Christmas + Gift Giving

Christmas is a weird and wonderful time of the year, filled with family, friends, good times, presents, and that confusion of what day of the week is it, and how many days of leave are left.  Not to mention the confusion of still writing 2019 down as a date, three weeks in to the new year.

Christmas can also be very stressful when it comes to the awful topic of money, and spending money.  For those that are running a tight ship, it’s a stressful time, because they might not be able to do everything they can or want to.  Then there are those people that won’t be able to achieve what they can or want to.

The age-old adage of Charity begins at home doesn’t hold true as much as it may have in the past.  There are a lot of people doing it tough, and they need a hand through times such as this.  There are many great ways in which this can be done, whether it’s buying extra presents to donate under wishing trees, making up hampers as a work place, and donating to families in need, or simply through a cash donation to one of the many charities that help families have a great Christmas as well.  I know this is something we do at the Canny Group, and something that I do personally as well.

One hangover that you don’t want to have to deal with after Christmas, is the debt that we tend to rack up from overspending.  It’s not just credit cards, it is zip pay and afterpay as well.  As of 30 June, there was almost a billion outstanding in afterpay, and 60% of that was attributed to people aged between 18-34, which is staggering.

In December last year, $30 million was borrowed in Credit Cards.  Want to hear something scary?  If you owe $2,000 on a credit card and make the minimum repayments, it takes 17 years to clear the debt!  I guess the moral of the story is to not overspend or start planning earlier.  I know that in my family, on one side we do Kris Kringle, that way everyone gets one good present, rather than lots of presents that end up being forgotten or put away to never see the light of day again. Try not to let this time of the year overwhelm you and have loads of fun!

See you in 2020!

 

Steve Reynolds – Certified Financial Planner

BComm, Dip.FS[FP]

Christmas + FBT

It’s coming up to the Christmas holiday period which means scheduling the staff Christmas party and purchasing gifts for your employees, but as we skip into the month of December, it’s important that we remember what is deductible in relation to gifts and entertainment provided and how fringe benefits tax [FBT] relates with these actions.

FBT is payable by employers on the value of certain benefits that have been provided to their employees in respect of their employment. The purpose of the legislation to ensure fair tax treatment between cash paid to employees and benefits provided to them during their employment. Fringe benefits can include but are not limited to: providing an employee a vehicle that is owned by the business to drive, providing a loan to an employee with no interest, and also functions and gifts provided to an employee at Christmas time.

Towards the end of December, many employers schedule a work breakup or event to celebrate the holidays with their employees or purchase a gift for the employees and their families. These events can include costs such as venue hire, food and alcohol purchases or booking entertainment such as a band. Are these expenses tax deductible? Is the employer entitled to claim goods and services tax [GST] back on those expenses incurred?

Generally, providing entertainment to an employee is not tax deductible unless FBT is paid. Employers cannot claim deductions for the cost of Christmas gifts purchased for employees if the gift directly provides entertainment by way of food, drink or recreation. Similarly, the expense of a staff Christmas function would not be deductible as it involves the provision of entertainment.

However, there are some exceptions. The cost of a Christmas party is tax deductible if provided on a working day on the business premises and consumed by current employees. Another exception is providing a minor benefit by ensure the cost of the Christmas party and gifts are less than $300 per employee. And when it comes to GST, the credit is available if FBT is paid or the benefit is exempt from FBT and a tax deduction can be claimed.

If you are providing more than salary and wages to an employee, now is a good time to book an appointment with one of our accountants to ensure you are not inadvertently paying more tax than necessary by providing a non-cash benefit to your employees.

 

Jamie Arrington – Manager

B.Com CA

Financial Plans Are COOL

IT IS PRETTY COOL TO HAVE AN ACTUAL FINANCIAL PLAN AND NOT JUST ‘ONE IN YOUR HEAD’

Whilst seeing a client, our discussion often turns to managing personal cash flow.  Some people are happy just living from pay-to-pay and don’t give much consideration to plans for the medium or long term.  Others haven’t really given the idea any thought but think it will all be “OK”.  However, more and more people are thinking about this, but don’t know where to start.

