Updated: Oct 16, 2019
I usually shy away from politically fuelled commentary. I am one of those who struggle to differentiate the major parties from one another and don’t see how you run the business of Australia in a maximum of three year blocks!
Notwithstanding that, we live in interesting times where fiscal and social pressures are forcing governments to consider radical policy changes that will have direct impact on the purse strings of everyday Australians.
Some of the policy change agenda items and their impact on our hip pockets include:-
Reduction in the Capital Gains Tax (CGT) discount – meaning for some, less after tax income.
Limits to negative gearing – meaning for some, less after tax income.
Abolish tax deductibility for personal superannuation contributions – meaning for some, less after tax income.
New taxation arrangements for discretionary trusts – meaning for some, less after tax income.
Removal of excess imputation credits as cash refunds – meaning for some, less after tax income.
Do you see the common theme – less after tax income!
So, what can individual Australians do about it?
There are two answers to that question – ‘nothing’ and ‘take control’.
There is nothing that can be done about policy changes like these. They are a product of
an ageing population, putting pressure on the government funded age pension; and
the push to get the budget into surplus after many years of deficit.
If the above mentioned policy changes are not enacted, other policies will take their place. And they are all aimed at doing the same thing – getting Australians to pay more taxes, thus reducing their disposable income.
However, individuals can take control.
As they say “The only one who can control your own personal cash flow is you”.
By coaching people to establish the systems and habits that result in positive cash flow (more money coming in than going out), you will help people:-
create a buffer if government policy changes means they have less income
generate investment income to supplement their personal exertion income
By assisting individuals to focus on their cash flow and the things they can control you will put them in a position where their future financial security is ensured. It’s not easy, it takes patience, a knowledge base of coaching skills and practice to instill the required discipline, effort and diligence that will reward those that you coach handsomely.
elevateB oversees the training, support and ongoing development of certified cash flow coaches. Individuals who choose to work with a certified cash flow are better placed to achieve financial independence and security. If you would like to make a difference and help everyday Australians be more financially prudent and savvy, consider becoming a cash flow coach today. Click here.