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November 2016

Office News 
Business and Tax
Financial Planning - Investment 
Lending 
Financial Planning - Insurance     
Super


Office News

Baw Baw Big Blokes BBQ

On Friday the 14th of October, the guys in the office attended the Baw Baw Big Blokes BBQ – which is a day  organised to raise awareness of prostate cancer, as well as to raise money to donate to the Prostate Cancer Foundation of Australia and local hospitals.

Pursuit Advisers are proud to be a major sponsor of this event, having been involved in that capacity for the past 3 years.

The 660 guests at the event enjoyed a day of hospitality and entertainment, with keynote speaker and Victoria Cross recipient Corporal Mark Donaldson providing an account of his time in Afghanistan, with this year's event raising $175,000.

   

(from Left, Darren Adams, 

Stuart Kendall, Mark Dunsmuir, 

Ben Harrison,

Ed Watt and Dale Smith)

 

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Business & Tax

Airbnb v Hilton

A couple of our Business & Tax team members recently attended Xerocon South 2016 which is marketed as the world's most beautiful & innovative conference for cloud accounting leaders.

For one of the team, he was finally convinced to encounter his very first Uber ride!! 

Now let's quote our resident accountant: "It was unlike any car ride I had ever experienced. First of all - the app introduced me to my driver before he had even picked me up and he was able to pin point my location and because I knew the number plate of my ride, there was never any chance of missing my lift.  Once inside, the car looked like an Armor All commercial with an intoxicating smell of air freshener, complete with complementary bottle of water and breath mints and the fare was more than fair!!"

Compare this to the taxi ride they encountered the day before:

  • Where they had to roam the streets for 10 minutes looking for a taxi,
  • By the time they were able to hail one they were half way home,
  • Once inside the cab they were welcomed by the gentle aroma of body odour from a driver who looked   nothing like this taxi licence picture,
  • After the short journey to their destination they were then disparaged for having such a small fare and told to "walk next time".

The icing on the cake was the taxi drivers' refusal to accept EFTPOS payment for the trip.  Luckily for the driver they could scrape the cost of the fare from their loose change.

What does the transport method of a couple of our team members while at Xerocon in Brisbane, or Airbnb for that fact, have to do with Business you might ask?

Well first came eBay, followed by Amazon, TripAdvisor and wotif.com - All online platforms most know of and have used & experienced, where they bring buyer and seller together to transact, and in most cases without even the need to meet!

We are now happy to take advice from a stranger (online rating websites, such as TripAdvisor), buy from strangers (eBay), get in cars with strangers (Uber) and now even stay at strangers houses (Airbnb) – scary I know, but this is the new world we now live in. 

All these are mainstream examples of how the way we do business is changing and changing rapidly, and it's all being driven by technology and consumer endorsement.  Even Facebook has been cashing in on the phenomenon, reporting revenues in excess of US$20B these past 12 months (yes billion!!).

Airbnb is likely to be a term the majority of us would have not been familiar with 12-18 months ago. 

However, our team members at Xerocon South were fortunate to be given an insight into the Airbnb journey thus far, and the candid confession from presenter Rachel Botsman that her husband (a lawyer) stopped her from investing in Airbnb when it was just a start-up back in 2008!

Airbnb is now considered the most valuable (US$30B) hospitality company in the world, worth nearly US$7B more than the next: Hilton Worldwide.  Crazy, especially when you consider Airbnb does not even own one room, let alone a suite of luxury hotels around the world like the Hilton does!!

Take what you like from this, but remember, no matter what you do: embrace technology, both personally and in business – anything is possible and can now be done on a global scale, all through a simple gadget called the Smart Phone – another invention that is less than a decade old. 

Remember Nokia? And please don't become another Kodak!!

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Financial Planning- Investment

Who knows where interest rates are heading?  Is the next move up or down?

Making money out of your cash investments is now more challenging than ever with interest rates in Australia at record lows and we may not yet be at the lowest point.  The Reserve Bank is balancing the needs of our economy against the need to stabilise the interest rate in Australia.  Inflation numbers remain low putting increased pressure on the RBA to further reduce rates to stimulate spending, however they must consider that the largest economy in the world, the United States of America, is looking to raise rates in the near future.  An increasing U.S. rate against a declining Australian rate could certainly see the Australian Currency come under significant pressure and this would have ramifications on business here in Australia. 

One thing that is for sure is that our rates will remain abnormally low for an extended period as any increases will be slow and steady when that time comes.  There are many alternatives to Cash and Term Deposit investments that can increase your returns, if you are interested in exploring what is available and the risks and benefits of these investments please speak to one of our Financial Advisers today.

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Lending

Planning on purchasing a new car??

Over the Christmas / New Year period many of our clients decide to purchase a new motor vehicle. Most caryards make more money out of the finance product they sell you then the actual car itself therefore it's important to make sure you are getting the best deal.

Comparing apples to apples

If you have received a finance quote from the car dealer we can provide a second quote to ensure you are getting the best deal.

