In the Loop June 2011

Page 1

BACKCOVER COVER HEAD BACK HEAD

Top

5 Tax Strategies continued...

From page 1

2. Prepay interest and small asset write-offs ‡ Individuals not in business are able to prepay interest on loans used to purchase income-generating properties or dividend-paying shares. ‡ This gives the investor an opportunity to bring forward a sizeable tax deduction to reduce taxable income. ‡ Useful if one has extra income in the relevant year due to inclusion of a large capital gain. ‡ Individuals can also write off expenditure on VPDOO DVVHW DFTXLVLWLRQV FRVWLQJ OHVV WKDQ outright that relate to income-earning activities.

not entitled to claim a 50 per cent CGT discount when they sell shares, but can transfer WKLV EHQH¿W WR VKDUHKROGHUV 7KH HQWLWOHPHQW appears as a notation on the investor’s dividend distribution statement.

3. Salary packaging

5. Entity holding investment assets

‡ 6RPH HPSOR\HUV QRW IRU SUR¿W VHFWRU UHFHLYH VSHFLDO IULQJH EHQH¿WV WD[ )%7 FRQFHVsions, so it is important to maximise any such opportunities. ‡ 7KHUH DUH EHQH¿WV WKDW DUH H[HPSW IURP )%7 and then there are ones that receive concessional treatment, such as motor cars. Both these W\SHV RI EHQH¿WV VKRXOG EH ORRNHG DW IRU LQFOXVLRQ LQWR VDODU\ VDFUL¿FH DUUDQJHPHQWV ‡ (PSOR\HUV FDQ DOVR EHQH¿W IURP VDODU\ SDFNaging opportunities as labour on-cost (work cover/payroll tax) can be lower under such arrangements.

4. CGT discount/investment in LICs ‡ Hold onto investments for more than 12 months before you sell to take advantage of the capital gains tax (CGT) discount. ‡ Investors often forget their CGT bill will be halved if they wait a little longer than 12 months before they get the temptation to sell. ‡ Ability to claim an extra tax deduction in listed investment companies (LIC). LICs are

Staff news

Office opening hours

This month we say goodbye to director Ian Koch who is retiring. Ian has been a director at Powers since 2000.

8.30am - 5pm Monday to Friday

We’ve also farewelled accountants Carissa Gunston in Biloela and Kelsey Nobbs in Brisbane.

Monto

New staff

Mundubbera

Roslyn Elliott has joined the WHDP DV RXU QHZ 2IÂżFH 0DQager in Brisbane. Christian Capp has joined our 10X team as an Agribusiness Coach. On the 10X front, we also welcome Toowoomba Business Coach, Ross Fulloon, to the team.

Gemma Blair has taken on ‡ 3UREDEO\ RQH RI WKH PRVW VLJQL¿FDQW WD[ SODQ- WKH UROH RI 0DUNHWLQJ 2I¿FHU ning strategies is to look at which entity within while Tanya Summers completes 12 months maternity the family group holds the investment assets. You need to take into account what is the most leave. important driver for your circumstances - asset Rebecca Congram has joined SURWHFWLRQ LQFRPH VSOLWWLQJ ÀH[LELOLW\ VXFFHV- our team on a casual basis in sion and estate planning. It can be as complex Brisbane. as setting up a discretionary trust or as simple as putting assets in the name of a low-income Let’s celebrate spouse. ‡ Discretionary trusts are particularly useful as Our Superannuation Manager they tick most of the boxes when it comes to in- Charles Page has become come splitting, asset protection, access to CGT an accredited Self-Managed Super Fund Professionals’ Asconcessions and succession planning. Advice IURP D VXLWDEO\ TXDOL¿HG DGYLVHU LV UHFRPPHQG- sociation of Australia SMSF Specialist Advisor. ed to help you sort through the maze. Accountant David Butler and Source | Tony Greco, National Institute of wife Lynda welcomed baby Accountants, senior tax adviser Jacob Robert Joseph Butler into the world on April 6.

Brisbane 8.30am - 5pm Monday to Friday 10am - 2pm Monday to Friday or by prearranged appointment

Final thoughts...

Diary Dates

“Always a pleasure to deal with the Powers team. Thank you, Paul, for all your help.�

June

A Cridland “We have a good relationship with our adviser, John Cox, which we wish to continue. Keep up the good work.â€? Con & Helen “We have been with Powers since 1968 and are extremely happy with their service.â€? Mick & Jan Mitchelhill, Tambo “It’s been great having the assistance of Murray Davis. We struggle with ÂżQDQFLDO GLUHFWLRQ DQG XQGHUVWDQGLQJ HYHU\WKLQJ :H DUH RIWHQ XQVXUH RI WKH TXHVWLRQV ZH QHHG WR DVN WR JHW DVVLVWDQFH ZLWK ÂżQDQFLDO GHFLVLRQV and directions, such as how to fund our retirement or fund much needed improvements around the property and home. It is great that Powers is offering more of these types of services.â€? D&K, Taroom

www.powers.net.au email: mail@powers.net.au

elor of Accounting this month.

ZLOO LQFOXGH ÀRRG DQG DQ\ RWKHU IRUP RI natural disaster. In superannuation, the government is still pushing ahead with an allowable deduction RI IRU WKRVH RYHU IURP -XO\ 2012 (subject to a maximum balance in WKH IXQG RI 2WKHUZLVH \RX IDOO back to a maximum allowable deductible contribution of SHU DQQXP

By pre-arranged appointment only

Our mission is to ensure you achieve your financial and business goals. We value the thoughts of our clients. That is why we believe the final word should belong to the most important person...you.

If you want help with these strategies call Support Accountant Toni Powers Investment & Finance Services Neilsen ZLOO ÂżQLVK KHU %DFKon 07 4995 6655

in the private health insurance rebate for those under 65 and with a family income EHWZHHQ WR For primary producers, the government announced they will be extending early access to Farm Management Deposits for those affected by natural disaster. Currently the early access provisions are limited to drought, but the new provisions

In this issue

Biloela

Good byes

Not many surprises in this year’s Federal Budget There were no earth-shattering announcements in the Budget this year, but still some changes to be aware of. The main changes of concern are the removal of low income offsets for minors receiving income from investments or trusts, changes to the small business Capital Gains concessions for trusts and the proposal to push through a reduction

FRONTCOVER COVER HEAD FRONT HEAD

BILOELA

Gladstone Rd (PO Box 98) Biloela QLD 4715 Ph: 07 4995 6677 Fax: 07 4992 1787

BRISBANE

Level 7, 269 Wickham St (PO Box 310) Fortitude Valley QLD 4006 Ph: 07 3251 4444 Fax: 07 3251 4422

