COLUMNIST ARTICLES

from Find Geelong 2021 - December Edition

New Super Laws coming into effect soon will make it easier for you to top up your Super/Pension prior to age 74 – even if you have already retired

ACCOUNTANT

By Warren Strybosch

If you have already retired and set up your pension but have come into some additional funds e.g., inheritance, there are some changes to the superannuation laws that may help you get those funds into super to benefit you in your retirement. There are limitations as to how you can place funds into superannuation. One of those limitations relates to your age and work status. Currently, you must be below age 67 to avoid the ‘work test’. Anyone below age 67 can place additional funds into super and take advantage of the bring-forward rules. However, if you are over age 67, it starts getting harder.

For those over age 67, you must prove that you are gainfully employed to meet the superannuation work test. The work test requires you to be in paid work or gainfully employed (that is employed, or self-employed for gain or reward) for a minimum of 40 hours over a consecutive 30-day period during a financial year, before you’re able to make voluntary super contributions.

Unpaid work, volunteer work, working for a charity is not considered gainful employment. Also, receiving money from shares, investments, or income from a rental property, is unlikely to be accepted as paid work as these earnings are derived from passive income sources. You must be remunerated for the personal services you are providing via salary, business income, bonuses, or commission. Also, the employment arrangement must be full documented and declared for income tax purposes.

Very soon, the bill – titled the Treasury Laws Amendment (Enhancing superannuation outcomes for Australians and helping Australian businesses invest) Bill 2021, will be passed through the senate. It is the legislative outcome of the package of superannuation reforms announced in the 2021 Federal budget that is designed to give older Australians, including self-funded retirees, greater flexibility to contribute to their superannuation and access their housing wealth. One of the changes introduced in the bill, will be the increase in age regarding the work test. When the law passes, from July 1, 2022, individuals aged 6774 will no longer need to meet the work test when making non-concessional superannuation contributions.

Individuals will be able to access the non-concessional bring-forward arrangement (subject to meeting the relevant eligibility criteria) prior to turning 74, an increase from age 67.

Access to concessional personal deductible contributions for individuals aged 67-74 will remain subject to meeting the work test.

These changes are great for those already retired and below age 74. It will provide them with the opportunity to place more funds into super; someone with a total super balance of less than $1.48 million will be able to contribute the full bring-forward amount of $330,000 in one hit. Note: The $14.8 million relates to the bring forward rule and is different to the general Transfer Balance Cap (TBC) of $1.7 million as at 1st July, 2021.

If you are over age 67 with money sitting in the bank or you have recently received an inheritance, have less than $1.48million in super, then consider speaking to your financial planner about placing further funds into super for your retirement needs.

At Find Accountant, we provide SMSF tax advice. Our senior accountant is also an award-winning financial advisor. If you require SMSF advice or are considering whether or not to wind up your SMSF, then speak to Warren Strybosch at Find Accountant Pty Ltd.

Warren Strybosch

You can call them on 1300 88 38 30 or email info@findaccountant.com.au www.findaccountant.com.au

WARREN STRYBOSCH

Find Group

The founder of the Find Group of companies draws on his diverse background, which ranges from teaching, to serving in the army, to taxation and accounting, to coach and help clients live their best financial lives. A multi-award winner, Warrens’s innovative approach in business means he was a champion of virtual financial advise long before the pandemic. Warren established the Find Foundation, which owns and operates acroos Victoria.

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Five Mythbusters For Painting Outside In Summer

PAINTING & DECORATING

By Steve Dahllof

With summer holidays approaching, what better time to paint your house! Here, we smash five commonly held myths about outdoor painting in summer to give you a happier painting experience.

1. The hotter the better as the paint will dry faster

This seems logical but in fact extreme heat causes paint to dry too fast. The paint blisters, flakes and peels, doesn’t stick well and can leave possible brush marks on the surface.

Ideal painting temperatures are 15–30 degrees with humidity around 20–70%. The wall you’re painting may be a different temperature from the surrounding air and will need to remain at 10–35 degrees throughout the painting process. Always check the label on the can before beginning.

Acrylic paints dry within 20 minutes at 25 degrees; that’s only a moderately warm day. If the thermometer rises above 35 degrees, put down the tools and go somewhere cooler!

2. Midday is the best time to paint

You’d think that painting when the sun is at its highest in the sky would give you an advantage, but no. A golden rule is – follow the shadow. Painting earlier in the morning or towards sunset is much better for you and what you’re painting. Avoid the glare and heat by painting the surface on the opposite side to the sun. In the hottest part of the day, you can remove detachable shutters, door and window frames and paint them in the shade, and for inside paint jobs, open the windows and doors to release any paint fumes.

3. Any hot day is the best day to paint

You could rely on this if you were painting in the Sahara but Victoria’s weather is liable to change swiftly from one extreme to the next. A bright summer’s day can quickly become a thunderstorm. So plan your painting day with the aid of the weather forecast, and keep an ear out for possible conditions such as dust, wind, bushfire smoke (hopefully not!) and rain.

4. I’m fit so I’ll have this house painted in no time!

Warning: after Covid lockdowns, you might not be as fit as you were this time last year...or two years ago? And there’s physically more to painting than just stretching and lifting cans and brushes. For a start, long periods in the sun can lead to heat stroke. You must cover your head with a broad-brimmed hat, preferably with a neck flap, and liberally apply sunscreen every one or two hours. Soak a flannel in cool water and apply around your neck or forehead for instant relief from heat stress. Better still, buy a polyester and cotton wrap: it stays cool for up to 2 days, is non-toxic and lasts for years.