Financial management and retirement planning help people determine their personal saving targets, what they can afford to spend, and how best to arrange their financial affairs.  Retirement planning can quantify how much you need to have saved to retire.  When you are years away from retirement and your personal finances are ever-changing, this can seem like a challenging concept, but it is important to remember that a financial plan is a process, not a product.  It is something that requires discipline to start and at least annual maintenance and review.

A financial plan should include:

  • INVESTMENT PLANNING;
  • INSURANCE + RISK MANAGEMENT;
  • FINANCIAL MANAGEMENT;
  • RETIREMENT PLANNING;
  • TAX PLANNING; +
  • ESTATE PLANNING + LEGAL ASPECTS

Most people insure against at least some of the risks of financial loss due to death, medical issues and damage to property.  You could look at a well-structured and maintained financial plan as insuring against financial difficulty later in life.

Estate planning may also be an overlooked financial planning exercise.  The thing about estate planning is that it should go beyond simply preparing a will just to check off a box and say that it is done.  In a financial planning context, it is important to consider things like who your beneficiaries will be, joint asset ownership, income tax liabilities.  In the same way a married couple may plan for retirement together, it is important to consider what might happen if one spouse or the other died prematurely.  This may be as much a financial planning exercise as an estate law one.

Our financial planners – Samantha Butcher and Helen Yau can get you started on this journey and will assist and advise along the way.  Why don’t you call and make an appointment today, it’s that easy!

 

Amanda Wilkens – Director

B.Comm CPA

Buy Low Sell High

Buy Low Sell High is the first seminar in our free Property Seminar Series.

Buy Low Sell High is designed to provide an overview of the sale process, from engaging a real estate agent right through to handing the keys to the purchase.

We delve into:

  • WHO // you will need to engage to sell + why
  • WHAT // who does what, from the agent to the stylist right through to the broker + lender
  • CONVEYANCING // the general conveyancing process
  • SETTLEMENT DAY // what to expect + what happens if there is a delay
  • TRAPS + PITFALLS // that you should be wary of when consider to sell your property

So when the time is right to move on to your next dream home, selling your property for the best price will be a breeze!

Secure your FREE ticket through Eventbrite here.. https://www.eventbrite.com.au/e/buy-low-sell-high-tickets-75801936633

REFRESHMENTS INCLUDED + ALL CHILDREN WELCOME!

New Labour Hire Laws In Victoria

ATTENTION ALL BUSINESSES.. does your business or organisation use labour hire workers?  If this applied to you, then you need to be aware of the new labour hire laws that are now in place, and how they may affect you and your business!

 

Under the Labour Hire Licensing Act 2018, labour hire providers will have until 29 October 2019 to apply for and be granted a licence by the Victoria Labour Hire Authority to operate in Victoria.

Licences can be applied for from the Labour Hire Authority website.  These licences are valid for a period of no more than three years.

There is a test that needs to be satisfied to obtain and maintain a licence.  This is known as “fit and proper test”.  Businesses will need to prove past compliance with the applicable employment, tax, immigration and workplace health and safety laws.

To ensure compliance of the new licensing system, the Victoria Labour Hire Authority will employ inspectors.  These inspectors will be able to enter and search premises, examine, seize or inspect anything suspected of relating to a possible contravention.

KEY POINTS FOR BUSINESS OWNERS:

  • LABOUR HIRE PROVIDERS MUST REGISTER ONLINE TO CREATE AN ACCOUNT + then apply for a licence.
  • LABOUR HIRE PROVIDERS WILL HAVE SIX MONTHS, or until 29 October 2019 to register online + apply for a licence.
  • IF PROVIDERS DO NOT APPLY FOR A LICENCE within the six-month transition period, they will be prohibited from providing labour hire services from 30 October 2019
  • UNLICENSED LABOUR HIRE PROVIDERS CAN FACE SUBSTANTIAL FINES, with a maximum penalty for a natural person being more than $120,000 + for a corporation exceeding $500,000.
  • HOSTS [BUSINESS WHO UTILISE LABOUR HIRE WITHIN THEIR BUSINESS] who enter into an arrangement after 29 October 2019 with a labour hire provider who has not applied for, or who has been refused a labour hire licence face substantial fines ranging from a maximum in excess of $120,00 for a natural person to in excess of $500,000 for a corporation.
  • THERE IS AN APPLICATION FEE, + ANNUAL LICENCE FEE, payable by the labour hire provider.