Visiting Monto, Mundubbera and other locations by appointment

7-9

CRT Farmfest, Toowoomba

13

Queens Birthday Public Holiday

21

Monthly Activity Statements due for May

July 1

Start of Financial Year 2011-12

12

Property Investment Seminar PIC Group (Settlers Inn, Biloela)

14

PAYG Payment Summaries to Employees

21

Monthly Activity Statements due for June

28

Quarterly Activity Statements due for Quarter 4, 2010-11

28

Payment of employer superannuation due for Quarter 4, 2010-11

August 14

PAYG Withholding Payment Summary to ATO

21

Monthly Activity Statements due for July

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. *Financial Planning services provided by Authorised Representatives of PIS. #Valuation services provided by NPR Valuers Biloela Pty Ltd ABN 47141679576

Handy tax tips Small business news Superannuation updates Free website offer Insurance matters

The Tax and Budget special

June 2011

In the LOOP

The Quarterly Newsletter for clients of Powers Financial Group

Director’s Message With Murray Davis It’s been a tough few months for those of our clients affected by ÀRRGV EXW ZH KDYH EHHQ DEOH WR KHOS well over 100 businesses, including primary producers and small businesses, with all levels of government support. We would like to remind everyone that we are still providing free assistance to businesses who wish to REWDLQ WKH ¿UVW ÀRRG DVVLVtance grant. 7KLV JUDQW DQG WKH VXEVHTXHQW grant will remain open until the end of September. We will help non-Powers clients as well, so if you know of anyone who needs a hand please let them know.

Top

5 Tax Strategies

Tax should never be the driver of investment decisions, but here are some tax strategies to consider as part of your wealth creation planning. 1. Superannuation Superannuation still represents a wonderful tax planning opportunity for most investors. ‡ If you are lucky enough to have your own self-managed superannuation fund (SMSF), which is invested predominantly in listed shares paying fully franked dividends, then the super fund may not even be paying any tax or even better, receiving a tax refund. ‡ The government intends to reduce the concessional contributions for those over WR ZKR KDYH D VXSHU EDODQFH PRUH WKDQ 6R LW LV LPSRUWDQW IRU those over 50 to maximise their conces-

sional super before the new rule kicks in. ‡ Low-income earners are encouraged to make an after-tax contribution to super as they may be eligible for a tax-free co-conWULEXWLRQ EHQH¿W RI XS WR ‡ The only downside for the co-contribution is that the tax-free contribution made on your behalf by the government is locked away until retirement. ‡ Invest one dollar and receive one extra dollar tax free, which has to be the best risk-free investment available. This strategy works well when you have both a high and low-income earner within the family unit. ‡ Opportunity to claim a spouse rebate for super contributions made on behalf of a low-income spouse. The spouse rebate LV ZRUWK XS WR

Look inside for more strategies

BACKCOVER COVER HEAD BACK HEAD

Top

5 Tax Strategies continued...

From page 1

2. Prepay interest and small asset write-offs ‡ Individuals not in business are able to prepay interest on loans used to purchase income-generating properties or dividend-paying shares. ‡ This gives the investor an opportunity to bring forward a sizeable tax deduction to reduce taxable income. ‡ Useful if one has extra income in the relevant year due to inclusion of a large capital gain. ‡ Individuals can also write off expenditure on VPDOO DVVHW DFTXLVLWLRQV FRVWLQJ OHVV WKDQ outright that relate to income-earning activities.

not entitled to claim a 50 per cent CGT discount when they sell shares, but can transfer WKLV EHQH¿W WR VKDUHKROGHUV 7KH HQWLWOHPHQW appears as a notation on the investor’s dividend distribution statement.

3. Salary packaging

5. Entity holding investment assets

‡ 6RPH HPSOR\HUV QRW IRU SUR¿W VHFWRU UHFHLYH VSHFLDO IULQJH EHQH¿WV WD[ )%7 FRQFHVsions, so it is important to maximise any such opportunities. ‡ 7KHUH DUH EHQH¿WV WKDW DUH H[HPSW IURP )%7 and then there are ones that receive concessional treatment, such as motor cars. Both these W\SHV RI EHQH¿WV VKRXOG EH ORRNHG DW IRU LQFOXVLRQ LQWR VDODU\ VDFUL¿FH DUUDQJHPHQWV ‡ (PSOR\HUV FDQ DOVR EHQH¿W IURP VDODU\ SDFNaging opportunities as labour on-cost (work cover/payroll tax) can be lower under such arrangements.

4. CGT discount/investment in LICs ‡ Hold onto investments for more than 12 months before you sell to take advantage of the capital gains tax (CGT) discount. ‡ Investors often forget their CGT bill will be halved if they wait a little longer than 12 months before they get the temptation to sell. ‡ Ability to claim an extra tax deduction in listed investment companies (LIC). LICs are

Staff news

Office opening hours

This month we say goodbye to director Ian Koch who is retiring. Ian has been a director at Powers since 2000.

8.30am - 5pm Monday to Friday

We’ve also farewelled accountants Carissa Gunston in Biloela and Kelsey Nobbs in Brisbane.

Monto

New staff

Mundubbera

Roslyn Elliott has joined the WHDP DV RXU QHZ 2IÂżFH 0DQager in Brisbane. Christian Capp has joined our 10X team as an Agribusiness Coach. On the 10X front, we also welcome Toowoomba Business Coach, Ross Fulloon, to the team.

Gemma Blair has taken on ‡ 3UREDEO\ RQH RI WKH PRVW VLJQL¿FDQW WD[ SODQ- WKH UROH RI 0DUNHWLQJ 2I¿FHU ning strategies is to look at which entity within while Tanya Summers completes 12 months maternity the family group holds the investment assets. You need to take into account what is the most leave. important driver for your circumstances - asset Rebecca Congram has joined SURWHFWLRQ LQFRPH VSOLWWLQJ ÀH[LELOLW\ VXFFHV- our team on a casual basis in sion and estate planning. It can be as complex Brisbane. as setting up a discretionary trust or as simple as putting assets in the name of a low-income Let’s celebrate spouse. ‡ Discretionary trusts are particularly useful as Our Superannuation Manager they tick most of the boxes when it comes to in- Charles Page has become come splitting, asset protection, access to CGT an accredited Self-Managed Super Fund Professionals’ Asconcessions and succession planning. Advice IURP D VXLWDEO\ TXDOL¿HG DGYLVHU LV UHFRPPHQG- sociation of Australia SMSF Specialist Advisor. ed to help you sort through the maze. Accountant David Butler and Source | Tony Greco, National Institute of wife Lynda welcomed baby Accountants, senior tax adviser Jacob Robert Joseph Butler into the world on April 6.

Brisbane 8.30am - 5pm Monday to Friday 10am - 2pm Monday to Friday or by prearranged appointment

Final thoughts...