Always remember to keep yourself hydrated with water – coffee, tea, juice or even a beer aren’t nearly as effective. If paint fumes tend to make you feel queasy, wear a face mask. (Yes, they’re useful for more than Covid protection!)

5. Painting won’t take long because it’s hot

Nope. The actual painting process may be quick, but the best paint jobs require preparation that may take longer. Spending time to prepare the surface will deliver the best results.

You will need to clean your brushes, wash the dust and cobwebs off walls, windows, fascias and gutters, and then let them dry. Remove mould and scrape away all blistered old paint before beginning. Lay out drop sheets where you want them. Tie back or prune plants to give yourself clear access. You may wish to apply masking tape around window glass, door handles and other such items to prevent paint splashes and smears. (Remember to remove the tape before the paint has thoroughly dried as lifting it off later can leave a ragged, jagged edge.)

If you follow these precautions, you will end u with a beautiful house, without damaging your health!

For all painting advice, contact Dahllof Painting Services at sjd67@bigpond.net. au. We will be happy to answer your painting inquiries.

Steve Dahllof

PAINTING AND DECORATING Dahllof Painting services 0407 365 372

Yes, You Can Salary Yes, You CanPackage A Smartwatch

SALARY PACKAGING SERVICES

By Dan Nicholls

No. It isn’t too good to be true. These highly sought-after smart devices are officially approved for salary packaging, so if you’ve been waiting for an excuse to buy one, read on. When most people think of salary packaging applications, they think of getting a work laptop or using pre-tax income to save on their mortgage, bills or other expenses. Most people don’t realise that you can salary package a range of work-related devices. When you get a smartwatch through salary packaging, it even comes with a big tick from the tax office. The main caveat, of course, is that you have to use your smartwatch for work purposes.

Smart Savings

Getting a new smartwatch through salary packaging is going to cost you less than buying one at full retail price, but just how much? Let’s say in this example, your employer will purchase the smartwatch, then you will pay back your employer using your pre-tax income. In other words, your repayment amount will be deducted from your pay before you receive it and before tax is taken out.

This means the actual amount you save on the smartwatch will depend on your income tax rate. If you want a brand new stainless steel Apple smartwatch that is currently priced at $1,119 on the Apple site, your first saving is the GST. Your employer will cover this cost as part of the salary packaging agreement, so you’ll save 10% or $102 upfront. If you’re on an income of $80,000 on a 37.5% tax rate, here’s how the cost is calculated:

Cost of smartwatch: $1,119 (RRP) Your tax rate = 37.5% Tax rate x RRP = $419.62 $1,119 minus $419.62

By paying for your smartwatch using salary packaging, your new smartwatch will only cost you $699.35. You will be able to pay this in installments set up by your employer or salary packaging provider.

ATO approved technology

If that’s not enough of an excuse to finally get that smartwatch, enjoy approval from the tax office. In 2018, the ATO made a ruling that allowed a popular smartwatch to be deemed a portable electronic device for fringe benefits tax purposes under the following circumstances:

• The watch is provided in respect to employment and is used primarily for the employee’s employment; and • The watch is not considered a second item purchased in the past 12 months that has a substantially identical function.

While the ruling was originally intended for Apple smartwatches, it now applies to both iOS and Android smartwatches.

Bundle Your Devices Normally, two devices with identical functions can’t be packaged in the same FBT year. For example, you couldn’t package a smartphone and then decide you want a newer smartphone model in the same 12 months. In 2018, the Australian Tax Commissioner ruled that while a smartwatch has similar functions • to that of a mobile phone, the functions between the two are substantially different due to the following considerations: • The watch can receive and display text messages and emails, but sending/replying is limited to pre-set phrases or dictating a reply as an audio file. • A keyboard cannot be used with the watch as it can with the paired phone. • Purported seamless transition between the watch and phone when needing to utilise more complex functions. • The watch cannot download or use the majority of mobile phone applications (ie apps). Only specifically designed applications work on the watch. • The watch is not capable of viewing complex web pages on the screen, thus requiring the use of the phone in a lot of cases. • These limitations of the smartwatch were enough for the Commissioner to consider that the device was substantially different to the phone.

Therefore, a smartwatch is eligible for an exemption where both devices are provided to an employee within the same FBT year. • This means you could salary package a smartwatch in the same FBT year that you’ve already packaged a laptop, phone or another work-related device.

Want a smartwatch? Let’s chat.

At The Salary Packaging People, we’ve helped thousands of employees save on a range of devices through salary packaging solutions. Contact us or call 03 5229 4200 to talk to someone today.

Dan Nicholls

SALARY PACKAGING SERVICES Salary Packaging People

Lockdowns Came At Enormous Cost: Treasurer

Colin Brinsden, AAP Economics and Business Correspondents (Australian Associated Press)

Josh Frydenberg says the latest national accounts show the enormous cost of COVID-19 lockdowns, something the treasurer does not want to see a return to as the nation faces the uncertainty of the Omicron variant.

The national accounts showed the economy contracted by 1.9 per cent in the September quarter as a result of the restrictions imposed in NSW, Victoria and the ACT battling the Delta strain.

