CONNECT January 2013 ISSUE
Planter offset attractive for Primary Producers The Australian Government is providing a 15% tax offset for purchases of environmentally friendly seeding equipment. The conservation tillage refundable tax offset is designed to support the use of conservation tillage farm equipment to reduce carbon emissions from soil disturbance. The measure will provide a refundable tax offset for 15 per cent of the cost of an eligible seeder that was installed and ready for use between 1 July, 2012 and 30 June, 2015. Changing tillage practices to reduce greenhouse gas emissions Conservation tillage practices aim to reduce soil disturbance, resulting in fewer carbon emissions. They also reduce carbon emissions from fuel use, as the number of tillage passes (that is, the number of times the tractor and cultivation equipment till the field) is reduced. This is because conservation tillage seeders sow seeds and fertiliser into untilled soil during a single pass of the
IN THIS ISSUE...
field. Conventional tillage practices involve multiple tillage passes (usually three or more) prior to planting with machinery that produces full soil disturbance. Why a refundable tax offset, not a tax deduction? A refundable tax offset will provide an immediate benefit to primary producers operating in a loss position, resulting in the producer receiving a payment of 15 per cent of the cost of equipment, regardless of their income level. The requirement to participate in research To be eligible for the offset, landholders must participate in research by completing a conservation tillage survey relating to farming practices and climate change. The survey must be completed in the same income year that the equipment is installed. Once the survey has been completed,
the producer will receive a research participation certificate. Applying for a research participation certificate go to www.daff.gov.au/climatechange/ carbonfarmingfutures/rto or contact your Powers accountant. Claiming the offset The conservation tillage offset is administered by the Australian Taxation Office. This means that the claim is made during your income tax return for the year. Primary producers must also hold a research participation certificate from the Department of Agriculture, Fisheries and Forestry to be eligible to apply for the offset. To discuss eligibility contact your accountant at Powers on (07) 4995 6677 (Biloela) or (07) 3251 4444 (Brisbane).
• Planter offset opportunity
•W hat should you be doing with your superannuation?
•Cleaning up after the flood
• T op 10 investment tips
•S mall business owner tax deduction
•T hinking or buying a car? Speak to your accountant
• Biloela Regional economic development
•Founding Partner Passes Away
•In-House announcements
Cleaning up after the flood 2013 did not start the way everyone would have liked. Storms and floods have left many devastated, however there is government aid available to those affected.
What should you be doing with your superannuation ? The best answer is to understand what you have and what you can do with it. You also need to do more than seeking the answer from “My mate” who will tell you “they do this and have done that with their superannuation fund” Just following “My mate” will only lead you into trouble as the reason why my mate has what he has and does what he does is because they got advice. In recent times “My mate” has a self managed superannuation fund that has borrowed money to buy an investment property which is being paid off by rent and contributions. There are nearly 500,000 SMSFs now and despite the loathing towards them from large Super Funds they can be an excellent vehicle for taking control of your future. You too can do this but you need to have the structure correct and know the rules for having an SMSF. Do not be put off by those who will tell you there is no place for looking after your own superannuation. Many fanciful claims are made about the risks of having an SMSF but only from those hostile to people making their own investment decisions. Getting it right will make sure your superannuation works for your retirement. Get it wrong and “My mate” will be no where to be seen. At Powers we understand superannuation and what you can do. We can explain how to achieve what “My mate says they have done”. Contact Powers Superannuation Services on (07) 3251 4444.
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If you have been affected by the floods in Queensland, here are some steps you can take that might help ease the burden.
•C ontact your local council
If you have been impacted by the floods, contact your local council’s Disaster Management Group. To find your local council, call 13 QGOV (13 74 68) or visit the Department of Local Government website, www.dlg.qld.gov.au
• The AGDRP The Australian Government Disaster Recovery Payment is available to assist people who have been adversely affected by the Queensland floods that began on 21 January
2013. Payments of $1,000 per adult and $400 per child are available. To see if you are eligible go to www.humanservices.gov.au and search AGDRP or call 180 22 66.
