The PRWIRE Press Releases https:// 2019-03-25T22:00:07Z Investment Property Acquisition CGT Tax Accountant Aged Care Kingsgrove Sydney 2019-03-25T22:00:07Z investment-property-acquisition-cgt-tax-accountant-aged-care-kingsgrove-sydney Calculating the Cost Base for CGT Deductions for Investment Properties There is generally great excitement when a rental income property is bought. The new owners have all kinds of plans, and sweet dreams about the extra income it’s going to earn. However, somewhere down the line the property will be sold, and the seller will be confronted by what the tax man euphemistically calls a “Capital Gains Tax event”. If it sounds pretty intimidating, don’t worry, as it’s fairly simple as property tax and acquisitions expert, Matthew Mousaof TLK Partnersexplains. "The profit or loss realised from the sale of a property is the “event”, and could be subject to Capital Gains Tax or CGT as it is referred to. Although CGT is a whole different ballgame, capital works deductions made now can affect the calculations needed for CGT when the property is sold." Deducting the deductions When calculating a Capital Gains Tax profit or loss after the sale of a property, the cost base or reduced cost base is the starting point for calculations. The final, or adjusted, cost base used must exclude any deductions already claimed, or could have been claimed, for capital expenditure. There are two conditions attached to this exclusion: The property was acquired after May 13, 1997. The property was acquired before May 13, 1997, but the money was spent, which gave rise to a capital works deduction after June 30, 1999. How does this work in practice? “Let’s say that you bought a rental property in 1998 for $200 000, and you sold the property in 2017,” Matthew explains. “The cost base in 2017 is calculated at $210 250. However, during the time you owned the property you claimed $10 000 in capital works deductions. You will have to deduct the $10 000 you claimed, to arrive at a new cost base for calculating your Capital Gains Tax. Your new cost base would therefore be $200 250.” Limited recourse debt arrangements If any part of the capital expenditure on capital works deductions was financed by a limited recourse debt, which includes certain hire purchase or instalment sale agreements, excessive deductions for capital allowances has to be included as part of assessable income. But this only applies if the debt was terminated, or wasn’t paid in full. Anyone unsure of what constitutes a terminated recourse debt arrangement, and its implications for assessable income, should consult a tax consultant for clarification on CGT, and any other tax implications of investment property, as it could have far-reaching effects on tax obligations. "Many property investors have been caught out and surprised about CGT triggered by a sale of an asset because they failed to understand CGT fundamentals," Matthew concludes. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviserare wealth and taxation advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media; the Market Influencers. Expert Aged Care Property Acquisition Tax Advice Accountant in Kingsgrove Sydney 2019-03-24T23:00:49Z expert-aged-care-property-acquisition-tax-advice-accountant-in-kingsgrove-sydney Tax impact of Buying or Selling Second-hand Depreciating Assets Buying or selling second hand assets can cause headaches at tax time. TLK Partners’ property acquisition specialist, Mr Matthew Mousa, offers insight into how to handle these situations, and what effect they have on tax obligations. Tax deductions on depreciating assets Matthew compares dealing with tax deduction claims on long-life assets to finding one’s way through a labyrinth, even when dealing with new items that will help generate rental income. Yet getting through this maze can become even more complicated, he says, when other factors become involved, like the disposal of a depreciating asset. Basically, a depreciating asset is one which has a long projected lifespan as an effective asset in generating income. Deductions against income, originally based on the asset’s initial cost, are spread over a period of years on a sliding scale schedule. This scale takes into account the asset’s dropping value and shortening lifespan as an income generator. Disposal of a depreciating asset When an asset like this can’t (or won’t ever again) be used to facilitate rental income, its tax position as a depreciating asset changes immediately. “Because it is no longer involved in generating an income, it doesn’t count as a deduction on your future tax returns, and therefore stops playing any part in determining future taxes,” Matthew explains. But it can’t just disappear off a return before the books on its tax history, including any remaining depreciation value, have been balanced and closed. There are various ways in which an item like this could have been “disposed” of. The most obvious is that it has been sold, lost or destroyed. A homeowner may have planned to use the asset to generate rental income, and then decided against it; cancelled its installation; or changed the way he uses it, so its sole purpose is no longer generating a rental income. An asset may also have to be “disposed of” if it was considered while in a partnership, but the use of the asset, or the nature of the partnership, has changed since then. “All these reasons are valid ones for its disposal in terms of tax. The bottom-line is that you must be able to affirm that you do not expect to ever use it again for its original purpose,” Matthew says. Balancing adjustment event To change the asset’s status somewhere down the line, when the depreciation process has not been completed, requires levelling the scales on what’s gone out and what’s come in with regard to that asset’s disposal. This involves creating a “balancing adjustment event” on a tax return. To do this, the following steps need to be taken: Work out what value of the depreciating asset remains unclaimed. This becomes the balancing adjustment value. Then take selling price of the depreciating asset, or termination value if it was scrapped, and compare it with the adjustable value. If the termination value (sale price) of the asset is greater than the adjustable value; the difference between the two becomes a form of income which has to be added to assessable income along with income from other sources, including rent. However, it is not included as part of the rent, but instead listed under “Other Income” on a tax return. If the adjustable value is greater than the termination value, deduct the difference on the current return. Purchase of second-hand assets When purchasing a second-hand asset, its price can generally be claimed, in the same way as the cost of a new asset would be claimed for, and subject to the same conditions regarding its projected life-span and purchase price as are applied to new assets. However, if second-hand assets form part of package when a rental property is bought, there are some steps that need to be taken to separate them from the rest of the package. The depreciating assets that come with the rental property must be separated from the price of the property itself based on reasonable values determined by both seller and buyer, and specified as part of the sale agreement. If they aren’t specified, a reasonable cost will have to be determined by the homeowner. If unable to do so, a qualified evaluator will have to be called in. Whichever way it’s done, the owner must be able to show a firm basis for establishing the value. "Sound taxation advice and planning can save heartache and financial surprises," Matthew concludes. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. NSW Wealth Management Age Care Financial Planning Property Acquisition Services TLK Partners' Property Acquisition Expert Matthew Mousa 2019-03-24T22:00:40Z nsw-wealth-management-age-care-financial-planning-property-acquisition-services-tlk-partners-property-acquisition-expert-matthew-mousa Property Owners’ Claim Borrowing Expenses At Tax Time While some rental property expenses can be claimed straightaway, there are a number of expenses which are only deductible over a number of years. Matthew Mousa, Partner and Adviser with TLK Partners, tries to ease your way through the minefield of these sorts of tax claims. The tax laws regarding rental property have changed recently, and it’s important that investment property owners get to understand the new regulations. What expenses are deductible over a number of years? Borrowing Expenses are one of the three different types of expenses that the tax man expects you to deduct over an extended period of time. The others are the Depreciation of Assets and Capital Works Expenses. Borrowing expenses There are certain unavoidable expenses that you will have to pay when you borrow money to purchase an investment property for extra rental income. To start with, you will have to pay the institution that lends you the money for establishing the loan, and you will also have to pay a fee to the mortgage broker. You’ll also be charged for the lender searching for the title deed. Then the lender will send a building inspector to inspect the property and make a valuation. This expense will also be your responsibility. That’s just the start: Preparing and filing the mortgage documents requires stamp duty on the documents, and the expense of this will be yours to carry. And, believe it or not, the lender’s mortgage insurance is also for your account. These are all classified as borrowing expenses that are deductible over a number of years. What borrowing expenses are not deductible? The insurance you are required to take out to cover your mortgage in the event of your death, disability, or unemployment. The Interest the lender charges you. The Stamp Duty that’s charged on the transfer of the property. This is not to be confused with the stamp duty on the mortgage documents, which is deductible. Certain rules govern the deductions If your total borrowing expenses are less than $100, you can claim the total amount in the year you took out the loan. However, if your total borrowing expenses are more than $100, you will have to deduct them over five years, or the length of the loan agreement, whichever is shorter. This means, if your loan is repayable over three years, the deductions are calculated over three years, and not five years. If you repay your loan earlier, you are allowed to deduct what’s left of the borrowing expenses in the year that you repaid the loan. If you took out the loan during your first income year, you can only claim a proportional amount of the borrowing expenses you would normally claim for a full year. If you took out the loan, say, three months into the new tax year, you would only be able to claim 75% of what you would claim the next year, and every year thereafter, until the three or five year term is completed and the loan is paid off. The same proportional calculation will be necessary in the final year. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Financial Wealth Management Property Acquisition Accountant Kingsgrove Reveals Renovation ATO Tax Benefit 2019-03-22T22:00:40Z financial-wealth-management-property-acquisition-accountant-kingsgrove-reveals-renovation-ato-tax-benefit Renovations Help you Up the Rent Says TLK Partners Property Expert Matthew Mousa Well-kept properties can result in better rent, but owners shouldn’t over-spend on renovations. Property Acquisition specialist Matthew Mousa of TLK Partners advises on improvements that will be both easy on the budget, and show extra return on investment. Some rental property investors might be unsure of where and how to invest renovation dollars for maximum return. “As a property investor myself, it’s easy to spend a fortune and over-capitalise on the property,” warns Matthew. “Rather invest in cost-effective upgrades on key areas, known to attract tenants. Not only will you draw people who are prepared to pay a little extra, but they are also more likely to care for it during their stay.” Bathrooms and kitchens are two of the major areas – one represents the heart of the home, because it is where food and nourishment originate, while the other is a haven for relaxation and de-stressing. These two rooms could easily become a ‘wow’ factor. However, most importantly, they should be spotless, and leave a squeaky-clean impression. Sprucing Up The Kitchen Representing the heart of the home, a tatty kitchen will turn away potential tenants. It should be spotless, and leave a squeaky-clean impression. A full-blown kitchen renovation is a costly exercise, but there are ways of improving the space and creating a ‘wow’ factor without blowing the bank. Matthew recommends looking at and changing the small details. Add a splash back behind the stove or sink or replace the existing ones with fresh tiles. Splash backs serve a double function in protecting the wall from damage, but can also be a striking feature with clever tiling choice. Do the counter-tops and cabinet doors look tired? A granite top will make an impressive feature, while new doors with fresh hinges and modern handles will transform old cupboards. Another practical improvement is the addition of clever lighting, to brighten the space and improve its function. Cleaning Up The Bathroom “Keep good design and classic style in mind when you consider renovating the bathroom of the rental property,” advises Matthew. He warns against overly-modern or trendy fittings as they can easily date in a few years’ time. Owners could, however, add contemporary touches with modern towel bars and vanity shelves. Once again, the importance of a brilliantly clean look cannot be overemphasised. Light Up With Flair Dark and dingy is a definite no-no if you are looking for a higher rent. Apart from lights being an expression of style, it is most important that your rental property is well lit. “Remember to open blinds and switch the lights on where necessary when you’re showing the property, as light and airy looking properties hold much more appeal,” says Matthew. Lighting and light fittings can create ambiance in any room, and the variety of styles of lighting available is infinite. It can be used to create any look and feel of your choice, from rustic to industrial. Just be careful not to go too way out there – tenants want to add their own personal touches to make the rental property their home, and they don’t necessarily have the same taste in décor as the owner does. So choose something functional, classy, tasteful and fairly neutral. When faced with dark corners or rooms, skylights or installed windows are a wonderful source of light and sun, and can often make all the difference in bathrooms and kitchens by lighting them naturally. Choose energy efficient long-lasting lighting, not only to reduce tenant’s electricity bills but also to care about the environment. Happy Tenants Stay Longer Renovating rental properties from time to time not only holds the bonus of collecting more rent each month during the tenant’s lease period, but could save other costs in the long run. "Remember, if tenants love their home, they will stay longer, so investors will save on advertising and screening costs. It really is best to show it off the property its best light," Matthew concludes. TLK Partners are real people just like you with hobbies like property investment; Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Sydney Investors Aged Care Financial Income Protection Tax Expert and Wealth Planner Matthew Mousa From TLK Partners 2019-03-22T21:00:07Z sydney-investors-aged-care-financial-income-protection-tax-expert-and-wealth-planner-matthew-mousa-from-tlk-partners Part-Year Rentals Affect Property Investors Tax Claims Says TLK Partners Expert Matthew Mousa Tax rental income statements record every dollar received on investment properties, but it doesn’t reflect how many dollars an investor actually takes home. Rental property investors, will have had to settle a lot of bills in order to receive the dollar bills listed as income – without doing so, they would have received a lot less. But what happens if an investment property is only rented out for part of the year? TLK Partners’ property specialist, Mr Matthew Mousa, looks at the tax implications. Sam and Jane were looking for tenants, but made it way too difficult for anyone to rent their property. They asked for references even for short term tenants, and barred children and