Diary Dates

“Always a pleasure to deal with the Powers team. Thank you, Paul, for all your help.�

June

A Cridland “We have a good relationship with our adviser, John Cox, which we wish to continue. Keep up the good work.â€? Con & Helen “We have been with Powers since 1968 and are extremely happy with their service.â€? Mick & Jan Mitchelhill, Tambo “It’s been great having the assistance of Murray Davis. We struggle with ÂżQDQFLDO GLUHFWLRQ DQG XQGHUVWDQGLQJ HYHU\WKLQJ :H DUH RIWHQ XQVXUH RI WKH TXHVWLRQV ZH QHHG WR DVN WR JHW DVVLVWDQFH ZLWK ÂżQDQFLDO GHFLVLRQV and directions, such as how to fund our retirement or fund much needed improvements around the property and home. It is great that Powers is offering more of these types of services.â€? D&K, Taroom

www.powers.net.au email: mail@powers.net.au

elor of Accounting this month.

ZLOO LQFOXGH ÀRRG DQG DQ\ RWKHU IRUP RI natural disaster. In superannuation, the government is still pushing ahead with an allowable deduction RI IRU WKRVH RYHU IURP -XO\ 2012 (subject to a maximum balance in WKH IXQG RI 2WKHUZLVH \RX IDOO back to a maximum allowable deductible contribution of SHU DQQXP

By pre-arranged appointment only

Our mission is to ensure you achieve your financial and business goals. We value the thoughts of our clients. That is why we believe the final word should belong to the most important person...you.

If you want help with these strategies call Support Accountant Toni Powers Investment & Finance Services Neilsen ZLOO ÂżQLVK KHU %DFKon 07 4995 6655

in the private health insurance rebate for those under 65 and with a family income EHWZHHQ WR For primary producers, the government announced they will be extending early access to Farm Management Deposits for those affected by natural disaster. Currently the early access provisions are limited to drought, but the new provisions

In this issue

Biloela

Good byes

Not many surprises in this year’s Federal Budget There were no earth-shattering announcements in the Budget this year, but still some changes to be aware of. The main changes of concern are the removal of low income offsets for minors receiving income from investments or trusts, changes to the small business Capital Gains concessions for trusts and the proposal to push through a reduction

FRONTCOVER COVER HEAD FRONT HEAD

BILOELA

Gladstone Rd (PO Box 98) Biloela QLD 4715 Ph: 07 4995 6677 Fax: 07 4992 1787

BRISBANE

Level 7, 269 Wickham St (PO Box 310) Fortitude Valley QLD 4006 Ph: 07 3251 4444 Fax: 07 3251 4422

Visiting Monto, Mundubbera and other locations by appointment

7-9

CRT Farmfest, Toowoomba

13

Queens Birthday Public Holiday

21

Monthly Activity Statements due for May

July 1

Start of Financial Year 2011-12

12

Property Investment Seminar PIC Group (Settlers Inn, Biloela)

14

PAYG Payment Summaries to Employees

21

Monthly Activity Statements due for June

28

Quarterly Activity Statements due for Quarter 4, 2010-11

28

Payment of employer superannuation due for Quarter 4, 2010-11

August 14

PAYG Withholding Payment Summary to ATO

21

Monthly Activity Statements due for July

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. *Financial Planning services provided by Authorised Representatives of PIS. #Valuation services provided by NPR Valuers Biloela Pty Ltd ABN 47141679576

Handy tax tips Small business news Superannuation updates Free website offer Insurance matters

The Tax and Budget special

June 2011

In the LOOP

The Quarterly Newsletter for clients of Powers Financial Group

Director’s Message With Murray Davis It’s been a tough few months for those of our clients affected by ÀRRGV EXW ZH KDYH EHHQ DEOH WR KHOS well over 100 businesses, including primary producers and small businesses, with all levels of government support. We would like to remind everyone that we are still providing free assistance to businesses who wish to REWDLQ WKH ¿UVW ÀRRG DVVLVtance grant. 7KLV JUDQW DQG WKH VXEVHTXHQW grant will remain open until the end of September. We will help non-Powers clients as well, so if you know of anyone who needs a hand please let them know.

Top

5 Tax Strategies

Tax should never be the driver of investment decisions, but here are some tax strategies to consider as part of your wealth creation planning. 1. Superannuation Superannuation still represents a wonderful tax planning opportunity for most investors. ‡ If you are lucky enough to have your own self-managed superannuation fund (SMSF), which is invested predominantly in listed shares paying fully franked dividends, then the super fund may not even be paying any tax or even better, receiving a tax refund. ‡ The government intends to reduce the concessional contributions for those over WR ZKR KDYH D VXSHU EDODQFH PRUH WKDQ 6R LW LV LPSRUWDQW IRU those over 50 to maximise their conces-

sional super before the new rule kicks in. ‡ Low-income earners are encouraged to make an after-tax contribution to super as they may be eligible for a tax-free co-conWULEXWLRQ EHQH¿W RI XS WR ‡ The only downside for the co-contribution is that the tax-free contribution made on your behalf by the government is locked away until retirement. ‡ Invest one dollar and receive one extra dollar tax free, which has to be the best risk-free investment available. This strategy works well when you have both a high and low-income earner within the family unit. ‡ Opportunity to claim a spouse rebate for super contributions made on behalf of a low-income spouse. The spouse rebate LV ZRUWK XS WR

Look inside for more strategies

INNERMIDDLE MIDDLE --HEAD INNER HEAD

INNER LEFT HEADD INNER LE LEFT FT -- HEA HEAD

News bites Powers at Farmfest Powers will have a stand at this year’s CRT Farmfest, running in Toowoomba from June 7 to 9. If you’re down that way, PDNH VXUH \RX ¿QG RXU VLWH (PAV/37) and say hello.

Emerald visits We are now making prearranged visits to Emerald. 2XU ÂżUVW YLVLW ZLOO EH RQ -XQH 15 and 16 and we will be continuing to visit the area on a quarterly pre-arranged basis. Call Marie on 3251 4444 if you would like to make an appointment.

Super Funds – can you really take control? with Charles Page

Fresh with his new accreditation as a SPAA SMSF Specialist Advisor, our Superannuation Manager Charles Page sheds some light on SMSFs

INNER RIGHT - HEAD INNER RIGHT - HEAD

Did you purchase a rural or rental property GXULQJ WKH ¿QDQFLDO \HDU" If your answer is yes, it would be advisable to obtain a Quantity Surveyor’s Report. A Quantity Surveyor’s Report will identify all your property tax depreciation deductions. The cost of obtaining these reports are tax deductible, and we have seen substantial savings in tax when utilising these reports. Rural Property owners can expect to have accurate values applied to depreciable assets purchased with their properties. In residential property there are two types of tax depreciation allowance: The Building Capital (Div 43) and The plant (Division 40).