•O ther financial assitance
Financial assistance to help you recover from natural disasters is also provided by QRAA. You may be eligible to receive access to recovery grants of up $25,000 (depending on the level of damage), concessional loans and freight subsidies. To find out what assistance is available and apply, go to www.qraa.qld.gov.au you can also contact the Department of Agriculture, Fisheries and Forestry on 13 25 23 or go to www.daff.qld.gov.au
Top 10 Investment tips
We all have financial goals. You may want to provide the best education opportunities for your children or you may want to build an investment portfolio so you can live comfortably in retirement. 1. Saving versus investing Savings in your bank account will only give you a few percent per annum in return. Investing can deliver much more. 2. Saving and investing Make your money work harder One of the easiest ways to keep your saving plan on track is to ‘pay yourself first’. Setting aside an amount straight from your bank account when your pay goes in, ensures that you get paid regularly and on time. 3. Invest your savings to grow Diversification can also be important. It means spreading your risk across each of the main investment types (shares, property, fixed interest and cash) with an aim to achieve more consistent returns. 4. Harness the power of compound interest Each dollar you invest earns a return. If you reinvest that return, it can earn more dollars, allowing your investment the potential to grow much faster.
5. Turn your savings into earnings With just $1,000 to start, you can make regular investments of $100 or more each month, switched directly from your Australian bank account to a managed fund. Things to start thinking about … 6. Is your savings account providing you with a competitive interest rate? 7. Keep your credit card receipts and check them against your monthly statement. How much are you spending? 8. Put together a savings plan (your personal budget planner). 9. How much of your income do you save? 10. Should you get the help of a financial adviser? Contact Powers Investment and Finance Services to discuss on (07) 4995 6655
ATTENTION BUSINESS OWNERS
Small business owner tax deduction
•W hat would happen to your business in the wake of an
If you are a small business owner, you may qualify for a $6,500 bonus tax deduction!
unexpected serious event? • I n case of fire or flood could you support yourself and staff while your business is not operating? •C ould you meet payments, continuning expenses and debt? Why risk your net profit or worse, losing your business entirely? Tony Bemrose Insurance Brokers can ensure your business’ health in the wake of a severe Business Interuption Event with a Business Interruption Policy. Contact Steve Weil at Tony Bemrose Insurance Brokers on (07) 32525254 or email at steveweil@tbib.com.au
From 1 July, 2012, the Federal Government introduced an additional tax deduction for small businesses that purchase a new motor vehicle. If you have an annual turnover of less than $2 million, and you purchase a new motor vehicle for your business, you could qualify to claim an additional $6,500 in the financial year you purchased. This came as a result from the 2011-12 federal budget, and is aimed to help small businesses purchase a new vehicle for their professional needs. With legislation continuously changing, this may be a short opportunity to receive a $6,500 tax break if you have thought about buying a new vehicle. It’s important to note that the deduction is limited to any motor powered road vehicle whose primary function is to travel on public roads. This includes cars, trucks, vans, utes, motorbikes and scooters but excludes road rollers, graders, tractors, combine harvesters, earthmoving equipment and trailers. With this in mind, make sure you get advice from your accountant on eligibility and how you may be able to apply the deduction to benefit your business. Contact your accountant at Powers on (07) 4995 6677 (Biloela) or (07) 3251 4444 (Brisbane).
Thinking of buying a car? Already bought one? Let us know! It’s important to understand that any major purchase can greatly impact on your financial situation, and the purchase of any vehicle, by any entity will do just that. Your accountant should play a role in your decision, because it could affect your entitlements immediately or down the track. The Luxury Car Tax Rebate Any car costing over $57,466 is considered a luxury car and is taxed accordingly. However Primary Production clients are entitled to a refund of a portion of tax paid.
Ownership The legal owner of the car, whether it’s a person or entity, could greatly affect the entitlement to deductions and/or GST claim. The kind of vehicle The type of vehicle you buy can have a large impact on the amount of GST and income tax deductions you can claim.
