October 2010 E-News 

New Property Tax Reaps Millions for NSW State Government
NSW Homebuyers have been slugged with an extra $12.5 million since the introduction of a new State property tax in July.
The “ad valorem” tax (i.e. based on value of property), slipped through in the May budget and applies to every property transaction of more then $500,000.
The tax has already affected 13,000 property purchases, adding an average $1,150 to each transaction.
Over the same period the NSW property market has suffered its worst quarterly price fall for two years, down 2.07 per cent in the three months to the end of September, according to analysts Residex. (Source:  Sunday Telegraph, 17/10/2010)

What is the future for the Australian Dollar?
The Australian dollar is now predicted to soar into unchartered territory and well beyond the value of the US currency, after it reached parity with the US dollar, hitting US$1.0002 last Friday before closing at US$98.90 cents. 
The climbing dollar will prove popular with retail consumers and Australians keen to travel overseas but unfortunately will be an ongoing headache for exporters such as farmers, manufacturers and the Australian tourism industry.  Many experts suggest our dollar will easily reach US$1.10 in the next few months.  However, just as it goes up, it could fall back quickly if the world looks like its heading back into recession or the US economy recovers more quickly than expected. 
 
Should you buy US currency?
The Australian Financial Review has reported that consumers, holidaymakers and small businesses have taken advantage of the situation by stocking up on their reserves of the US dollar.  Whether this is the smart thing to do will obviously depend on where the dollar is headed; the timing of when the currency is cashed in; and the cost of buying US currency.  Consumers and investors should not get carried away and remember to factor interest costs into their decision whether or not to buy currency.
 
What is the Right Business Structure for you?
Prior to starting up a business, one of the most important decisions is choosing the business structure that best suits your needs.  Factors that should be considered as part of this process include:

• The type of Business
• Establishment fees and maintenance costs
• Tax obligations
• The level of Asset Protection

There are a number of business structures that you may choose from when starting up your business including:

• Sole trader- a type of business entity which is owned and run by one individual who is fully responsible for all liabilities and commitments of the business.
• Partnership- a type of business entity in which partners (owners) share with each other the profits or losses of the business.
• Proprietary Limited Company- an independent legal entity able to do business in its own right. The shareholders own the company and directors run the company. The directors of a company, as well as company employees, can be shareholders.
• Trust- a business structure whereby the trustee holds property and earns and distributes income on behalf of the beneficiaries. This can be a Unit Trust where income and capital entitlements are fixed, or a Discretionary Trust, where income and capital are at the discretion of the Trustee.