Collins SBA | Complete Wealth Specialist

Building remarkable futures with business owners is what Michael Denehey does best
Hobart Chartered Accountant Michael Denehey has such an extensive grasp on Tasmanian small and medium business that he can pretty much explain what he does in three sentences.

"When you drive out of your driveway you know where you're heading. If you don't, you'll drive in circles wasting time and money," says Michael. "The outcomes are the same in business if you don't know where you are heading and how to get there."

Michael has been a familiar face on the Hobart business landscape for a number of years in a variety of boutique and large accounting firms, predominantly in tax and business advisory roles.

Negotiations between Collins SBA and Michael's former firm Capital3 began when both were members of the Proactive Accountants Network (PAN) where potential synergies for working together were identified. Twelve months later Michael has integrated Capital3 with Collins SBA and now Heads the Strategy & Business Coaching division.

Michael's modus operandi revolves around a one-page strategic plan – with which he helped 26 businesses last year – looking at 3-month results and then setting in place targets and projects to be achieved before the next quarterly review rolls around.

"I start by asking if the business owner has any clarity with respect to their goals for the next 3-5 years. Quarterly meetings then provide accountability around the programme to actually get things done."

Internally integrating the two firms operationally is high on the agenda at the moment, as is meeting tax lodgement deadlines to fit in with clients who have quarterly business coaching commitments.

Michael has a strong accounting and tax team working alongside him to make sure compliance commitments go hand in hand with business coaching targets. He looks forward to further leveraging the skills and tools already in place at Collins SBA to enhance his business coaching, plus availing business owners of the expertise on tap from Collins SBA's financial planning team. Read more…

Government cap on education expenses to ensure fairness
From July 2014 the federal government will set a $2,000 cap on the amount people can claim on work-related expenses for education, saving the government about $520 million.

Education expenses include formal qualifications and tuition fees, textbooks, stationery and travel expenses.

Under current arrangements these deductions are unlimited and, according to the Treasurer, provide an opportunity for people, particularly students, to enjoy significant private benefits at taxpayers' expense.

With the investment in ongoing education and training being a necessity it is easy to rack up claims. Whether you have had significant education activity during the financial year or you think you may exceed the cap, speak with Collins SBA to seek our advice on maximising your claim.

We may be able to help you structure things so you can salary sacrifice or claim for items that don't form part of the $2,000 cap claim section. Collins SBA 1300 265 722.

Measure to increase future retirement incomes for Australian workers through gradual increase in super guarantee rate
The super guarantee rate is set to increase to 9.25% from 1 July 2013, with a rate of 12% in place by 2020.

The Government's approach to superannuation hopes to achieve two outcomes - greater adequacy and equity - by addressing issues raised by Australia's ageing population.

The superannuation guarantee rate will be increased gradually with initial increments of 0.25 percentage points on 1 July 2013 and on 1 July 2014. Further increments of 0.5 percentage points will apply annually up to 2019-20, when the rate will be set at 12 per cent.

It is hoped that the rate increase will significantly increase the future retirement incomes for Australian workers. For example, a 30 year old earning average full-time wages will have an additional $108,000 in retirement savings.

There will be a phased increase to 12% with a three year lead time from announcement allowing employers to take increased superannuation guarantee contributions into account when negotiating future wage settlements:

2013-14 9.25%
2014-15 9.50%
2015-16 10.00%
2016-17 10.50%
2017-18 11.00%
2018-19 11.50%
2019-20 12.00%

Employers should seek company tax reductions, with the proposed lead time helping mitigate concerns. While employers will take increases in superannuation guarantee contributions into account when negotiating future wage agreements, future wage increases are expected to be sufficient to ensure that overall real wages continue to grow. Call Collins SBA in Hobart to discuss these or any queries you may have about the proposed changes to super on 1300 265 722.

Source: futuretax.gov.au

Building Remarkable Futures - Collins SBA and Capital 3 integrate to form leading advice business in Tasmania
We are pleased to announce the integration of Collins SBA and Capital 3 Chartered Accountants as of 1 May 2013.

With Capital 3, the move gives Collins SBA the capability to be the number one provider of advice to small and medium-sized business owners operating in the $1-10 million turnover market, and private individuals with financial complexity.

After successfully leading the Capital 3 business, Michael Denehey, a Chartered Accountant will be joining Collins SBA as a Principal and equity owner, and will be focusing on developing and supporting strategic consulting services for business clients. He will also sit on the executive board as a director.

This latest business integration is exciting, with Collins SBA bringing additional talent and capability to the table in the form of Capital 3's team, in conjunction with their existing advisers, to ensure advice needs are comprehensively met.

Collins SBA is an integrated wealth management and business advisory group offering core services to private individuals and small and medium business owners comprising accounting and taxation; wealth advice and protection; self-managed superannuation and lending. Read more…

The Australian dollar - the best is behind it


Key points

• After doubling in value against the US dollar (US$) over the last decade, the best is likely over for the Australian dollar (A$)
• The commodity price boom is starting to fade in response to a moderation in Chinese growth as commodity supply starts to increase. The impact of quantitative easing in the US is being blunted by rate cutes in Australia with the prospect of more to come, and the rise in the A$ has exposed the high cost base of the Australian economy.
• While further gains are likely in the value of the A$ against the yen (to around ¥110 by year end), the A$ is likely to remain range bound this year against the US$ with the risks on the downside, particularly over the next few years.
• For Australian based investors, this means less need to hedge global exposures back to A$.

