Powerline - Spring 2016

My Say with Gilda Brisotto

Welcome to the Spring issue of Powerline.

Growing your business is very much like growing a garden. A garden doesn't grow overnight.  You need to invest time and energy into the process and a business is no different. 

At Power Tynan, we are constantly working on ways to make our client experience better.  We put a lot of resources into ensuring that we are up to date with the latest technology and keeping up to date with changes to legislation. 

As highlighted in the last Powerline, from 1 July 2016 accountants can offer strategic financial advice and consider superannuation options when advising clients, but only if they became licenced.   In order to continue to deliver the high level of quality financial strategic advice to our clients, our senior advisers have all obtained a Diploma of Financial Planning, and we have become Authorised Representatives of SMSF Advice.  This new legislative requirement has changed the way we provide and present this advice to our clients, and we have already seen benefits for clients who have been through this new process.

Many proposed changes to superannuation were put forward in the May 2016 budget, and the Government recently issued a media release regarding the revised changes. While none of these proposals have been legislated as yet, the draft is set to issue sometime in October. An added benefit of our partnership with SMSF Advice is access to expert guidance, ensuring we will be able to quickly respond to the legislation and advise our clients of their options in relation to these changes.

With technology moving at an ever rapid pace, we've been testing new accounting software solutions, add-ons and apps, and will be showcasing these to our clients who will benefit from them in the near future. 

As you may have also seen, we now offer a full bookkeeping service for our clients.  As a part of this service, we undertake an internal efficiency review of the business’ financial systems.  This internal efficiency review process is also available to clients who still want to do their own books, but would like us to review their systems and processes.

Internally, our in-house process engineer and his team are working on a new and improved client portal and electronic document system, which will be made available to our clients soon.

Amanda Kenafake and myself will be taking part in TSBE's AccessChina'16 business delegation, travelling to Shanghai, China for a five day program aimed at activating business opportunities in agriculture in Asia, health & aged care, tourism, mining & resources, education and sustainable design and manufacturing.

Finally, we are extremely proud to have made the finals of the Australian Accounting Awards in an unprecedented ten categories.  This is an incredible achievement and we wish our individual finalists all the best.   The winners will be announced at a Gala Ball in Sydney on Friday 14 October 2016.

Charitable Trust Lighting the Night for Leukaemia Foundation

Every single day, 34 Australians are diagnosed with a blood cancer, such as leukaemia, lymphoma and myeloma, and unfortunately, this number continues to grow. The Leukaemia Foundation is committed to supporting initiatives and research to improve health outcomes for these patients, enabling more people to survive such a diagnosis.

Light the Night is the Leukaemia Foundation’s annual fundraising walk, which aims to raise $2 million this year. Families and friends will come together for a gentle walk carrying one of three coloured lanterns; gold to remember a loved one, white for their own blood cancer journey, or blue to show they care.

To show our support for this community event, the Power Tynan Charitable Trust recently presented Emma Quade from the Leukaemia Foundation with a $1,500 cheque.

For seven years this event has provided locals with an opportunity to get together and celebrate their survivorship or remember a loved one lost,” said Emma.  “It is an opportunity for individuals, businesses and groups to come along and walk alongside them to show support and let them know their community cares.”

This cause is extra meaningful for Power Tynan Charitable Trust representative Jane Kerridge, who has seen the support of the Leukaemia Foundation first hand.

“This fantastic organisation is very close to my heart after my twin sister was recently diagnosed with leukaemia,” said Jane. “She has undergone a bone marrow transplant and is currently staying in accommodation in Brisbane, which is fully funded by the Leukaemia Foundation, taking the financial stress out of the situation and ensuring she gets the best treatment possible, allowing her to be close to the hospital for appointments and checkups.”

As well as financially supporting Light the Night, members of the Power Tynan team will also be volunteering at the event, with our Executive Director Amanda Kenafake speaking on the night on behalf of the blue ‘supporters’ lantern holders.

Light the Night is being held at Queens Park in Toowoomba on Friday 7 October, and Lions Park – Quart Pot Creek in Stanthorpe on Saturday 8 October. For more information on a Light the Night event near you, visit http://www.leukaemiaqld.org.au/

 

LEFT: Jane Kerridge and Amanda Kenafake of Power Tynan present Emma Quade from the Leukaemia Foundation with a cheque for $1,500

 

A message from Laura Sullivan:

“Brendan & I would like to sincerely thank Power Tynan for their generous support.

