With the 2022/2023 financial year in full swing, it’s time for new beginnings and New Year’s resolutions.

From having clear goals and budgets, to dedicated time spent aside each month to review your financial targets, it’s imperative to start your financial year journey early.

At Locumsgroup, we work by a philosophy of four key questions each Financial Year that you can ask yourself to help guide your goals:

  1. Did you keep your health?
  2. Did you laugh a lot?
  3. Did you have a good holiday?
  4. Did you increase your balance sheet?

We want you to work on the first three, while we work on the last.

Key Service Offerings:

  • Tax Advice & Tax Planning

Having your financial affairs in order is essential to effectively manage your financial arrangements. At Locumsgroup, our accountants work closely with you to ensure your arrangements are managed tax-efficiently. We believe in the wisdom of the maxim, that “if you can’t measure it you can’t manage it”.

  • Annual Taxation Compliance

Our accounting team provides leading-edge taxation advice to serve as a platform on build your asset pool and manage your affairs with expert advice

  • Preparation and lodgement of Income Tax Returns, Fringe Benefits Tax Returns

Accurate and timely tax returns will ensure that you are up to date with your compliance arrangements. This will identify any liabilities that exists or any benefits on the form or refund that you are entitled to.

  • Business Structuring

Confirmation of a correctly planned organisational structure where assets are held in the appropriate entities to achieve both tax-efficiency and asset protection.

  • Financial Reporting

Financial analysis and reporting will assist you in answering a host of vital questions on all aspects of your financial activities providing a comprehensive snap-shot of your financial activities. This applies to both your personal finances and for any business or investment entities that you control.

  • Capital Gains Tax

It is extremely important to obtain advice on tax implications before you dispose of shares or units in a company, an interest in a trust, or dispose of property.

  • State Tax advice including Land Tax

Indirect taxes are a significant cost, correct management of this liability can result in significant savings

  • GST management including BAS preparation

Our accounting team will streamline the preparation of your BAS invoices to ensure that you meet all of your reporting and administrative obligations. We use the right accounting software to ensure accuracy and efficiency.

  • Asset Protection Strategies

This is an important part of your tax planning and financial management process. Our senior accounting team can advise on this key aspect of your arrangements and can implement various strategies to ensure protection.

  • General Security Arrangements (‘GSA’) for Proprietor’s Loans

Historically called fixed and floating charges a GSA should be used by you to secure any loans that you make to a company that you are either an owner or shareholder of.

  • CGT Advise on Sale of Business Assets

There are four key CGT concessions that apply under the Small Business Concession Rules. Compliance with the concessions allows you to disregard or defer the capital gain from the sale of an asset used in a small business, including the sale of the business itself. Our accountants will guide you through the process ensuring that the sale or disposal of the complying assets is complied with and that maximum taxation benefits are achieved.

What are your new financial year resolutions? Contact us today at 02 9255 8888

With tax time right around the corner, it’s time to start closing out the current financial year:

At Locumsgroup, our expert accountants are equipped with advanced knowledge and understanding to help you get the most out of your tax planning and the preparation and lodgment of your income tax return.  Saving you money, time, and providing you with peace of mind that comes from knowing that your tax planning is complete and all of your legitimate deductible claims are made.

Tips to help you prepare:

  1. A taxation strategy that can assist you in preparing for the end of the financial year can include you prepaying deductible expenses in advance for the next 12 months. This is a way to bring forward a tax saving that would have normally been claimed in the next financial year.
  2. On top of the Superannuation Guarantee Contributions from your employer, you can also make personal super contributions which may be tax-deductible. There are many factors that determine if you can claim additional contributions, such as your age, assessable income, and the amount of your other pre-tax contributions.
  3. This is a strategy that involves you saving tax and contributing to your wealth creation at the same time.  And it involves you paying less tax and investing for your future.
  4. Donations to charity can be claimed as tax deductions on your personal tax return, however, the donation must be endorsed as being made to a ‘Deductible Gift Recipient’ and is a genuine gift, i.e you do not have a benefit from it.
  5. Claiming a tax deduction for business expenses is another limb of a tax strategy to save money. Typically, there are three golden rules for valid business deductions:
    • The expense must be for your business and not personal use.
    • If it is a mixed expense, you can only claim the business portion.
    • There must be a record to prove your expenses.
  6. So give some thought to any last-minute action steps that you need to take before the end of the financial year and remember we are only an email or a phone call away.

