How Quarterly Themes Help PrimeAdvisory Stay ‘On Track’

How Quarterly Themes Help PrimeAdvisory Stay ‘On Track’

For several years now at PrimeAdvisory we’ve been able to achieve consistent year on year growth by implementing ‘Quarterly Themes’. Planning and reporting quarterly and annually has been a key success factor in helping us stay ‘On Track’ with our annual and 5-year business goals.

Once a year we develop our one-page strategic plan that maps out our:

  • Core Values/Beliefs
  • Our Purpose
  • Our Targets
  • Our Goals for the year to help us achieve our 5-year goal

Each quarter we review how we are tracking to our plan and as part of that process put in place a quarterly plan with a ‘Quarterly Theme’.

Quarterly themes are a way for us to be able to communicate what we want to focus on to help our team drive their activities to achieve the results we want.

Overall, they help us achieve our long-term plan by identifying any current issues or obstacles and dealing with them effectively and efficiently throughout the year.  Our ‘Quarterly Themes’ help us know where we are going long term and keep us focused on the little 90-day baby steps towards that.

90 days is short enough to do detailed planning for and it means we can see clearly for 90 days.

Our themes and associated activities for the last three quarters this year showcase how we communicate and keep our team aligned and on track.

October – December 2018 – Quarterly Theme: ‘Ship Shape’

‘Ship Shape’ was about tightening up processes.  Looking at our systems and people.  How do we develop our team to ensure they have the right technical skills, how do we get a good understanding of career and personal goals and what training do we need on the tools we use every day.

January – March 2019 – Quarterly Theme: ‘Help Me Help You’

‘Help Me Help You’ was all around getting feedback from our team on what they needed to deliver awesome client results.  We developed an understanding of our training needs in the business as well as identifying any pain points our staff had in their day to day working and the solutions that they had identified.

April – June 2019 – Quarterly Theme: ‘Renovate and Rejuvenate’

This quarter we are undertaking an office space renovation, so it’s a good opportunity to look at what else we could rejuvenate across the business.  Primarily looking at things in the business that are not fully implemented or perhaps activities that have dropped off and need rejuvenating.  These include formalising a training incentive programme for 2020 and getting a training budget together.

Finally, we will conduct our annual internal ‘Heartbeat Survey’ of all staff members to get important feedback on the happiness and health of our people.

How we close off our ‘Quarterly Themes’

PrimeAdvisory celebrated achieving their last quarterly goals with a team day of barefoot bowling

The team will enjoy a celebration at the end of the quarter when all our goals and targets have been met with an end of financial year lunch.  This quarter we’re hosting a celebration at Cork and Canvas where we will enjoy sipping on a glass of wine whilst painting on a canvas.  Every quarter when we launch a theme, we also clearly communicate the goals aligned with the theme and how we will celebrate when we achieve them.

Assisting with developing annual strategic plans and helping clients stay ‘On Track’ are a key component of our ‘Business OnTrack’ program. If you would like to discuss how a one page strategic plan and quarterly planning could help your business contact us.

 

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Important Budget 2019-20 Pre-Election Announcements That Are Now Law

Important Budget 2019-20 Pre-Election Announcements That Are Now Law

The Federal Budget announced a series of measures, some of which were legislated before the election was called.

Extension and increase to the instant asset write-off

The popular instant asset write-off for small business has been extended and increased. The new laws:

  • increase the threshold below which small business entities can access an immediate deduction for depreciating assets and certain related expenditure (instant asset write-off) from $25,000 to $30,000; and
  • enables businesses with aggregated turnover of $10 million or more but less than $50 million to access instant asset write-off for depreciating assets and certain related expenditure costing less than $30,000.

Assets will need to be used or installed ready for use from Budget night until by 30 June 2020 to qualify for the higher threshold. Anything previously purchased does not qualify for the higher rate but may qualify for the $20,000 or $25,000 threshold. Similarly, anything purchased but not installed ready for use by 30 June 2020 will not qualify.

The instant asset write-off only applies to certain depreciable assets.  There are some assets, like horticultural plants, capital works (building construction costs etc.), assets leased to another party on a depreciating asset lease, etc., that don’t qualify.

For assets costing $30,000 or more

For small businesses (aggregated turnover under $10m), assets costing $30,000 or more can be allocated to a pool and depreciated at a rate of 15% in the first year and 30% for each year thereafter. If the closing balance of the pool, adjusted for current year depreciation deductions (i.e., these are added back), is less than $30,000 at the end of the income year, then the remaining pool balance can be written off as well.

The ‘lock out’ laws for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they opt-out) will continue to be suspended until 30 June 2020.

Pooling is not available for medium sized businesses which means that the normal depreciation rules based on the effective life of the asset will apply to assets that don’t qualify for an immediate deduction.

The amendments apply from 7.30 pm legal time in the Australian Capital Territory on 2 April 2019 until 30 June 2020

One-off energy assistance payments

A one-off energy assistance payment of $75 for singles and $62.50 for each eligible member of a couple, will be made to predominantly pension and social welfare recipients who were residing in Australia on 2 April 2019.  The payments are expected to be completed by 30 June 2019.

