Look beyond the banks for better investment returns The RBA has held the official cash rate of interest at an all time low of just .75% and thousands of Australian investors, including retirees, self-managed superannuation funds (SMSFs), companies and individuals, are now left stranded earning less than 2.0% on their idle cash. Low Rates have taken their toll For many investors the fall in rates over the past 8 years has led to: • less retirement income to live off • fewer family holidays • reduced discretionary spending • downsizing of the family home • …and in many instances financial distress We have heard of these frustrations and many more at Sedley Koschel Financial Group (SKFG). Non bank investments offer a positive alternative For many, earning a low rate of return on your idle money is neither desirable nor sustainable, particularly given that inflation is currently higher (1.6% per annum) than the cash rate (.75% per annum). Investors are now forced to look for alternatives to keep ahead financially and maintain their lifestyles. Otherwise they risk going backwards by doing nothing. Low interest rates have resulted in much-needed innovation within the financial services industry to fill the gaps left by the banks. Non-bank alternatives have created wide opportunities for investors and companies. “Robert Koschel explains everything very well so you can make a decision with confidence. He was very insightful, providing us with different investment options, explained what the returns would be and the likely outcomes for each. And he let us make the decision, which is what we wanted.” Glen & Shirley, Sanctuary Cove Make the switch and enjoy a higher return If you are considering making the switch to a non-bank alternative to achieve a better return on your idle money, remember that all investments carry a level of risk and you should be comfortable with the investment strategy of the company you choose to invest with. How Sedley Koschel Financial Group can help SKFG is a dedicated boutique financial services group with offices in Hope Island, Benowa and North Queensland. We specialise in providing investors with holistic advice into income generating investment products to help them keep ahead in the low rate environment. Creating winning investment strategies Whether you choose to move your money to us or another alternative, interest rates appear unlikely to increase for some time. We are big believers in creating win-win outcomes for our investors as we have considerable investment portfolios under advice. Our team strategically selects investment portfolios that suit your personal needs. Sedley Koschel Wealth Pty Ltd is a Corporate Authorised Representative (CAR) no. 326 979 of Professional Investment Services Pty Ltd. ABN 71 074 608 558, an Australian Financial Service Licence holder (No 234951). Our liability is limited by a scheme approved under Professional Standards Legislation, except where we provide Financial Services as an Authorised Representative of Professional Investment Services Pty Ltd ABN 11 074 608 558 / AFSL 234951. All advisers are Sub Authorised Representatives of Sedley Koschel Wealth Pty Ltd. Only financial planning and insurance services are provided through Professional Investment Services Pty Ltd. Prospective investors are encouraged to request relevant disclosure documents to ensure they are fully informed, and to seek independent advice before deciding whether they consider any financial products to be suitable for them or making any investment decision.
Author Archives for Terrena Peade
Festive, Restive or Pensive? Your Business in the Holiday Season
Legislation has recently passed through Parliament which prevents taxpayers from claiming a deduction for expenses incurred for holding vacant land. The amendments are not only retrospective but go beyond purely vacant land and will certainly affect Mum & Dad property developments. Previously, if you bought vacant land with the intent to build a rental property on it, you may have been able to claim tax deductions for expenses incurred in holding the land such as loan interest, council rates and other ongoing holding costs. The new laws, aimed predominantly at Mum & Dads (individuals, closely held trusts and SMSFs), prevent these deductions from being claimed. Since the new laws apply retrospectively to losses or outgoings incurred on or after 1 July 2019 regardless of whether the land was first held prior to this date, and with no grandfathering in place, the amendments will not only impact those intending to develop vacant land but those who have already acquired land to develop. This is the same target as previous tax changes that denied travel claims to visit residential rental properties and depreciation claims on plant and equipment in some residential rental properties. The changes however, go beyond purely vacant land for residential purposes. Deductions could also be denied for land with a building on it, if that building is not ‘substantial’. The only problem is, the legislation does not clearly define what ‘substantial’ means. The Bill suggests that a silo or shearing shed would be substantial but a residential garage for example, would not meet the test. If the new measures prevent holding costs from being claimed as a deduction, then they will generally be added to the cost base of the asset for capital gains tax (CGT) purposes. This means that they can potentially reduce any capital gain made when you dispose of the property in the future. However, holding costs for CGT assets acquired before 21 August 1991 cannot be added to the cost base and these costs cannot increase or create a capital loss on sale of a property. On the positive side, vacant land leased to third parties under an arm’s-length arrangement may continue to be eligible for deductions for holding costs after 1 July 2019 if the land is used in a business activity. Also, land used in a primary production business will generally be excluded from the new rules. However, deductions could still potentially be lost (at least to some extent) if there are residential premises on the land or that are being constructed on the land. There are also carve outs for land which has become vacant or which cannot be used to produce income for a period of time due to structures being impacted by natural disasters or other events beyond the owner’s control. The amendments do not apply if you (or certain related parties) carry on a business on the land or where the land is owned by companies, superannuation funds (other than SMSFs), managed investment trusts or certain public trusts. Book a confidential consultation with our award winning Accounting team and find out how we could help you with tax planning. Our Care, Your Success.