After I was diagnosed with Leukaemia in early March, our lives were turned upside down. The support we have received from Power Tynan lessens the burden and greatly assists us.

We also greatly appreciate the love and support that many staff have offered us too. I would like to personally thank the Stanthorpe branch who have rallied exceptional support for my sister, Jane Kerridge, right from the very beginning. Power Tynan is a wonderful company, and should be proud of their kind & compassionate staff. Thank you!”


 

 

Staff Anniversaries - Spring 2016

This quarter we celebrated the Power Tynan anniversaries of Chloe Morello and Kathy Brooks, who have been with the firm for ten years, and Sharon Baldwin, who has been with the firm for fifteen years.

 

Chloe Morello

  1. Date & Place of Birth

    26 September, Toowoomba

  2. Education

    Stanthorpe State High School, Griffith University (Bachelor of International Business/Commerce), CPA

  3. Hobbies & Interests

    Running, snow skiing, water skiing, hanging out & playing with my kids

  4. When did you start working at Power Tynan?

    10 July 2006 

  5. Why did you apply for a job at Power Tynan?

    I enjoyed the commerce/accounting aspect of my university degree.  The work experience I did at Power Tynan prior to finishing my degree confirmed my desire to work in the accounting arena, in my home town.

  6. Why do you enjoy working at Power Tynan?

    I love the variety of work I undertake, the people I work with and also meeting and working with clients.

 

 

Kathy Brooks

  1. Date & Place of Birth

    10 September, Laidley

  2. Education

    I completed Year 10 at Lockyer District High School

  3. Hobbies & Interests

    I enjoy playing squash, camping, spending time with family and relaxing at the beach.

  4. When did you start working at Power Tynan?

    October 2006 

  5. Why did you apply for a job at Power Tynan?

    I had been working in the legal industry for some time and was offered the job at Power Tynan.  I was happy to accept the challenge of a new industry.  The work/life balance also suited me as I had two small children when I started.  I was offered to work school hours and to have school holiday leave.

  6. Why do you enjoy working at Power Tynan?

    I enjoy the challenge of the work I do.

 

 

Sharon Baldwin

  1. Date & Place of Birth

    20 March, Toowoomba

  2. Education

    While I was born in Toowoomba, I spent my primary school years in Brisbane, returning to Toowoomba for high school. I have also completed a Bachelor of Commerce, CPA and Diploma of Financial Planning.

  3. Hobbies & Interests

    Working full time with two young boys, I don’t have a lot of spare time, however I enjoy spending time with friends and family.

  4. When did you start working at Power Tynan?

    August 2001

  5. Why did you apply for a job at Power Tynan?

    I was studying my Bachelor of Commerce externally through USQ, and saw an advertisement for an undergraduate accountant position.

  6. Why do you enjoy working at Power Tynan?

    I love the culture of Power Tynan. It is a great place to work, with an amazing team and clients.


 


 

Deceased Estates: Things You Need to Know

Unfortunately, having to deal with managing a deceased estate is a task many of us will have to shoulder at some stage in our lives — but having some familiarity with what’s involved beforehand will hopefully ease the burden.

It is worth remembering that the law that applies to the assets and income of a deceased person depends in large part on which State or Territory they lived in when they died. Also note that the information presented here mainly looks at tax responsibilities (which are a federal obligation). There may be State or Territory legislation that will need to be factored in.

 

What the estate comprises

The property and assets belonging to a person who has died, called their deceased estate, may include real estate, money in bank accounts, shares, and personal possessions. Some types of income can also form part of the deceased estate. However, some assets will not be included because the deceased may have made other arrangements to distribute them or own the assets as a joint tenant.

The deceased estate holds the assets of the deceased in trust from the time of the death of the person concerned until the transfer of the property and assets to their beneficiaries as nominated in their will. It is administered by either:

  • an executor appointed in the person’s will, or

  • an administrator appointed by the Supreme Court.

Superannuation and life insurance payments may or may not form part of the deceased estate. If there are stipulated beneficiaries under the policies, the payments may go directly to the beneficiaries without passing through the deceased estate.

 

Being an executor

If you have been appointed as an executor or administrator of the estate, you will be responsible for managing the deceased estate’s tax affairs, as well as:

  • carrying out (executing) the terms of the deceased person’s will

  • complying with the relevant inheritance laws, where there is no will.