Contact us today at 02 9255 8888 | info@locumsgroup.com.au

We are currently in the fifth month of the year and there have already been extraordinary global affairs that have affected the financial trends for the rest of 2022.

Inflation

Even before Russia’s invasion of its neighbour, Ukraine, countries across the globe were experiencing rising inflation rates. The costs of goods and services are up front and evident, with rising petrol prices and the cost of daily consumables. According to the ANZ-Roy Morgan consumer confidence survey, household inflation rates have jumped by 5.6%, the highest level since November 2012. The inflation fear has bled into consumer sentiment concerning economic and financial health, with many individuals less inclined to purchase big ticket items and instead invest, save or even seek higher wages from other companies. 

Working from home will continue to change the market

Working from home is now common- practice in the workforce, with many businesses compelled to shift to a more flexible work environment. As a result, employees are able to move further away from the CBD and subsequently, move to affordable locations. However, as individuals switch up their lifestyle and move to coastal or rural regions of NSW, the once affordable housing market in those areas have drastically increased, with prices on the mid-north coast and Jervis Bay region showing uncharacteristic growth rates as an example.

Positioning your investments around the pandemic

With little else to do during the pandemic, many households found themselves with larger cash reserves of savings.  As a result, many households were readjusting their financial goals.  Where once they may have saved for a holiday, they were now with the ability to reduce their home loan, purchase an investment property or invest a lump sum of money. 

The pandemic taught us the unpredictability of the future, employment and financial position which has led to many individuals diversifying their investments across multiple regions to minimise the impact of a single market.

Home construction to reach new heights

As house prices increase to never-before-seen heights, more property owners are being forced out of their suburbs due to these changes. . 88,445 homes began construction in 2021 reports that 88,445 new home commenced construction in 2021.  A number of these were assisted by the Federal Government Builder scheme. This trend will see many homes completed in 2022, and therefore, a rise in supply and a rest in house price pressure is expected.

If you are feeling uneasy, or have concerns regarding your financial position, contact Locumsgroup today for an obligation free appointment today.

The pandemic has shifted spending and saving priorities for many individuals, and has provided a chance to put aside a larger amount of cash into savings. This is widely attributed to the nation-wide lockdowns with people not being able to go out to shop and spend.

 

A key metric is the amount of unallocated discretionary spending.  Think of the overseas trips that didn’t happen, the holidays that got cancelled due to state border closures, and LGA lockdowns.  Think of the restaurant outings that didn’t occur and, on-line shopping aside, the retail therapy that did not take place.  The result is a massive amount of money sitting in the bank accounts of many people (not all we recognise, but many!).

 

In what is sometimes referred to as the “new reset”, many people have changed their savings habits forever.  In short, for many people, the COVID period has been transformational.  

 

In a recent survey of 2,000 Australians the results displayed how the pandemic has influenced a restructure into peoples’ savings goals, with over half of those surveyed stating that they are prioritising hitting their savings goal or saving for a holiday instead of the continuous shopping cycle. Despite the effect of several lockdowns, most respondents found that the pandemic meant they were in a more positive financial position than before.

 

There has been a definitive switch from money being used for fulfillment purposes to being viewed as a long-term approach to stability.

 

With the desire for long-term security becoming increasingly more popular across the country, it is important to ensure you  continue to be flexible with your money and not lose sight of your future financial objectives. 

 

At Locumsgroup we can help you manage your finance position – get in contact today.

Whether you are a start-up or an established business you have to consider if your business is structured correctly.