pets. And they also demanded final approval, despite advertising their premises through an agent. To top it all, not one prospective tenant earned that approval. In Steven and Sally’s case, they advertised their “rental” through an agent, but restricted it to being only available outside school holidays, when there was no demand for renting a property in a remote location with difficult access. They also had no tenants during that year. Both couples had their expenses claims rejected immediately by the tax office. “If the Australian Tax Office has cause to believe the property was not truly ‘available to rent’, it will not sanction expenses claims, because owners made it too difficult for tenants to rent their property,” Mousa warns. “While it is sometimes hard to believe it, the tax authorities are trying to play fair – they only want their share of the rental money you have actually pocketed.” But they want investors to play fair, too, by claiming deductions only on expenses directly related to earning it. So expenses that investors incurred for personal use of the house don’t cut it as far they are concerned. Every homeowner has expenses running their properties and they can’t claim them against tax. The overall principle is that investors can only claim expenses with regard to costs while your property was actually rented out, or while real intention was being shown to make an income out of the property, which is when, as tax authorities term it, it was genuinely “available to rent”. Stating entire income and then claiming the costs of earning it, changes the gross income to a nett income, giving a far more valid picture of what profit was made, not just your bank account balance. It is from this final clean figure that the tax authorities slice their share of the pie in the form of taxes, Mr Mousa explains. However, the final figure changes, because the claimable expenses do, if a rental property does not operate all year through. The taxman also accepts that there are good years and bad years for rental property owners, when they simply don’t have many tenants. Yet, as an owner, investors go on having expenses involved in trying to attract tenants, so some expenses involved are still claimable even when rental income is low. Apportion Expenses If either of the above couples had indeed managed to land a tenant, even for a short period, they would fall into the category of those rental property owners who have to apportion expenses according to how much of the year the premises were rented out, or were honestly available for rent. Joining them are owners who openly rent out their houses for a short period of the year, using it themselves the rest of the year, and those who do the opposite, using it themselves for a short holiday, and making it available for rent the rest of the year. Any expenses that come up while used personally or by friends are enjoying the property privately, can’t be claimed. So these taxpayers will also have to do apportionment claims. Apportionment means that those costs directly tied to rental income can only be claimed in proportion to how much of the year tenants helped you generate it. If tenants rented your property for 35 weeks of the year, the expenses would be multiplied by 35/52 to determine the claimable share of the year’s expenses. Some Exceptions To The Rule Exceptions are those expenses brought about during the course of the rental process. These include estate agents’ commission, advertising for tenants, phone calls to fix damage tenants caused, and the cost of removing any rubbish they left behind. Matthew Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. COSBOA Release: Bridges built for a better energy future 2019-03-22T00:05:33Z cosboa-release-bridges-built-for-a-better-energy-future Media Release: 22 March 2019 The Summit was attended by small business people as well as stakeholders from the COSBOA membership, the Australian Energy Council, Energy Consumers Australia, the Australian Small Business and Family Enterprise Ombudsman and experts from the sector. The summit was also addressed by the Federal Minister for Energy, the Hon. Angus Taylor MP; the Shadow Assistant Minister for Climate Change and Energy, Mr Pat Conroy MP, and the Deputy Leader of The Australian Greens, Mr Adam Bandt MP. The main outcome of the day was agreement that we all have to work together to confront the energy crisis and that a piecemeal approach or antagonistic dialogue will not identify and resolve problems. Peter Strong, CEO of COSBOA, stated, "The Summit was held to confront the issues of energy supply and costs and associated business and economic risks. We met, as members of the business community, to advance dialogue and find ways to work together and develop better futures. We needed to agree on what exactly are the problems and issues; and then, together, confront and resolve these problems. "The agreement to work together may seem a trite or obvious outcome but given the failures of governments throughout the last 30 years in developing a good policy for energy, it is more important than ever that we in the business community work together. Business and energy producers arguing separately over who is at fault or what is the best solution is not productive. This Summit was the first time we have come together to confront the energy conundrum and it will not be the last. It is big and small businesses are leading the way on making sure our economy can continue to be world class; and access reliable, affordable energy with responsible environmental management - key issues for our future.” Mr Strong added, “The event was made possible with sponsorship from the ASBFEO, Energy Consumers Australia and AGL and we appreciate that support. We have to work together even more than ever if we are to maintain our high standards of living. The extremes of left and right economic and environmental politics are the enemy of good management. While the major political parties grapple with their extremes we will grapple with reality.” COSBOA Communique - Managing energy cost risk in small business On 20 March, COSBOA held an Energy Summit in Melbourne to examine what could be done to address the problem of rising energy costs for Australia’s 2 million small businesses. The Federal Minister for Energy, the Hon. Angus Taylor MP, opened the Summit and addresses were also received from the Shadow Assistant Minister for Climate Change and Energy, Mr Pat Conroy MP, and the Deputy Leader of The Australian Greens, Mr Adam Bandt MP. The Summit was attended by small business owners and representatives from industry associations, consumer bodies, electricity supply companies and other stakeholders. COSBOA members noted the following: There is an urgent need for the Australian Parliament to develop a bipartisan approach to the future operation of the Australian energy market. The absence of such an approach is a substantial risk for further large increases in energy prices for both Australian households and small businesses. There is substantial research providing evidence that the rise in energy prices experienced over the past two years has put a significant proportion of Australia’s 3.3 million small to medium businesses under considerable financial pressure which, if repeated in future years, threatens the economic viability of many of these businesses. There are significant consumer challenges associated with the current operation of the Australian electricity market. These challenges include the need for improved market transparency and the establishment of ‘consistent pricing mechanisms’ to readily enable consumer comparison of energy costs. These recommendations are comprehensively discussed in the 2018 review of the Australian electricity market by the Australian Competition and Consumer Commission (ACCC). Many of the recommendations of the ACCC’s report are inter-related, suggesting that they are best advanced as a total package. Care should be taken in the advancement of individual recommendations to ensure that such action does not result in unintended adverse consequences for all electricity consumers. There is a significant opportunity for the small business community and energy retailers to work together (including collaboration