The executor or administrator (this information applies equally to both) is responsible for administering the deceased estate in the best interest of the beneficiaries nominated in the will (or if no will exists, the deceased person’s next of kin or other person according to a State or Territory law).

The executor more or less takes over the role of the deceased person and winds up their personal affairs. Tasks usually performed by an executor can, but may not always, include:

  • locating the will

  • arranging the funeral

  • applying for probate

  • obtaining a death certificate

  • informing investment bodies of the death – these might include banks, building societies, and share registries

  • informing Centrelink and other government bodies, such as the Tax Office

  • locating assets and having their value assessed

  • paying debts, income tax and funeral expenses

  • transferring assets and paying stamp duty

  • distributing the surplus to beneficiaries.

 

Tax responsibilities

There are generally no death duties in Australia. However, tax may be payable on certain income or capital transactions that arise as a consequence of a person’s death.

Any tax liability that may be generated from your role as executor is separate from your own personal tax liability. Therefore don’t include any of the income of the deceased person or deceased estate in your own personal tax return (except for any trust income you may receive as a beneficiary). Another item that may potentially have to be declared is any fee charged to the estate for executor services performed.

As an executor, your tax responsibilities include:

  • lodging a final return, and any outstanding prior-year returns, for the deceased person

  • lodging any trust tax returns for the deceased estate

  • providing beneficiaries with the information they need to include distributions in their own returns and, in certain cases, paying tax on their behalf.

As the executor of a deceased estate, you may need to lodge a final tax return on behalf of the departed. If they did not lodge prior-year tax returns, it will need to be determined whether they are necessary. If so, you need to prepare and lodge them, and of course consult your tax professional should you require help with these tasks.

There may be a number of reasons why you may have to lodge a personal tax return for the deceased – for example, they may have had:

  • tax withheld from the income they earned

  • earned taxable income exceeding the tax-free threshold

  • tax withheld from interest or dividends because no tax file number (TFN) was quoted to the investment body

  • lodged returns in prior years.

 

Capital gains tax (CGT) implications

When the assets of a deceased estate are distributed, a special rule applies that allows any capital gain or loss made on a CGT asset to be disregarded if the asset passes:

  • to the executor

  • to a beneficiary, or

  • from the executor to a beneficiary.

However, if an executor sells an asset of the deceased estate and then distributes the proceeds to the beneficiaries, the sale is subject to the normal rules and CGT applies.

Basically this means, in most cases, the transfer of CGT assets into a deceased estate and then out to their beneficiaries will not incur an income tax liability.

 

Superannuation death benefits

In most cases, when a person dies, their superannuation fund will pay their remaining super to their nominated beneficiary, which is called a “super death benefit”.

If there are no binding death nominations, then the trustee of the super fund will decide how the benefit will be paid. Depending upon the trust deed of the superannuation fund, and rules and regulations operating for superannuation, the trustee may pay it to the deceased estate, then the executor will deal with it accordingly. However, the super is not part of the will (except in NSW).

If you are a dependant of the deceased, you do not need to pay tax on any component of a superannuation death benefit if you receive it as a lump sum (if you receive it as an income stream you may need to pay tax on it). Also do not include it on your tax return as income. If you are not a dependant and you receive a death benefit it must be as a lump sum. The item is generally taxable as follows:

Maximum tax rate for lump sums paid to non-dependants

Taxed element of the benefit                             15% plus Medicare levy

Untaxed element of the benefit                         30% plus Medicare levy

 

If you require any assistance in relation to managing a deceased estate, please contact your trusted adviser at Power Tynan.

Client Corner – Licensing for Accountants

Each quarter we interview one of our clients to get an insight into their business. This issue we spoke to Kath Bowler of Licensing for Accountants.

When did your business commence?        

I started Licensing for Accountants in February 2015.

What does your business do? 

We help accounting practices who want to advise their clients on SMSFs and are impacted by recent licensing changes.  We work both directly with the accounting practices themselves, and indirectly by supporting associations and other organisations that support accountants.

What makes your business successful? 

I believe we are successful due to our expertise, being first to market, trying to do something different, and always thinking about what the customer wants.

What has been your biggest achievement to date?  

Being the preferred supplier for CAANZ in relation to their member queries for licensing.

