Tag: Motley Fool Australia

One area of the market that I’m particularly bullish on over the long term is the tech sector.

In this sector I believe there are a good number of shares that could generate strong returns for investors throughout the 2020s.

Three of the best ASX tech shares to buy in FY 2021 are listed below. Here’s why I think they are great long term options:

Altium Limited (ASX: ALU)

The first ASX tech share to consider buying is Altium. It is the printed circuit board (PCB) design software provider behind the Altium Designer platform. This award-winning platform is used by almost 50,000 users to connect with every facet of the PCB design process. While FY 2020 has been a disappointing year because of the disruption caused by the pandemic, I believe the future remains as positive as ever. Especially given how 5G internet is supporting the rise of connected devices globally. I expect this to result in strong demand for electronic design software over the next decade.

Pushpay Holdings Ltd (ASX: PPH)

Another ASX tech share to consider buying is Pushpay. It is a donor management system provider which has a strong and growing presence in the church market. In fact, as of the end of FY 2020, it has a total of 10,896 customer using its platform. From these customers, Pushpay generated US$127.5 million in revenue. While this is a significant number, it is still only scratching at the surface of management’s medium term target. It is aiming to win a 50% share of the medium to large church market, which represents a $1 billion revenue opportunity. Given the quality of its platform and the recent acquisition of Church Community Builder, I believe it will get there.

Xero Limited (ASX: XRO)

A third ASX tech share to consider buying in FY 2021 is Xero. It is a New Zealand-based cloud accounting software company which has been growing its customer base at a rapid rate over the last few years. So much so, Xero finished FY 2020 with a total of 2.285 million subscribers. This was a 26% lift on the prior corresponding period. And combined with an increase in average revenue per user, the company reported a 30% increase in operating revenue to NZ$718.2 million. The good news is that I’m confident Xero still has a long runway for growth. This is thanks to its massive global market opportunity and its high quality and sticky product. As a result, I think it could be a great buy and hold option.

More reading

• Can ASX fintech shares withstand a falling market?
• Why Pushpay, Ramelius, Saracen, & WiseTech are dropping lower
• These 3 companies have incredible switching cost moats
• Are you in your 20s? Here’s why I would buy these quality ASX shares
• These are the 3 reasons I own Pushpay shares

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium, PUSHPAY FPO NZX, and Xero. The Motley Fool Australia has recommended PUSHPAY FPO NZX. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I think that there are some ASX dividend shares that are worth a spot in every income investor’s portfolio.

Some ASX dividend shares offer very large dividend yields like WAM Research Limited (ASX: WAX). But that may not suit everyone. Perhaps they want more of the returns in the form of capital growth. Or maybe they are in a higher tax bracket and they don’t want to lose too much of the income to the ATO each year.

I think the below ASX dividend shares give the right mix of yield and growth:

Share 1: Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which invests in overseas shares.

In terms of yield, it targets a 4% distribution yield for unitholders. That seems high enough to soundly beat income from a bank account, but low enough to retain a majority of the longer-term returns for future growth.

The ASX only makes up 2% of the global share market, so Aussies are missing out on a lot of potential opportunities if they don’t go for international shares.

The ASX dividend share only invests in the best shares in the world. Over the long-term these types of businesses can be compound growth machines. Some of its largest positions include Microsoft, Alphabet, Tennant and Alibaba.

At 31 May 2020, the LIT had made an average return per annum after fees of 12.5% since inception in October 2017, outperforming the MSCI World Net Total Return Index (AUD) by 1.52% per annum. Don’t forget that the returns include the period of the recent COVID-19 share market sell off.

Share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This is an investment conglomerate that has been listed since 1903.

Taking into account the upcoming final FY20 dividend increase, Soul Patts has a FY20 grossed-up dividend yield of 4.4%.

The ASX dividend share has grown its dividend every year since 2000 and it has paid a dividend every year since 1903. That’s the best dividend record on the ASX in terms of consecutive annual dividend growth.

The investment conglomerate receives investment income from its portfolio each year. Some of its biggest holdings include: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Clover Corporation Limited (ASX: CLV) and Bki Investment Co Ltd (ASX: BKI).

Soul Patts funds its own dividend from the investment income, less operating expenses. In FY19 it paid out about 80% of its net regular operating cashflows. So not only does Soul Patts keep all of the capital growth, but it can also re-invest the cashflow that’s retained as well.

