Frequently Asked Questions 2024

Certainly, Eclipse Advisory Pty Ltd is regulated by the Australian Securities and Investments Commission (ASIC). We possess an Australian Financial Services (AFS) license that authorises us to offer financial advice and services. ASIC establishes and enforces guidelines and standards to ensure that firms like ours operate ethically and prioritise our clients’ best interests.

Eclipse Advisory can provide a wide range of support in the realm of business and financial advice. This includes evaluating your existing financial status, crafting a customised financial strategy, offering investment suggestions aligned with your objectives and risk appetite, furnishing insights on tax planning strategies, aiding with retirement planning, assisting in debt management, and delivering continuous guidance and counsel to help you achieve financial prosperity.

Eclipse Advisory excels in tax and accounting services using a personalised and comprehensive approach. With over 35 years of experience, we understand your unique financial situation, craft strategies that align with your goals, and comply with superannuation and financial advice laws. We prioritise ethical practices, always putting your best interests first. Our dedication to your financial well-being includes continuous support and adjustments as circumstances change. At Eclipse Advisory, you’re not just a client; you are our priority.

Our expertise in superannuation is all about you. We understand your retirement goals are unique, and we are here to help you achieve them. We will work closely with you to create a personalised superannuation strategy that aligns perfectly with your aspirations, making sure you’re always in compliance with Australian superannuation laws. Our guidance doesn’t stop there; we’ll help you make intelligent investment choices within your super fund and retirement plan and regularly review and adjust your strategy as life unfolds. With Eclipse Advisory, your superannuation is in capable hands and dedicated to securing your financial future.

Our Pre-June Review service offers significant benefits to our clients. This service ensures compliance and timely lodgement of tax returns, providing peace of mind and avoiding potential penalties. We organise meetings and discuss how our clients optimize tax planning, helping clients reduce their tax liabilities for the current year while exploring available tax-saving options. It also addresses trust distribution decisions, ensuring clients stay ahead of regulatory changes and avoid potential tax pitfalls. Furthermore, our team assists in projecting tax filings and managing cash flow, helping clients navigate financial challenges effectively.

Our expertise in revenue forecasting, gross profit analysis, business model adjustments, capital expenditure planning, marketing cost estimation, and expense monitoring contributes to informed decision-making and financial success. In summary, our Pre-June Review service empowers our clients, ensuring financial compliance and strategic financial planning, leading to improved financial outcomes. Eclipse Advisory is dedicated to your long-term financial success.

Xero is a cloud-based accounting software that offers a range of features including invoicing, bank reconciliation, financial reporting, and payroll. It benefits your business by providing real-time financial data, improving accuracy, and enabling collaboration with your bookkeeper from anywhere.

Xero helps manage your finances by automating routine tasks, providing easy-to-read financial reports, integrating with various business applications, and offering real-time visibility into your cash flow and financial health.

Xero offers features such as automated bank feeds, invoicing, expense tracking, payroll, inventory management, and financial reporting. These tools help streamline your bookkeeping processes and keep your finances organised.

Setting up Xero involves creating an account, entering your business details, connecting your bank accounts, setting up your chart of accounts, and importing your existing financial data. Eclipse Advisory can assist with the setup and ensure everything is configured correctly.

Yes, Xero integrates with over 800 third-party apps including CRM systems, e-commerce platforms, and project management tools, allowing you to streamline your business operations and maintain accurate financial records.

It’s recommended to reconcile your bank transactions daily or at least weekly to ensure your financial data is accurate and up-to-date. Regular reconciliation helps identify discrepancies early and maintains the integrity of your financial records.

Xero allows you to generate various financial reports including profit and loss statements, balance sheets, cash flow statements, aged receivables and payables, and budget vs. actual reports. These reports provide insights into your business’s financial performance.

Xero uses industry-standard security measures including data encryption, two-step authentication, and regular security audits to protect your financial data. Your information is stored securely in the cloud, ensuring it is safe and accessible.

Yes, Xero can handle multi-currency transactions, allowing you to invoice and receive payments in different currencies. It automatically calculates exchange rates and provides up-to-date currency conversion.

Eclipse Advisory offers comprehensive Xero bookkeeping support including setup, training, ongoing bookkeeping services, troubleshooting, and regular financial reporting. Our team ensures your Xero account is managed efficiently and accurately.

