7 considerations for investors in the 21ST century
1 September 2011
Change is upon us. Investors must either embrace change or risk missing out on some of the biggest investment themes in a generation. This article discusses how investors can position themselves. 
Making predictions is inherently fraught. It is virtual guesswork to say what level the Dow Jones Industrial Average will be in five years’ time. However, when it comes to the big, secular themes that are influencing economies and financial markets, there is more scope to be forthright.
Most of the themes that appear set to be prominent in the 21st century – the rise of the east, growing consumption and urbanisation in emerging markets, the changing demographics and ageing of the world population, the challenge of feeding and powering the world, technological and climate change, the rise of Africa – are visible and investible, or will be soon enough.
Personal property security (PPS) reform is coming
1 September 2011
In early 2012 new Personal Property Securities (PPS) laws will come into effect. PPS reform has been on the agenda since April 2007 when the Council of Australian Governments (COAG) agreed to establish a national system for the registration of personal property securities. Currently in Australia there are significant limitations on the use of personal property as security due to difficulties and gaps in registering security interests. More than 70 Commonwealth, State and Territory Acts regulate personal property securities.
PPS reform is taking place to create a national system for using personal property as security in business transactions. The reform will replace existing laws in order to reduce the cost and complexity for small and medium-sized businesses.
The importance of good record keeping
1 September 2011
There are many reasons why business owners should have good record keeping systems and processes in place.
The most important reason is that it is a
legal requirement and there are penalties for not maintaining the required records. Also, most business owners are aware that good records can assist to:
- Make it easier to complete your activity statements and prepare your annual income tax and fringe benefits tax returns
- Monitor the health of your business and be able to make sound business decisions – for example, by keeping track of debtors and creditors
- Help you to manage your cash flow
- Demonstrate your financial position to banks and other lenders, and also to prospective buyers of your business
- Show the basis for any amendments you need to make to activity statements or tax returns you have already lodged.