This ASX dividend share is one that could be in a portfolio for decades, so I think it’s well worth an investment at a share price under $20.

Share 3: WAM Microcap Limited (ASX: WMI)

This is a listed investment company (LIC) which invests in ASX shares with market capitalisations under $300 million.

The benefit of LICs is that they can do the investing on your behalf and they can turn capital growth into a growing dividend for shareholders.

I believe that WAM Microcap could be one of the best-performing LICs over the next decade. Small caps aren’t closely followed by many investors, so they can be better value and have stronger long-term earnings potential.

At the end of May 2020, WAM Microcap had made returns (before expenses, fees and taxes) of 14.3% per annum since inception in June 2017. That’s a strong return despite the COVID-19 selloff, which hurt, particularly for the small cap end of the market.

WAM Microcap has an annualised dividend per share of 6 cents, which translates to a grossed-up dividend yield of 7%.

Foolish takeaway

I reckon each of these ASX dividend shares are some of the best Aussies can buy. I believe they can create strong total returns with a good starting yield and long-term dividend growth. At the current prices I’d probably go for WAM Microcap.

More reading

• ASX shares vs property: which is a better investment?
• 3 great ASX dividend shares for FY21
• 4 top ASX dividend shares you should never sell
• How I’d build a $100,000 portfolio for ASX dividend shares
• I think WAM Microcap is a retiree’s dream dividend share

Tristan Harrison owns shares of MAGLOBTRST UNITS, WAM MICRO FPO, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX investors will have an opportunity to regain some of the lost ground from the 2020 financial year with leading brokers naming the latest ASX stocks to buy.

While S&P/ASX 200 Index (Index:^AXJO) rallied 1.4% today, it closed off FY20 with an 11.3% loss due to the COVID-19 meltdown.

The market is likely to remain volatile and unpredictable as we enter FY21 but there are a number of stocks that look well placed to outperform, according to brokers.

Steel prices to strengthen

One to watch is the BlueScope Steel Limited (ASX: BSL) share price with Macquarie Group Ltd (ASX: MQG) reiterating its “outperform” recommendation on the stock.

The coronavirus-induced economic shutdown is hurting the steel industry, but there’s precisely why the broker likes BlueScope, which owns North Star in the US.

“Production in the Great Lakes region of the US has stepped down meaningfully (from ~700ktpw to ~400ktpw), which should aid North Star’s position,” said the broker.

“A gradual restart could present some risks to price progression, but on the whole, we expect steel prices to trend higher from here.”

The broker is also expecting more Australian government stimulus for the housing market, which will support BlueScope’s local operations.

Macquarie’s 12-month price target on BlueScope is $12.20 a share.

Lottery upgrade

Another stock that might be worth considering is the Jumbo Interactive Ltd (ASX: JIN) share price after its big two-day slump.

Investors took a dim view of its renegotiated lottery reseller deal with Tabcorp Holdings Limited (ASX: TAH), but Morgans isn’t put off.

In fact, the broker upgraded the stock to “add” from “hold” with a 12-month price target of $11.58 a share.

“We believe the extension of the agreement with TAH is positive for JIN and provides the group with certainty as a reseller of national games and allows it to focus on growing the Powered By Jumbo (SaaS) business,” said Morgans.

Defensive properties

Meanwhile, COVID-19 hit Growthpoint Properties Australia Ltd (ASX: GOZ) might be another to add to your shopping list.

Credit Suisse restated its “outperform” call on the industrial and office landlord as it hasn’t been materially hit by the pandemic.

Rent collection in April, May and June have been relatively high and the group is anticipating collections to increase for May and June as rent relief negotiations are finalised.

“While total billings do not include rent waived for small and medium enterprise (SME) tenants, GOZ indicated the total amount of rent waived over the 3-month period is less than A$1mn,” said the broker.

“Despite a challenging (and uncertain) economic climate, we see a degree of defensiveness over GOZ’s earnings.”

Growthpoint is trading at a more than 11% discount to its net tangible asset (NTA) value and is sitting on a dividend yield of around 7%.

Credit Suisse’s price target on the stock is $3.34 a share.

