How to manage SMSF risks

Do you have a self-managed super fund (SMSF), or are you thinking of having an SMSF? One of the things you should understand when it comes to SMSFs is how to manage its risks. And we are not only referring to the risk of your investments underperforming.

Here are some risks you have to be aware of and tips on handling them. 

Non-compliance with SMSF Laws

Every SMSF must comply with the laws set forth by the Australian Taxation Office. If your SMSF fails to comply with any of these laws (whether you are aware of them or not), you run the risk of paying a hefty fine. 

To operate your SMSF means you would have to keep yourself up-to-date with these rules. Another option is to have a qualified professional help you set up your SMSF and discuss with you all the guidelines and regulations you must follow.  

Statutory Compensation 

Should your SMSF suffer losses due to fraud or theft, you will not be eligible for compensation as discussed in the superannuation laws. 


Underinsurance means insufficient insurance coverage. As part of the Superannuation laws, you must consider whether your SMSF should have insurance cover for its members. 

Total and Permanent Disability (TPD) insurance and life insurance offer layers of protection for your SMSF members and their families. Additionally, your insurance coverage protects the assets of your SMSF as it could offer liquidity during unexpected events. 

For instance, if a member has an accident resulting in permanent disability, rather than sell some of your assets, TPD insurance could pay out their benefits. 

Having insurance coverage is particularly crucial if you have more than one member or trustee in your SMSF. 


Liquidity risk is the risk your SMSF may not have sufficient funds when you need it most. This could happen when your SMSF has illiquid assets and is low on funds. 

A good example would be if your SMSF owned multiple properties. Sure, this may sound good. But when you are developing a strategy for your SMSF, make sure your fund does not depend wholly on these properties as they may take a while to sell. 

Another example would be tradable investments like bonds and shares. Liquidity risk in this situation could mean you could be forced to sell during a market downturn.  

A lot of people often think about having an SMSF but are discouraged because of the risks. But with the right guidance, you would be able to set up and manage your SMSF hassle free. 

Glance Consultants offers services for SMSF establishment, ongoing tax compliance, financial reporting and audit. Contact us on 03 9885 9793 or send an email to for more information on our services.

Understanding Payroll Tax


Many business owners find payroll tax confusing. Some common questions they ask are “when should I pay payroll tax,” “how do I pay for it,” and “how do I calculate payroll tax.”

Let’s get up to speed as we answer some frequently asked questions about it. 

How does payroll tax work? 

Payroll tax is a type of state based tax that’s calculated on your business’s monthly total wages. If you plan to have employees in different states or territories, keep in mind that payroll tax varies — depending on where your employees are located. 

Should I register for a payroll tax? 

Not all businesses need to pay payroll tax. To determine whether you need to register, calculate your total wages paid. If you wage costs exceeds $54,166 in a month (Victorian threshold), then you will have to register. To do so, create an account via PTX Express and complete the application process. 

Once you have submitted your application, it could take about 14 days for the process to complete. However, if the SRO needs more information, it may take up to 30 days. 

When is my due date and where can I pay?

The deadline for lodging your monthly return and payment is one week after the month closes for the particular return. If you don’t have payroll tax payable for the month, you would need to lodge a “nil” return through PTX Express.

I made a mistake when I lodged our monthly return, could I still make changes? 

Yes. If you need to change anything on your monthly return, you can override it by lodging a replacement return for the month. 

What happens if I fail to pay our payroll tax?

If you fail to settle your business’s monthly payroll tax obligation, you will receive a default assessment. This includes an interest fee and penalty. 

The same goes when you pay after the deadline. You will incur interest and penalties.

Payroll tax doesn’t have to be complicated. But it does require you to lodge your monthly return on time and accurately. 

Glance Consultants can assist with your payroll tax obligations. If you need help with yours, call 03 9885 9793. You can also reach us at or fill out our contact form.