It was the third largest decline in the history of the national accounts that started in 1959 – the biggest being the revised 6.8 per cent contraction in the June quarter 2020, followed by the two per cent fall in June 1974.

“Today’s national accounts confirm the enormous economic cost of lockdowns,” Mr Frydenberg told reporters in Canberra on Wednesday.

“We don’t want to go back to lockdowns, and that’s why I welcome the outcome from national cabinet which was the premiers, chief minister and the prime minister are doing a ‘wait and see’ (regarding Omicron).”

But shadow treasurer Jim Chalmers said this was the big economic downturn Australia didn’t have to have.

“Billions of dollars a week wouldn’t have been bleeding from the national economy were it not for the lockdowns made necessary by Scott Morrison’s failures on quarantine, vaccines and economic support,” Dr Chalmers said. The Australian Bureau of Statistics said the economy still grew by 3.9 per cent over the year, and gross domestic product is only 0.2 per cent below the pre-pandemic level in December quarter 2019.

Deloitte Access Economics economist Chris Richardson expects the national accounts for the December quarter will show an “impressive recovery” of two per cent.

“Australian families and businesses are getting better at juggling COVID,” Mr Richardson said

“The pain this time around was less, and the recovery looks set to be even faster.”

Retail sales in October were already back where they were in May 2021, before Delta hit, while one bank estimates that $8 billion was spent over last weekend’s Black Friday-Cyber Monday sales.

At the same time the latest payroll jobs figures show employment is already back at their May peak.

The Australian Industry Group performance of manufacturing index, also released on Wednesday, rose by 4.4 points in November to 54.8, firmly above the 50 point mark that separates expansion in the industry from contraction.

“With restrictions easing, performance improved across the manufacturing sectors,” Ai Group chief executive Innes Willox said. For the September quarter, ABS acting head of national accounts Sean Crick said domestic demand drove the fall, with prolonged lockdowns across NSW, Victoria and the ACT resulting in a substantial decline in household spending.

“The fall in domestic demand was only partly offset by growth in net trade and public sector expenditure.”

Household spending declined 8.4 per cent in NSW, Victoria and the ACT during the September quarter, but grew by 0.7 per cent in the rest of the country.

BIS Oxford Economics chief economist Sarah Hunter said private sector investment in all non-lockdown states was also very healthy apart from Western Australia.

“This outcome highlights that once restrictions are eased and the virus is under control, the economy can recover rapidly,” she said.

“But the risks from the virus remain very real, with the emergence of the Omicron variant.”

Australia’s net trade position contributed one percentage point to growth, with exports fuelled by global demand for coal, LNG and meat products

Imports of goods fell, reflecting continued global supply constraints and a fall in domestic demand.

The 12 Days of Christmas

- How to Stay Cool, Calm and Collected

LIFE COACH & COUNSELLOR

By Lou Lugsdin

On the first day of Christmas, my true love sent to me Some time-out to just be free!

On the second day of Christmas, my true love sent to me Two healthy snacks and some time-out to just be free!

On the third day of Christmas, my true love sent to me Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the fourth day of Christmas, my true love sent to me Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the fifth day of Christmas, my true love sent to me A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the sixth day of Christmas, my true love sent to me Six self-help, personal development books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free! On the seventh day of Christmas, my true love sent to me Seven days of walking Six self-help, personal development books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks

And some time-out to just be free!

On the eighth day of Christmas, my true love sent to me Eight rounds of box breathing Seven days of walking Six self-help books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the ninth day of Christmas, my true love sent to me Nine yoga poses Eight rounds of box breathing Seven days of walking Six self-help books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free! On the tenth day of Christmas, my true love sent to me Ten rays of sunlight Nine yoga poses Eight rounds of box breathing Seven days of walking Six self-help books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the eleventh day of Christmas, my true love sent to me Eleven different vitamins and minerals Ten rays of sunlight Nine yoga poses Eight rounds of box breathing Seven days of walking Six self-help books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

On the twelfth day of Christmas, my true love sent to me Twelve red roses Eleven different vitamins and minerals Ten rays of sunlight Nine yoga poses Eight rounds of box breathing Seven days of walking Six self-help books A five-minute body scan Four positive affirmations Three litres of chilled drinking water Two healthy snacks And some time-out to just be free!

Lou Lugsdin

Life Coach and Counsellor

How To Avoid The Great Resignation

RESILIENCE COACH

By Sally Higoe

Yep, it’s a thing! ‘The Great Resignation’ is heading to Australia.

According to Microsoft research, The pandemic has caused more than 40% of the global workforce to consider leaving their employers this year– and it’s predicted to hit Oz in March ‘22.

More and more, employees are tapping into their OWN needs, and placing them before that of their employer – they seek appreciation, they seek gratification.

People want what they’ve been promised... and more than that, they want a role that will enrich their life as a whole.

No longer, do employees just want a job!

Your employees are whole – they are more than their job, and a leader that recognises this, will listen.. and hear... and will sell the role, catering to human needs – they’ll find a way to “reconfigure work so that it’s actually designed for this new world that we find ourselves in”. (ABC Radio National) It’s time to get up with ‘the times’.

So what does this look like exactly?

Without overthinking it, it really is quite simple.

Fulfillment. That’s what people want.