What is one piece of advice you would give to someone starting up a business? 

It will take twice as long and cost twice as much as you think it will!

How do you relax from the pressures of being in business? 

Unfortunately I don’t do this very well yet, but I am aiming to take a family holiday at the end of the year.


How to Effectively Improve Your Profit

If you are a business owner, I’m sure this heading caught your attention!  Effectively improving profit is an outcome all businesses strive for.  There are many ways in which you can do this, but this article focuses on eliminating the seven areas of waste that all businesses experience. Studies have shown as much as 30% of all operating costs of a business is waste!

The first step in this process is to understand the three stages of Business Improvement:

  • Structure

  • Identify – identify potential wastes and inefficiencies

  • Belief – believing you have the capability and readiness in the business and relationships  to address these wastes

To begin the elimination journey, you need to identify and measure where you are now, otherwise there is no way to understand or gauge improvement - remember the old saying “what gets measured gets managed”.  This is achieved by auditing your business.

Power Tynan can facilitate this process, enabling the identification and prioritisation of wastes. This process will require the formation of a team to address the issues and measure the outcomes every six months to reveal improvements.

The seven areas of waste to be considered are:

  1. Overproduction– producing more than is needed or before it is required (this can be product or people)

  2. Waiting– where waiting occurs between steps in a process

  3. Transportation– transport between stages in a process

  4. Inappropriate Processing– ensure you are using the right tool or person to complete the task

  5. Inventory– ensure you do not have unnecessary inventory or work in progress

  6. Motions– poor ergonomics, having equipment in the wrong place or having to move too much

  7. Defects– rework

An example of a waste audit is below:

 

If you would like to discuss how Power Tynan can facilitate this process within your business, please contact your trusted adviser.


Charitable Trust celebrates 20 Years of Toowoomba Clubhouse

The Power Tynan Charitable Trust was established by the management and staff of Power Tynan in July 2010, with the aim of giving back and making a positive contribution to our local communities. We look to make a contribution to two worthy organisations every quarter, and have donated over $140,000 since the Trust’s inception, which is something we are extremely proud of.

Toowoomba Clubhouse is one such organisation, established in 1996 to help address a shortage of mental health services for people in the Toowoomba community. It has a non-institutional, restorative environment within which people support each other through recovery from mental illness.

To support this important cause, the Power Tynan Charitable Trust recently donated $1,500 to the Toowoomba Clubhouse Association.

“The Toowoomba Clubhouse works with people who have a mental illness, enabling them to gain the confidence and skills required to beat homelessness, unemployment and social exclusion,” said Chief Executive Officer Jo Sheppard. “We achieve this through initiatives such as participating in a work-ordered day, supported education and employment, housing and self-directed planning and supported goal setting.”

Power Tynan staff member Paul Best is a strong supporter of the Clubhouse and what they do for our community, and nominated the organisation to receive a donation from the Charitable Trust.

“The Clubhouse provides opportunities to members which they would not have been offered otherwise, and encourages members to choose their level of participation within a safe environment,” said Paul. “Members can build and improve skills, and are afforded the chance to socialise with their peers and other members who have been through the same experiences.”

The Toowoomba Clubhouse turns 20 this year, and are hosting a Birthday Gala Dinner on November 5 - not only to celebrate, but also to raise the profile of the organisation throughout the Toowoomba business community.

For more information regarding the Toowoomba Clubhouse, or to find out how you can be involved, please visit http://www.toowoombaclubhouse.org.au/

 

LEFT: Paul Best of Power Tynan presents Brendan Schumann and Jo Sheppard of Toowoomba Clubhouse with a cheque for $1,500

 

Online Payment Gateway Now Available!

We are pleased to advise that we have implemented an online payment facility which will enable you to pay our bills at any time, day or night. This can be found on our website at http://www.powertynan.com.au/payments

As a firm, we are always mindful of maintaining security of our client’s confidential information. This payment gateway means we no longer need to obtain your credit card details if you choose that payment method.

Client’s paying by credit card will receive immediate on screen and email confirmation of payment. As always, we accept either Visa or MasterCard.

Another feature of this online facility is the monthly payment option, which is provided by our trusted partner FeeSynergy. If you choose this option, an email will be sent automatically to our client services officers so they can arrange a payment plan that best suits your cash flow. 

We hope that you will enjoy using our new online payment facility!