between the Australian Energy Council, COSBOA and the Australian Small Business and Family Enterprise Ombudsman) to better empower small business owners to take control of their energy use and future energy cost risks. This opportunity is further strengthened by the establishment of new programmes by the Australian Government in the areas of small business energy advice and capital grants for energy efficiency investments. While much of the discussion in recent years has focussed on the operation of national electricity markets, there is an emerging concern about the near-term availability of natural gas in Australia and this issue should be addressed by Australian Governments as a priority. Discussions will continue at the COSBOA National Small Business Summit, 29-30 August. Registrations are open, for more information visit: www.cosboansbs.com.au -ends- Notes to editors: Interviews are available with Peter Strong, CEO, COSBOA upon request For more information on COSBOA visit: www.cosboa.org.au Media Contacts: Further information, images, interviews please contact: Jessica McLean, Senior Account Manager | 02 9212 7867 | jessica@zadroagency.com.au Debbie Bradley, Group Account Director | 0420 761 189 | debbie@zadroagency.com.au Image: Peter Strong, CEO, COSBOA Aged Care Property Investors and Financial Wealth Acquisition Tax Expert Mathew Mousa From TLK Partners Kingsgrove 2019-03-20T21:00:18Z aged-care-property-investors-and-financial-wealth-acquisition-tax-expert-mathew-mousa-from-tlk-partners-kingsgrove Private Investors Property Income Has Tax Implications Whether in money or in kind, anything investors are given that’s linked to their rental property, is considered to be income, and the Australian Taxation Office wants to know about it. Property and tax expert TLK Partners’ Matthew Mousa runs through some of the less well-known forms of “rental income” from the Australian Taxation Office. So for tax purposes, rental income only refers to a tenant’s weekly or monthly cheque, right? Wrong, says Matthew. “If investors are renting out a property to earn a return on their investment, any payment received is considered part of their income, whether cash or in kind. And what comes in, must go out – in the form of information on your tax return.” Disclosing straight-up rental payments is par for the course, but what are the other forms of income associated with a rental property? These equally relevant, but less obvious forms of rental income are the ones to be mindful of, he cautions. Payments in kind If an investor let young Joe live on their rental property for free, as long as he keeps the garden looking good and the swimming pool clean, as well as doing small maintenance jobs, their tax situation could be complicated, Matthew explains. The same applies when someone like Chloe, who has parents on a farm, agrees to pay part of her rent in fresh potatoes. Or perhaps Sam, who’s in the premier league, gives the investor season tickets for rugby, in return for accommodation. According to the Australian Tax Office this "income" must be disclosed in these instances. “Investors will have to put a market value on any of these, from the rental value of Joe’s accommodation, to what the spuds or season ticket would have cost and add it to the rental income. Investors may be entitled to deduct some of the young man’s “rent” in terms of the legally deductible parts of the services he performs. But as far as income goes, his “rental” does need to be included to balance the tax books.” Bond monies and tenant insurance pay-outs If investors keep part of a tenant’s security bond because they didn’t pay the rent, or because you have had to repair damage after a tenant moved out, it classifies as income. The same applies if insurance company pays out for rental lost because a tenant left. Reimbursements There are times when the investor receives money in lieu of damage to get repair work done to their property. "If a tenant gives money towards the cost of the repair, again that money must be recorded as income," Matthew says. "This is especially important if the investor wants to claim the repair cost as a deduction," Matthew continued. Government rebates The same principle applies for rebates as it does for reimbursements. If the investor installs a solar system to supply hot water, for instance, the government may provide a rebate. “As the solar system is a depreciating asset for which the investor will want to claim tax relief over a period of some years, they can’t claim for the entire value, if they didn’t actually pay the full amount because of the rebate received,” Matthew says. When the amount claimed exceeds the amount spent In some more complicated cases, as with limited recourse debt arrangements, financing, refinancing and notional loans, investors may not end up paying the full cost of the initial capital expenditure either. However, they may well want to claim deductions for this expenditure on a depreciating asset. In a similar way to the rebate situation, they could end up claiming for money they have not spent. The unpaid section has to be recorded as income, in order to balance a claim for the full expenditure. TLK Partners Wealth Management Companies Kingsgrove, Beverly Hills | Tax Accountant & Agent | Property Adviser are wealth advisers serving enterprises and private individuals who hope to take care of their future through sound financial management. Visit their website or contact them at (02) 8090 4324 for an appointment to discuss your financial management and investment needs. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Dell Boomi helps University of Melbourne to cloud-enable its integrations and transition to Smarter Campuses 2019-03-20T01:39:52Z dell-boomi-helps-university-of-melbourne-to-cloud-enable-its-integrations-and-transition-to-smarter-campuses Sydney, Australia – March 19, 2019 – Dell Boomi™ (Boomi) has announced it has been contracted by the University of Melbourne (UoM) to enable the coexistence of the institute’s 700 applications using the Boomi integration platform. Boomi has helped the university create a centralised data synchronisation hub that provides granular visibility into data quality and has subsequently accelerated the roll-out of new services. The real-time availability of this critical information will help UoM transform its facilities into smart campuses powered by the Internet of Things (IoT). UoM provides education to more than 50,000 students enrolled across its seven campuses. Its vast set of applications – spanning everything from a Financial and Employee System (FES) to Student Management Systems (SMS) and its online Learning Management Systems (LMS), as well as a slew of specialty systems – are part of a hybrid environment. UoM deployed the Boomi integration platform-as-a-service (iPaaS) to link up its IT environment. Boomi is a only truly cloud-based integration provider and was selected for its ability to support a diverse organisation. The university is using the Boomi Master Data Hub (MDH) as the foundation for its data synchronisation. These comprehensive capabilities are managed through Boomi’s easy-to-use interface which provides full visibility over and control of all information flowing through the platform. Having established a modern integration framework, UoM has been able to commence its transition to smart campuses. Critical to this project is space utilisation, and so the university is in the process of installing smart sensors in selected buildings. Boomi will collect the data generated by these sensors and transfer it to the smart campus data repository, along with information from other relevant applications. These insights will allow UoM to determine how and when facilities are being used in order to optimise space and other student services. “Data consistency is a major challenge for organisations investing in digital transformation – especially in an industry like higher education where student attrition and policy issues place constant pressure on Australian universities to demonstrate the outcomes they can deliver,” said Nick Lambrou, Managing Director Australia and New Zealand at Boomi. “With the Boomi platform at the core of its applications tying all data together, UoM has