Executive Summary all businesses must manage finances effectively in order to operate and grow. For financial management to be effective it must create plans and strategies around the control of cash flows, the control of costs and the control of debt levels. In this way the financial goals can be realised. The influences on the financial management of business include a range of external factors such as the domestic government’s economic decisions and legislation, and the global economy, which has become a major influence on not just the financial function but all aspects of business operations. However there are financial management strategies to overcome these influences such as interest rates, Methods of international payment, Hedging and …show more content…
They are an independent Commonwealth Government body.
ASIC are set up under and administer:
• The Australian Securities and Investments Commission Act 2001 (ASIC Act)
• The Corporations Act 2001 (Corporations Act).
- Company Taxation
All Australian businesses that have been incorporated are required to pay a company tax at a flat rate of 30 percent on the company’s total net profit. Company tax is paid before profits are distributed to shareholders as dividends.
• The Australian company tax rate was reduced from 36 to 34 per cent in 2000–01 and then to 30 per cent in 2001–02.
• The federal government is planning to further reduce the company tax rate by 1.5 per cent from 1 July 2015.
Strategies
- Interest Rates
- As FCTG trades across numerous national boarders, the issues of Interest rates arise. It subsidiary operations in different nations earn money in local currencies which needs to be translated into Australian Dollars. Consequently there will be exchange losses or gains in translation. The FCTG is expose on account of using or trading with multiple currencies across the world. During 2015 the FCTG benefitted from translation of foreign currencies as the Australian dollar fell in