Medicare levy and surcharge income threshold increase

The Medicare levy low income thresholds for singles, families, and seniors and pensioners will increase from the 2018-19 income year, meaning more people will be excluded from paying the levy.

Please contact us if you have any questions about these changes to legislation and how they may affect you.

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The Major Parties’ Superannuation and Tax Policies

The Major Parties’ Superannuation and Tax Policies

The federal election has been called for May 18 and both major parties have outlined their superannuation and tax policies. With the federal election only weeks away many of our clients have been asking what the major political parties’ policies are that may impact their SMSF, individual taxation circumstances or personal investments.

If you would like more information on a particular policy announcement, please do not hesitate to contact our office to set up a time to discuss any requirements you may have.

Liberal-National Coalition

Superannuation
  • Australians aged 65 and 66 will be able to make voluntary superannuation contributions without needing to work a minimum amount. Previously, this was only available to individuals below 65.
  • Extending access to the bring-forward arrangements (the ability to make three years of post-tax contributions in a single year) to individuals aged 65 and 66.
  • Increasing the age limit for individuals to receive spouse contributions from 69 to 74.
  • Reducing red-tape for how SMSFs claim tax deductions for earnings on assets supporting superannuation pensions.
  • Delaying the implementation of SuperStream (electronic rollovers for SMSFs and superannuation funds) until March 2021 to allow for greater usability.
Taxation
  • From 2018-19 taxpayers earning between $48,000 and $90,000 will receive $1,080 as a low and middle income tax offset. Individuals earning below $37,000 will receive a base amount of $255 with the offset increasing at a rate of 7.5 cents per dollar for those earning $37,000-$48,000 to a maximum offset of $1,080.
  • Stage 1 tax cuts: From July 1 2018, increasing the top threshold of the 32.5 per cent tax bracket from $87,000 to $90,000.
  • Stage 2 tax cuts: From 1 July 2022, increasing the top threshold of the 19 per cent personal income tax bracket from $41,000, to $45,000.
  • Stage 3 tax cuts: From 1 July 2024, reducing the 32.5 per cent marginal tax rate to 30 per cent which applies from $120,000 to $200,000. The 37 per cent tax bracket will be abolished.

Australian Labor Party

Superannuation
  • Disallowing refunds of excess franking credits from 1 July 2019 – this would mean SMSF members in pension phase no longer receive refunds for the franking credits they receive for their Australian share investments.
  • Banning new limited recourse borrowing arrangements.
  • Reducing the post-tax contributions cap to $75,000 per year down from $100,000.
  • Ending the ability to make catch-up concessional contributions for unused cap amounts in the previous five years.
  • Ending the ability for individuals to make personal superannuation tax deductible contributions unless less than 10 per cent of their income is from salaries.
  • Lowering the higher income 30per cent super contribution tax threshold from $250,000 to $200,000.
Taxation
  • Labor supports the stage 1 tax cuts and will match the $1,080 low and middle income tax offset. From 1 July 2018, individuals earning below $37,000, will get a $350 a year tax offset, with this amount increasing for those earning between $37,000- $48,000 to the maximum $1,080 offset.
  • Introduce a 30 per cent tax rate for discretionary trust distributions to people over the age of 18.
  • Will limit negative gearing to newly built housing from January 1 2020. (Existing investments are grandfathered under the current law)
  • Reduce the capital gains tax discount for assets that are held longer than 12 months from the current 50 per cent to 25 per cent. (Existing investments are grandfathered under the current law)
  • Limit the deductions for the cost of managing tax affairs to $3,000.

How can we help?

If you have any questions or would like further clarification in regards to how the above policies may affect you and your fund, please contact us.

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Meet the PrimeAdvisory Lindfield Rotary Fun Runners

Meet the PrimeAdvisory Lindfield Rotary Fun Runners

The Lindfield Rotary Fun Run is fast approaching and the PrimeAdvisory team have been working on their game prep.

The event is being held on Sunday 7th April at Roseville Oval, Clanville Road, Roseville.

This year, the full team have stretched themselves either by committing to their first running event or biting off the long course and participating in the 10k event. It’s clear that the team spirit is alive and well and there’s a fair bit of healthy competition between the team members.

Here we introduce our runners who share what’s keeping them running.

Christian Borkowski, CEO
“I’m a keen runner and we have been sponsoring the event for 6 or 7 years now. It’s a great community event, an opportunity to spend some time with our team and a good way to kick off my Sydney Half Marathon training program.

This year I’d like to beat my 47 minutes from last year – anything with a 46 on the front would be great!”

The best thing about running as part of the PrimeAdvisory team is that it’s a great way to spend a couple of hours as a team in a non-work setting. Everyone has a different reason to be there, whether it’s to post a personal best, walk the course, or spectate, we all manage to have a great time.”

Ben Norval, Advisor
‘It’s great to participate in a healthy activity that involves the community that we are a part of. My parents also met because of Rotary so I’m pretty thankful for all they do.