Finance If you have finance on a vehicle, there are additional deductions that may be available to you. If you’ve bought or are thinking of buying a car contact your accountant at Powers on (07) 4995 6677 (Biloela) or (07) 3251 4444 (Brisbane).
Biloela regional economic development We have recently published a report which highlights the immense volume of investment that is underway or planned for the Gladstone-Biloela region, with a total of approximately $230 billion of projects in the pipeline of economic activity. Gladstone and the surrounding region showcases that economic prosperity is continuing in Australia despite the
impact of ongoing global financial crises on national economies. The Biloela area is no exception to this, having significant major investments planned and underway in a range of industries. If you would like to receive a copy of this report please contact Powers on (07) 4995 6677 or view on our website at powers.net.au/newsletters/publications
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Founding partner passes away We are sad to announce that one of Powers Financial Group’s founding partners, Trevor Power, passed away on Wednesday the 9th of January 2013 aged 73. Powers was started by brothers Warwick and Trevor on April 1st 1968, with only three support staff. Today it has grown to include four offices and over 50 staff. Trevor and Warwick’s professional standards shaped Powers into the firm it has become. Trevor remained an active member of his local community in Biloela after his retirement in 1999. Trevor was proud of the business that he established, and one of Trevor’s many sayings was: “The harder you work, the luckier you get.” This is true of the Banana Shire - the “Shire of Opportunity”, and what we live by at Powers Financial Group.
The large number of people who attended Trevor’s funeral last week was testament to the high regard in which he was held in the community. Trevor always strongly encouraged and supported external study for those in regional areas and Power Bros assisted many regional students in gaining their business and Chartered Accountant qualifications. He was a firm advocate of fostering and developing local talents. Trevor is survived by his wife Bev, his daughter Susan, son Brendan and three grand-children. His passing is the loss of a strong local presence.
In-House Announcements Young Achievers
We would like to congratulate Carson Beusch and Lily Brosnan (Pictured here with director Geoff Arnold) on winning the Powers Citizenship award.
POWERS EXPANDS IN BRISBANE Acquisition of Stacey & Stirk Powers Financial group is expanding in Brisbane and has recently acquired the accounting practice of Stacey & Stirk Chartered Accountants at Murarrie. Stacey & Stirk is a well respected accounting practice with a long history. Former Principal Ken Stirk is retiring but his four staff will continue with the business under Powers ownership. Susan Birss CPA has been appointed as Manager of the new Murarrie office, which is located in the Murarrie Business Park within the Australia Trade Coast precinct. We welcome Susan and the Stacey & Stirk staff and clients to the Powers Group. Merger with KNH Financial On 1st February 2013 the financial advisory business of KNH Financial merged with Powers Investment & Finance Services Pty Ltd. The combined business will have $107M of clients’ funds under management and a mortgage broking portfolio of over $40M. The increased size of the portfolio will improve our access to investment and finance opportunities not previously available to our clients. After working with Powers for the last six months, former KNH Principal, Warwick French CPA CFP, has been appointed as a director of Powers Investment & Finance Services Pty Ltd . We welcome Warwick French and his assistant, Kerry Manthey, to our team.
Contact us
For further information on any of the articles in this issue contact your local office: BILOELA 54 Callide Street (PO Box 98) Biloela QLD 4715 P 07 4995 6677 F 07 4992 1787 8.30am — 5.00pm
BRISBANE L7, 269 Wickham Street (PO Box 310) Fortitude Valley QLD 4006 P 07 3251 4444 F 07 3251 4422 8.30am — 5.00pm
www.powers.net.au
MONTO 3 Newton Street (PO Box 69) Monto QLD 4630 P 07 4166 1366 F 07 4166 1343 9.00am — 3.00pm
mail@powers.net.au
The information in this document is of a general nature and is provided for information purposes only. It does not take into account your particular objectives, financial situation or needs and should not be used as a substitute for independent advice from a qualified professional. Liability limited by a scheme approved under Professional Standards Legislation, except where financial services are provided by Authorised Representatives of Professional Investment Services Pty Ltd (PIS) AFSL 234951 ABN 11 074 608 558.
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