 

Critical analysis of your organisational or asset-ownership structure, and your business arrangements will result in you achieving the best outcomes from your enterprise.

 

Asset Protection arrangements that recognise the potential risks associated with a private business should be identified and where possible defended against.

Loan accounts to and from privately owned companies should be correctly documented and protected.

 

Locumsgroup has experience across a number of disciplines and across a number of industries and professions; this  enables us to provide you with valuable tactical and strategic advice.

 

The Locumsgroup corporate advisory service can assist you with:

 

  • Performance improvement
  • Strategic consulting
  • Cash-flow solutions
  • Enterprise enhancement
  • Corporate restructuring services
  • Goodwill valuations
  • Tax advice

 

Whether your enterprise is an established business with an organisational structure that needs review; or your business is a start-up you should get advice to ensure that you are getting the best outcome from your efforts. Advanced planning is paramount.  We believe the strategy without execution is a daydream; but execution without strategy is a nightmare.

Managing exit strategies and Capital Gains Tax planning.

Locumsgroup brings senior-level experience to bear at all stages of an engagement.  Our process allows us the time and resources to accomplish agreed initiatives while we partner with you in achieving your business goals. Our business is the result of repeat client engagements in the areas of organisational structures, and operational advice including debt financing and advice on your exit strategy.

 

Valuations of business goodwill.

Determination of the value of an enterprise can assist in Capital Gains Tax planning;  dispute resolution;  in establishing enterprise value for asset transfers or asset sales; or equity raising within an enterprise.

 

Asset Protection.

Eliminating personal risk.In simple terms, an effective wealth preservation strategy separates assets from risk. Both personal and business assets are vulnerable to litigation and pursuit by creditors and by external risks.  Appropriate consideration must be given to the various options available to you. A tax-efficient structure may provide no protection for assets; or a structure where all wealth is preserved may be too rigid to operate a business and manage your affairs.

 

Efficient distribution of enterprise profits.

Our firm advises our clients in the appropriate use of partnerships, limited liability companies, trusts and other pass-through entities to assist in a wide range of tax planning matters. This enables our clients to obtain the full benefit of tax losses or tax incentives, and to minimize the impact of various asset acquisitions or disposals. We use effective structures to minimize adverse tax consequences and we design and implement transactions that make the most of that flexibility.

 

Securing loans from business owners to their private enterprises through General Security Arrangements. 

If an investment in a private company is made by an owner of the company by a secured loan instead of straight equity, the owner making the secured loan will have priority over unsecured creditors if the loan is structured and registered correctly. Even if  the business assets already stand as security for existing indebtedness, perhaps as general security to a bank or other financial institution, an owner who is a secured creditor can be next in line after the bank has been satisfied should the business fail.  Locumsgroup can advise you how to protect your loan to your company or business by the use of a General Security Arrangement.

By understanding not what money can buy, but what it can do is a key outcome in understanding how to achieve financial independence and freedom. At Locumsgroup, our specialists work closely with you to help refine, manage, and ensure that your financial objectives are efficiently and effectively identified and achieved.

 

We apply Nobel Prize Award-winning research and multiple years of industry research of the capital markets to construct a detailed and personalised client portfolio. By using our specific methodology alongside academic research, your portfolio will be developed with a specific view that provides certainty and clarity on your financial outcomes.

 

VIEW OUR INVESTMENT PHILOSOPHY HERE

 

We strongly believe that with our strategies and refined investment solutions we can accommodate our client’s risk and return needs. The financial advice process includes the input of our accounting division to consider the tax implications of every investment strategy. To achieve these outcomes, we build upon a legacy of insight in our firm that goes back over sixty years.

 

To access our experienced team and achieve superior risk-adjusted returns using a range of investments get in touch with us today. CONTACT US

 

Tailored Investment Solutions

Each investment portfolio is uniquely tailored to match your individual risk profile. We create your profile based on a risk assessment questionnaire, developed alongside the University of New South Wales to match seven key risk profiles. We then use this to determine how to best manage risk based on a ratio of growth to defensive investments.