developed the comprehensive scaffolding it needs to drive its digital evolution, allowing it to introduce new services sooner, while preparing its facilities for the next phase of its growth strategy.” About Dell Boomi Boomi, an independent business unit of Dell, quickly and easily unites everything in your digital ecosystem so you can achieve better business outcomes, faster. Boomi’s intelligent, flexible, scalable platform accelerates your business results by linking your data, systems, applications, processes and people. Harnessing the power of the cloud to unify everything inside and outside of a business, Boomi gives more than 8,200 organizations the agility to lead the future. For more information, visit http://www.boomi.com. Special note: Statements in this material that relate to future results, future hiring, and future events or investment are forward-looking statements and are based on Boomi’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results, hiring, customer trends, and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including the challenge of finding and onboarding new personnel, marketplace trends, ongoing management attention to the market, the uncertainties associated with technology changes and the development and release of new technology. Boomi and Dell Technologies assume no obligation to update any such forward-looking statements. Gartner Says Outdated Technology Pushing Australian Workers Out The Door 2019-03-13T02:36:58Z gartner-says-outdated-technology-pushing-australian-workers-out-the-door Organisations must find a way to address the needs of modern workers as employees grow increasingly frustrated with workplaces that expect them to work with outdated, slow and complex technology, according to Gartner, Inc. Technology now ranks in the top 10 reasons Australian employees will leave their current role, according to Gartner’s 4Q18 Global Talent Monitor. The data reveals technology rose eight places from 3Q18 to come in ninth on the list of key attrition drivers for Australian employees. “People have become so used to advanced technology in their day-to-day lives, that they expect the same thing from their workplace. However, businesses are having a hard time matching the speed at which technology is adopted at home,” said Aaron McEwan, HR Advisory Leader at Gartner. “It’s not surprising that employees are becoming frustrated when they find themselves wasting valuable time navigating complicated systems and processes that utilise slow and old technology. It’s unproductive and inefficient for everyone involved,” said Mr. McEwan. Compensation has also become increasingly important for Australian employees, rising four places to the No. 3 reason Australians cite for leaving their jobs. Alternatively, for the first time in five years, compensation is the third driver of attraction for Australian workers when considering a new position. “The combination of expectations over compensation and the tools and tech employees are given to do their job often feel like a representation of an individual’s value or worth to the company. Feeling valued by your employer is intrinsically linked to the employee experience and really impacts how a person feels about their job,” said Mr. McEwan. These factors may have already hit the willingness of Australian employees to go above and beyond at work as discretionary effort levels fell 4.5 per cent year over year – from 21 percent in 4Q17 to 16.5 percent in 4Q18 (see Table 1). Highlights from the 4Q 2018 Global Talent Monitor Talent Monitor Australian International Average High Intent to Stay 38.8% 32.5% High Discretionary Effort 16.5% 14.4% Job Opportunities 49.7 51.1 Drivers of Attraction Work-Life Balance Location Compensation Compensation Work-Life Balance Stability Drivers of Attrition Future Career Opportunity People Management Compensation Future Career Opportunity Compensation People Management Source: Gartner (February 2019) According to Mr. McEwan, businesses can no longer ignore the needs of their employees, and must start thinking of their workers like they do their customers; making it a priority to offer a personalised, seamless and efficient experience. “For organisations, the answer doesn’t lie in allowing staff to bring their own devices or offering more money. It’s recognizing that these are just a part of the broader employee experience,” Mr. McEwan said. “This means understanding and focusing on what employees’ value from their experiences with the company. Rather than waste time implementing policies, systems and processes that have no impact on how employees feel about their company, organisations need to talk to employees to determine how to retain current and attract new employees.” Gartner advises organisations to tailor employee experiences to suit the needs, desires and goals of the individual rather than the collective. By understanding what employees value the most, HR leaders can positively impact the employee experience and lessen the desire for them to seek alternative employment opportunities. Global Talent Monitor data is drawn from the larger Gartner Global Labour Market Survey which is made up of more than 22,000 employees in 40 countries, including 848 in Australia this quarter. The survey is conducted quarterly and is reflective of market conditions during the quarter preceding publication. About Gartner ReimagineHR Conference Gartner experts will provide additional insight into the labour and talent issues at the Gartner ReimagineHR Conference, August 6-7 in Sydney, Australia. Gartner ReimagineHR is the premier event for HR leaders around the world. Join Gartner and senior HR executives to hear key insights and learn actionable strategies necessary to support organisational performance. Gartner ReimagineHR will also be held September 18-19 in London, and October 28-30 in Florida. Follow news and updates from these events on Twitter using #GartnerHR. About Gartner for HR Leaders Gartner for HR Leaders brings together the best, relevant content approaches across Gartner to offer individual decision makers strategic business advice on the mission-critical priorities that cut across the HR function. Additional information is available at www.gartner.com/en/human-resources/human-resources-leaders. Superannuation Tax Estate Planning Private Wealth Financial Planning Sydney TLK Partners 2019-03-06T22:00:26Z superannuation-tax-estate-planning-private-wealth-financial-planning-sydney-tlk-partners Tax hikes and changes and an ever-rising cost of living paint a gloomy financial picture for all Australians. But it’s even more dismal for current retirees, and those looking at leaving the workforce soon. TLK Partners financial planner, Len Elias, says finding ways for them to keep financially afloat for the rest of their lives is becoming increasingly difficult. And it seems like Superannuation can’t do it alone. How Superannuation Works Australian Superannuation is often considered one of the best government retirement programs globally. Since 1992, it has entitled Australians who earn over $450 a month (before tax) to a mandatory Superfund contribution from their employers for their retirement. The current contribution rate is 9.5% is calculated according to ordinary time earnings, and employees are encouraged to boost it with their own salary sacrifice. Superannuation funds are accessible at 60 (the Commonwealth preservation age) for those who retire permanently, or at 65 for those who still want to work. The funds can be accessed as a lump sum or as an annual pension payout, but many Australians are not rushing to do so. Financial concerns have led to increasing numbers of Australians over the age of 45 are putting off retirement till 70 or later. How Super is the Annuation Fund? ASFA, the Association of Superannuation Funds of Australia claim that, on average, during the 2013/14 financial year, men had a balance of a little under $300,000 in their fund at retirement age. Women had less than $150,000, and households averaged around $355,000. Since then stock markets have been both bearish and bullish, inflation has risen and not come down, and there have been changes in the tax situation. By the 2015/2016 year those average balances had dropped to $270,710 