As a leader, you “need to focus on the needs of your employees, and find a way to drive their growth ambitions without overstretching already fatigued staff” (Behavioural Scientist, Aaron McEwan shared on ABC RN’s ‘This Working Life’ – full podcast here- https://www.abc.net. au/radionational/programs/thisworking-life/the-pandemic-drivengreat-resignation/13536416)

The ability to drive ambitions whilst respecting balance is achieved by the leader through empowerment, care, respect, and growth. Here’s how;

1. Don’t leave your team guessing!

Teach them exactly what’s required for their success, ensuring that they have – and know how to access – ALL resources needed.

2. Reduce overwhelm! Initially, make any task, role, or project simple – remove complexity – and then build from there. 3. Be available! Show your team that you are there for them by empowering them to ask questions – literally do this, do not presume that they know you are accessible.

4. Demonstrate how it needs to be done. Replication is powerful and so is giving your time.

5. Demonstrate through questioning. Seek understanding, show interest –

“What outcomes are we looking for”, “How is this moving us towards the outcome we want?” “What skills will you need to bring?” “What’s missing?” “What’s your level of confidence?” “What new choices do we need to make to get this done?”

6. Be compassionate. Your people want to succeed, so tap into curiosity mode, remove any judgement, and seek to understand.

7. Be patient. Continue to rehearse what needs to be done until all the basic steps are there... remain available and open.

8. Sit back and DO NOT micro-manage.

At this stage you want to be letting the team member apply what they’ve learnt.

9. Be comfortable with mistakes. This is how we learn even more effectively and how we grow. It’s also how amazing ideas can be formed!

10. Observe and periodically checkin - to determine commitment, build resilience and support growth.

“What needs to happen next?” “What is the deadline, what are the incremental benchmarks you’re aiming for?” “How will we know when we’re on track?” “How will we know when we’re done?”

11. Champion their success – See progress, provide feedback, remind them of their abilities and skills.

12. Remember to always stay curious.

Leading and inspiring in this way will promote fulfillment. I believe fulfillment comes through working towards the best version of yourself and achieving what you set out to do (& especially what you thought was never even possible)

When your team feel fulfilled in their role, respected in their individuality, and supported in their growth, one thing you won’t have to worry about is The Great Resignation.

If you’d like to create a detailed growth plan for your team, contact me on sally@ team-resilience.com.au and let’s chat, I have a wonderful model that I work through, with leaders, to help build an empowered team that is collaborative, productive, effective and happy... and the results are amazing.

Sally Higoe

Team/Leadership Coach Team Resilience Method

0490388017 sally@team-resilience.com.au

Leadership and Team Development

.....Imagine a team where each individual is so strong in self that their focus is how to move together as one....

SERVICES

LEADERSHIP COACHING & DEVELOPMENT

TEAM COACHING & DEVELOPMENT

BEHAVIOURAL PROFILING

BUSINESS GAP ANALYSIS

IN-HOUSE & ONLINE TRAINING

WORKSHOPS/WEBINARS Leadership coaching that connects your team and drives results

CONTACT

SALLY HIGOE

Resilience Coach Team Resilience Method

0490 388 017

sally@team-resilience.com.au

www.team-resilience.com.au

Capturing Xmas for Retailers

BUSINESS COACH

By Deb Fribbins

As Xmas looms the information we capture is paramount for planning Xmas 2022. Dissecting your business each week this month will help you make the right decisions to increase busine ss NOW

Whether you are an Online or Bricks and Mortar Retailer, the principles are the same. In order to ensure you grow your Christmas business you need to start Planning NOW for 2022. The best plans are based on History. What worked, how can we do it even better? What did not work? Why did it not work? There could be many reasons. Identifying the 5 rights is the best way to start.

Was it the right Product for the season?

For your customer base?

Was it out at the right time? Too Early? Too late?

Was it the right Quantity? Did you buy too much or too Little?

Was it displayed, marketed or advertised in the right place?

Was it the quality your clients expect from you? You have a strategic plan that relates to your specific clients for your products. The first step is to go back and DEFINE your goals.

• Were your goals in line with consumer demand? • Have you updated the offer to reflect today’s consumers? • The last two years has seen consumers spend very differently due to the conditions we have lived in. • Have your goals changed to be proactive to consumer demands

DETERMINE your business needs for your consumers to enable you to plan accurately for the future.

• Refer to your history? Do you have on actual sales by item by date, by category? • Who is the market you are selling to? • What are your competitors offering, both online and in stores? • What is your differentiator this year? • What makes up a comprehensive range that suits your clientele?

Cover price points, colours, market segments that suit your business. • What display material did you have and do you need to change or add? • What advertising did you do last year that worked or didn’t? What attracted you to someone else’s advertising?

DEVISE

Planning developed from the information identified and analysing the effects will bring greater results. This enables a focused strategic approach for each facet of the business identified when Determining your consumer needs. Your planning needs to cover

• Is your product range cohesive and focused for your consumer? • Do you have regular drops of new items to keep your range fresh and keep your customers coming back to see new products? • Are your marketing strategies maximizing exposure while minimizing costs? • Devise Advertising plans to promote the right products at the right time • Are your visual merchandising aides display your products to their best. • Do you have enough information that assists customers to make the right choice in your store or site before they move on? • What are your lost leaders to draw your customers into action?

Deliver

Once you have determined the possible issues and devised plans to maximise the opportunities for your consumer base, ensure they are being delivered the way you intended. What changes have been made by you or your staff that may impact on the sales?

