SERVICES IN FOREIGN CURRENCIES.

Such foreign invoices and payments usually result in a real financial impact on your business that accounting systems report in the form of foreign currency gains or losses. Such effect can come from both exchange rate fluctuations and, surprising to many, fees charged by your bank or payments provider for currency conversions. This article explains the primary sources of foreign exchange gains and losses and the best ways to manage them.

Foreign Currency Conversion Fees In Your Gain Or Losses

Foreign currency conversion fees are one of the most overlooked reasons behind your currency gains and losses.

When your bank or payments provider, such as PayPal or WorldFirst, converts currencies for your foreign payments, they will charge a foreign conversion fee. This fee usually means that your provider will charge you a margin to sell you a given foreign currency amount than it costs them in the wholesale market. While many fintech companies such as HedgeFlows or Wise are upfront about such costs, most incumbent banks or payments providers are often less transparent. They include their conversion charges in their quoted exchange rates.

Most popular accounting systems, such as Xero, will record the cost of currency conversions as part of Foreign Currency Gains and Losses. Accruing a bill or invoice in foreign currency in Xero will take by default...

Find out more from Hedgeflows