If your business uses labour hire workers in Victoria, we recommend you begin enquiringly with the providers as to their intentions with respect to applying for a licence.

Please contact Canny Legal on 5278 9500 if you have any queries regarding the new Labour Hire regime.

State of Wellness Summit

STATE OF WELLNESS SUMMIT // Creating Sustainable Positive Changes In The Lives of Women

We are honored to be sponsoring this amazing wellness movement that is all about creating sustainable positive changes in the lives of women.

You will be able to find our team on Thursday 10th October at GMHBA stadium sharing our knowledge with everyone on how NOT to sweat your finances.

Hosted by Geelong’s charismatic and life-changer Roxie Bennett, there will also be speakers including:
LAUREN BURNS // Olympic Gold Medalist, Naturopath/Nutritionist
JANE KINNEAR // Positive Change Coach, Speaker + Registered Nurse
REBECCA WINKLER // Naturopath + GAPS Practitioner
JO SURKITT // Though Leader, Speaker, Leader + Positive Change Creator
CAL STEWART // Feng Shui Consultant
MADELINE WEST // Food and Mood Centre at Deakin University
KIM BYRNE // Female Mentor, Author + Acclaimed Surfer
AMANDA WILKENS // Canny Group Director, CPA, Chief Financial Operator + Supporter of Women in Business
SAMANTHA BUTCHER // Financial Adviser
DR. CAROLINE TAYLOR-WALKER // Principal Doctor + Lecturer

THURSDAY 10TH OCTOBER 2019
HIGHER MARK @ GMHBA STADIUM GEELONG

Director Amanda Wilkens along financial adviser Samantha Butcher are going to be on stage from 3.30pm for the Q+A Expert Panel answering all of the questions related to women finances.

By using the following link, https://www.stateofwellness.com.au/ we are lucky enough to be able to offer a $50 discount on all tickets that are purchased, just enter CannyFriend as the promo code to apply your discount.

That Thing Called… Work/Life Balance

When I ask my clients who are fathers, what their most important goal or objective is, more often than not it is to provide for their family should anything happen to them.  Whether they be the sole income earner, or in a family with two members generating income, they want to ensure that if anything happens and they can’t work, they have the ability to still pay their mortgage, education costs, and put food on the table.

A person’s ability to earn an income is their greatest asset, and often for a small percentage of total income, they could cover up to 75% of what they’re earning.  In more serious cases of premature death, or being totally and permanently disabled, they want to ensure that mortgages are cleared, any future education costs are provided for, and that lifestyle expenses are there for any surviving spouses or children to ensure that nothing is left out, for a predetermined amount of time.

Work life balance is also important for families, as they want to ensure that they provide for their families, but the mother or father can still have time to attend any dance recitals, sports events, or any other extra-curricular activity that their children participate in.  As an example, I have a client in his 50s, who I have worked with for just on 10 years, and we created some investments outside of superannuation, so he could take some time off work as his son is an amazing basketballer, and needed help being taken to training and matches.  He made some sacrifices earlier on, and is now reaping the rewards.  I have the same situation of a client in his 60s, who has started a transition to retirement strategy to help babysit his grandchildren, as that is the next important phase in his life.  Regardless of age or situation, you need to make sure that you have the work life balance.  You are not what you do.

 

Happy father’s day to the fathers out there, and the mothers pulling double duty. Especially to my father, who retires at the end of the month.  I look forward to punishing him on the golf course!