Dissect all actions as they happen and record the results. Modifications may be required as the market opens up which if not recorded may be forgotten by next year.

• Are your products selling at your planned rate of sales? • Are your displays adequate and enticing enough? • Is there enough information for the consumer to make an informed decision.? • Do you have enough or too much stock? • Have you priced your goods to sell?

Strategic business planning for your Xmas sales will give you the clear focus you need to steer your business in the right direction to achieve your desired goals, both this season as you dissect through the month, and with your planning effort for the following year.

Deb Fribbins

Developing Excellence in Business

400 524 451

Christmas Gifts That Won’t Blow Your Budget

Money and Life

(Financial Planning Association of Australia)

Christmas is a wonderful time of year in Australia, filled with summer foods, decorations and of course, gift giving. This year will feel even sweeter for many, as friends and family reunite for the first time in months, if not years. Here are a few ideas to help you stretch your Christmas gift budget further, so you can enjoy more family time, without the financial hangover.

For many people this Christmas will be one to remember, as they reunite with loved ones after months of lockdowns, and nearly two years of closed international borders.

It’s no surprise then that we could be headed for another mammoth year of Christmas shopping. The Australian Retail Association (ARA) is forecasting a spending surge to match 2020, which was officially the biggest on record. Consumers splashed out more than $55 billion last Christmas, after enduring a harrowing 12 months of COVID-19.

Yet, after a year when both the pandemic, and environmental issues, have taken centre stage, is all this spending in our best interest?

Overspending at Christmas time is commonplace in Australia, with many people taking on debt that they have no way to repay.

So if you’d like to avoid a budget blowout and have a more ‘conscious’ Christmas this year, here a few alternative ideas to help you celebrate.

1. Buy local

If you want to avoid price rises and shipping delays this silly season (not to mention helping the planet) one of the best things you can do is buy locally. By purchasing from small businesses, artisans and producers in your local area, you’ll help to create jobs and keep more of the money in your community. Local suppliers often also have different and unique products for sale that aren’t available from national chains. So look out for your local Christmas market, craft fair or farmers market, or choose gifts from a small businesses nearby.

2. Get creative

If you enjoy making things, this is for you. What could embody the spirit of giving more than creating your own beautiful handmade gifts? This is the perfect activity to do with kids (or without!).

Baked goods, scrapbooks, drawings, paintings, jewellery, soaps, candles, even face masks can all be made. Not only will you save money, giving will feel more meaningful when you’ve put your own time into it.

3. Give an experience

Even better than material goods, why not give the gift of an experience? Experiences are more memorable, offering the recipients a chance to connect and enjoy themselves. The possibilities are endless, so you’re sure to find something that suits. You could go traditional with restaurant vouchers,

4. Give your time

If you can’t afford an elaborate gift, you still have something everyone needs – time! Giving your time without expecting anything in return is the perfect way to embrace the spirit of the holidays. Perhaps you could gift an elderly relative with some help around the house, offer to babysit your sister’s kids for a night, finish a DIY project for your mum, or stock someone’s freezer with enough meals for a week. There are lots of thoughtful and creative options that will keep your budget intact.

5. Make a donation

If the people you love truly don’t need anything, perhaps they’d appreciate you donating a gift on their behalf. Here are a few options: • Give the gift of learning to a child in need through The Smith Family’s charity gift range.

• Help end global poverty with a gift from Oxfam’s charity gift shop.

• Support equality for girls around the world through Plan International’s

Christmas Appeal.

Remember, less is more

Aussies are a generous lot, and we’re each planning to spend $726 on gifts alone this Christmas! Now we all want to give people the world, but perhaps it’s worth taking that more literally this year. In most cases, one simple gift is enough and can even be more appreciated. You’ll be doing them, the environment, and your budget a big favour.

Of course, if you’d prefer to focus on spending time together rather than doing the Christmas shopping, that’s ok too! Discuss how you feel with those closest to you and let them know you’ll be prioritising time together over physical gifts. It could help you start the new year in a better financial position than ever.

WHAT is a Testamentary Trust?

LAWYERS

By John Van Beveren

Testamentary trusts are created within a Will to provide a greater level of control and protection over the asset when they are distributed to the beneficiaries. This form of trust does not come into effect until after the death of the person making the Will.

When a testamentary trust is formed, instead of assets passing directly to an individual, they pass to the trustee of the testamentary trust to hold and look after the assets.

WHY use a testamentary trust?

To protect your assets

The main purpose of a testamentary trust is to ensure the beneficiary’s inheritance is safe from misused. It can also protect against claims by spouses or partners on the beneficiary’s assets due to any marital or commercial breakdown. How testamentary trust works in family law disputes is discussed in more detail below. Reducing tax

Other benefits are the reduction in tax by beneficiaries from any income earned from the inheritance. This is useful where the beneficiary has a high personal tax rate or have a partner in a lower income bracket.

There is also no Capital Gains Tax payable when your assets are transferred from the trustee of a testamentary trust to a beneficiary. As with the income of the trust, the trustee can select which of the beneficiaries of the testamentary trust should take the capital gain. By choosing to distribute the capital gain to a beneficiary on a low income, the capital gains tax liability can be significantly reduced.

Trustees need to obtain specific advice regarding taxes payable for a testamentary trust.

Protects trust assets from bankruptcy

Testamentary trusts can also protect beneficiaries from the ramifications of bankruptcy. A creditor cannot obtain assets held in the trust, as the assets are not owned personally by the beneficiary and they do not form part of the beneficiary’s personal estate.