.  Oliver's Insights -  The Australian dollar - the best is behind it

Shape your Financial Future!
With the FBT year now ended and the financial year-end only a matter of weeks away, now is the time to be thinking about planning, to make the most of the lead time, to maximise any opportunities and to iron out any potential issues that may arise.

In the News

• The Federal government announced reforms they say will make the superannuation system fairer, more sustainable and efficient. If legislated, the proposal will have implications for the super system and may impact you if you are either in the accumulation or pension phase. Read more

What's New

• Congratulations to Collins SBA Principle Andrew Pearce who was reselected for the second consecutive year by CPA Australia's INTHEBLACK magazine as one of 2013's 40 Young Business Leaders. Read more

What's Happening

• Sean Devenish tendered his industry insight into an interesting article by the Institute of Chartered Accountants in Australia on the public practice revolution. Read the full article
• WE'RE HIRING! If you're a remarkable Senior Accountant (or you happen to know of one) you could be a perfect fit for our team. Applications close today Monday 29 April 2013. Read more
• We are proud lead supporters and organisers of the 10th Mt Wellington Challenge and encourage cyclists with a reasonable level of fitness who want to challenge themselves to take part http://mtwellingtonchallenge.com.au/event/ 
• Whether you're working in the hospital system or have your own practice, we'll take the time to understand your unique needs and goals and have compiled some specific information about our expertise in this sector. Call us on 1300 265 722 to request or refer a copy.

Collins SBA offers businesses and individuals a complete financial service including business improvement, accounting and taxation, personal wealth advice and protection, superannuation and lending so we look forward to helping you plan now for a remarkable FY14. Call us on 1300 265 722 to get underway.

Key to successful investing


Key points

• For investment market realities: there is always a cycle, its a mad, mad, mad world; starting point valuations matter a lot for returns; and the power of compound interest
• Keys to successful investing: know yourself, seek advice; invest for the long term; diversify; turn down the noise; avoid short-termism; focus on investments offering sustainable cash flow; recognise there is no free lunch; buy low, sell high; don't fret the small stuff, don't over rely on expert forecasts; recognise the aim to make money, not to be right; beware the crowd at extremes; and if you have the right strategy. never despair.

 Oliver's Insights -  Keys to successful investing

Superannuation Reforms
The Federal government has announced a series of superannuation reforms that they say is in order to make the system fairer, more sustainable, and efficient for all Australians.

Importantly, legislation to implement these proposals will not be tabled before Parliament until after the election in September and will require the return of the current Government.

If legislated as announced, the proposal will have implications for the superannuation system and may impact clients who are either in the accumulation or pension phase.

Below is an overview of the key changes:

Tax on pension earnings over $100k
From 1 July 2014, earnings on assets supporting income streams will be tax free up to $100,000 a year for each individual. Earnings above $100,000 will be taxed at the same concessional rate of 15 per cent that applies to earnings in the accumulation phase.

Special arrangements will apply for capital gains on assets purchased before 1 July 2014. The $100,000 threshold will be indexed to the Consumer Price Index (CPI), and will increase in $10,000 increments. Read more…

Asset allocation is critical for investors - even as the world mends 


Key points

• The GFC and the low and volatile returns seen in subsequent years highlighted the importance of asset allocation in determining returns and managing volatility.
• While a mending global economy will result in better returns, asset allocation will remain critical for investors as returns will likely remain constrained, volatile and lowly correlated.
• Improved approaches to asset allocation, in particular dynamic asset allocation, and the use of highly liquid and low cost futures and exchange traded funds (EFTs) further enhance the significance of asset allocation.  

 Oliver's Insights -  Asset allocation is critical for investors - even as the world mends

CPA Australia INTHEBLACK Young Business Leaders 2013
After a very busy quarter and on the home straight to another financial year-end, we were delighted to learn that Collins SBA Principle Andrew Pearce was reselected for the second consecutive year by INTHEBLACK magazine and CPA Australia as one of 2013's 40 Young Business Leaders.

Recognising the achievements of young business professionals, who all must be under 40 years of age, candidates are selected for excellence in their chosen fields, yielding impressive business results and demonstrating strong leadership skills.

Applicants are invited from all around the world from large corporations, the public sector, public practice, not-for-profit organisations, academia and SMEs.

Andrew said he was delighted to be listed again in the magazine's exclusive compilation of high-achieving young business professionals.

"I am very pleased to be included in the list again this year and feel proud of Collins SBA, because it's really a team effort," says Andrew. "Without the team I've got surrounding me, this award wouldn't have been possible. It's great recognition of our efforts over the years and our aspiration to be remarkable in business."

The selection process is rigorous Read more…