 

Steve Reynolds – Certified Financial Planner

BComm, Dip.FS(FP)

The Butterfly Plan

Life coach, radio broadcaster, speaker, entrepreneur, influencer and dear friend of The Canny Group, Roxie Bennett is a life changer and ‘butterfly woman’ with a mission to build a kaleidoscope of butterflies wherever she goes.  Roxie Bennett combines life coaching and her work as a radio presenter with running her boutique marketing, events and PR agency, Plan.It Roxie.  Her positivity is infectious, her smile lights up a room and her determination to see those around her succeed gives them the confidence and courage to become the very best they can be.

From growing up in the country as part of a large, working class family, Roxie always shone out and knew she wanted more from life.  After university she found her way to a career as a radio broadcaster.  At 35 with two small children she was diagnosed with Breast Cancer and, instead of focusing on herself, she continued her radio show where she chronicled her chemotherapy and radiation treatments, sharing her hopes and fears with her listeners every morning.

The diagnosis sparked a 20-year journey to truly find herself, the person she was always meant to be.  Roxie has led a life of resilience and positivity, accepting and embracing the challenges she faced, always knowing they would lead her to the best of all possible places.

 

WELCOME // THE BUTTERFLY PLAN

The Butterfly Plan is a 12-week program and journal to guide you to weight loss and wellbeing.  It’s designed for women of a ‘certain age’ who have found themselves weighed down by the ‘middle age malaise’.  A wholistic plan, it addresses all areas of your life including your gut, your mind, your body and your spirit.

The Butterfly Plan will step you through a journey of self-discovery, learning what really matters to you.  You’ll soon realise that your health and wellbeing are the most important gifts you can have, and they are gifts that only you can give to yourself.  You’ll learn that you can’t be everything for everyone else until you can be everything for yourself.  And, you’ll learn that you are the most important and powerful person you know!

After hitting 50, Roxie Bennett, the author of The Butterfly Plan noticed that she was sluggish, putting on weight she just couldn’t budge and generally felt flat and in a funk.  She knew she was eating too much, wasn’t exercising like she should, was  stressed out and definitely drinking too much alcohol.  And, while she knew all this, nothing she tried ever seemed to work and she just couldn’t figure out how to change.

Eventually Roxie decided she had to make a choice, either accept it and learn to be happy with the woman she’d become (a moth) or, NOT accept it and turn herself into the woman she wanted to be (a butterfly).  This book shows which one she chose!  Roxie combined all the elements of health and wellbeing that she enjoyed and that had worked for her in the past, she put them together and The Butterfly Plan was born.

Within three months Roxie had reached her goal of losing 20Kgs, best of all she felt absolutely amazing and it showed, people literally stopped her in the street to tell her how radiant she looked!  That’s when she realised, she had something special and, she had to share it!

Designed to be inexpensive, easy to follow and sustainable, The Butterfly Plan will become your ‘new’ normal.  It will guide you week by week via a journal format to keep you on track and motivated towards your goal.  You will lose weight quickly, your mood will be improve dramatically and you’ll start to really love who you are, inside and out, today and forever!

https://publishizer.com/the-butterfly-plan/

 

The Butterfly Plan - Roxie Bennett

Deceased Estates

There are no inheritance or estate taxes in Australia.  The person responsible for administering a deceased estate is most commonly referred to as an executor, but could also be an administrator where letters of administration are granted by a court.  Both are considered a legal personal representative by us.

When a person dies, there are some important tax and superannuation issues for the executor and the beneficiaries, including:

 

IF YOU ARE A BENEFICIARY OF A DECEASED ESTATE

There may be some tax obligations for beneficiaries, depending on the nature of any distribution they may receive:

RECEIVING SUPER BENEFITS

If the deceased person had super, the super fund’s trustee will work out who to pay any benefit to [either as a lump sum or an income stream].  Super paid after a person’s death is called a ‘super death benefit’.  The tax on a super death benefit depends on:

  • WHETHER YOU WERE A DEPENDENT OF THE DECEASED UNDER TAXATION LAW
  • WHETHER IT IS PAID AS A LUMP SUM OR INCOME STREAM
  • WHETHER THE SUPER IS TAX-FREE OR TAXABLE AND WHETHER THE SUPER FUND HAS ALREADY PAID TAX ON THE TAXABLE COMPONENT
  • YOUR AGE AND THE AGE OF THE DECEASED PERSON WHEN THEY DIED (FOR INCOME STREAMS).