Each are handled differently, as they both have different rules and regulations that govern how their deductions can be claimed. Building capital allowance is a deduction available for the structural element

of the property and was introduced in 1985. Buildings built prior to that do not qualify initially for the allowance, however renovations and extension built after that year are eligible for tax deductions. As a report usually takes four to six ZHHNV SOHDVH FRQWDFW RXU RIÂżFH LI \RX have purchased a rural or rental property during the year. That way your report will be available when you come in for your tax appointment.

Our in-house valuer, Director Murray Davis, is experienced in conducting valuations and arranging Quantity Surveyor’s Reports.

Competition winner Congratulations to Darren Sainsbury who was the winner of our March newsletter competition. Darren won a MYOB AccountRight Program valued DW ZKLFK ZLOO KHOS him manage his accounting requirements.

2011 Road Show Thank you to everyone who attended our Travelling Road Show in Central Queensland on May 24 and 25. It was only a success because of you.

Self Managed Superannuation Funds (SMSFs) are continuing in popularity despite the Global Financial Crisis, but are they the right vehicle for you to take FRQWURO RI \RXU ÂżQDQFHV" 7DNLQJ FRQWURO RI \RXU Âżnances for your retirement using an SMSF allows you to choose the shares or investment properties that you think will provide you with the best investment return. At the same time, an SMSF can pay you an income stream that will be taxed favourably as it suits you once you are 55.

As a general rule, you need DERXW WR PDNH D SMSF pay its way against its rivals – retail and industry funds. As a member of an SMSF, you are also a trustee of the Fund and will be involved in all decisions made by the fund. You have trustee obligations that must be undertaken. Running your own fund involves three major jobs – administration (doing the paperwork), investment (deciding where to place the money) and arranging insurance where ap-

propriate. An SMSF can have up to four members but often it is a suitable vehicle for mums and dads who have built up their superannuation in a retail or industry fund. The advantages of having an SMSF are many but not knowing what your obligations are in having an SMSF can lead to WKH 7D[ 2IÂżFH LPSRVLQJ VRPH rather nasty penalties.

For more information phone Charles on 07 3251 4444.

Get a free website for your business A website today is like a phone - every business needs one. If you don’t have one, now is the perfect time to get online, because Google and MYOB have come together to offer 50,000 Australian businesses a free website for one year and a .com.au domain name for two years. They will also provide ongoing tips and education via HPDLO DQG D IUHH RQOLQH advertising trial with Google AdWords.

This is all part of their Getting Aussie Business Online campaign and websites will be provided by MYOB Atlas. All you need to do to get one RI WKHVH ZHEVLWHV LV ÂżOO LQ D business details form, and supply your ABN number and a phone number. From there, they can create your site in 15 minutes.

To get started, go to www.powers.net.au and follow the links.

Get a tax statement for medical expenses $W WKH HQG RI HDFK ÂżQDQFLDO \HDU 0HGLFDUH DQG \RXU SULYDWH health insurance provider can provide you with a statement RI %HQHÂżWV 5HFHLYHG GXULQJ WKH ÂżQDQFLDO \HDU These statements will provide you with a list of claims ORGJHG EHQHÂżWV SDLG DQG QHW DPRXQW ÂľRXW RI SRFNHWÂś IRU DQ\ family member listed on your card. 7KHVH VWDWHPHQWV DUH EHQHÂżFLDO LI \RX KDYH KDG KLJK PHGLcal expenses during the year, as you may be eligible for an additional tax offset.

School uniform refund

0HGLFDUH VWDWHPHQWV ZLOO OLVW EHQHÂżWV SDLG IRU GRFWRUV RU any medical service which may be subject to a medicare rebate. Private health insurance statements cover those services for which you have cover, for example dental, hospital and optometry. These statements can be obtained by either logging into the Medicare or your Health Fund provider websites or by phoning direct.

Don’t forget that school uniforms purchased from July 1 this year will be included in claims for the Education Tax Refund ... so make sure you keep all of your education receipts!

Small Business Owners – Are You At Risk? 7KH WDJ ÂľVPDOO EXVLQHVVÂś JHQHUDOO\ UHSUHVHQWV businesses with staff less than 20. Amazingly this represents 96 per cent of Australian businesses, who employ more than half of Australia’s workforce. Considering these statistics, there is a good chance that you either own one, work in one, or have family and friends involved in a small business. Owners are constantly pressured by the various factors involved in running a modern day business, however it is imperative to keep up to date with all of them. One area that is constantly overlooked is insurance. It is all too easy to say “I don’t have time just at the moment. I’ll look at that soon – when we are not as busyâ€?. 5HĂ€HFWLQJ RQ WKH UHFHQW GLVDVWHUV DFURVV Queensland, we have seen the importance of ensuring that we have adequate cover for our home – but what about your self and your busiQHVV" A recent study by Cameron’s Research Group discovered that only 65 per cent of small business owners have life insurance. 7KH ÂżJXUHV IRU 7RWDO 3HUPDQHQW 'LVDELOLW\ Trauma and Income Protection were much worse.

7KHUH DUH ¿YH questions you should be asking yourself: ‡ 'R \RX KDYH LQVXUDQFH" ‡ Do you know how much insurance you KDYH" ‡ Do you know what your insurance covHUV" ‡ Have you reviewed your insurance in the SDVW PRQWKV" ‡ 'R \RX KDYH DGHTXDWH ¿QDQFLDO VWUDWHgies to survive being off work for six PRQWKV" If you are unable to answer all these questions ZLWK D FRQ¿GHQW ¾<HVœ then Powers would be happy to look into your insurance levels and advise if your policy is the right one for you.

Contact Marc McMahon on 07 4995 6655 to arrange a complimentary review of your life insurance needs

No small matter for businesses

You may think you are small, EXW VLQFH -DQXDU\ WKH GHÂżQLWLRQ RI ÂľVPDOO EXVLQHVVÂś KDV changed. For the purposes of unfair dismissal, a small business HPSOR\HU LV GHÂżQHG DV VRPHone who employs fewer than 15 employees. Before January 1, this number

was calculated by taking the total number of hours worked by all employees in a business DQG GLYLGLQJ LW E\ WR ÂżQG the full-time equivalent. It is now based on a simple head count of the number of employees in the business, irrespective of how many hours they work.