for men and risen to $157,049 for women. These averages fall far short of the 2018 figures AFSA suggests as reasonable starting balances for retirement when, and only when, retirees own their homes. The association puts the amount a single person would need to enjoy a comfortable lifestyle at $545,000 , and couples at $640, 000. And it claims $70,000 should provide a so-called modest retirement assuming that the state’s Age Pension and other supplements take care of most of the usual expenditures. But for how long? How Long Will Your Super Last? AFSA’s calculations set couples’ living costs at just under $61,000 a year, and singles at a little over $43,317, for what AFSA dubs a “comfortable” lifestyle. This allows for some extras like home maintenance and small improvements, as well as an occasional holiday, and it takes into account that retirees’ lifestyles change as they age, and expenses shift from activities and vacations to medical and caring needs. But with that annual budget, the balance AFSA recommends for retirement will see a single retiree’s funds run dry after about 12 years, and that of couples after just over 10 years, if not bolstered by partial Age Pensions or other investments. Len Elias pointed out covering the 22 years between retirement at 60 and the Australian average life expectancy of 82 years, it would appear opening balances would therefore have to sit at over $1,28 million for couples, and about a million for singles. In the so-called modest category, which allows for basics only, the recommended starting capital of $70 000 will only fund the calculated singles’ budget of $27,648 for 2,5 years, and the couple’s $39,775 for less than two. Fortunately, a full Age Pension (just under $24,000 a year for singles, and a combined $36 000 for a couple) would stretch the balances, should the retiree be eligible for it. Clearly, while it provides a base which could support a tightly-budgeted retirement in the short term, planning and saving is needed to stretch that funding over what could be a long retirement. Len Elias is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. Coordinate Your Project Team Before You Begin Renovations Warns Gold Coast Electrical Contractor EJ Electrical Works In Burleigh Heads 2019-03-01T22:00:10Z coordinate-your-project-team-before-you-begin-renovations-warns-gold-coast-electrical-contractor-ej-electrical-works-in-burleigh-heads The proliferation of fast home renovation shows on TV have led some homeowners to think that renos are easily cobbled together. But, warns EJ Barnes, aGold Coast electrical contractor, good planning and coordination is as important in home renovation projects as it is in any construction project. Project management is a complex business, and communication is key to a well-coordinated project. It’s when homeowners start calling in contractors piecemeal that the trouble begins, says Barnes. For the best results, he suggests calling in contractors simultaneously before the works begin so that they can discuss the places where their tasks interface. “For example,” he says, “our work comes after the builders’ and the success of some of it depends on what the builders do. I find it best to approach the project as a team rather than as two individual contractors with separate agendas.” Electricity is Not an Add-On Electricity is something people are inclined to take for granted, says EJ Barnes. But remembering that even small changes in home layout will affect the places where we want access to power, lighting, and so on helps homeowners to stay on budget. “DIY renos often reach a point where someone remembers they’re going to want a power point to move, and then it’s time for us to save the day again!” While experienced electricians like EJ are expert at rescuing the uninitiated from the consequences of a poorly-planned renovation, EJ likes his customers to enjoy plain sailing. “If you’re planning to change the layout of kitchen counters – even switch your lounge or bedroom furniture around, you might need electrical work done. The good news is it might cost less than you expected. The bad news is that things are going to be pretty inconvenient for you for a while if electrical work came as afterthought to a home improvement project.” Big or Small, There’s Always a Project Team Whether you’ve chosen to use professional construction and electrical contractors for renovations or need help with a few tweaks you’re taking on as a DIY project, EJ Barnes says there’s always a project team. “With a reno, there’s less pressure than there is with a big construction project, but the same principles apply. All the people who are involved must coordinate and cooperate to get the project completed to specification. That means starting a dialogue before we begin works.” Working With Construction Companies and Homeowners: It’s What They Do For EJ Barnes and his team, working with construction companies is part of the regular routine. EJ Electrical works understands the need to keep renovation projects on track, on schedule, and to specification, and that makes the company a favourite with Gold Coast construction companies. But homeowners are still very much a part of EJ’s customer base – and the reasons why they like dealing with EJ Electrical Works are similar to those of the construction companies. “We don’t believe in dual standards,” says EJ. “That’s what professionalism’s about.” The message is clear. If you’re considering a home renovation project, and you need a Gold Coast electrician on your project team, EJ Electrical Works is ready to see it through with you from planning to completion. Reach businesses like EJ Electrical Works and Coastline Local Electricians via their websites giving them a call on 1300-DIAL-EJ,that’s 1300 342 535. Written & Syndicated by Baxton Media. Mortgage Broking Industry Findings Effect On Investors Aged Care Financial Income Tax And Wealth Planning By Financial Expert Len Elias of TLK Partners Sydney 2019-03-01T22:00:06Z mortgage-broking-industry-findings-effect-on-investors-aged-care-financial-income-tax-and-wealth-planning-by-financial-expert-len-elias-of-tlk-partners-sydney Mortgage brokers have been accused of using scare tactics after the industry warned the banking inquiry’s sweeping ban on commissions would lead to higher costs for borrowers, and big rewards for the culprits in this story, the banks. In the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry’s report, Commissioner Kenneth Hayne QC took aim at “trail commissions”, a form of ongoing payment made by the lender to the mortgage broker for the life of the loan, describing it as “money for nothing”. One of the fundamental rules he set for the entire system is to get rid of commissions, starting with the mortgage broking industry. Trail commissions will be banned from mid-2020 but the government stopped short of accepting Mr Hayne’s recommendation for a ban on upfront commissions as well. It believes banning the up-front fees will drive people away from brokers, and this in turn will erode competition and strengthen the hand of the big banks. Labor says it will act on every recommendation if it wins the upcoming election. Australian financial expert, Len Elias of TLK Partners explains that mortgage brokers receive an average up-front commission from lenders of about 0.65 per cent of the loan value and a trailing commission of just under 0.11 per cent of the loan outstanding per year for the life of the loan. This amounts to about $4,100 for the mortgage of an average loan of about $357,000, he says. Those applauding the industry changes point out that current arrangements create incentives towards recommendations not necessarily in the consumer’s best interest. Brokers should offer advice on how to compare loans and help clients make sound decisions, but that’s not what many consumers get, industry watchdogs argue. It’s also been pointed out that loans through mortgage brokers, which make up around 60 per cent of the total, typically involve higher leverage, are more often interest-only and are more likely to slip into default. The entire $2.1 billion industry will ultimately be forced to move to a fee-for-service revenue model, where the borrower pays the commission to the broker instead of