Personal Finance Tips for the New Year

Can you believe that 2021 is so quickly creeping up on us!? 2020 has been a challenging time for everyone, so doing all you can to set yourself up for success next year is a must.

Personal finance planning may not be the most exiting or fun task, but setting good habits and goals now can make a massive difference.

Going into the new year, consider making some of these personal finance tips your New Year’s Resolutions.

Firstly, assess where you are at

It may be tempting to just jump right in to get the setting of your personal finance goals done and dusted. But to make the most out of the process and to set the most effective plan, you really need to take the time to sit back and assess where you currently are at.

Have a look at your savings, debts, and investments. Being forced to have a hard look at your personal finances can be stressful, but this knowledge will help you to set realistic, achievable and positive goals for yourself in 2021.

Set a budget and stick to it

This may be an obvious one, but it’s also one that can be easily neglected. When setting personal finance goals, budgets are such an important step. The good news is that setting them can be easy. The hard bit is sticking to them.   

When setting your budget for your personal finance goals, the most important thing is to make sure that they are realistic and achievable. Do not set yourself up for failure by setting difficult, stressful and unattainable goals.

Some things to always consider are housing, food, utilities, other regular expenses, as well as dedicated spending money.

Double down on debt

Debt can be a real burden and can really put a strain on your personal finance.

You need to consider your debts and their repayments when it comes to your budget. And it pays to make paying them off a priority. Most debt accrues interest, so you are losing money the longer it sits there.

Be sure to make paying off your debts a priority for your personal finances this new year.

Prep for emergencies

If this year has taught us anything, it’s that you never really know what’s around the corner, so planning for an emergency and the unknown has never been more important.

Try and set aside some of your budget regularly to accrue an emergency fund. The last thing you want to be worrying about in the middle of a crisis is your personal finances.

Review your investments

Unless you’re a finance expert, you probably aren’t making the best returns from your investments as you could be.

To boost your personal finances, it pays to educate yourself as much as possible, or to get professional help in order to make the most of what you have.

If you’re already investing, you’re on the right track, so make the absolute most out of what you already have.

Get money motivated

All of this budgeting and personal finance talk doesn’t have to be all boring and dry. Use this time to establish y our goals, what you really want and how you can get there. It could be a designer bag, a car or a house deposit. No matter your goal, it’s an exciting step to start making positive changes to get you closer to what you really want.

Shop smart

Sometimes it pays to work starter rather than harder.

Before you go and make crazy cuts to your personal finance budget, it can often be smarter to sit back and reassess to make clever changes rather than restrictions. Switch to cheaper brands for things you do not really care about, make coffees at home rather than out, buy in bulk. There are so many minor changes that mean you do not have to sacrifice the parts of your lifestyle that you value most.

With 2021 almost at our door, now is the perfect time to sit back and assess how you can ace your personal finances for the new year.

If you would like any help or advice, we are always happy to help.

Phone: 08 6336 6200
Email: info@ascentwa.com.au

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The 5% homebuyer deposit for first home buyers.

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The Australian Government’s expanded 5% Deposit Scheme, which commenced on October 1, offers a fast-tracked path to home ownership for many aspiring buyers. By drastically reducing the deposit required and eliminating Lenders Mortgage Insurance (LMI), this program aims to unlock the door to your very own home sooner than ever thought possible. However, like any major economic policy, it has significant implications that buyers and taxpayers must consider. Here is a breakdown of how the scheme works, who qualifies, and what the potential impact could be on the property market. What is the 5% Deposit Scheme and how does it work? The scheme is designed to make home ownership more achievable, particularly for those struggling to save a 20% deposit. Low Deposit: The home buyer secures a loan with a minimum deposit of 5% (for First Home Buyers) or 2% (for single parents/legal guardians). Government Guarantee: Instead of the buyer paying LMI (which protects the lender), the Australian Government provides a guarantee to a Participating Lender. This guarantee allows the lender to provide a home loan covering up to 95% or 98% of the home's value without the usual LMI fee. No LMI: The buyer avoids paying Lenders Mortgage Insurance, significantly reducing upfront costs.  Key features of the expanded program include no income caps, as well as unlimited spots and no waiting list. The Scheme also makes a wider choice of home types available (houses, apartments, house/land packages, vacant land with a building contract, new or existing homes). It’s not just for first home buyers!