 

The asset selection changes dependent on your investor risk profile.  The maximum defensive profile contains 90% defensive assets and 10% growth assets and at the other end of that spectrum the portfolio contains 10% defensive assets and 90% growth assets.

 

Seven Portfolios (defensive assets/growth assets)

 

  1. Defensive:  90% / 10%

 

A Defensive Investor is not prepared to take risks with their investment funds, rather they are concerned with their capital preservation.

 

  1. Moderately Defensive:  70% / 30%

 

A Moderately Defensive Investor is primarily concerned with capital preservation; they are not prepared to take minimal risks with their investment funds.

 

  1. Conservative:  60% / 40%

 

A Conservative Investor is prepared to sacrifice higher returns for the benefit of capital protection.

 

  1. Balanced:  40% / 60%

 

A Balanced Investor has some understanding of the behaviour of investment markets and is prepared to accept short term capital risk and volatility in order to gain longer term capital growth.

 

  1. Moderate:  30% / 70%

 

A Moderate Investor understands that there will be a level of volatility in the value of their investments and is prepared to accept a small amount of risk in order to benefit from some capital appreciation.

 

  1. Growth:  20% / 80%

 

A Growth Investor is prepared to sacrifice short term safety in order to maximise long term capital growth, therefore their portfolio is strongly biased toward Australian and International shares with fixed interest and property providing some income and stability of returns.

 

  1. High Growth:  10% / 90%

 

A High Growth Investor is prepared to sacrifice investment capital in pursuit of the highest long term capital growth.

 

THE KEY TO UNDERSTANDING MONEY IS NOT WHAT IT CAN BUY BUT WHAT IT CAN DO

Understanding our client’s financial objectives and providing access to diversified portfolios in keeping with their investor risk profile, enables us to assist our clients to achieve constant investment returns and capture the financial performance of the capital markets.

We are asset-allocators not stock-pickers. Our client portfolios are built on globally diversified blends of index funds. Our investment philosophy is the key to our clients’ investment success.

Our investment philosophy is based on five fundamental principles that are based on derived economic science and detailed academic research, including research over decades that has been recognised and awarded with the Nobel Prize in Economic Sciences.

 

FIVE PRINCIPLES:

 

  1. Financial markets are efficient

Prices in free markets fully incorporate available information, and prices change to reflect any unexpected new information so that the current price is the best estimate of a fair price.

  1. Risk and return are inseparable

While there is no such thing as a return without risk, not all risks are rewarded. Long-term historical risk and return data inform our investment selection process, and Dimensional’s Index Portfolios seek to capture the risk factors that have been shown to most appropriately compensate investors for the risks taken.

These risk factors include market size; value and profitability for equity; and term and; default for fixed income.

  1. Diversification is essential

Diversification both within and among asset classes allows investors to effectively capture the returns offered by the financial markets, in accordance with their risk capacity.

  1. Structure explains performance

The expected return of a diversified portfolio is determined by its exposure to the compensated risk factors. The high costs and risks of active management are unnecessary and potentially harmful to an investor’s long-term outlook.

Advisor Advantage

There are distinct and quantifiable benefits to enlisting the services of a passively oriented advisor. These benefits include disciplined rebalancing; tax-loss harvesting; asset allocation; and glide path.

At Locumsgroup we add value by adhering to the principles of controlling costs, maintaining discipline, and tax awareness.

VIEW OUR TAILORED INVESTMENT SOLUTIONS HERE

The housing market in Australia traditionally slows down during the winter months, however we are continuing to see a spike in the housing market with no signs of it slowing down anytime soon.

 

There is a strong demand for properties across NSW.  The world seems to have changed with house hunters looking to either settle down or invest in beachside suburbs.

 

Properties further away from the city are viewed with new perspective that has come from the COVID pandemic, showcasing that you can work away from the city scene.