the bank. The Finance Brokers Association of Australia responded strongly to the outcome, saying it would lead to huge unintended consequences for home loan borrowers and would simply put more power in the hands of the banks. The markets echoed this sentiment: while shares in CommBank, NAB, ANZ and Westpac surged at the news, shares in Mortgage Choice plummeted more than 25 per cent. The concern is that that the proposed changes will drive buyers back to the major banks, cut access to smaller lenders and reduce consumer choice. It is estimated to save major banks about $1.6 billion in annual commission payments, but could also cost thousands of brokers their jobs. As it is, they’re bracing for the biggest shake-up since the Campbell Report 30 years ago. Brokers account for about 59 per cent of deals and make more than $2.2 billion in annual commissions. There are currently about 25,000 small businesses and people working within the mortgage broking industry. Consumers, on the other hand, will have to pay an up-front fee, although a recent survey of 5800 borrowers indicates 96.5 per cent of customers are not willing to pay a broker a fee of $2000. In fact, most are unwilling to pay anything at all. Even so, 96 per cent indicated that they were happy with their broker’s service. “It puts the whole industry under a cloud,” says Mr Elias. “And astonishingly, the banks, who were the biggest culprits at the Royal Commission, are the winners in this scenario.” Len Elias is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Companywebsite, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media. News: Industrial IOT Innovator MOVUS Launches First Wireless, Intrinsically Safe, AI Condition Monitoring Tool 2019-02-27T23:28:58Z news-industrial-iot-innovator-movus-launches-first-wireless-intrinsically-safe-ai-condition-monitoring-tool Brisbane, February 28 2019 - MOVUS®, the developer and provider of the FitMachine® IIoT solution, has launched the most advanced and cost-effective intrinsically safe, certified condition monitoring technology in a bid to reduce maintenance costs. FitMachine EX has been built specifically for explosive environments where monitoring and maintaining the equipment is extremely hazardous, so safety is critical to engineering and maintenance processes. These include upstream oil and gas, refineries, industrial chemicals, mining and food processing sites. MOVUS designed FitMachine EX in partnership with major oil and gas companies following its win of the KPMG Energise 2.0 Accelerator Program sponsored by Woodside, Chevron, BHP, WesFarmers Chemicals and South32. MOVUS also undertook extensive certification process, included internal systems and processes, manufacturing auditing processes and material management control to ensure compliance with ISO/IEC 80079-34:2018, the quality system for manufacturing devices for Explosive Atmospheres. “From our work with major industrial organisations, we recognised the need for an intrinsically safe sensor. Safety is a core value at MOVUS and we are now excited to bring the FitMachine EX solution to market for the oil & gas, and food processing industries,” said Brad Parsons, Founder and CEO of MOVUS. “We understand that these are extremely sensitive environments where equipment downtime directly impacts the bottom line. By providing the most advanced artificial intelligence-powered condition monitoring solution at a cost-effective price, FitMachine EX delivers a very compelling solution,” he added. MOVUS has chosen ALS as its main go-to-market business partner for FitMachine EX, due to ALS’s asset reliability and condition monitoring expertise in the heavy asset industries. “We have been working with MOVUS for more than twelve months and see great value in the FitMachine EX. Our clients have been asking for an intrinsically safe wireless sensor, and we are very pleased with this advanced technology, rigorous testing and certification, and the rapid development speed,” said Mushfiq Rahman, ALS Group General Manager. FitMachine is a condition-based maintenance solution that detects machine failures in advance using artificial intelligence and machine learning. The solution comprises an industrial intrinsically safe wireless sensor, mobile application, analytics and trending dashboards, and an artificial intelligence engine. The system continuously monitors equipment 24x7 and learns what the normal operation of machinery is to detect any abnormalities and alert the organisation before failures occur. The insights provided are extremely valuable in avoiding unplanned downtime. MOVUS will showcase FitMachine EX at the Australasian Oil and Gas (AOG) Conference in Perth March 13 - 15. FitMachine EX is available for pre-purchase now, please visit sales@movus.com.au / https://www.movus.com.au/ex to learn more. About MOVUS MOVUS is an Australian company headquartered in Brisbane, with global customers across many industries including manufacturing, food and beverage, mining, industrial chemicals, commercial property/HVAC, packaging, steel manufacturing, oil and gas, water utilities, government, and data centres. Founded in 2015 and backed by Blackbird Ventures, Telstra Ventures and Skip Capital, MOVUS’ world leading Industrial IoT (IIoT) solution FitMachine® transforms dumb equipment into ‘smart equipment’ and enables this through consumer styled simplicity combined with world class artificial intelligence. FitMachine proactively monitors the condition and operating performance of industrial equipment. For customers, a compelling return on investment is realised via reducing the need for manual inspections, reduction in hazardous work and energy consumption, while minimising the risk of unplanned downtime. MOVUS acts as a conduit for improved asset management and lifecycle optimisation, thus reducing energy consumption and waste on a global scale. The power of Customer Lifetime Value and why 87% of Asia-Pacific SMBs see benefit in the cloud: Frost & Sullivan research 2019-02-26T03:52:15Z the-power-of-customer-lifetime-value-and-why-87-of-asia-pacific-smbs-see-benefit-in-the-cloud-frost-sullivan-research Genesys® (www.genesys.com/anz), the global leader in omnichannel customer experience and contact centre solutions, has released a new report which reveals half of small and midsize businesses (SMBs) surveyed in Asia-Pacific view the cloud as the most efficient way to optimise the customer journey and reduce business challenges associated with legacy infrastructure, integration and costs. In fact, 87% of SMB participants are considering a move to the cloud to ensure lower CAPEX, reduced total cost of ownership, flexibility, scalability, ease of use and a fast deployment. Genesys commissioned Frost & Sullivan (F&S), a global business consulting firm involved in market research, to survey more than 400 business and IT decision makers across Asia-Pacific to uncover emerging customer experience technology trends. The survey, titled Asia-Pacific SMB Customer Service Trends, analysed SMBs’ business impact, priorities, and technological maturity. While there is a definite market appetite for cloud-based solutions, the study found respondents rate a wide range of other emerging technologies as higher priorities in the next one to two years. SMBs surveyed ranked an omnichannel strategy as having the most immediate impact on business, with 51.4% desiring a solution that delivered a connected customer journey across both voice and digital channels. This is followed by accessibility and mobility solutions and applications of artificial intelligence (AI) such as machine learning and digital assistants. Gwilym Funnell, Managing Director of Genesys Australia and New Zealand, shared why it’s vital for SMBs to prioritise transitioning to the cloud. “SMBs often list legacy infrastructure, integration complexities and high cost as the biggest hindrances in allowing them to modernise their customer service delivery with digital channels, chat and voice bots, automation and more. With a modern cloud platform as the foundation of their customer experience strategy, SMBs will have the infrastructure needed to rapidly access new technologies and benefit from an expedited speed-to-market without the need for massive upfront