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Self Managed Vs Bank Managed

The industry of Self Managed Super Funds has grown enormously in the last decade and will continue. Currently worth $500 billion (that's $500,000,000,000) it will grow to $2.2 trillion (that's $2,200,000,000,000) in the next 25 years. They're big numbers and those big numbers have got the attention of the major banks.

They want a slice of the action. They want the SMSF sector to invest in their bank and bank related products. This turns 'Self Managed' into 'Bank Managed'.

SMSFs are most efficient when the trustees and members make the investment decisions themselves and not pay someone else to manage their own fund. If an investor thinks that the bank investments are best then they are available in existing bank, industry or retail super funds. It makes little sense to incur the set up and ongoing cost of an SMSF only to have another layer of management costs.

Holiday Planning vs Business Planning

As we approach the end of the year you've likely already planned the holidays, but how much have you planned for your business?

You know that with some planning you can get those bargain flights to the place you wan,t in the accommodation you'll love and all the fun for you and the family.

Imagine what you achieve with the same effort for your business ! (You could get more holidays for a start)

Have you set goals? Have you got projects to achieve those goals?

Sadly many businesses suffer from a lack of planning.

With a little effort you can achieve good results.

With targeted planning you can achieve great results.

Talk to us about your own future, we can show you how to create it.

Basin & Bay Chamber of Commerce

Just attended a breakfast meeting with a representative from the Shoalhaven Chamber of Commerce. It's a council supported organisation that very much has the ear of local and state governments. Regional areas, such as the Basin & Bay can get a seat at the table in a much more effective and efficient way. Previously it meant the formation of a separate , local Chamber of Commerce with all the attendant costs in time and money. The new model involves membership of the 'parent' body but with a recognised local sub committee.

I would urge interested business people to sign up and be heard. Our initial contact is through Keith Robinson at the Sanctuary Point Community Bank 44439825

GST or not to GST

Recently there's been more discussion of the GST tax threshold of imported goods.

Currently anything less that $1,000 (except alcohol or tobacco) is exempt from GST.

For Australian consumers it's a win, for Australian business it's a loss. Apparently for the Australian Government it's neutral otherwise they would have moved on it.

The cost of enforcing a lower GST threshold Vs the benefit is apparently not worth it.

However, as the Dollar stays at high buying value, the winners (Consumers) win more and the losers (Business) lose more.

It's only a matter of time before the business lobby will win the argument for change.

The only question is when and what the new threshold will be. Stand by.....

Unpaid Tax Collectors

Would you work for nothing? Would you spend your leisure/family time doing unpaid work? Would you do the work of others? Would you even pay someone to do that work that you will not be paid for? O course not, unless.......

You're a small business person collecting. calculating and remitting GST. That makes you an Unpaid Tax Collector !

The reality is that small business do all this for nothing. No reward, no recognition.

In fact if they get it wrong they get fined ! There is a way to stop this. There is a way to address the needs of small business, tax office and treasury (and the political party smart enough to introduce it). Stay tuned for next week's blog......

While you were asleep....

While we were all preoccupied with leading our lives of quiet desperation, the government has been cleaning out one of their 'In Trays'. This one had all the Tax 'stuff' in it.

They created a pile for 'Yes', a pile for 'No' and another for the 'Too Hard basket'.

The result is a big win for the 'big' at the expense of the 'small' They pull back their hand from the big miners but use that same hand to remove the very popular super co contribution scheme for lower income earners. International corporations retain their interest concessions while small business continues to lose on the GST threshold for imports.

I'm not stereotyping Coalition governments and their biased toward big business, they're doing that themselves.


Governments make a lot of noise about the positive measures they introduce - more entitlements, more spending, more more more. However little mention is made of the erosion of benefits and entitlements. The tax system is typically used for this purpose. Quite apart from the well known 'bracket creep' we have seen in recent times the reduction in eligibility for the medical expenses offset and the dependant spouse offset. Unfortunately it's usually the accountant at tax time that becomes the messenger.
It's time for more transparency and courage from our leaders.

Don't Forget

If you've lodged last year's tax with us - don't panic about lodging by the end of October. You have until (generally) the end of April.
However,don't leave it until the 29th of April !!