The head count includes casuals employed on a regular and systematic basis and employees of associated entities. 7KLV EULQJV WKH GHÂżQLWLRQ RI D small business for the purposes of unfair dismissal into line with most other elements of the Fair Work Act, such as redundancy. Under the national Fair Work system, if a small business employer terminates someone and they follow the Small Business Fair Dismissal Code, this cannot be regarded as an unfair dismissal. For more information on how the new law will effect your business, go to www. fairwork.gov.au

Tax Planning It’s hard to know all the various and complex strategies to save tax this season, which is where we come in. We can help you with such tax planning strategies as: 1. Pre-pay interest 2. Defer income or invest in Farm Management Deposits (FMDs) 3. Pre-pay expenses 4. Capital expenditure 5. Realise capital losses on weakest assets 6. Arrange life and salary continuance insurance through superannuation 7. Concessional superannuation contributions

INNERMIDDLE MIDDLE --HEAD INNER HEAD

INNER LEFT HEADD INNER LE LEFT FT -- HEA HEAD

News bites Powers at Farmfest Powers will have a stand at this year’s CRT Farmfest, running in Toowoomba from June 7 to 9. If you’re down that way, PDNH VXUH \RX ¿QG RXU VLWH (PAV/37) and say hello.

Emerald visits We are now making prearranged visits to Emerald. 2XU ÂżUVW YLVLW ZLOO EH RQ -XQH 15 and 16 and we will be continuing to visit the area on a quarterly pre-arranged basis. Call Marie on 3251 4444 if you would like to make an appointment.

Super Funds – can you really take control? with Charles Page

Fresh with his new accreditation as a SPAA SMSF Specialist Advisor, our Superannuation Manager Charles Page sheds some light on SMSFs

INNER RIGHT - HEAD INNER RIGHT - HEAD

Did you purchase a rural or rental property GXULQJ WKH ¿QDQFLDO \HDU" If your answer is yes, it would be advisable to obtain a Quantity Surveyor’s Report. A Quantity Surveyor’s Report will identify all your property tax depreciation deductions. The cost of obtaining these reports are tax deductible, and we have seen substantial savings in tax when utilising these reports. Rural Property owners can expect to have accurate values applied to depreciable assets purchased with their properties. In residential property there are two types of tax depreciation allowance: The Building Capital (Div 43) and The plant (Division 40).

Each are handled differently, as they both have different rules and regulations that govern how their deductions can be claimed. Building capital allowance is a deduction available for the structural element

of the property and was introduced in 1985. Buildings built prior to that do not qualify initially for the allowance, however renovations and extension built after that year are eligible for tax deductions. As a report usually takes four to six ZHHNV SOHDVH FRQWDFW RXU RIÂżFH LI \RX have purchased a rural or rental property during the year. That way your report will be available when you come in for your tax appointment.

Our in-house valuer, Director Murray Davis, is experienced in conducting valuations and arranging Quantity Surveyor’s Reports.

Competition winner Congratulations to Darren Sainsbury who was the winner of our March newsletter competition. Darren won a MYOB AccountRight Program valued DW ZKLFK ZLOO KHOS him manage his accounting requirements.

2011 Road Show Thank you to everyone who attended our Travelling Road Show in Central Queensland on May 24 and 25. It was only a success because of you.

Self Managed Superannuation Funds (SMSFs) are continuing in popularity despite the Global Financial Crisis, but are they the right vehicle for you to take FRQWURO RI \RXU ÂżQDQFHV" 7DNLQJ FRQWURO RI \RXU Âżnances for your retirement using an SMSF allows you to choose the shares or investment properties that you think will provide you with the best investment return. At the same time, an SMSF can pay you an income stream that will be taxed favourably as it suits you once you are 55.

As a general rule, you need DERXW WR PDNH D SMSF pay its way against its rivals – retail and industry funds. As a member of an SMSF, you are also a trustee of the Fund and will be involved in all decisions made by the fund. You have trustee obligations that must be undertaken. Running your own fund involves three major jobs – administration (doing the paperwork), investment (deciding where to place the money) and arranging insurance where ap-

propriate. An SMSF can have up to four members but often it is a suitable vehicle for mums and dads who have built up their superannuation in a retail or industry fund. The advantages of having an SMSF are many but not knowing what your obligations are in having an SMSF can lead to WKH 7D[ 2IÂżFH LPSRVLQJ VRPH rather nasty penalties.

For more information phone Charles on 07 3251 4444.

Get a free website for your business A website today is like a phone - every business needs one. If you don’t have one, now is the perfect time to get online, because Google and MYOB have come together to offer 50,000 Australian businesses a free website for one year and a .com.au domain name for two years. They will also provide ongoing tips and education via HPDLO DQG D IUHH RQOLQH advertising trial with Google AdWords.

This is all part of their Getting Aussie Business Online campaign and websites will be provided by MYOB Atlas. All you need to do to get one RI WKHVH ZHEVLWHV LV ÂżOO LQ D business details form, and supply your ABN number and a phone number. From there, they can create your site in 15 minutes.

To get started, go to www.powers.net.au and follow the links.

Get a tax statement for medical expenses $W WKH HQG RI HDFK ÂżQDQFLDO \HDU 0HGLFDUH DQG \RXU SULYDWH health insurance provider can provide you with a statement RI %HQHÂżWV 5HFHLYHG GXULQJ WKH ÂżQDQFLDO \HDU These statements will provide you with a list of claims ORGJHG EHQHÂżWV SDLG DQG QHW DPRXQW ÂľRXW RI SRFNHWÂś IRU DQ\ family member listed on your card. 7KHVH VWDWHPHQWV DUH EHQHÂżFLDO LI \RX KDYH KDG KLJK PHGLcal expenses during the year, as you may be eligible for an additional tax offset.

School uniform refund

0HGLFDUH VWDWHPHQWV ZLOO OLVW EHQHÂżWV SDLG IRU GRFWRUV RU any medical service which may be subject to a medicare rebate. Private health insurance statements cover those services for which you have cover, for example dental, hospital and optometry. These statements can be obtained by either logging into the Medicare or your Health Fund provider websites or by phoning direct.

Don’t forget that school uniforms purchased from July 1 this year will be included in claims for the Education Tax Refund ... so make sure you keep all of your education receipts!

Small Business Owners – Are You At Risk? 7KH WDJ ÂľVPDOO EXVLQHVVÂś JHQHUDOO\ UHSUHVHQWV businesses with staff less than 20. Amazingly this represents 96 per cent of Australian businesses, who employ more than half of Australia’s workforce. Considering these statistics, there is a good chance that you either own one, work in one, or have family and friends involved in a small business. Owners are constantly pressured by the various factors involved in running a modern day business, however it is imperative to keep up to date with all of them. One area that is constantly overlooked is insurance. It is all too easy to say “I don’t have time just at the moment. I’ll look at that soon – when we are not as busyâ€?. 5HĂ€HFWLQJ RQ WKH UHFHQW GLVDVWHUV DFURVV Queensland, we have seen the importance of ensuring that we have adequate cover for our home – but what about your self and your busiQHVV" A recent study by Cameron’s Research Group discovered that only 65 per cent of small business owners have life insurance. 7KH ÂżJXUHV IRU 7RWDO 3HUPDQHQW 'LVDELOLW\ Trauma and Income Protection were much worse.