What are the TYPES of Testamentary Trust?

There are two common types of testamentary trusts:

Discretionary testamentary trusts.

This is where the executor gives the beneficiary the option to take part or all their inheritance via testamentary trust. The primary beneficiary has the power to remove and appoint the trustee. They can even appoint themselves to manage their own inheritance.

Protective testamentary trusts.

Beneficiaries must take their inheritance through the trust and does not have the option to appoint or remove trustees. This method is useful where the beneficiary is not able to responsibly manage their inheritance due to age, disability or prone to be reckless with the money.

HOW does a Testamentary Trust Work?

The trustee of the testamentary trust selects from the class of beneficiaries which person will receive a gift of trust income. Until the trustee elects to distribute to a beneficiary, no person has a vested interest in the assets of the trust.

How does Testamentary Trusts work in FAMILY LAW DISPUTES?

As mentioned, testamentary trusts are useful to protect a beneficiary from family law breakdowns. With the inheritance held in a testamentary trust, the beneficiary can isolate inherited assets from personal assets following a divorce or a de facto break- up.

However, it is important to note that a testamentary trust does not always guarantee exclusion of inherited assets from the matrimonial pool of assets between spouses.

Asset protection of a testamentary trust are not achieved simply through the structure of the trustee and appointor - the indirect control of the beneficiary over the trust, ongoing administration of the trust, the way the trustee carries out their role and the records maintained by the trustee are all important and relevant factors in determining whether the asset held in testamentary trust form part of the matrimonial asset pool.

In a recent Family Court case of Bernard v Bernard, the wife argued that the assets of the husband’s testamentary trust should be included in the matrimonial pool. The Husband did not agree and considered it as a financial resource given that he had no direct control over the assets or income earnt as he was not a trustee nor the appointor.

The Husband was a primary beneficiary of his trust. His sister was the trustee.

In a testamentary trust situation in a family law property dispute, the court will also look at any evidence that suggests that the beneficiary indirectly controls the trust, including: • The requirements for the beneficiary to provide consent before the trustee can make decisions; and

• the dealings of the trustee and whether they are acting in accordance with the wishes or at the direction of the beneficiary.

In Bernard v Bernard , the Court reviewed the conduct of the sister as trustee of the husband’s trust, including her resolutions relating to distribution of the trust assets and decisions to accumulate income, along with the trust’s tax returns.

Having concluded that the husband did not have any direct or indirect control of the trust, the Court considered that the husband only had an entitlement to the testamentary trust as a mere beneficiary. On this basis, the assets of the trust were not included in the matrimonial pool.

WHAT are the disadvantages?

Disputes over the way the trust is managed - The trustee essentially controls the trust and determines the future of its assets. The trustee can distribute all or any part of the income to one or more of the beneficiaries, at such times and in such amounts as they see fit.

If the trustee restricts access to capital or income, a beneficiary may challenge the terms of the Will. This can be reduced by the Willmaker communicating their clear intentions in their Will.

Administration of the trust also requires a level of cooperation between family members who may share the role of trustee of the trust. This could lead to potential disharmony and cause of legal disputes if not everyone agrees. Assets held by a testamentary trust must be sufficient to justify the expense of administering the trust. For example, accounts will need to be prepared and maintained, and a tax return will need to be lodged each year.

Capital Gains Tax

If the trust has capital assets that are sold at a loss, those capital losses cannot be distributed to the beneficiaries, and must be carried forward in the trust and set off against future capital gains (if any).

Pension Eligibility If a beneficiary is a pensioner, you will have to ensure that the pension eligibility is not put at risk by their inheritance in the testamentary trust, as any inheritance may affect their income test.

Importance of a carefully drafted Testamentary Trust -

It is crucial to ensure that the testamentary trust is properly drafted in the estate planning phase to ensure that the control of the trust is structured properly – balancing the need for protection and the practical circumstances.

There could also be confusion or a lack of clarity within the will, and after a person passes away, the testamentary trust may not be established properly. There is a risk that certain details could be overlooked, and the wishes of the deceased are not properly executed.

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Good Branding Is Great Business

EMBROIDERY SPECIALIST

By Kerry Kaspi

I was chatting to a plumber working on a neighbour’s house the other day and his whole behaviour was based around his brand.

Here’s what I noticed

• his logo looked great (and was readable) from his business card, shirts, safety boards and vans

• all vehicles were branded amazingly - bright bold and clear. Phone number right in your face and a clear message as to why you should choose his company.

• the tradies wore branded shirts and shorts that stood out from every other company employee on site - there were clean, pressed and look almost new.

• he spoke positively about everyone and his staff were happy and friendly

• his older supervisor joked with the other companies workers and generally encouraged everyone

• the work site was tidy as well

The plumber gave me a business card, fridge magnet and voucher for $40 towards the first job I booked with him. This guy was a branding gun. He knew that if his brand reflected his level of operation everything in his companies day to day dealings would improve. This gives you a good idea of how branding can work for you. No clipart logo and unmarked vehicle.

You never know who you may talk to and where it could lead. (I booked the plumber by the way. And referred him to a cycling mate.)

Good branding is great business.