RECEIVING ASSETS

Capital gains tax (CGT) applies to the disposal of an asset; so if you receive an asset you are not affected by CGT.  If you later sell that asset, CGT may apply.

EARNING INCOME

If you as a beneficiary are presently entitled to income of the deceased estate, the income is assessable in the year your present entitlement arose, not in the year the amount is received.

For example, if you were presently entitled to the deceased estate income on 30 June 2018 but did not receive it until September 2018, you are personally assessable on that amount in the year ended 30 June 2018, not in the year ended 30 June 2019.

COMPLETING YOUR TAX RETURN

As a beneficiary, you need the following information:

  • YOUR SHARE OF TRUST INCOME TO WHICH YOU ARE PRESENTLY ENTITLED
  • THE AMOUNT OF YOUR ENTITLEMENT THAT WAS PAID TO SOMEONE ELSE FOR YOUR BENEFIT
  • THE ASSESSABLE INCOME AMOUNT
  • YOUR SHARE OF FRANKING CREDITS ASSOCIATED WITH ANY DIVIDENDS IN THE TRUST DISTRIBUTION
    • THIS MEANS THAT THE COMPANY PAYING THE DIVIDENDS HAS PAID INCOME TAX FOR THE AMOUNT.
    • IF YOU ARE AN AUSTRALIAN RESIDENT BENEFICIARY, YOU ARE ENTITLED TO THE ASSOCIATED FRANKING CREDIT WHEN THE INCOME DISTRIBUTION IS INCLUDED IN YOUR TAX RETURN FOR INDIVIDUALS.

BENEFICIARIES PRESENTLY ENTITLED BUT UNDER A LEGAL DISABILITY

If you are a beneficiary presently entitled but under a legal disability you also need to know the amount of tax the trust paid on your behalf.  If you need to lodge your own tax return you are entitled to receive a tax credit for this so that the same amount isn’t taxed twice.

NON-RESIDENT BENEFICIARIES

If you are a non-resident beneficiary, you will also need to know the amount of:

  • INTEREST IN YOUR DISTRIBUTION AND THE WITHHOLDING TAX PAID
  • UNFRANKED DIVIDENDS IN YOUR DISTRIBUTION AND THE WITHHOLDING TAX PAID
  • FRANKED DIVIDENDS IN YOUR DISTRIBUTION
  • TAX THE TRUST PAID ON YOUR BEHALF

 

Kim Sandhu – Senior Accountant

CPA – B.Com M.Acc

Investment Properties – What Happens When You Sell?

Investment Properties – What happens when you sell?

When you sell an investment property, you are likely to make a capital gain or profit and will be required to pay tax on it.  The tax consequences depend on a range of issues, from whether you inherited or purchased the property, to your intention for the property if it was a new build.

In certain circumstances, an inherited property can be tax free when it is sold, but this is dependent on who you inherited the property from, how they used the property before you and when you sold it.  Was it an investment property for them or a principal place of residence?  The answers to these questions will have a bearing on whether there is no taxable capital gain or whether you will end up with a large amount of tax to pay.

Your intention for an investment property can make a difference on whether the ATO will consider it to be subject to capital gains tax or if it should be considered a profit-making venture, especially if you are building on vacant land.  Your intention should be made clear from the outset and documented to avoid complications further down the track.  If your intention is to build a property and keep it for a number of years and rent it, this leans more to the fact that it should be treated as a capital gain.  If you have to sell earlier than you had wished for, the ATO could view it as being a profit-making venture, depending on the time frame between the build being complete and the sale.  This is where documenting your intention can become important.  Where you buy vacant land, or land with a house and demolish it, then proceed to build units on the land, the ATO will consider this a profit-making venture.  In this circumstance, you are likely to be required to register for GST as well.