Key deductions include work-related expenses, charitable donations, investment-related expenses, self-education expenses, and costs associated with managing your tax affairs. Eclipse Advisory offers insights on maximising these deductions.

Australia uses a progressive tax system where higher income earners pay a higher percentage of their income in tax. The tax system includes income tax, GST, capital gains tax, and other levies like the Medicare levy. Eclipse Advisory ensures compliance and optimal tax planning.

Income tax is applied to your earnings from work and other sources, while capital gains tax is applied to the profit made from selling assets like property or shares. Capital gains are included in your assessable income and taxed at your marginal tax rate. Eclipse Advisory helps manage both income and capital gains tax effectively.

Strategies include maximising allowable deductions, contributing to superannuation, investing in tax-effective investments, and managing capital gains and losses effectively. Eclipse Advisory’s tailored tax planning strategies help reduce your tax burden.

You should keep records of income, expenses, deductions, and any relevant financial transactions for at least five years. This includes receipts, invoices, bank statements, and records of investments. Eclipse Advisory helps you organise and maintain these records.

Property investors need to consider rental income, allowable deductions (such as interest on loans, maintenance, and depreciation), and capital gains tax on the sale of the property. Eclipse Advisory provides comprehensive advice on property investment taxation.

Concessional contributions are taxed at 15% within the super fund, while non-concessional contributions are not taxed in the fund. Excess contributions may attract additional tax. Eclipse Advisory helps you navigate these tax rules and optimise contributions.

The Medicare levy is a tax of 2% on your taxable income to fund the public health system. Most taxpayers need to pay it, but there are exemptions and reductions based on income levels and eligibility. Eclipse Advisory ensures you meet your obligations and explore any eligible reductions.

In Australia, there is no inheritance tax, but you may need to pay income tax on inherited assets, such as rental income from a property or dividends from shares. Eclipse Advisory offers guidance on managing the tax implications of inheritances.

You can claim deductions for expenses directly related to earning your income, such as travel expenses, uniforms, training, and equipment. Ensure you keep accurate records and only claim legitimate expenses. Eclipse Advisory helps you identify and maximise these deductions.

It’s never too early to start planning for retirement. The earlier you begin, the more time you have to save and invest, allowing your money to grow through compound interest. Ideally, you should start planning as soon as you start working.

The amount you’ll need depends on your lifestyle, health care needs, and life expectancy. A common rule of thumb is to aim for 70-80% of your pre-retirement income to maintain your standard of living.

Key steps include setting retirement goals, estimating retirement expenses, assessing your current financial situation, determining how much you need to save, and choosing appropriate investments. Eclipse Advisory will guide you through each step, offering continuous support and adjustments as needed.

Strategies include creating a budget, managing your withdrawals, considering annuities, diversifying your investments, and regularly reviewing your retirement plan to adjust for changes in your financial situation and market conditions. Eclipse Advisory provides ongoing guidance to secure your financial future.

A mix of stocks, bonds, and other assets tailored to your risk tolerance, investment horizon, and retirement goals is usually recommended. Consider consulting with a financial advisor to create a diversified portfolio. Eclipse Advisory can offer investment suggestions aligned with your objectives and risk appetite.

Inflation erodes the purchasing power of your money over time. To combat this, your investments should ideally grow at a rate that outpaces inflation, ensuring your savings maintain their value. Eclipse Advisory’s financial strategies help you stay ahead of inflation.

Superannuation is a key component of retirement planning in Australia, offering tax advantages and long-term growth potential to help you build a substantial retirement nest egg. Eclipse Advisory specialises in superannuation strategies tailored to your needs.

Diversification helps manage risk by spreading investments across various asset classes, sectors, and geographies, reducing the impact of poor performance in any single investment. Eclipse Advisory’s personalised approach ensures a balanced and diversified portfolio.

Strategies include making additional contributions, choosing the right investment options, minimising fees, and taking advantage of tax benefits associated with superannuation. Eclipse Advisory helps you make intelligent investment choices within your super fund.

Common mistakes include starting too late, not saving enough, failing to account for inflation, relying solely on superannuation, neglecting to diversify, and not seeking professional advice. Eclipse Advisory’s expertise helps you avoid these pitfalls and secure your financial well-being.

Superannuation, or ‘super,’ is a compulsory savings system in Australia designed to help individuals save for retirement. Employers contribute a percentage of your earnings into a super fund, which is invested and grows over time. Eclipse Advisory ensures your super strategy aligns with your retirement goals.