7KHUH DUH ¿YH questions you should be asking yourself: ‡ 'R \RX KDYH LQVXUDQFH" ‡ Do you know how much insurance you KDYH" ‡ Do you know what your insurance covHUV" ‡ Have you reviewed your insurance in the SDVW PRQWKV" ‡ 'R \RX KDYH DGHTXDWH ¿QDQFLDO VWUDWHgies to survive being off work for six PRQWKV" If you are unable to answer all these questions ZLWK D FRQ¿GHQW ¾<HVœ then Powers would be happy to look into your insurance levels and advise if your policy is the right one for you.

Contact Marc McMahon on 07 4995 6655 to arrange a complimentary review of your life insurance needs

No small matter for businesses

You may think you are small, EXW VLQFH -DQXDU\ WKH GHÂżQLWLRQ RI ÂľVPDOO EXVLQHVVÂś KDV changed. For the purposes of unfair dismissal, a small business HPSOR\HU LV GHÂżQHG DV VRPHone who employs fewer than 15 employees. Before January 1, this number

was calculated by taking the total number of hours worked by all employees in a business DQG GLYLGLQJ LW E\ WR ÂżQG the full-time equivalent. It is now based on a simple head count of the number of employees in the business, irrespective of how many hours they work.

The head count includes casuals employed on a regular and systematic basis and employees of associated entities. 7KLV EULQJV WKH GHÂżQLWLRQ RI D small business for the purposes of unfair dismissal into line with most other elements of the Fair Work Act, such as redundancy. Under the national Fair Work system, if a small business employer terminates someone and they follow the Small Business Fair Dismissal Code, this cannot be regarded as an unfair dismissal. For more information on how the new law will effect your business, go to www. fairwork.gov.au

Tax Planning It’s hard to know all the various and complex strategies to save tax this season, which is where we come in. We can help you with such tax planning strategies as: 1. Pre-pay interest 2. Defer income or invest in Farm Management Deposits (FMDs) 3. Pre-pay expenses 4. Capital expenditure 5. Realise capital losses on weakest assets 6. Arrange life and salary continuance insurance through superannuation 7. Concessional superannuation contributions

INNERMIDDLE MIDDLE --HEAD INNER HEAD

INNER LEFT HEADD INNER LE LEFT FT -- HEA HEAD

News bites Powers at Farmfest Powers will have a stand at this year’s CRT Farmfest, running in Toowoomba from June 7 to 9. If you’re down that way, PDNH VXUH \RX ¿QG RXU VLWH (PAV/37) and say hello.

Emerald visits We are now making prearranged visits to Emerald. 2XU ÂżUVW YLVLW ZLOO EH RQ -XQH 15 and 16 and we will be continuing to visit the area on a quarterly pre-arranged basis. Call Marie on 3251 4444 if you would like to make an appointment.

Super Funds – can you really take control? with Charles Page

Fresh with his new accreditation as a SPAA SMSF Specialist Advisor, our Superannuation Manager Charles Page sheds some light on SMSFs

INNER RIGHT - HEAD INNER RIGHT - HEAD

Did you purchase a rural or rental property GXULQJ WKH ¿QDQFLDO \HDU" If your answer is yes, it would be advisable to obtain a Quantity Surveyor’s Report. A Quantity Surveyor’s Report will identify all your property tax depreciation deductions. The cost of obtaining these reports are tax deductible, and we have seen substantial savings in tax when utilising these reports. Rural Property owners can expect to have accurate values applied to depreciable assets purchased with their properties. In residential property there are two types of tax depreciation allowance: The Building Capital (Div 43) and The plant (Division 40).

Each are handled differently, as they both have different rules and regulations that govern how their deductions can be claimed. Building capital allowance is a deduction available for the structural element

of the property and was introduced in 1985. Buildings built prior to that do not qualify initially for the allowance, however renovations and extension built after that year are eligible for tax deductions. As a report usually takes four to six ZHHNV SOHDVH FRQWDFW RXU RIÂżFH LI \RX have purchased a rural or rental property during the year. That way your report will be available when you come in for your tax appointment.

Our in-house valuer, Director Murray Davis, is experienced in conducting valuations and arranging Quantity Surveyor’s Reports.

Competition winner Congratulations to Darren Sainsbury who was the winner of our March newsletter competition. Darren won a MYOB AccountRight Program valued DW ZKLFK ZLOO KHOS him manage his accounting requirements.

2011 Road Show Thank you to everyone who attended our Travelling Road Show in Central Queensland on May 24 and 25. It was only a success because of you.

Self Managed Superannuation Funds (SMSFs) are continuing in popularity despite the Global Financial Crisis, but are they the right vehicle for you to take FRQWURO RI \RXU ÂżQDQFHV" 7DNLQJ FRQWURO RI \RXU Âżnances for your retirement using an SMSF allows you to choose the shares or investment properties that you think will provide you with the best investment return. At the same time, an SMSF can pay you an income stream that will be taxed favourably as it suits you once you are 55.

As a general rule, you need DERXW WR PDNH D SMSF pay its way against its rivals – retail and industry funds. As a member of an SMSF, you are also a trustee of the Fund and will be involved in all decisions made by the fund. You have trustee obligations that must be undertaken. Running your own fund involves three major jobs – administration (doing the paperwork), investment (deciding where to place the money) and arranging insurance where ap-

propriate. An SMSF can have up to four members but often it is a suitable vehicle for mums and dads who have built up their superannuation in a retail or industry fund. The advantages of having an SMSF are many but not knowing what your obligations are in having an SMSF can lead to WKH 7D[ 2IÂżFH LPSRVLQJ VRPH rather nasty penalties.

For more information phone Charles on 07 3251 4444.

Get a free website for your business A website today is like a phone - every business needs one. If you don’t have one, now is the perfect time to get online, because Google and MYOB have come together to offer 50,000 Australian businesses a free website for one year and a .com.au domain name for two years. They will also provide ongoing tips and education via HPDLO DQG D IUHH RQOLQH advertising trial with Google AdWords.

This is all part of their Getting Aussie Business Online campaign and websites will be provided by MYOB Atlas. All you need to do to get one RI WKHVH ZHEVLWHV LV ÂżOO LQ D business details form, and supply your ABN number and a phone number. From there, they can create your site in 15 minutes.

To get started, go to www.powers.net.au and follow the links.