There are many considerations that need to be taken into account when selling an investment property and it is not always a simple process to determine the tax consequences.

 

Danny Grigg – Senior Accountant

B.Comm CA

Advantages + Disadvantages of Investment Properties

Advantages + Disadvantages of Investment Properties

Purchasing an investment property can be a very exciting time and can help build your wealth over time.  However, before rushing out to buy an investment property, it is important you consider the pros and cons.

ADVANTAGES

  • Provision of rental income to help top of other income
  • Help reduce income tax if the property is negatively geared i.e. the rental income is less than the interest on the loan
  • Potential capital growth in value of the property
  • Can be less volatile than shares or other investment options

DISADVANTAGES

  • Lack of investment diversification
  • A lot of money is tied up in one asset that can take time to sell
  • Buying and selling costs can be high
  • Tenancy risk. There is a chance your investment property will have periods of time where it is not tenanted.
  • You are responsible for all ongoing maintenance
  • Capital gains tax will be payable if the property is sold at a profit
  • Interest rate risk – a rise in rates will result in higher loan repayments and a potential reduction in net income
  • A substantial amount of capital is required from the outset

As always, we encourage you to seek professional advice to ensure the decision is right for you.

 

Samantha Butcher – Financial Adviser

BComs Dip FS

Furry Tails Mobile Hydrobath

Jacqui Smith, like many of us had hit a road block in her career and was on a journey to discover what her real passion in life was.  In a bid to find some inspiration, she typed the word ‘dogs’ into JobSeek and eight months later she is the trusted furry-god mother to so many amazing puppies and pooches!

WHAT IS FURRY TALES…?

Furry tails is a locally run dog washing/grooming business that comes right to your door!

HOW DID FURRY TAILS COME ABOUT.. come to life?

Furry Tails was born out of a sheer love for dogs and their happiness.  My dream wasn’t fully realised until I had hit a roadblock in my career.  While on a journey to discover my passion, I had typed the word ‘dogs’ into JobSeek hoping to be inspired, and that’s when a mobile dog wash company popped up!
This sparked the idea, and I realised this could be the career I had always dreamed of.  I started investigating further, and volunteered at a veterinary clinic assisting in the grooming of the dogs.  It was so great!  I found that my love of dogs and their wellbeing had led me to the perfect job.  I have a background in graphic design so used those skills to create my branding.  I wanted it to be to be clean, eye catching and fun, so I recreated something I had been drawing since kindergarten, a dog under a rainbow.  And that’s how my furry tail story began!

HOW LONG HAS FURRY TAILS BEEN UP + RUNNING FOR?
Eight wonderful months

EVERYBODY HAS SOMETHING.. what do you love about your job?

Being a furry god mother to all the wonderful dogs out there and being able to pamper them and make them sparkle!  PLUS I get to pat all the dogs which is just the dream and I meet so many lovely people on the way.

IS YOUR JOB EXCITING.. or do you just play with dogs all day?

It’s definitely exciting because I play with dogs all day!  There is a lot of excitement that comes with visiting new/returning dogs and getting to know them.  Most of the dogs are fantastic and take a bath like a champ, others can be tricky but that’s why I always have a wide range of locally made tasty treats with me at all times!  I win them over.  Some dogs can be cheeky but I try to create a positive experience for all my furry tail creatures so that they enjoy their bath time.

WHAT IS PLANNED FOR THE FUTURE OF FURRY TALES?

My hopes for the future are to grow the business and expand my customer database around Geelong and surrounds.  I have plans to expand the business into other areas, for example, home-made dog treats, cologne sprays and hand-made dog collars.

I see Furry Tails potentially expanding into a franchise down the track.  I’d love to give other people the opportunity to work at an amazing job that is super fur-fulling.

 

HOW DO I BOOK AN APPOINTMENT.. get in contact + find out more?

Give me a call or text on 0404 706 506 to book an appointment!

You can also check me out on Facebook – furrytailsmobile OR browse the cute dog pictures on my Instagramfurrytailshydrobath