Staff Spotlight - Spring 2016

 

 

Snowflakes in Stanthorpe

Our Stanthorpe office got into the winter spirit for the Snowflakes in Stanthorpe festival, which took place on the first weekend in July.

This event is designed to be Queensland’s only winter experience and consisted of three snow-magical days, and from all reports, a fantastic time was had by all who attended!

 

 

 

PT Athletes

Members of our Stanthorpe office have been smashing goals left, right and centre lately in terms of their running.

Chloe Morello competed in her first half marathon (21.1km) in June at the Mackay Marina. Chloe set herself two goals – not to walk during the event, and to finish under two hours – and she achieved both of these!  Chloe said it was an amazing experience and has definitely motivated her to continue to improve.

Dan Cuthbert competed in the Gold Coast Half Marathon (21.1km), City to Surf (14km) and Bridge to Brisbane (10km). Dan achieved PB’s in all three events, finishing off a very rewarding year for himself personally.  

Toni Jackson competed in her fourth half marathon (21.1km), however it was her first time at the Sunshine Coast half marathon.  Toni took 5min 38 sec off her PB from four years ago, and was very happy with her result.

Hang Ya Boss Out to Dry

Our very own Brad Hancock took part in the Hang Ya Boss Out to Dry fundraiser on Friday 26 August, raising a total of $6,535 for the Toowoomba Hospice!

This fundraiser involves a number of local business people placed in a cherry picker high above the ground, and each must raise a minimum of $1,000 before they can return to safety.

Brad would like to thank all clients, friends, referral partners and Power Tynan colleagues for their very generous donations towards this fantastic cause.

 

 

 

 

 

 

 

 

 

 

 

 

Lifeline Rural Connectivity Project

Brad Hancock and Lauren Guymer recently attended a morning tea at Lifeline Darling Downs as a thank you for our support in the rural connectivity project.

Lifeline Darling Downs and South West Qld recently acquired new internet enabled tablet devices to enhance and improve the impact of their rural and remote counselling services thanks to kind donations from Bendigo Bank, Power Tynan and Frontier Voice and Data.

Lifeline Darling Downs provides over 10,000 hours of free counselling and therapy to vulnerable individuals and families in Toowoomba and the South West every year. While counselling is by its nature a very personal experience, Lifeline's successful counselling teams are aware that the information age and the communication technology available today is rapidly changing our lives and the communities we are living in.

These tablets will enable Lifeline's counselling team to trial online video chat technology such as Skype and Facetime to allow improved access to counselling services for clients who live in rural and remote communities to engage more regularly with Lifeline's professional counsellors.

 

Social Club does Stanthorpe

Members of the Power Tynan Social Club spent a rainy September Saturday in Stanthorpe experiencing the great food and wine the Granite Belt has to offer. The tour included visits to Bramble Patch, Happy Valley – Granite Belt Brewery, Queensland College of Wine Tourism, Robert Channon Winery and Summit Estate Winery. A fantastic time was had by all!

 

 

 

 

 

 

 

 

 

 

 

 

 

Australian Accounting Awards

Power Tynan has been shortlisted for the prestigious Australian Accounting Awards, partnered by Reckon.

Now in its third consecutive year, the Australian Accounting Awards, which covers 24 categories, recognises individual excellence in accounting, from the profession’s most senior ranks to its rising stars.

Power Tynan has been shortlisted as a finalist to win ten awards at the 2016 Australian Accounting Awards, hosted by AccountantsDaily, Australia’s top publication for the accounting industry, in the following categories:

  • Firm of the Year (<$1bn in revenue)
  • Graduate Program of the Year
  • Diversified Firm of the Year
  • Community Engagement Program of the Year
  • Thought Leader of the Year – Paul Hilton
  • Executive of the Year – Amanda Kenafake
  • New Partner of the Year – Brad Hancock
  • Rising Star of the Year – Peter Rowe
  • Young Accountant of the Year (under 30) – Ben Twidale
  • Accounting Student of the Year – Sammi McCleverty

Winners in the individual categories will automatically be shortlisted for the coveted AccountantsDaily Excellence Award.

The winners will be announced at a five-star gala awards dinner on Friday, 14 October at the Four Seasons Hotel in Sydney.

 

Wedding Bells

Congratulations to Peter Rowe and Aimee Driemel, both of our Toowoomba office, on their recent engagement.