Is your business Green & Growing or Ripe & Rotting?
The SMSF Association has just released their review of the Australian Taxation Office’s 2016-17 statistical overview of SMSFs. Given the amount of pre-election SMSF negativity it makes a very exciting read. Read the full report here
Please read our June 2019 issue of ‘On The Money’, a quarterly newsletter with content on hot topics for small business owners including the latest marketing techniques and business automation tools, tax planning ideas, the latest apps for business and wealth creation ideas. CLICK HERE TO READ ‘On The Money’ June 2019 This edition features information on: 2019-20 Federal Budget highlights Tax changes for individuals Small & medium business tax Superannuation changes Indirect tax Year End tax planning Investment property renovation tax tips Before you buy a business Local search for small business
Federal Budget Report 2019-20 Federal Budget 2019 – More winners than losers
Please read our March 2019 issue of ‘On The Money’, a quarterly newsletter with content on hot topics for small business owners including the latest marketing techniques and business automation tools, tax planning ideas, the latest apps for business and wealth creation ideas. ‘On The Money’ March 2019
Please read our December 2018 issue of ‘On The Money’, a quarterly newsletter with content on hot topics for small business owners including the latest marketing techniques and business automation tools, tax planning ideas, the latest apps for business and wealth creation ideas. Sedley Koschel ‘On The Money’ – December 2018
Last night, I sat down on the couch with my nine year old daughter, Isabella, as we have done after dinner for many years. This time was different though, because instead of reading a school book or a fairy tale I decided I was going to try and teach her about life. Well I know life means different things to different people. We all have different goals and dreams that we want to achieve. But how could I teach my child about life according to what I have learned over 20 years. Upon reflection, I thought to myself, isn’t that what I wanted from my mother and father when I was growing up, for them to teach me how to be financially secure, independent and successful. Indirectly by example, I feel this is what most parents try to provide for their children but there is a lot more to learn about life than what we learn from our parents and our teachers. In this world all we can trust is constant change, and that change is accelerating rapidly. I recently attended an international conference in Vietnam and was astonished by what technological advances are on our doorstep. The first is driverless cars, and potentially driverless drones. I thought how can I teach my daughter about driverless cars? Should she own a driverless car anyway or be an entrepreneur and buy a driverless car to hire out while she is asleep and achieve a return on capital? We need to think deeper about this. If we have driverless cars, do we actually need cars and could this capital be used elsewhere? Won’t there be a driverless car service and everywhere? And if we have driverless cars could they become an asset to generate money? Who is responsible if a driverless car has an accident? Secondly and by far the most concerning is the time at which computers (Artificial Intelligence) can replace our thinking so that we become redundant? The capacity of the computer chip is growing so fast that within the next 15 or so years we may reach a critical point where Artificial Intelligence could make the human brain redundant. Wow I thought! How am I going to teach my daughter about this. Well I don’t think I can, it’s going to be up to the governments of this world to control that. At what point do we say no to change? Those that are going to be successful are the children that are going to be able to think independently and take risks both financially in business and in their personal relationships. One thing is for sure, life is going to throw lots of curve balls at our children and its going to be the ones that can handle the change in a positive and persistent manner that will come out on top. My job for the last 20 years has been to help my clients document, plan and achieve their business and lifestyle goals by partnering with them on the journey. I have found that dreams don’t happen overnight and life never goes according to plan. It’s my passion to be an independent professional that can help with the emotional roller coaster ride during times of stress and when dealing with money. I pride myself on the very strong relationships that we have with our clients and we offer an concierge service. What does that mean “well we go the extra mile for our clients in their time of need.” My personal journey and the journey of Sedley Koschel has been like any of my clients, It all doesn’t go in one direction, you have your ups and your downs! Thats what I tell my clients! We have been around a long time, in fact the firm was originally started in 1973 and operated from the Runaway Bay Shopping Village, It’s a long story but Sedley Koschel is the same business with a different name and still has a lot of the clients from that time, as my daughter would say “the old days”………. One thing has changed though and that’s that the firm offers a holistic service now, not just Accounting and Taxation. We really are a one stop shop for financial services on the Northern Gold Coast. Getting back to that book I was reading to my daughter “Rich Dad Poor Dad by Robert Kiyosaki” It’s what the rich teach their kids about, that the poor and middle class do not. So getting back to the title, “Should my daughter own a driverless car?” Well……..yes, but only if she leases it out while she is asleep! Good Advice from her dad. Robert Koschel