Types include industry funds, retail funds, public sector funds, corporate funds, and self-managed super funds (SMSFs), each offering different features, fees, and investment options. Eclipse Advisory can help you choose the best choice for your needs.

The amount you should contribute depends on your retirement goals and financial situation. The current concessional (before-tax) contribution cap is $27,500 per financial year, while the non-concessional (after-tax) cap is $110,000. Eclipse Advisory can provide personalised advice on contributions.

Contributions made from pre-tax income (concessional contributions) are taxed at 15%, which is typically lower than your marginal tax rate. After-tax contributions (non-concessional) are not taxed within the fund. Eclipse Advisory helps you maximise these tax benefits.

Consider fees, investment options, performance, insurance offerings, and additional services. Comparing funds using resources like the Australian Taxation Office (ATO) or financial advice can help. Eclipse Advisory provides expert guidance in selecting the right fund.

Your superannuation account typically remains with your current super fund, and you can consolidate accounts if you have multiple funds to save on fees and manage your super more easily. Eclipse Advisory assists with consolidating super accounts.

You can consolidate your super accounts through your MyGov account linked to the ATO or by contacting your super fund for assistance. Ensure you check for any insurance coverage that might be lost in the consolidation. Eclipse Advisory can help streamline this process.

Generally, you can access your super when you reach preservation age (between 55 and 60, depending on your birth year) and retire, or when you turn 65. Early access is possible under certain conditions like severe financial hardship or specific medical conditions. Eclipse Advisory ensures compliance with these rules.

Yes, you can make voluntary contributions above the compulsory employer contributions. These can be concessional (before-tax) or non-concessional (after-tax) contributions within the contribution caps. Eclipse Advisory provides guidance on optimising your contributions.

Common fees include administration fees, investment fees, insurance premiums, and other management fees. It’s important to compare these fees across different super funds as they can significantly impact your overall retirement savings. Eclipse Advisory helps you minimise fees and maximise returns.

We believe that it’s important to consider Total and Permanent Disability (TPD) insurance, critical illness insurance, and income protection insurance. These policies offer financial security in case of unexpected life events.

Income protection insurance provides a percentage of your income if you are unable to work due to illness or injury, ensuring that your financial obligations can still be met. Get in touch and we can run through how this works with you.

Evaluate your financial obligations, dependents, lifestyle, and long-term goals. Consult with us so we can help tailor the coverage to your specific needs.

Evaluate providers based on their financial stability, customer service reputation, claim settlement history, policy options, and premium costs. We’re happy to provide you with all the information you need to help you make that decision.

Research online reviews, seek recommendations from friends and family, and consult with a financial advisor who can provide insights based on industry knowledge.

Review your coverage to make sure it meets your new financial responsibilities. You may need to increase coverage to provide for additional dependents or to protect new assets. Make an appointment with us and we’ll help work all this out with you.

Reassess your coverage to ensure it aligns with your new income level and future plans. You may need to adjust or convert policies to maintain adequate protection.

Increasing personalisation of policies, integration of technology for better risk assessment, and a growing focus on sustainability in insurance products. At Eclipse Advisory we keep abreast of all upcoming trends and we put strategies in place to mitigate risks and help you continue to grow. Get in touch if you want to stay ahead.

Consider insurance as a foundational element of your financial strategy, providing protection against unforeseen events and ensuring financial stability for your dependents.

Review your policies annually or whenever big life changes happen, such as marriage, the birth of a child, or a change in income or employment.

Review the denial reasons, ensure compliance with policy terms, and check if additional documentation is needed. You can appeal the decision with your insurer or seek assistance from AFCA if needed.

Common issues include incomplete documentation and misunderstanding policy terms. Stay organised, provide thorough documentation, and communicate clearly with your insurer to manage the process effectively.

While lower premiums are appealing, the features and benefits of a policy determine the actual value and protection it provides. Ensure your policy covers your specific needs comprehensively.

Regularly assess your coverage needs, consider life changes, review policy terms, and consult with your financial advisor to ensure your coverage remains adequate and relevant.

Future changes may include increased regulatory oversight, the introduction of new insurance products tailored to modern risks, and greater emphasis on customer protection and transparency.

Insurers are increasingly incorporating sustainability into their products and practices, promoting environmental responsibility, and offering policies that support sustainable living and business operations.