More reading

• Why the TPG share price is up 38% in FY20
• What to expect from ASX 200 shares in FY2021
• Morgans picks the best FY21 ASX buys for the COVID-19 world
• Afterpay shares have exploded 142% in FY20
• ASX bank shares have experienced a horrible financial year

Brendon Lau owns shares of BlueScope Steel Limited and Macquarie Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The MGM Wireless Limited (ASX: MWR) share price was a strong performer on the market today, recording a 16.67% gain on the back of a sales agreement with Vodafone Australia.

MGM Wireless designs and develops technology, software and wearable devices to enhance communication between families, schools, and society.

The company’s multichannel communication solutions enable schools to communicate with parents and caregivers using their preferred medium. These solutions are used by more than 1,400 schools and 1.7 million parents.

What moved the MGM Wireless share price today?

This morning, MGM Wireless announced it has entered into a sales agreement with Vodafone Hutchison Australia, which is now trading as TPG Telecom Limited (ASX: TPG) following its merger with TPG.

Under the agreement, the mobile network operator will sell MGM’s Spacetalk smartwatches in Vodafone retail stores from as early as August 2020.

Spacetalk is a children’s smartwatch sold in Australia, New Zealand and the UK through leading retailers like Officeworks, JB Hi-Fi Limited (ASX: JBH), and Kogan.com Ltd (ASX: KGN). 

MGM Wireless describes the device as an “all-in-one smart watch, phone and GPS for kids aged 5-12”. Customers manage the Spacetalk watch by downloading the company’s AllMyTribe smartphone app, which requires an ongoing monthly in-app subscription.

Vodafone will be the first Australian telco to sell Spacetalk through its retail footprint. It will offer Spacetalk with its ‘Red Wearable’ plan for a monthly plan fee. Globally, operators Sky Mobile in the UK and Spark New Zealand Ltd (ASX: SPK) offer a similar set up.

Management commentary

Commenting on the agreement, chief executive Mark Fortunatow said:

“We are delighted to have signed this Agreement with Vodafone. For the first time, Australian parents will be able to purchase SPACETALK with a mobile plan for one affordable monthly fee. It’s a simple, one-stop solution to keep kids safe and families connected.”

Vodafone head of devices, Ian Walls, also shared his thoughts, saying:

“The SPACETALK Watch is a natural fit for Australian families and we are proud to be the first Australian Telco to partner with MGM Wireless to bring this innovative device to the market.”

How has the Spacetalk smartwatch been performing?

Since launching on a single online portal in 2017, Spacetalk’s distribution channels across Australia and New Zealand has expanded to 777 stores as at 31 December 2019.

Wearable Spacetalk revenues recorded sizeable growth in the first-half of FY20, jumping 140% from $2.64 million in the prior corresponding period (pcp) to $6.34 million. Within this segment, Australian and New Zealand revenues grew by 94% on the pcp, while UK sales added a further 46% growth to overall Spacetalk revenues.

Additionally, AllMyTribe monthly app subscriptions increased to $130,000 in March 2020. This was a new monthly record and represented quarter-over-quarter growth of 19%.

Including today’s jump, MGM Wireless has a market capitalisation of just under $20 million. If you’d rather invest in much larger and more liquid companies, don’t miss the top ASX growth shares in the report below.

More reading

• MGM Wireless share price drops 7% as new contract hits a snag

Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As I mentioned here yesterday, when you’re in your 20s your portfolio is likely to have a higher than normal weighting to growth shares such as Afterpay Ltd (ASX: APT).

After all, if things don’t go to plan, you have time on your side to recoup your losses and grow your wealth.

But it’s a very different story when you are approaching retirement and capital preservation and income become the key focuses.

For those investors, I have picked out two top ASX shares which I think would be great options right now. Here’s why I think they are perfect for retirees:

Goodman Group (ASX: GMG)

Goodman Group is an integrated commercial and industrial property group. It owns, develops, and manages industrial real estate in 17 countries. Among its portfolio you’ll find warehouses, large scale logistics facilities, and business and office parks. It is the warehouses and logistics facilities that attract me to the company the most. I believe these position it perfectly for growth by giving it exposure to the structural tailwinds of the ecommerce market. Especially given its relationships with the likes of Amazon and Walmart. Incidentally, the company strengthened its relationship with Amazon today. The tech giant has signed a 20-year lease for a distribution centre owned by its joint venture with Brickworks Limited (ASX: BKW).