Get a tax statement for medical expenses $W WKH HQG RI HDFK ÂżQDQFLDO \HDU 0HGLFDUH DQG \RXU SULYDWH health insurance provider can provide you with a statement RI %HQHÂżWV 5HFHLYHG GXULQJ WKH ÂżQDQFLDO \HDU These statements will provide you with a list of claims ORGJHG EHQHÂżWV SDLG DQG QHW DPRXQW ÂľRXW RI SRFNHWÂś IRU DQ\ family member listed on your card. 7KHVH VWDWHPHQWV DUH EHQHÂżFLDO LI \RX KDYH KDG KLJK PHGLcal expenses during the year, as you may be eligible for an additional tax offset.

School uniform refund

0HGLFDUH VWDWHPHQWV ZLOO OLVW EHQHÂżWV SDLG IRU GRFWRUV RU any medical service which may be subject to a medicare rebate. Private health insurance statements cover those services for which you have cover, for example dental, hospital and optometry. These statements can be obtained by either logging into the Medicare or your Health Fund provider websites or by phoning direct.

Don’t forget that school uniforms purchased from July 1 this year will be included in claims for the Education Tax Refund ... so make sure you keep all of your education receipts!

Small Business Owners – Are You At Risk? 7KH WDJ ÂľVPDOO EXVLQHVVÂś JHQHUDOO\ UHSUHVHQWV businesses with staff less than 20. Amazingly this represents 96 per cent of Australian businesses, who employ more than half of Australia’s workforce. Considering these statistics, there is a good chance that you either own one, work in one, or have family and friends involved in a small business. Owners are constantly pressured by the various factors involved in running a modern day business, however it is imperative to keep up to date with all of them. One area that is constantly overlooked is insurance. It is all too easy to say “I don’t have time just at the moment. I’ll look at that soon – when we are not as busyâ€?. 5HĂ€HFWLQJ RQ WKH UHFHQW GLVDVWHUV DFURVV Queensland, we have seen the importance of ensuring that we have adequate cover for our home – but what about your self and your busiQHVV" A recent study by Cameron’s Research Group discovered that only 65 per cent of small business owners have life insurance. 7KH ÂżJXUHV IRU 7RWDO 3HUPDQHQW 'LVDELOLW\ Trauma and Income Protection were much worse.

7KHUH DUH ¿YH questions you should be asking yourself: ‡ 'R \RX KDYH LQVXUDQFH" ‡ Do you know how much insurance you KDYH" ‡ Do you know what your insurance covHUV" ‡ Have you reviewed your insurance in the SDVW PRQWKV" ‡ 'R \RX KDYH DGHTXDWH ¿QDQFLDO VWUDWHgies to survive being off work for six PRQWKV" If you are unable to answer all these questions ZLWK D FRQ¿GHQW ¾<HVœ then Powers would be happy to look into your insurance levels and advise if your policy is the right one for you.

Contact Marc McMahon on 07 4995 6655 to arrange a complimentary review of your life insurance needs

No small matter for businesses

You may think you are small, EXW VLQFH -DQXDU\ WKH GHÂżQLWLRQ RI ÂľVPDOO EXVLQHVVÂś KDV changed. For the purposes of unfair dismissal, a small business HPSOR\HU LV GHÂżQHG DV VRPHone who employs fewer than 15 employees. Before January 1, this number

was calculated by taking the total number of hours worked by all employees in a business DQG GLYLGLQJ LW E\ WR ÂżQG the full-time equivalent. It is now based on a simple head count of the number of employees in the business, irrespective of how many hours they work.

The head count includes casuals employed on a regular and systematic basis and employees of associated entities. 7KLV EULQJV WKH GHÂżQLWLRQ RI D small business for the purposes of unfair dismissal into line with most other elements of the Fair Work Act, such as redundancy. Under the national Fair Work system, if a small business employer terminates someone and they follow the Small Business Fair Dismissal Code, this cannot be regarded as an unfair dismissal. For more information on how the new law will effect your business, go to www. fairwork.gov.au

Tax Planning It’s hard to know all the various and complex strategies to save tax this season, which is where we come in. We can help you with such tax planning strategies as: 1. Pre-pay interest 2. Defer income or invest in Farm Management Deposits (FMDs) 3. Pre-pay expenses 4. Capital expenditure 5. Realise capital losses on weakest assets 6. Arrange life and salary continuance insurance through superannuation 7. Concessional superannuation contributions

BACKCOVER COVER HEAD BACK HEAD

Top

5 Tax Strategies continued...

From page 1

2. Prepay interest and small asset write-offs ‡ Individuals not in business are able to prepay interest on loans used to purchase income-generating properties or dividend-paying shares. ‡ This gives the investor an opportunity to bring forward a sizeable tax deduction to reduce taxable income. ‡ Useful if one has extra income in the relevant year due to inclusion of a large capital gain. ‡ Individuals can also write off expenditure on VPDOO DVVHW DFTXLVLWLRQV FRVWLQJ OHVV WKDQ outright that relate to income-earning activities.

not entitled to claim a 50 per cent CGT discount when they sell shares, but can transfer WKLV EHQH¿W WR VKDUHKROGHUV 7KH HQWLWOHPHQW appears as a notation on the investor’s dividend distribution statement.

3. Salary packaging

5. Entity holding investment assets

‡ 6RPH HPSOR\HUV QRW IRU SUR¿W VHFWRU UHFHLYH VSHFLDO IULQJH EHQH¿WV WD[ )%7 FRQFHVsions, so it is important to maximise any such opportunities. ‡ 7KHUH DUH EHQH¿WV WKDW DUH H[HPSW IURP )%7 and then there are ones that receive concessional treatment, such as motor cars. Both these W\SHV RI EHQH¿WV VKRXOG EH ORRNHG DW IRU LQFOXVLRQ LQWR VDODU\ VDFUL¿FH DUUDQJHPHQWV ‡ (PSOR\HUV FDQ DOVR EHQH¿W IURP VDODU\ SDFNaging opportunities as labour on-cost (work cover/payroll tax) can be lower under such arrangements.

4. CGT discount/investment in LICs ‡ Hold onto investments for more than 12 months before you sell to take advantage of the capital gains tax (CGT) discount. ‡ Investors often forget their CGT bill will be halved if they wait a little longer than 12 months before they get the temptation to sell. ‡ Ability to claim an extra tax deduction in listed investment companies (LIC). LICs are

Staff news

Office opening hours

This month we say goodbye to director Ian Koch who is retiring. Ian has been a director at Powers since 2000.

8.30am - 5pm Monday to Friday

We’ve also farewelled accountants Carissa Gunston in Biloela and Kelsey Nobbs in Brisbane.

Monto

New staff

Mundubbera

Roslyn Elliott has joined the WHDP DV RXU QHZ 2IÂżFH 0DQager in Brisbane. Christian Capp has joined our 10X team as an Agribusiness Coach. On the 10X front, we also welcome Toowoomba Business Coach, Ross Fulloon, to the team.

