As businesses strive to improve and enhance profitability, the imposition of taxation is a cost that may consume up to 48.5% of resultant profits. As such pro-active taxation management is a core requirement to the successful and continued operation of any business.

As a result of the business taxation reform measures, the structural taxation planning environment has changed dramatically. In conjunction with this the anti-avoidance measures introduced by the Tax Office have been further strengthened, generating an environment that demands specialised advice on key transactions.

Our skills in this area reflect the high level of training and development undertaken by our staff with Taxation Consulting team members undertaking post graduate studies at a “Masters” level. This level of high end training in conjunction with the high level of relationship focus ensures that our Taxation Consulting services are of the highest quality whilst also being integrated specifically to your personalised affairs.

Our Taxation Consulting division can assist in the following areas:

• Income Tax Advices
• Taxation implications of Property Developments
• GST advices
• Capital Gains Tax Planning including business acquisitions and sales, application of small business exemptions
• Establishment and reorganisation of business or investments entities
• Fringe Benefits Tax planning, cost reduction and effective salary packaging
• Specific transactional advices
• Inter-entity loan restructuring
• Off-shore transactions
• Effective Superannuation Planning
• Analysis of Investment Taxation consequences for High Net Worth Individuals/Transactions

Business is dynamic, fast moving, competitive, unpredictable and potentially “all consuming”.

In the midst of all of these things it is important that management maintains an objective, planned and strategic viewpoint of the business.

Based on our client surveys we have found that the biggest shortcoming of assessed management performance is the ability to maintain an independent strategic viewpoint of medium to long term issues.

Most businesses believe that growth is stymied by the continued misallocation of resources to short term issues. We seek to ensure that businesses maintain their focus on the core strategic issues via some of the following processes

• Special Counsel and attendance at regular Director Board Meetings
• Analysis of Key Revenue Items with a view to identifying key margin and growth issues
• Review of Strategic Management Roles and determining key outcomes to be delivered in context of assigned resource allocations
• Research and identification of key markets including financial competitor analysis and targeted pricing elasticity strategies
• Due diligence reviews of potential acquisitions
• Consideration of various financing strategies for working capital requirements.

In conjunction with the highly focused relationship development ethos of the firm we have partnered numerous businesses through substantial growth and profit patterns via the effective utilisation of such strategies.

In order to effectively deploy strategic management processes, management must be able to reliably measure the performance of key indicators. Without the support of such targets and measured outcome strategies have the ability to drift and simply be relegated to the concept of a broad “idea”.

Reporting within this area may cover some of the following areas:

• Preparation of twelve monthly budgets
• Preparation and integration of rolling monthly forecasts in conjunction with budgets
• Preparation of five year business plans
• Preparation of monthly or quarterly financial reports
• Preparation of Cashflow Forecasts
• Preparation of supporting “Sufficiency” Plans
• Costing analysis on Products and Product Lines
• Sales Mix analysis
• Breakeven Analysis on Business Case Scenarios
• Feasibility Studies

Our staff have developed extensive models as a result of numerous years of experience providing support to businesses (in particular global manufacturing operations) within these key focus areas.

The support provided within these areas is ideal for businesses seeking aggressive growth paths and those seeking to proactively drive their business operations with a continued focused on profit enhancement.

As a result of the close working relationships developed with client groups over thirty plus years, we have developed a particular expertise in assisting business move from one generation to the next.

On nearly all occasions this process is one that is grossly underestimated and overlooked by parties. There are numerous financial and emotional issues that need to be considered, all of which require medium to long term planning. It is not uncommon for these processes to take up to five years from the initial thought of a changeover due to some of the following issues:

• First generation management not being prepared to hand over basic management responsibilities
• Next generation parties not having the specific skills or appreciation of risk profiles associated with the sole operation of a business.
• Do additional skills have to be acquired externally to fill the void of exiting parties?
• What is a reasonable market price for the handover of the business?
• Why should a next generation party have to pay for a business that they may have helped build?
• Is the business structure suitable for the transfer of control?
• How can taxation implications be dealt with fairly and legally to the benefit of all parties?
• Is there a need for any new business structures to take into account the interests of the next generation parties?

In dealing with this process there is a fundamental need to involve independent parties so that emotional conflict may be reduced and placed into perspective in a fair and reasonable manner.

Having been involved with numerous of these transactions we can provide the level of independence, technical support, and strategic planning to ensure that the underlying value and continued profitability is maintained for future generations. 

Whilst the selections of appropriate investment vehicles are vital for effective taxation planning, equally important is the consideration of operating structures that will assist in accumulating your wealth for the long term in a relatively protected environment.

In selecting the correct business structure consideration should be given to some of the following issues:

• Does the business involve “non-related” or “external” investors?
• Will the business produce income only or will there be an increasing capital value?
• Are there any securities to be provided such as residential mortgages?
• Will the business acquire its own business premises or lease there?
• What level of finance is to be provided by an external financier?
• What is the long term viability of the business?
• If a member of a professional body are there particular requirements that must be adhered to?

Adding up all of these variables in conjunction with a suitable structure for tax purposes means that there is no simple or “vanilla” advice in context of establishing your business structures. In addition, as businesses continue to grow and expand it may be that the structure is no longer suitable or becoming increasingly risky. Further, changes to family dynamics such as the inclusion of a spouse or children may provide additional benefits within a suitable structure.