investment and significant in-house IT resources. “Choosing a partner like Genesys with a proven cloud-based customer experience platform packed with capabilities, like omnichannel, artificial intelligence and analytics, enables SMBs to compete with even the largest organisations. It also ensures smaller businesses can deploy new technology quickly, helping to reduce costs overall and realise tangible value almost immediately,” said Mr Funnell. Key focus on customer lifetime value and employee engagement The study also showed one in three SMBs put Customer Lifetime Value (CLV) ahead of customer satisfaction and customer loyalty, indicating greater market maturity. This is followed by better employee engagement and satisfaction. However, despite the buzz surrounding new digital capabilities and the fact that 60% of respondents agree that a solid customer service strategy is indispensable to gaining a competitive advantage, the study showed SMBs in Asia-Pacific are cautious in their approach. Over 52.3% of respondents believe that digital disruptions occurring across industries would only have minimal impact on their customer engagement strategy. With the exception of Australia, New Zealand and India, SMBs in most of the 13 countries polled shared a similar perspective. Funnell commented on SMBs more cautious approach to adopting digital in the Australia and New Zealand (ANZ) region, “SMBs in the Asia-Pacific region tend to have a wait-and-see attitude towards implementing new technologies for customer interactions due to often constrained technical resources and budget. This disconnect is limiting SMBs’ ability to stay ahead of their customers’ expectations and differentiate from competitors. With our proven migration path to the cloud, Genesys has made it easy and fast for SMBs to propel their customer experience forward by accessing new technologies that enable them to produce the business results that count the most, like increased revenue, sales and customer satisfaction,” said Mr Funnell. Learn more about insights from the survey and how SMBs can transform their customer experience strategy by leveraging the cloud, digital channels and AI in a webinar on Thursday 14th March at 2:30pm AEDT. Register now. Impact Of ALP Tax Change Proposals By Aged Care, Estate Planning and Private Wealth Management Accountant Financial Expert Thomas Mousa of TLK Partners In Sydney 2019-02-24T22:00:01Z impact-of-alp-tax-change-proposals-by-aged-care-estate-planning-and-private-wealth-management-accountant-financial-expert-thomas-mousa-of-tlk-partners-in-sydney Impact ALP Tax Change Proposals The impact on retirees of Labor’s proposed removal of franking credits for superannuation funds, reduction in capital gains tax discount and the removal of negative gearing In a crackdown on what it views as an unsustainable advantage for high-income earners, the Australian Labor Party will introduce reforms to tax laws on 1 July 2019 if wins the next federal election. These reforms, which include the removal of franking credits and a reduction in the capital gains tax discount, will affect about 8% of taxpayers and about 200 000 self-managed super funds. It is already sparking protest from groups disproportionally affected by the changes, most notably wealthy retirees and the super lobby. Removing franking credits Australia’s dividend imputation system allows investors to claim a tax benefit, a much-valued and relied-upon boost to their total return. This is particularly relevant for retirees, as it supports retirement spending increases of up to 6% or the equivalent of a higher balance at retirement by 8%-9%. Allowed to transfer their superannuation into a retirement savings account, tax-free up to a balance of $1.6 million, imputation credits increase the after-tax value of a fully-franked dividend by 42.8%. The proposed Labor reforms could potentially end, or at least limit, access to imputation credits for Australian retirees. Dividend imputation has existed since 1987, but refunds on excess franking credits only started in 2001, at a cost of $550 million. It has subsequently increased to more than $5 billion a year, an amount the ALP believes is excessive and detrimental to the average Australian. Introduced by Keating in 1987, dividend imputation prevents investors being double taxed, once at the company level and again at the individual level. The Howard government then enhanced the scheme by allowing individuals and super funds to claim cash refunds for any excess imputation credits not used to offset their tax liabilities. Labor intends to return to the system introduced by Paul Keating. Critics view the dividend imputation system as favouring domestic companies and shareholders and as too generous compared to other countries. However, tinkering with the taxation of super yet again after 2017’s tax reforms, could be having a negative impact on client confidence and the stability of the system. It could also impact Australian businesses, according to Thomas Mousa, Business Services Partner at TLK Partners, as these cash refunds incentivise people to invest locally. “Ending them could see super and self-managed super funds pulling their investment from Aussie companies in favour of better returns elsewhere.” The impact that restricting access to franking credits would have on retirees is probably underestimated, Mr Mousa adds. “It is likely some people will have to re-prioritise their retirement goals or accept a lower quality of life in retirement due to lower income from their investment portfolio. Professional advice on how to minimise potential income loss is critical.” Reduction in capital gains tax and negative gearing Claiming current concessions are stacked in favour of the wealthy and not supportive of investment in new housing, the Labor Party has updated its policy on negative gearing and capital gains concessions. The key components of the ALP’s policy are a proposal to limit negative gearing to new housing and reduce the capital gains tax discount from its current 50% rate down to 25%. Investments made before the implementation date or by superannuation funds, and assets of small business owners, are exempt from this change. As it stands, capital gains can be offset against previously incurred but unused capital losses and against losses incurred in a particular fiscal year. Individuals and trusts are also entitled to a 50% discount on the capital gain amount providing they have held the asset for more than year. Negative gearing is when an investment property’s net rental income (after deducting expenses) is less than the interest on the borrowed funds. While common for property investing, negative gearing can also be used for other financial instruments such as shares and bonds. The loss is claimed as a tax deduction against other income. On face value, the policy seems advantageous to mature investors who may have a combination of positively and negatively geared properties, whereas most working Australians with one negative geared property will miss out. Surveys indicate that about half of Australians are worried about their finances, yet the vast majority has never received any professional advice. “If you are concerned about the impact changing tax laws might have on your investments and retirement income, seek help,” Mousa urges. “Understanding what you’re up against is the first step in making the right financial decisions.” Thomas Mousa is a partner at TLK Partners, a company that takes care of the wealth management and accounting needs of ordinary folk, small and medium businesses, and high value individuals. TLK Partners, Chartered Accountants and Wealth Management Company website, or call (02) 8090 4324. This material is of a general nature only, it does not take into consideration your financial circumstances, needs or objectives. Before making any decision based on this content, you should assess your own circumstances, seek professional advice or contact our office to be directed to the appropriate professional. Whilst all care has been taken in presenting the material neither TLK Partners or its associated entities guarantee that the material is free of error and, the information may have changed since being published. Syndicated by Baxton Media.