 

Investor activity within the housing market has significantly increased with records indicating that this year set a new record for the highest amount of money borrowed (approximately $9.127 billion) to purchase investment properties since mid-2015.

 

The Australian Bureau of Statistics has shown that although investor activity has increased each month in 2021, first home buying has declined relative to investors, and is continuing to do so. This may be a factor of owner-occupiers being priced out of the market by property investors borrowing money at historically low interest rates.

 

The investment landscape is continuing to boom despite the current COVID19 outbreaks. Due to negative population growth, affected by international border closures, investors are more aware of their job security position, and this is viewed positively by lenders who approve loans for investment.

 

With the value of homes increasing by 17.7% across regions last year, as well as the average national weekly rent increasing by 6.6%, you can see why investors are eager to purchase properties in the current climate.

 

As discussed above, the increase in property values is not necessarily good for everyone and is discouraging first home buyers to begin their property journey as they compete with a red-hot investment market. The demand vs supply ratio is falling short over the past months and that will continue to drive prices up.

 

Locumsgroup can assist in establishing a self managed super fund (“SMSF”) if that is the direction you would like to steer your retirement funding toward.  We have a high level of expertise in the field and can attend to all of the required steps to set up your fund.

 

In general terms, the steps involved in setting up a SMSF include the following:

 

  • Obtaining a trust deed 
    • An SMSF trust deed must be prepared which establishes the operating rules for the fund.
    • Locumsgroup provides a standard SMSF trust deed to all our clients. This trust deed is flexible and effectively allows your SMSF to do anything allowed by superannuation legislation.
  • Appointing trustees 
    • All superannuation funds must appoint trustees. Trustees are responsible for ensuring the fund is properly managed and that it complies with all rules and legal obligations.
    • All SMSF members must be appointed as trustees of the fund. Learn who is eligible to become an SMSF trustee.
    • Under the SIS Act, trustees must consent in writing to their appointment as trustee.
  • Signing a trustee declaration 
    • All new SMSF trustees (and directors of corporate trustees) must sign an ATO Declaration confirming that they are aware of their duties and responsibilities within 21 days of becoming a trustee or a director of a corporate trustee.
  • Electing to become a regulated fund 
    • Trustees must elect to be ‘regulated’ under SISA to receive concessional tax treatment within 60 days of establishing an SMSF. This can be done online or by submitting a paper form to the ATO.
  • Obtaining a Tax File Number (TFN) 
    • Trustees must obtain a TFN for the SMSF. This can be done online or by submitting a paper form to the ATO.
  • Obtaining an Australian Business Number (ABN)
    • The Australian business number (ABN) is the identification system for all business-to-government dealings. An ABN can be obtained online or by submitting a paper form to the ATO.
  • Separate bank accounts 
    • A separate bank account must be established for your SMSF to ensure that money belonging to the SMSF is held separate from accounts of the members, trustees and related employers. This is a SISA requirement but also helps SMSF trustees to preserve and protect their retirement income.
    • We clients in the process of establishing separate bank accounts for each new SMSF. Generally, the main operating account established by Locumsgroup is a Macquarie Cash Management Account.
  • SMSF investment strategy 
    • SMSF trustees must prepare and implement an investment strategy for their SMSF, and regularly review that investment strategy. This helps trustees to make the best possible investment decisions for their SMSF.
    • The SMSF investment strategy must reflect the purpose of the fund and consider:
      • investing to provide sufficient member returns, taking into account investment risk
      • appropriate diversification and the benefits of investing across asset classes (for example, shares, property, fixed interest) in a long-term investment strategy
      • the ability of the SMSF to pay benefits as members retire and to pay other costs incurred by the SMSF, and
      • the age, income, employment and retirement needs of the SMSF’s members.
    • All investment decisions must be made according to the SMSF’s investment strategy.

 

Locumsgroup can assist you in establishing your self managed superannuation fund, including attending to the process of rolling over and consolidating your existing superannuation arrangements. Get in contact with one of our financial advisers today CONTACT