Guide to estate planning



As COVID-19 continues to sweep across nations with no end in sight, many have started to consider their estate plans seriously. This may not be easy to think about for some. But, it never truly hurts to prepare yourself, your estate, and your family for what could happen.

What is Estate Planning?

Estate planning is more than preparing a will. It also includes appointing an inheritance manager or guardian if you have children below 18 years old. Additionally, it involves setting up instructions for your care should you be unable to decide for yourself. 

Estate planning also includes planning to cut unnecessary fees, court costs, and taxes when passing on your assets to your loved ones. 

Why Should You Consider Estate Planning? 

Estate planning is an essential part of life. With instructions and guidance on what to do, an estate plan eases the stress and uncertainty your loved ones may feel after you’ve passed. Furthermore, it gives you peace of mind that you’re leaving your assets to people you trust.

What are the Documents You Need to Get Started? 

Before thinking about distributing your assets to family, you must consider the debts you’ll be leaving behind. 

When you’ve passed, your assets will be used to pay off your debts. Once those are cleared, any remaining assets will be distributed to your beneficiaries. This means that you may have less to distribute than you initially thought.

To start estate planning, prepare documents pertaining to the following:  

  • Bank accounts 
  • Vehicles owned 
  • Real estate properties 
  • Investments 
  • Businesses

How to Choose the Right Executor? 

Typically, you hire an estate planning expert or attorney to help you with your estate plan. You would also need to choose an executor. It’s the person who will make sure that your instructions are followed.

Apart from making sure your instructions are carried out as you wish, your executor will also be the one responsible for clearing your debts and executing any end-of-life plan you’ve set up. 

Many choose a family member as their executor. However, if you don’t want a family member to become your executor, you may also appoint a close friend. You could also choose an institution, a professional, or a bank to become your executor. 

Are you ready to start estate planning? We are here to help. Our firm has access to an excellent team of professional lawyers who can assist. We’d love to get to know you and understand your estate planning goals. Send an email to or call us at 03 9885 9793 for more information.

How to sell your business during a pandemic

Businesses across industries have been affected dramatically by the pandemic. As a result, many entrepreneurs are resorting to selling their businesses.

Have you been considering the same thing but don’t know how to go about it? Before doing anything else, here are some things to think about to prepare yourself for the process.   

Keep Emotions at Bay

For some, the decision to sell a business is often an emotional one. This COVID-19 situation across the globe has pushed and pulled all of us in different directions. And many are left feeling overwhelmed, stressed, and burned out. Selling their business is often seen as a way out of a dreary situation. 

But when it comes to your business, it’s always wise to keep your emotions at bay. Take a moment to really understand why you’re thinking of selling and if it makes sense to do it now. Try to see the full picture of where your business stands today. 

Reach Out to Your Team

Before making a financial decision to sell your business, consider talking with your team, especially those who have been with you for a long time. You may feel like you’ve run out of ideas. But your team may have valuable suggestions that could open up new opportunities for your business and save your company. 

Know the Value of Your Company

Don’t be in a rush to place a value on your company. Many entrepreneurs make the mistake of using a flawed valuation model or doing the valuation on their own. Additionally, keep in mind that your company’s valuation isn’t fixed. It may not be the same as it was three years ago. 

Focus on Your Cash Flow

Many entrepreneurs focus on profits, losses, and balance sheets when selling their company. With the pandemic, it’s a good idea to also focus on your company’s cash flow. This will give buyers a sense of certainty in terms of how your business is financially performing. 

Understand Your Intangible Capital 

Other factors you should significantly consider when selling your business are your intangible Capital. These include your business structure, customer-base, and human capital. 

Is it a good time to sell your business, or are you just feeling the pressure of the pandemic? 

In this challenging time, consider consulting professionals who can help you understand business valuation, cash flow, and succession planning. When it comes to the future of your business, don’t leave any stones unturned. 

Let our professionals at Glance Consultants help you. We offer strategic business advice and planning, business performance management, and succession planning. Call us at 03 9885 9793 or fill out our contact form.

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