Telstra Corporation Ltd (ASX: TLS)

Another share for retirees to consider buying is Telstra. The telco giant has fallen out of favour with investors over the last few years due to the NBN rollout. The loss of its fixed line revenues created a huge gap in its earnings and led to sizeable dividend cuts. However, I believe it is time to reconsider your view of the company. Firstly, I believe Telstra’s dividend is now at a sustainable level based on its current cash flows. And secondly, I’m optimistic that that a return to growth is not too far away. This is thanks to cost reductions, the simplification of its business, and the easing of the NBN headwind. This could make it an opportune time to make a patient investment in its shares.

More reading

• ASX 200 up 1.2%: Big four banks rebound, WiseTech CEO dumps shares, Collins Foods impresses
• Brickworks and Goodman shares jump on Amazon deal
• 3 star ASX 200 shares for all types of investors
• ASX 200 Weekly Wrap: ASX retreats as confidence wanes
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I continue to believe that one of the best ways to create wealth is to buy quality shares and hold them for the long term.

This is an investment strategy used by many of the world’s richest people, including legendary investor Warren Buffett. And given Mr Buffett’s track record and net wealth, it’s hard to argue against it.

But which ASX 200 shares should you buy and hold? I think the two ASX 200 shares listed below would be quality buy and hold options right now:

A2 Milk Company Ltd (ASX: A2M)

The first ASX 200 share to consider buying and holding is A2 Milk Company. It is an infant formula and fresh milk company which has delivered explosive earnings growth over the last five years. This has been driven largely by the growing appetite for its infant formula products in China.

The good news is that the company still has a long runway for growth in this key market. This alone could underpin strong earnings growth over the coming years, but looks likely to be bolstered by its expanding fresh milk footprint, acquisitions, and new product launches.

CSL Limited (ASX: CSL)

I think this biotherapeutics company would be a great buy and hold option. While there are concerns that the pandemic could reduce its plasma collections and have an impact on future immunoglobulin and albumin production, I expect this to be offset by higher demand for flu vaccines. Furthermore, given the high levels of unemployment because of the pandemic, I suspect that plasma collections will be easier to come by once the crisis passes.

Looking to the future, I believe its current portfolio of therapies has the potential to drive solid earnings growth over the coming years. This should be boosted by CSL’s pipeline of lucrative therapies which have the potential to generate billions of dollars of sales over the next decade.

More reading

• Up 2,700% in 5 years: can the a2 Milk share price continue to climb?
• 3 five-star ASX stocks to buy in July
• 10 high quality ASX shares to buy in FY 2021
• Top brokers name 3 ASX shares to buy next week
• How I would construct a $50,000 growth portfolio

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A report titled The Million Jobs Plan released yesterday by climate change think-tank, Beyond Zero Emissions has suggested a move toward zero emissions could create 1.78 million jobs in Australia over the next 5 years.

This comes after the Australian Bureau of Statistics reported earlier this month that 835,000 jobs have been lost due to the coronavirus-induced recession. 

If Australia were to make an accelerated move toward zero carbon emissions, it could provide a huge boost to companies already thriving from exposure to clean energy and emission reduction.

The companies outlined below are well-positioned to benefit from any move toward emissions reduction.

Infigen Energy Ltd (ASX: IFN)

Infigen operates renewable energy assets in Australia. The company owns 7 wind farms in Australia and 1 solar farm. It also owns a grid-scale battery in South Australia. Additionally, Infigen has a further 3 renewable energy projects under development. 

In the first half of the 2020 financial year, Infigen sold 1071 GwH of renewable electricity. This was a 17% increase on the same period in 2019. The company had net profit after tax of $26.2 million in the first half of the 2020 financial year.  Infigen has recently been subject to 2 takeover offers, however, the company has not recommended that shareholders vote in favour of either bid.

If additional government investment is placed into renewable energy, Infigen will be well placed to take advantage of this. Further, additional subsidies for renewable energy producers could provide a boost for Infigen.

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical Investments is a fund manager which has an ethical charter that guides it to invest part of its funds into renewable energy. The company invests in solar, wind, tidal, geothermal and hydro renewable energy assets with none of its funds under management invested in coal or oil.