As such we continually seek to review our client’s affairs with a view to ensuring that consideration is always given to the future wealth retention as well as creation.

Throughout a lifetime of wealth and investment creation, the underlying net assets derived from long term investments and business profits may be protected in numerous structural entities such as companies, trusts, superannuation funds and also personal holdings.

As a consequence of this upon the death of key parties there may be core implications affecting the continuity of such structures, tax effectiveness of dealing with potential asset transfers, and the extraction of profits to nominated beneficiaries.

Accordingly, the preparation of an effective Will for such people is something that a considerable amount of planning and technical input should be allocated.

We have developed significant working relationships with Legal Firms who understand the implications of such wealth transference and in conjunction with our tax consulting team have the ability to provide a tax effective and practical estate plan.

We strongly recommend that all clients give consideration to whether their Estate Plans are up to date on a regular basis as changes to investment structures and personal wishes may have a tangible impact on the operation of a final Will.

The establishment of a Company demands significant levels of responsibility from Directors and Secretaries. Such responsibilities are largely governed by the Australian Securities and Investments Commission (ASIC). Some of the minimum requirements are detailed as follows:

• The maintenance of a Corporate Register that is available for review to members of the public every working day of the week.
• Notification to ASIC of any change of address for a director, secretary, shareholder.
• Notification to ASIC of any change of address for registered office purposes or principal place of business.
• Review and lodgement of an Annual Compliance Return.
• Lodgement of financial accounts and associated reports where the size of your Company reaches certain thresholds.
• Preparation of Minutes and Resolutions giving effect to decisions and actions undertaken by Directors.

These requirements are usually enforced with key timing and lodgement dates, whereby substantial penalties may be levied for any breach.

In order to comply with these requirements we utilise specialised systems designed specifically to cater for all of these issues. As a result our offices are provided as the “Registered Office” for hundreds of Companies dealing with the management of all Corporate Secretarial and ASIC requirements.

The use of a Self Managed Superannuation Fund has the ability to increase the level of flexibility and effectiveness in which some parties can accumulate wealth for retirement. However the operation of such a fund requires that Trustees (usually the members) manage this fund in a strict and regulated manner.

As most trustees do not have the necessary specialised skills in organising the management of such technicalities, we have developed systems and processes that enable all fund administration to be handled within our office.

This usually involves the “post boxing” of all correspondence to our office whereby we assimilate all details required for financial and regulatory compliance. From this information we are able to extract the key data to prepare financial accounts, taxation returns and prepare investment report information which can then be directed to our financial planning division for regular monitoring and feedback to you of your fund performance.

One of the key benefits of such an approach is that clients are continually extracting maximum value from their superannuation funds due to the integration of both accounting and financial planning services. The fund is continually reviewed and updated on a transactional level by skilled accountants giving consideration to your “overall” taxation planning and wealth creation objectives. Where deviations are highlighted these can be immediately communicated to your financial planner for further action and planning.

Such a “tailored” approach is difficult to achieve when your money is invested and controlled by parties that you do not have a trusted relationship with.

Wealth Management

Our wealth management division can assist you to achieve your financial and lifestyle goals. 

We work closely with our clients to develop individual strategies that are tailored to suit their personal needs.  This process involves more than simply putting something away for the future, or determining where to invest your money. It's about identifying your long term lifestyle goals, building the best path to help you achieve them, and helping you to track your progress along the way.

Our approach is a truly integrated service with your complete business and financial situation taken into account.  The ability to bring together your accounting and financial planning needs is invaluable in maximising the outcomes that can be achieved.

We have a breadth of expertise in many areas including:

·         Superannuation & Retirement Planning – Assisting in understanding the capital required to fund your retirement and maximising superannuation opportunities available 

·         Effective cash flow management – Determining your cash flow needs and ensuring any surplus is directed towards appropriate wealth creation strategies

·         Taxation Planning & tax effective investment strategies – Ensuring your structure is appropriate and taxation is minimised as much as possible

·         Investment Planning – Proven portfolio management and asset allocation to grow your wealth over time

·         Insurance Planning & Risk Management – Determining your needs to protect your family and your assets

·         Mortgage & Finance Broking – Ensuring your borrowing requirements are met and remain competitive

·         Estate Planning – Understanding your wishes and ensuring your Estate Planning strategies are reflective of these

·         Centrelink & Aged Care Planning – Maximising access to benefits where applicable and assisting with any aged care needs

·         Charitable planning and philanthropy solutions – Providing solutions to facilitate your goals for charitable giving 

Charles Knight - Financial Planner

In accordance with Professional Accounting Standards and Guidelines our fees are calculated based on the level of skill and time required to complete an engagement. In doing so our focus and commitment remains on providing a superior quality service predicated on the concept of "Value" to all clients.

Effective from 1st July 2008 our hourly charge rates are as follows:

Team Member	Hourly Charge Rate (Excluding GST of 10%)
Partner	$225 - $315
Manager	$185 - $235
Senior Accountant	$140 - $195
Graduate Accountant	$105 - $140
Administration	$70  -  $105

The "banding" of rates provides the range of charge for each team member, depending on the type of work involved.