Visit this space to keep up to date with the latest in Pursuit Advisers news.
Returning Staff Member – Niki Bryce
We are pleased to welcome back Niki Bryce from Maternity Leave. At this stage, Niki is only working on a casual basis, and is working in the background assisting us in getting all of our tax jobs completed by the end of the year.
A new Pursuit Baby!
We would also like to congratulate Stephanie and Matt Green (and big brother Harry) on the arrival of their baby boy – Cooper – who was born 19/4/2017.
We would like to announce that Pursuit Advisers has closed our Mortgage Broking division, and with this closure the departures of Dale Smith and Erin Kennedy.
Pursuit Lending started at the time our financial planning and accounting businesses merged, and over that time has assisted our clients to obtain equipment, business and home finance.
We would like to take this opportunity to thank Dale and Erin for the work they have done since joining our business, and wish them both luck for the future.
While we have closed this part of Pursuit Advisers, we are pleased to advise that we continue to hold great relationships with all of the Major banks, and can still assist clients with any finance they need to obtain.
Over the coming months, if you are visiting or near the office, you may hear the sound of construction coming from our building!
It's hard to believe we have been at 82 Smith Street for almost 2 years, and in that time, we have made use of the existing room structure as best as possible. Over the coming months we will be making some small but significant changes to our interview rooms – making them larger and brighter for everybody's convenience.
Tax Planning for 2017
We are fast approaching the end of the financial year, and now is the time to review your financial position for the year to date. Over the coming weeks, you will have a once-off opportunity to review your taxation position for the 2017 year, and put in place appropriate taxation strategies to ensure you pay no more tax than you should.
Taking year to date figures to estimate the likely tax position for the end of this financial year, we can influence this years result through strategies such as
- Bringing forward expenses,
- Small business depreciation rules,
- Making additional super contributions.
With changes coming to superannuation laws, a reducing corporate tax rate, the removal of the instant write off for assets under $20,000 and recently announced federal budget changes, now is the time to sit down and look at the best approaches to minimizing this years tax position as well as making any changes that will help in the long term.
Areas such as tax planning are where the advantages of cloud platforms such as Xero really stand out. Rather than worrying about backing up, creating a copy and sending in your accounting software, we simply log in and print the reports we need before the meeting. Having access to live data using a cloud based accounting software means less time for you in staying up to date meaning more time focusing on what is important.
Please feel free to contact our office if you have any questions about saving tax and taking the stress out of your bookkeeping.
Left to right:
Ben, Nicole, Rachel, Stuart and Aaron .
Ready to answer all your Xero questions.
Every now and then you come across an article in the paper that reinforces how much of a difference trauma insurance can make. Interestingly these articles are becoming more frequent and gaining more exposure. An article appearing in the Herald Sun in March told a story of a 25 year old man who was told that he had just weeks to live.
Having experienced a constant cough for a number of weeks two Drs had diagnosed him with Bronchitis. However after further investigations it was found that a 20 – 22cm tumour in his abdomen had grown so large that it caused his lung to collapse. He was diagnosed with an aggressive type of non-Hodgkin lymphoma and after going through 20 rounds of chemotherapy, six weeks of radiation and a bone marrow transplant, the tumours, almost filling his torso, remained. It had soon spread to his brain and liver and he was given less than a month to live.
Having almost given up hope, his mother asked the Dr if there was any drug that her son could take to save his life, regardless of the cost. The Dr advised that he knew of a drug, however it would cost $6,000 per treatment as it would be prescribed for an illness that it had not been approved for.
Without the financial means to fund such a large expense a campaign began to raise the funds. Fortunately due to the good will of family and strangers $50,000 was raised and the treatment could commence. Amazingly after just two doses scans showed that he was in remission and having hoped that the tumours may have shrunk, they were shocked to find that they had disappeared.
This is a reminder of the importance of Critical illness / Trauma cover and how it can avoid the stress of having to raise money to afford the expensive cost of cancer drugs which are not covered by the PBS. Although in this case the funds were raised, in such circumstances would you really want to have to rely on others to assured of being able to access the treatment? Trauma cover provides an immediate lump sum upon diagnosis meaning that funds are available to get the best possible care from day one. Something that could mean the difference between life and death.
Did you know that the premium for $ 100,000 of Life cover and $ 100,000 of Trauma cover for a 40 year old can be as low as $ 45 per month? Ask yourself this, would it be easier to put aside $45 per month.
Left: Jessy the 25 year old mentioned above with his parents Kathy and Tony Carroll
Picture: David Caird
Act now before it's too late
If you are in your 60's, some serious consideration needs to be given as to how your retirement savings currently stack up. Some questions that you should be asking yourself are:
- When do I want to retire or reduce my hours?
- Will I have enough money to do so?
- Am I taking full advantage of what is now in place to boost my retirement savings and ultimately the level of Income I will be able to generate?
- Am I aware of the changes that come into effect on the 1st July 2017 which could limit my ability to fully maximise my super savings?
A lot of people don't like to think too far ahead but when it comes to retirement and your finances, waiting until your already there can sometimes be too late. There are many things that should be considered a number of years prior to turning 65 years of age.
As a client of Pursuit Advisers we would like to make you aware of the fact that you can meet with a Financial Planner to discuss your potential needs. The first appointment is complimentary during which they will get an understanding of where you are now, where you want to be, and identify any shortfalls in the planning that is in place to help you get there.
With changes coming into effect on the 1st July this year, we encourage you to make an appointment as soon as possible. If you have any questions please call your adviser now.
Spotlight on Superannuation Contributions
The rules relating to superannuation contributions are constantly changing, especially from 1 July 2017!
However, there are some constants which you should be aware of.
30 June is not the real deadline for contributions
If you were to ask me when is the latest date that you can make a contribution for a financial year, the short answer is 30 June. However, this is a very dangerous answer to give. I think the practical answer should be 20 June. Why would I give you this answer you ask?
Consider, for example, the case of Liwszyc v Commissioner of Taxation  FCA 112. Mr Liwszyc was the sole director of a company. On 30 June 2009 the bookkeeper of the company made two superannuation contributions in respect of Mr Liwszyc. The payments were made via BPay. However, the superannuation fund (AMP Superannuation Trust) did not show the contributions as having been received until 1 July 2009. Naturally, this meant the contributions were recognised in the 2010 financial year instead of the 2009 financial year. This was despite Mr Liwszyc's evidence that the payments were clearly marked as being for the 2009 financial year.
Contributions are taken to have been received when the fund receives the money – not when it leaves your account – so depending on the way you are making your contribution, be aware of factors such as weekends and payment methods.
This case illustrates the dangers of leaving contributions to the last minute! Market value means market value at the point in time of the contribution.
The ATO and the government have been very worried in the past about people manipulating off-market transfers of listed securities to pick a date in the past that provides them with a lower capital gain outside of superannuation. A few years ago, there was even a bill proposing to ban off-market transfers to superannuation. Although the ban was never ultimately implemented, there is still a valid point: it is simply not allowable to pick a past date for a transfer. The transfer occurs at the moment when the fund obtains a properly executed off-market share transfer in registrable form. Members and trustees should not manipulate the market value by trying to choose a date in the past.