Best Quality Embroidery

Geelong Industrial Monogramming has been established since 1982, and is proud to be a family owned and operated business. During that time we have seen it grow from a small cottage industry to a fully operational factory and retail store with 20 experienced staff, servicing some of Australia’s biggest suppliers, including: YAKKA, Ford Motor Company, Rays Tent City Cant tear em’ and many more. We were Geelongs first embroidery business, and we strive to excel in our customer service and satisfaction by producing quality workmanship with garments made to last.

We are Geelongs first embroidery business, and we strive to exel in our customer service and satisfaction by producing quality workmanship with garments made to last.

57 Morgan st North Geelong, Australia 3215 Kerry@gim.net.au

Kerry Kaspi

Safety Switch

ELECTRICAL OPERATIONS

By Mark Clutterbuck

Christmas is fast approaching, and many Australians are all set to get into the festive spirit and deck out the interior and exterior of their homes in Christmas decorations and lights. And so, we should, 2021 hasn’t been the most celebratory of years so we are more likely than ever to really brighten up our homes and our hearts with some festive bling. But before you do… make sure your 100% sure your switchboard and safety switch are up to standard and doing its job, your family’s safety depends on it.

Safety switches turn off the power immediately if an electrical fault is detected – preventing the risk of electric shock, death and fire.

It’s so important to ensure you aren’t overloading your electrical systems or putting your family’s safety at risk. Electrical Christmas decorations and lights can be unsafe or faulty or can put too much pressure on your home’s electrical capacity. That’s why it’s absolutely vital you have a working and effective safety switch on your switchboard. A staggering 40 per cent of the 4,500 house fires in Victoria each year are caused by electrical faults and appliances. These fires could have been prevented by a licensed electrician checking the electrical wiring and installing safety switches.

Check your switchboard in your home, it is the old ceramic fuse, and hasn’t recently been updated, you’ll need to upgrade to a new one to ensure your home and family is properly protected. If you are not sure, get it checked out by one of our licensed electricians. Whilst we all want our homes to be “beginning to feel a lot like Christmas” we also want to stay safe and alive in the process.

To be fully protected, you need to have safety switches installed on all your circuits by a licensed electrician.

But one safety switch may not be enough

Victorian legislation states that a safety switch must be installed on the power point circuit and the lighting circuit of new homes, however, many older homes are still without the protection of a safety switch or only have coverage on the power point circuit.

Electrical safety regulators are now recommending homeowners and landlords install a safety switch on each circuit including lights, air conditioning, oven, hot water unit, and pool equipment circuits to provide full electrical protection for residents.

Regular safety switch testing is essential

Having a switch/es installed by your licensed electrician is not the end of the story, regular testing is also essential to ensure the switch will activate freely in an emergency.

Testing your RCD or safety switch is easy simply press the Test button on the device (sometimes marked with a ‘T’). The switch should activate cutting the electricity supply to that circuit. To reset the safety switch just flick back to the ‘ON’ position. We recommend you test your safety switch/es every quarter, when the power bill comes in is a good reminder.

So, when looking for the perfect gift this Christmas, think of the one gift that will last all year. A Safety Switch is the perfect gift to give a loved one. The reassurance that they will be safe and protected in their home all year round.

Mark Clutterbuck

Electrical Operations Clutterbuck Electrical | 0414538394 mark@clutterbuckelectrical.com.au www. clutterbuckelectrical.com.au

Waiting

FINANCE BROKER

By Allan Houliston

Allan Houliston

Finance Broker Aisling Financial

405 140 003 allanh@aislingfinancial.com.au

DIY Finance can be costing you thousands!!

FINANCIAL PLANNER

By Mark Kruger

Why pay for something when you can DIY? I am 100% onboard. I love educating myself. But reading Grey’s Anatomy does NOT make me a doctor. And reading a few finance books does not make you a financial expert. I see so many cases of people with the right intentions either getting things wrong or not optimising what they have. Let me explain.

I love making people better off in their super. It’s a passion! Tens of thousands of dollars is not unusual. 18 or 60 years old - it doesn’t matter. “That’s awesome!” you say. And I can hear it coming...“I’m gonna give it a crack myself. How hard can it be?” Let’s ask a couple of recent clients, OUR SERVICES Nick and Stacey. They had a crack... read the books, did some research. Nic THOUGHT he knew what they were paying super. Thought they were set. I saved them about $4,500. Per. Year. And that will increase as their super balances increase over the next 15 years. Let’s just say my fee paid for itself straight away. And they have the peace of mind knowing that it has been professionally looked at.

Insurance

“Yeah, Mark, don’t worry about my Income Protection, I’ve got some in super. It’s pretty cheap too!” Ok, great that this person knew they had it and what they were paying. But it was cheap for a reason. The benefit period was only for 2 years. This is for a family with a significant mortgage and limited resources beyond a single income.

What is the cost of getting that wrong? It’s a personal choice to bear the risk or not, but at least make sure you have ALL relevant information. You don’t know what you don’t know.

Can I buy shares for kids?

Another week-intentioned sentiment. But it isn’t necessarily the right question. Depending on the purpose, timeframe, age of kids, tax rates and other things, buying shares for kids may not be optimal for you. Working through your intentions and knowing what else you have

going on could be worth thousands if not tens of thousands of dollars, depending on your situation. Why wouldn’t you ask?

Look, I don’t want to pay for things I can do myself. But again, you don’t know what you don’t know. Finances are HUGE in your life! Why would you assume you are equipped to make the optimal decisions?