The company expects its full-year underlying profit for the 2020 financial year to be between $6.8–$7.8 million. This is a 10% increase on the 2019 financial year. Australian Ethical Investments has no debt and boasts a liquid balance sheet.

If stimulus goes ahead to work toward carbon reductions, this could provide a huge benefit to the renewable energy companies that Australian Ethical Investments holds an interest in. If these companies see higher profits this will mean an increase to returns on Australian Ethical Investments funds under management and will mean higher profits for the fund manager.

Envirosuite Ltd (ASX: EVS)

Envirosuite is an environmental consulting services company that helps its clients to monitor and control their effect on the environment. According to a company presentation, there’s been a 38 fold increase in global environmental laws in the regulation of pollution. Envirosuite’s clients include cities in China, airports and companies.

Envirosuite aims to be earnings before interest, taxes, depreciation, and amortization (EBITDA) positive by the end of Q3 FY21. It also aims for revenue of $100 million per year by the end of the 2023 financial year.

If Australia moves towards zero emissions, there will likely be incentives pushing companies towards reducing their emissions. As the economy becomes more conscious of its carbon use there will be a greater need for environmental consultancy services. This could see Envirosuite experience a positive surge in demand and bring it closer to producing profits for shareholders.

More reading

• ASX 200 drops 1.5% on elevated COVID-19 fears
• Fund managers have been buying these ASX shares
• Why Altium, Australian Ethical, Flight Centre, & Transurban are dropping lower
• Infigen Energy share price jumps 9% on rival takeover bid
• 2 high quality ASX shares to buy if the COVID-19 selloff gets worse

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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We are just about to round out another financial year (FY20) on the S&P/ASX 200 Index (ASX: XJO). Unlike most other advanced economies, Australia’s financial year divides June and July – which is nice considering we don’t have to do our tax returns just after Christmas.

But with FY2021 now staring us in the face, I’m thinking about the year ahead and what it might bring for the ASX 200 and Aussie shares in general. So, here are the two main factors I think will be shaping the markets in coming financial year.

The coronavirus pandemic

This is an obvious one. But in reality, the coronavirus pandemic, and its associated economic restrictions, are likely to still be a major force (if not the force) driving the movements of ASX 200 and the broader share market over the next financial year. Back in March, the ASX 200 nosedived more than 35% when it became clear just how much havoc the virus was set to wreak on the economy.

Since then, the ASX 200 has recovered considerably, but I still think things could go either way from here. We still don’t know the full extent of the damage done to our economy by the first wave of lockdowns. If it turns out to be worse than investors are expecting today, or if there is a second wave of infections and more lockdowns, this could drag ASX shares back down to the levels we saw in March and April. Fingers crossed this doesn’t happen, but as they say, ‘hope isn’t a strategy’.

The US election

It might be far from front and centre for us Aussies right now, but the United States is building up to what could be an extremely contentious and divisive set of elections in November of this year. Not only is President Donald Trump up for re-election against former Vice President Joe Biden, but a third of the US Senate and the entire House of Representatives is also facing the voters. We could see big swings going either way on 3 November.

President Trump has a reputation as being more ‘business-friendly’ than Joe Biden on policy areas like taxation and healthcare. So, if Mr Biden wins the election, I’m expecting some big swings in the US markets which will likely reverberate onto the ASX. No matter what happens, I think the elections will be one of the biggest share market events of the new financial year.

Foolish takeaway

Much like the second half of FY20, I’m expecting gyrations, volatility and unpredictability for ASX 200 shares throughout FY21. I might be wrong, but I always think it’s a good idea to hope for the best and prepare for the worst. Afterall, no one really knows what will happen on the share market until it does. So here’s to FY21 and may it bring us all success on the markets!

More reading

• Morgans picks the best FY21 ASX buys for the COVID-19 world
• Afterpay shares have exploded 142% in FY20
• ASX bank shares have experienced a horrible financial year
• Leading brokers name 3 ASX 200 shares to sell today
• Why James Hardie and its peers are surging higher today

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s the last day of the financial year today – and that means one thing. Yes, tax time 2020 is upon us in all its glory.

While doing your taxes can be either time consuming or expensive (or both, depending on how you lodge), it can also be an exciting time for investors. Many people will be receiving a tax refund for the year, which is always a welcome arrival. If I’m lucky enough to receive a refund this year, it will be going straight into buying more ASX shares for my investment portfolio, but that’s just me.