Gemma Blair has taken on ‡ 3UREDEO\ RQH RI WKH PRVW VLJQL¿FDQW WD[ SODQ- WKH UROH RI 0DUNHWLQJ 2I¿FHU ning strategies is to look at which entity within while Tanya Summers completes 12 months maternity the family group holds the investment assets. You need to take into account what is the most leave. important driver for your circumstances - asset Rebecca Congram has joined SURWHFWLRQ LQFRPH VSOLWWLQJ ÀH[LELOLW\ VXFFHV- our team on a casual basis in sion and estate planning. It can be as complex Brisbane. as setting up a discretionary trust or as simple as putting assets in the name of a low-income Let’s celebrate spouse. ‡ Discretionary trusts are particularly useful as Our Superannuation Manager they tick most of the boxes when it comes to in- Charles Page has become come splitting, asset protection, access to CGT an accredited Self-Managed Super Fund Professionals’ Asconcessions and succession planning. Advice IURP D VXLWDEO\ TXDOL¿HG DGYLVHU LV UHFRPPHQG- sociation of Australia SMSF Specialist Advisor. ed to help you sort through the maze. Accountant David Butler and Source | Tony Greco, National Institute of wife Lynda welcomed baby Accountants, senior tax adviser Jacob Robert Joseph Butler into the world on April 6.

Brisbane 8.30am - 5pm Monday to Friday 10am - 2pm Monday to Friday or by prearranged appointment

Final thoughts...

Diary Dates

“Always a pleasure to deal with the Powers team. Thank you, Paul, for all your help.�

June

A Cridland “We have a good relationship with our adviser, John Cox, which we wish to continue. Keep up the good work.â€? Con & Helen “We have been with Powers since 1968 and are extremely happy with their service.â€? Mick & Jan Mitchelhill, Tambo “It’s been great having the assistance of Murray Davis. We struggle with ÂżQDQFLDO GLUHFWLRQ DQG XQGHUVWDQGLQJ HYHU\WKLQJ :H DUH RIWHQ XQVXUH RI WKH TXHVWLRQV ZH QHHG WR DVN WR JHW DVVLVWDQFH ZLWK ÂżQDQFLDO GHFLVLRQV and directions, such as how to fund our retirement or fund much needed improvements around the property and home. It is great that Powers is offering more of these types of services.â€? D&K, Taroom

www.powers.net.au email: mail@powers.net.au

elor of Accounting this month.

ZLOO LQFOXGH ÀRRG DQG DQ\ RWKHU IRUP RI natural disaster. In superannuation, the government is still pushing ahead with an allowable deduction RI IRU WKRVH RYHU IURP -XO\ 2012 (subject to a maximum balance in WKH IXQG RI 2WKHUZLVH \RX IDOO back to a maximum allowable deductible contribution of SHU DQQXP

By pre-arranged appointment only

Our mission is to ensure you achieve your financial and business goals. We value the thoughts of our clients. That is why we believe the final word should belong to the most important person...you.

If you want help with these strategies call Support Accountant Toni Powers Investment & Finance Services Neilsen ZLOO ÂżQLVK KHU %DFKon 07 4995 6655

in the private health insurance rebate for those under 65 and with a family income EHWZHHQ WR For primary producers, the government announced they will be extending early access to Farm Management Deposits for those affected by natural disaster. Currently the early access provisions are limited to drought, but the new provisions

In this issue

Biloela

Good byes

Not many surprises in this year’s Federal Budget There were no earth-shattering announcements in the Budget this year, but still some changes to be aware of. The main changes of concern are the removal of low income offsets for minors receiving income from investments or trusts, changes to the small business Capital Gains concessions for trusts and the proposal to push through a reduction

FRONTCOVER COVER HEAD FRONT HEAD

BILOELA

Gladstone Rd (PO Box 98) Biloela QLD 4715 Ph: 07 4995 6677 Fax: 07 4992 1787

BRISBANE

Level 7, 269 Wickham St (PO Box 310) Fortitude Valley QLD 4006 Ph: 07 3251 4444 Fax: 07 3251 4422

Visiting Monto, Mundubbera and other locations by appointment

7-9

CRT Farmfest, Toowoomba

13

Queens Birthday Public Holiday

21

Monthly Activity Statements due for May

July 1

Start of Financial Year 2011-12

12

Property Investment Seminar PIC Group (Settlers Inn, Biloela)

14

PAYG Payment Summaries to Employees

21

Monthly Activity Statements due for June

28

Quarterly Activity Statements due for Quarter 4, 2010-11

28

Payment of employer superannuation due for Quarter 4, 2010-11

August 14

PAYG Withholding Payment Summary to ATO

21

Monthly Activity Statements due for July

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. *Financial Planning services provided by Authorised Representatives of PIS. #Valuation services provided by NPR Valuers Biloela Pty Ltd ABN 47141679576

Handy tax tips Small business news Superannuation updates Free website offer Insurance matters

The Tax and Budget special

June 2011

In the LOOP

The Quarterly Newsletter for clients of Powers Financial Group

Director’s Message With Murray Davis It’s been a tough few months for those of our clients affected by ÀRRGV EXW ZH KDYH EHHQ DEOH WR KHOS well over 100 businesses, including primary producers and small businesses, with all levels of government support. We would like to remind everyone that we are still providing free assistance to businesses who wish to REWDLQ WKH ¿UVW ÀRRG DVVLVtance grant. 7KLV JUDQW DQG WKH VXEVHTXHQW grant will remain open until the end of September. We will help non-Powers clients as well, so if you know of anyone who needs a hand please let them know.

Top

5 Tax Strategies

Tax should never be the driver of investment decisions, but here are some tax strategies to consider as part of your wealth creation planning. 1. Superannuation Superannuation still represents a wonderful tax planning opportunity for most investors. ‡ If you are lucky enough to have your own self-managed superannuation fund (SMSF), which is invested predominantly in listed shares paying fully franked dividends, then the super fund may not even be paying any tax or even better, receiving a tax refund. ‡ The government intends to reduce the concessional contributions for those over WR ZKR KDYH D VXSHU EDODQFH PRUH WKDQ 6R LW LV LPSRUWDQW IRU those over 50 to maximise their conces-

sional super before the new rule kicks in. ‡ Low-income earners are encouraged to make an after-tax contribution to super as they may be eligible for a tax-free co-conWULEXWLRQ EHQH¿W RI XS WR ‡ The only downside for the co-contribution is that the tax-free contribution made on your behalf by the government is locked away until retirement. ‡ Invest one dollar and receive one extra dollar tax free, which has to be the best risk-free investment available. This strategy works well when you have both a high and low-income earner within the family unit. ‡ Opportunity to claim a spouse rebate for super contributions made on behalf of a low-income spouse. The spouse rebate LV ZRUWK XS WR

Look inside for more strategies

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