I don’t know about other advisers, but if I can’t make you better off, I am not going to be charging you advice fees. So isn’t it worth finding out?

“There are various reasons people don’t seek financial advice: fear of cost, of looking dumb, not thinking they have enough going on, lack of time etc. I will address some of these in the next edition of FIND.”

This article is general in nature only. It is not a recommendation to start contributing more to super as this may not be right for you. You should seek personal financial advice from a financial adviser to consider your situation holistically.

Mark Kruger

FINANCIAL PLANNER Money Rocket 0429 446 229

BOOKKEEPER

By Mary-Clare Switz

The year of COVID, Cash Flow Boost and JobKeeper highlighted to many businesses how fragile their cash flow is. Cash Flow in simplest terms is the art of having enough money to meet your payment obligations. BUT, Cash Flow needs to also be about having enough money saved to get through slowdowns and tough times.

My top 10 tips for improving Cash Flow that can be implemented now:

1. Keep your Sales invoicing up to date

For retail business this is easy as they are taking payment for goods and services at the time of sale. Services and supply businesses who invoice on terms need to ensure that the invoice their sales regularly so that the payments from customers come in regularly.

2. Review your Payment terms

Are they 30 days End of Month?, 14 days? consider tightening up the length of your payment terms to a shorter period.

3. Monitor your Accounts Receivable

Debt collection is never fun, but the squeaky wheel gets results. Be very strict with pursing overdue debt.

4. Offer more than one way to pay

Businesses now have a myriad of ways to take payment from customers. Aside from internet bank transfer, add a ‘Pay Now’ button on your invoice which is connected to a payment gateway such as Stripe, Pin Payments or Square.

5. For repetitive monthly invoices set

up direct debit …

For those invoices that are a fixed fee each month, set up a regular direct debit using a payment gateway. Customers will not forget to make payment as it will be sucked out of the bank account monthly ensuring a regular injection of funds.

6. Increase your pricing

This one is not always so obvious to businesses. You do need to consider that since your last price increase your costs have risen … is it now time to introduce a price increase? If yes, this is a simple way to get a quick lift into the bank account.

7. Control costs

Just because something is shiny and bright does not necessarily mean you or you business neeeeds it. Look out how much stock you are buying in to sell … assess if you can buy less more often. A lot of money can be tied up in stock sitting on shelves. Create a ‘build to’ list for all your regular stock … this is a list nominating at what quantity of an item do you get down to before you reorder. Review all costs for your business and consider where you can change purchasing habits and choices to help slim down your costs this includes looking at your staffing too.

8. Reduce Inventory

Take stock of what you have on the shelf. Consider selling excess stock at a discount. A sale can be a good way of sparking interest in your business as well as reduce the amount of cash being tied up in inventory.

9. Set up Holding accounts for your

GST, PAYG & Super …

Paying a BAS or the quarterly Superannuation obligations are a common pain point across all businesses, no matter how small or how big. Set up 1 or 2 new bank accounts for holding GST, PAYG Withholding and Superannuation ready for payment on their due dates. We find businesses who move money into these holding accounts regularly improve their ability to manage cash flow across their entire business.

10. Upgrade from Spreadsheet to

Software …

It is surprising how many micro and small businesses have not yet moved into modern bookkeeping software such as Xero. By using online bookkeeping businesses are far more up to date and across their cash flow as well as allow their Tax Accountant real time access to their financial records. No business is too small for modern bookkeeping software! Talk to us at Biscuit Business Services if you are ready to make the move.

Mary-Clare Switz

Bookkeeper BISCUIT BUSINESS SERVICES

The Lawn of your Dreams…or at least one you are not Embarrassed of your Neighbours seeing!

PROPERTY SERVICES

By Daniel Tomlinson

Perfection takes time and being realistic the vast majority of the population either don’t have the time or, quite frankly have better things to do with that time than monitor and tend to their lawns 24/7. Then there is the cost, you can spend $000’s to make sure every blade of grass is in perfect health.

If you are one of the 99% then this guide may well be for you!

Here are five simple tips you can implement to set you on the right path and improve your lawns health. There are many different ways to care for your lawn and its always worth seeking the advice of a professional.

Why?

• Promotes new growth • Supresses weeds and prevents pests • Looks awesome

How?

• Don’t go too low. You might think it looks good but is not healthy in extreme heat or cold temperatures (general rule of 30-50mm)

• Mulching if you have a mulching mower can act as a natural fertiliser to the lawn

Why?

• Promotes new growth and deeper roots • All living things need water to survive

How?

• In the morning before the heat (not late evening as this can promote fungus with sitting water) • Depends on costs but simple as a soaker hose, sprinkler or if you want the human error taken out of this use a timed irrigation system • At least once but 2-3 times per week with a deep soak to imitate a downpour for 30-60 minutes and adjust frequency and volume according to local weather

Tip 2 - Water regularly

Tip 4 - Weed Removal Prevention

Why?

• Aesthetics • Less competition for the grass of the available nutrients in the soil • Little and often to prevent spread

How?

• Combination of hand pulling and treatment. The market is full of great products (consult a professional on what products otherwise you could undo all your hard work, products vary depending on grass type and can be harmful) • Pre-emergent to prevent weeds from making an appearance • Post-emergent to get rid of existing weeds

Tip 5 – Sit back and relax. Enjoy your awesome achievement and healthy vibrant lawn!