So, on that note, here are 3 ways you can help ensure you get the best bang for your buck at tax time 2020!

Tip 1) Be sure to claim all the deductions you’re entitled to

The size of any potential refund depends on 3 things: how much income you’ve earned over the last 12 months, how much of your spending you can claim as a tax deduction, and how much tax you’ve already paid over the year.

It’s this combination that will determine how much money you can expect back from the taxman for FY20.

Generally, we don’t have much say in how much tax is withheld from our salaries. And I’m confident most of us take steps to maximise our raw income. This only leaves the deductions as the best vehicle for boosting our tax returns. There are countless rules, exceptions and nuances that dictate what kind of deductions you can claim. So, remember to always check with a tax professional if you are unsure of anything. But as a general rule, if you spend money during the course of earning money, that spending is often tax deductible. Furthermore, keep in mind that other forms of spending can also constitute deductions. These include charitable donations and contributions to political parties.

Tip 2) Don’t forget to include all assessable income

This tip might not save you money initially. But it certainly will if you weren’t planning on declaring all the income that you should and later get found out by the Australian Taxation Office (ATO). Remember, if you received money from your labour or your investments over the course of the last 12 months, chances are you’ll need to declare it. This includes any gains you have banked from foreign currencies, selling shares, receiving dividends or distributions, or trading cryptocurrencies.

Tip 3) Pay a fair price for your accountant

Many Australians like to delegate their tax affairs to an accountant or tax professional. Whilst this might be the right move for some people, others may prefer to save money by completing their own tax return. The ATO has made it very easy to do your tax online. Most people’s income (including ASX share dividends) is now pre-completed. If you have relatively simple tax affairs, it might just be worth dedicating a few hours to managing your own return to save a couple of hundred dollars. If you do decide to employ a tax professional to look after your return, be sure to do your research so you know you’ll receive high quality service at a reasonable price.

More reading

• ASX stock of the day: Avita Therapeutics share price climbs 8.4% as company redomiciles
• Etherstack share price skyrockets 900% on Samsung partnership
• Morgans picks the best FY21 ASX buys for the COVID-19 world
• What does the future hold for the Qantas share price?
• Afterpay shares have exploded 142% in FY20

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After redomiciling to the United States yesterday, the Avita Therapeutics Inc (ASX: AVH) share price is up 8.4% today.

Avita Medical’s ordinary shares were transferred to Avita Therapeutics, based out of the US state of Delaware, via a scheme of arrangements.

What does Avita Therapeutics do? 

Avita Medical is a regenerative medicine company with technology that addresses therapeutic skin restoration. Its RECELL system provides spray-on skin therapy used to treat burn wounds. The company’s treatment of vitiligo, traumatic wounds, scar reconstruction, and dermatological aesthetic applications with the use of RECELL is also being assessed. 

Why did Avita Therapeutics redomicile?

The redomiciliation will better align the company’s corporate structure with its business operations. Avita derives virtually all of its revenue from the United States. The redomiciliation will likely substantially reduce costs associated with dual financial reporting and related compliance obligations in Australia and the United States. 

What is the effect of the redomiciliation?

The redomiciliation means Avita’s primary listing moves from the ASX to the NASDAQ. Its listing on the ASX will be maintained. Avita shareholders effectively exchange their shares in Avita for equivalent securities in the United States entity. Eligible shareholders received 5 Avita US CHESS Depositary Interests (CDI) for every 100 shares they held. 

How has Avita been performing?

Total product sales more than doubled in the March quarter compared to the prior corresponding period. Avita reported total product sales of $5.9 million during the Q3 FY20, up from $2.3 million in Q3 FY19. For the 9 months ending 31 March Avita Medical recorded $15.6 million in product sales, well above the $4.2 million in sales recorded in the 9 months to March 2019. 

The third quarter was Avita Medical’s strongest quarter since launching in the United States in January 2019. This reflects strong customer uptake, even with the COVID-19 pandemic beginning toward the end of the quarter. The company has seen consistent growth since the launch of the RECELL system, and has been somewhat insulated from the challenges of the coronavirus pandemic as treatment of burns patients is not elective or deferrable. 

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Kate O’Brien owns shares of Avita Medical Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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