Details we require are:

  • Finance amount
  • Repayments
  • Term of the loan

At the end of the day it's about comparing the repayments on both quotes which will give you an accurate idea on the overall cost of the loan facility.

Different structure

We can structure the finance to suit your cash flow. For example – with a Chattel Mortgage facility we can factor in a special repayment equivalent to the GST component of that vehicle to coincide with your ATO BAS refund.

We can offer a Balloon/residual payment at the end of the loan contract, this reduces your monthly commitment.

If you income is irregular we can structure the repayments around when you receive your income.

Pre – approval

If you are looking to purchase a vehicle we can have a facility pre-approved so you know finance is ready to go when you find a suitable car. This speeds up the settlement process enabling you to take delivery of the vehicle sooner rather than later.

Range of Lenders

We have a panel of different lenders we can utilise to give you the best deal. Some lenders specialise in loans to borrowers that own property, other lenders specialise in finance for older vehicles.

Contact us first or contact us last, either way contact us

We offer an obligation free service so utilise our Mortgage broker team to ensure you get the best deal and that the loan that structured to meet your financial needs.

We look forward to hearing from you soon!

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Financial Planning- Insurance

Protect your family's financial security in 2017

You've worked hard to build wealth for your family. Now make sure you protect it with the right insurance.

Most of us don't like thinking about the reasons we need insurance - like having an accident, getting a debilitating or life threatening illness, or worst of all, passing away suddenly. So we often avoid thinking about insurance altogether.

Unfortunately, this approach will do nothing to help your family, should life take an unlucky turn. That's why you should make 2017 (yes we are nearly there!!) the year to get your insurance in place if you haven't already, and protect the lifestyle you've worked so hard to attain for you and your family.

Here are three types of insurance you should consider:

Life and TPD insurance

Life insurance protects your family's future by paying them a lump sum if you pass away or you are diagnosed with a terminal illness - or become totally and permanently disabled.

To decide how much cover you need, think about the debts you have, for example – mortgage and credit card debt, how old your children are (if you have any) and the cost of their education, and the kind of lifestyle you'd like your family to have should the unexpected happen.

Did you know you can take out life insurance through your super? It's often cheaper, and because your premiums are paid through your fund, it won't affect your week-to-week income. However, you'll need to make sure that the cover through your super is going to be enough to meet your family's needs - and to check that you're getting the best deal.

Income protection insurance

Income Protection insurance, also known as salary continuance insurance, covers you if sickness or injury means you're temporarily unable work.

Generally, income protection covers around 75% of your wages, before tax. You can choose how long you want to receive it for (for example, for two years or up to age 65) and the waiting period before you receive it, which is usually one to three months.

Income protection covers you when workers compensation won't - for example if you get sick, or hurt yourself outside of work. It's also an essential protection for self-employed workers, who aren't eligible to receive workers compensation.

Trauma insurance

If you had to recover from a serious illness such as cancer or a heart attack, the last thing you would need is financial stress.

Trauma cover can help, with a lump sum payment if you are diagnosed with a serious medical condition (these conditions will be specified in your policy). You can use the money in any way you see fit, from covering medical expenses and living costs, to taking a holiday to recuperate.

Want to know more?  

The best way you can secure your family's financial future is to have the right insurance. A financial adviser can help you make sure your insurance suits your lifestyle, so make it a new year's resolution to speak to Jamie Klason at Pursuit Advisers. 

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Super

New legislation and its effect on making superannuation contributions.

After facing backlash on their proposed $500,000 lifetime non-concessional contributions (NCC) cap the Government have recently announced that this cap will be changed.

Instead, the Government have proposed the following changes, effective from 1 July 2017:

  • The NCC cap will be reduced to $100,000 per annum
  • The 3 year bring forward rule would be reduced from $540,000 to $300,000 for those who have not fully used the cap by 1 July 2017
  • No NCC will be able to be made for individuals with a superannuation balance exceeding $1.6 million

The timing of these changes provides an opportunity to contribute a significantly larger amount in the current  financial year than will be allowed going forward.

Given that the rules do not change until 1 July 2017, if you have not already maximised your NCC cap, you could be eligible to still contribute $540,000 to your fund regardless of your superannuation balance. After 1 July 2017 this amount will reduce to $300,000.

If you had planned on making large contributions to superannuation in the future now is the time to act! Please speak to one of our financial planners today.

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Dale Sumner - General Manager of Lakes Entrance Fishermens Co-op & Leftrade Limited

"From the front desk to the director is outstanding, I have replies to my emails within the same day to answer any question. My Wife and I have been able to take our business to the next level"

Ben and Julie Whiteley

"They provide us with well-researched financial and business advice, take care of all our tax responsibilities and financial needs, and even check in from time to time to see how we’re going"

Jessie Ballantyne- Director of The Grants Hub

"Business has grown immensely which is a testament to his effectiveness, guidance and good common sense approach"

Robert Radford- R. Radford & Sons Pty Ltd

"They have taken the time to get to know us as a business, and go above and beyond in helping us grow."

Jessie Ballantyne - The Grants Hub