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As the end of the year approaches, businesses are gearing up for the festive season, which means planning the annual Christmas party and showing appreciation with gifts. While the cheer is high, so too are the complexities of Fringe Benefits Tax (FBT). Getting the FBT treatment wrong can turn a simple celebration into an unexpected tax bill. As your trusted advisors at Ascent Accountants, here is a breakdown of the key tax rules, with a focus on the crucial $300 per person limit, to ensure your end-of-year generosity is tax-effective. The critical $300 minor benefit threshold. The Minor Benefits Exemption is your best friend for managing FBT. A benefit is generally exempt from FBT if its total notional taxable value is less than $300 (GST inclusive) per person, and it is provided infrequently and irregularly. Christmas parties (entertainment) The location and cost of your party are the key factors for FBT.

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Does your business need public liability insurance?

November 12, 2025
If your business interacts with the public in any way (from welcoming customers into your shop to visiting client sites) then public liability insurance isn’t just “nice to have.” It’s essential protection. Whether you’re a sole trader, a café owner, or running a construction company, public liability insurance helps safeguard your business against unexpected (and often costly) accidents. What Is public liability insurance? Public liability insurance covers your business if a member of the public suffers injury, death, or property damage as a result of your business activities. In simple terms, it’s there to protect you financially if something goes wrong—such as a customer slipping in your store, a tradie damaging a client’s property, or a product you sell causing harm. Without it, you could be personally liable for significant compensation and legal costs. What does it cover? A typical policy covers: Injury or death to a third party caused by your business operations. Damage to property belonging to someone else. Compensation and legal costs you’re ordered to pay following a covered claim. For example, if a customer trips over a cable in your office or a carpenter cracks a client’s TV while working onsite, public liability insurance steps in to cover the costs. What isn’t covered?  While every policy is different, public liability insurance usually won’t cover: Damage involving vehicles. Defective work. Breach of professional duty or negligence in advice (that’s covered by professional indemnity insurance). Defamation or advertising liability. Understanding these exclusions helps you choose the right combination of cover for your business. Who needs public liability insurance? If your business has any level of public interaction, you likely need it. Common examples include: Customer or supplier visits: If anyone comes to your premises or you work on theirs. Public events: Markets, expos, and pop-ups. Retail, trade, and construction: High public contact increases your risk. Leased premises: Many shopping centres and landlords require proof of cover. Contractor or license requirements: Many trade licenses (like electricians and plumbers) require it to operate. Even if it’s not legally required, most Australian businesses choose to have public liability insurance for peace of mind. How much cover do you need? The level of cover depends on your industry, business size, and risk exposure. Most businesses opt for between $5 million and $20 million. It’s worth reviewing your policy regularly, especially if your operations expand or you start working in new environments. Is it compulsory in Australia? Public liability insurance isn’t legally mandatory for all businesses, but some industries and licences make it a condition of operation. For example, in Queensland, electrical contractors must hold a minimum of $5 million in public and product liability cover. Similarly, councils or venue owners may require proof of insurance before approving an event or leasing a space. Don’t risk a law suit. Being sued for negligence can be financially devastating. Even a minor incident can mean you lose hundreds of thousands—not to mention the impact on your brand and business reputation. Public liability insurance ensures your business can keep operating, even when the unexpected happens. If you’re unsure whether your current cover is adequate, our team at Ascent Accountants can help you review your business risks and recommend the right level of protection for your situation. Contact us today to learn more.
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