I’ll take beating Angus as a win, but hoping to do it in 45 minutes if it’s a nice cool day!!

The best thing about running as part of the PrimeAdvisory team is seeing the younger guys get involved who don’t normally run, seeing clients enjoying themselves and being able to interact with clients outside of the office.’

Angus Rodgers, Advisor
“I’m running because I love team sport and the comradery that goes with it. It’s a great opportunity for the work team to have a bit of fun and challenge ourselves in a different way. I’m a reluctant 10k event entrant so this year I’ll be happy if I finish in sub-1hour.”

Ryan Chester, Accountant
“I have been talking up my running exploits around the office for a while now and I thought it would be the perfect time to showcase my skills (or lack thereof). This year I’m attempting the 10km and hoping to come in under 50mins.

The best thing about running as part of the PrimeAdvisory team is the positive Competition as well as promoting an active lifestyle.”

Thomas Henman, Accountant
“I entered the fun run to motivate myself with a fitness goal to train towards. This year I’ll be running the 5km course, that leaves time for me to train for the 10km next year. Any time I make will be fine if I make it to the end but let’s say sub-35 minutes. The best thing about running in the team is that we drive each other to beat our own personal bests as we report back to each other throughout the week on how our runs went.”

PrimeAdvisory is a proud supporter of Rotary and the event. This year marks the 7th year running that PrimeAdvisory has sponsored the event and applauds the work that Rotary does in the local community.

If you’d like to join the PrimeAdvisory team running in the event contact us.

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What would happen if….?

What would happen if….?

Life does not always go to plan. While we logically know that, most of us don’t plan for the worst – it’s all a bit morbid and time consuming. However, as the late, great John F Kennedy said, “The time to repair the roof is when the sun in shining”. It might be uncomfortable to think about it, but it’s important to plan for the unexpected and sometime unpleasant aspects of life.

The downside of not planning, should you not be in a position to make decisions about your assets or business is the potential for these hard-earned assets to be squandered.

When people haven’t made firm binding arrangements for their estate, it’s often squandered through family fall-outs, and money handed to the Government that could have been distributed in accord with your wishes.

If you are a business owner, then the stakes are even higher.

As a population, planning is more important than ever right now because:

  • The ageing demographic – 1 in 7 of us are now aged 65 and over (3.8 million)
  • The baby boomer generation represent only 25% of the population but hold 55% of the wealth
  • We are entering a period of intergenerational wealth transfer from the baby boomer generation
  • Over the last 25 years there has been an explosion of wealth in Australia

Making plans for your Estate

Estate planning is simply identifying your assets and liabilities and what you want to happen to those assets if something happens to you. As part of that, you need to look at the issues that might arise and how best to manage them. All of this is then reviewed for tax outcomes and the legal requirements to provide the best care and protection for your beneficiaries.

If you are a business owner, there are also another set of issues to consider to ensure that the business can continue if you are not able to continue in your current role. Or, your beneficiaries can take their share of the value accumulated in the business. This planning will protect your beneficiaries, the business, and your business partners.

Estate planning does not have to be hard work, but it does have to be planned.

It’s also important to understand that actual wealth or the size of your estate is not the sole reason for estate planning. Estate planning is important for:

  • The care and maintenance of minor children.
  • Managing the respective rights and expectations of beneficiaries, particularly with blended families.
  • Avoiding disputes between family members.
  • Relationships outside of the immediate family.
  • Managing liabilities of the estate.
  • Assets which may not be capable of immediate realisation or where value will be diluted by realisation.
  • The transfer of assets through generations.

Estate planning seeks to not only distribute the assets of your estate but do so in a way that protects the estate, addresses issues within the estate, and fulfils your wishes.

What the stats say about our health and longevity

While 4 in 5 of us rate our health as ‘very good’, 50% of Australians have a chronic condition that is likely to cause their death, 63% of adults are overweight or obese, and around 45% of us will experience a mental illness in our lifetime.

Leading causes of death differ by age:

  • 1–44 years: suicide, land transport accidents
  • 45–74 years: coronary heart disease, lung cancer
  • 75 years and over: coronary heart disease, dementia and Alzheimer disease

It’s estimated that 138,300 people were diagnosed with cancer and 48,600 died from it in 2018.

Proportion of adults who are overweight or obese

Australia enjoys one of the highest life expectancies of any country in the world at 82.5 years (in 2015) and is ranked fifth among 35 OECD countries. Japan has the highest life expectancy at 83.9 years.

Men aged 65 in 2014–2016 could expect to live another 19.6 years (an expected age at death of 84.6 years) and the life expectancy of women aged 65 in 2014–2016 was 22.3 years (an expected age at death of 87.3 years).

We’re also working longer – 13% of Australians aged 65 and over participate in the workforce (17% for men and 10 for women). This is compared to 2006 when the workforce participation rate was 8%.

Our experienced advisors at PrimeAdvisory can help you structure and plan for your financial future, including any unexpected life events.  Take our free 5 minute financial health check to understand your current financial position or Contact us to arrange an initial consultation.

 

 

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