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Aggressive business partner

Are you being forced out of your business by an aggressive business partner?


Are you feeling trapped and forced out of your business by an aggressive business partner making your life hell?

This situation can be incredibly stressful, leaving you powerless and questioning your dreams, motivation and aspirations. But fear not because help is here.

Let’s explore the common signs and tactics that aggressive business partners use to push their partners out and strategies to regain control and protect your interests.

Being forced out of your business is a nightmare and unacceptable. The good thing is you don’t have to face it alone.

The first step is to recognise that your partner is becoming aggressive and no longer interested in a fair and harmonious partnership. You can start proactively protecting your rights and negotiating a more equitable arrangement.

Signs of an aggressive business partner

Dealing with an aggressive business partner can be a challenging and emotionally draining experience.
Identifying the warning signs early on would be essential to prevent further damage to your business and personal well-being. Here are some common signs that your partner may be becoming aggressive:

1. Control and dominance: An aggressive partner may exhibit controlling behaviour, making decisions without consulting you and exerting authority over every aspect of the business. They may disregard your opinions and ideas, leaving you marginalised and undervalued.

2. Lack of transparency: Transparency is crucial in any business partnership, but an aggressive partner may withhold important information or keep you in the dark about critical decisions. This lack of transparency can lead to a breakdown in trust and hinder your ability to contribute to the business effectively.

3. Undermining and belittling
: Aggressive partners often resort to belittling and undermining their counterparts to assert dominance. They may criticise your work, question your competence, or blame you for any setbacks, eroding your confidence and self-esteem.

4. Financial impropriety:
Dishonesty with finances is a major red flag. If you notice irregularities in the company’s financial records or suspect your partner of embezzlement or mismanagement, it’s crucial to address the issue immediately to protect your assets.

Note the signs early before a dispute becomes raging fire!


Watch for these signs early will protect yourself and your business by being proactive. By acknowledging the problem, you can regain control and work towards a more equitable partnership.

An aggressive business partner can devastate your business, both financially and emotionally. Their actions can undermine the stability and success of the venture, leaving you feeling powerless and defeated.

Here are some of the expected impacts of dealing with an aggressive partner:

1. Decreased productivity: Constant conflict and power struggles can significantly impact productivity and efficiency within the business. The toxic environment created by an aggressive partner can decrease motivation and collaboration among team members, leading to reduced output and missed opportunities.

2. Loss of clients and business opportunities: Aggressive behaviour can drive away potential customers away by a hostile environment. Additionally, an aggressive partner may make impulsive decisions or alienate critical stakeholders, resulting in missed business opportunities and damaged relationships.

3. Legal complications: Dealing with an aggressive partner can lead to legal battles and disputes. If your partner engages in unethical or illegal practices, you may face legal consequences or have to defend your reputation in court.

4. Negative impact on personal well-being: The constant stress and anxiety of dealing with an aggressive partner can take a toll on your mental and physical health. Please seek help as soon as possible if you are experiencing this.


The impact of an aggressive business partner on your business.
Seek help for you if needed!

It’s important to prioritise self-care and seek support from friends, family, or professional counsellors to navigate this challenging situation.

The impact of an aggressive partner can be far-reaching, affecting your business and personal life.

Knowing your rights as a business owner

When confronted with an aggressive business partner, knowing your legal rights and responsibilities as a business owner is essential. Understanding the legal implications can help you protect your interests and make informed decisions.

Partnership agreements: Review your partnership agreement to understand the rights and obligations of each partner. Here are some options to consider:

Corporate laws and regulations: Understanding your legal rights and obligations can give you leverage when dealing with an aggressive partner.

Breach of fiduciary duty: If your partner breaches their fiduciary duty, which includes acting in the business’s best interest, you may have grounds for legal action.

Alternative dispute resolution: Mediation or arbitration can effectively resolve conflicts with a business partner without resorting to costly and time-consuming litigation. Explore these options to find a fair and mutually beneficial resolution.


Our role as Dispute Strategy Accountants is to help you explore your options and implement the right strategy. Please reach out to you have any questions or would like to devise a strategy!

What to do moving forward!

Please make sure to document everything: Keep a detailed record of all interactions, decisions, and incidents involving your partner. This documentation can serve as evidence in case legal action becomes necessary and provides a clear timeline of events.


Be open in your communication.In doing so you can try to address the issues with your partner through open and honest communication. Express your concerns and attempt to find common ground. However, be prepared for resistance, and don’t hesitate to seek alternative solutions if communication fails.


Empathy and active listening by giving your partner your full attention and seeking to understand their perspective. As a result this shows respect and can help foster a more constructive dialogue.

Focus and set boundaries – all part of the strategy.


Focus on interests, not positions: Uncover the underlying interests or needs driving your partner’s behaviour, furthermore, instead of focusing on your differences. Find common ground and work towards a mutually beneficial solution.


Set clear boundaries: Establishing clear boundaries and expectations can help prevent future conflicts. Clearly define roles, responsibilities, and decision-making processes to ensure everyone is on the same page.

Look for that win-win position. Look for win-win solutions. Explore compromises that address both your interests and your partner’s.

Seeking professional help can provide you with the expertise and guidance necessary to navigate the complexities of dealing with an aggressive business partner.
These preventive measures can minimise the risk of encountering an aggressive partner and protect your business from potential harm.


Empowering yourself as a business owner after facing an aggressive partner!


A good strategy gives you peace of mind!

Never go head-on with an aggressive business partner. Plan and deal with financial facts and events. Always consider what you would like as the outcome of resolving the situation before starting any partnership negotiations. Professional accounting and legal help lead a suitable path with one goal in mind resolution: to move forward but not destroy what you have built!


If the dispute is resolved, let’s look at the culture of the business, how to prevent it from happening again and the transparency of decision-making. Do we also have to put a strategy to repair the damage done to the organisation that resulted from the distraction the dispute has caused? Let’s look at how this has impacted staff, suppliers, customers, and your family.


Remember to prioritise your well-being and seek support from your network. You can rebuild, recover, and continue on your path to success. Look beyond the problem; the solution may be to be empowered in a new business structure. Don’t let anyone force you out of your dreams!

Customer Retention Engagement Strategies

🔒 Customer Retention Engagement Strategies . Lets explore Unlocking the Secret to Keeping Your Customers Engaged in a competitive market 🔒

🚀 Small businesses are facing unprecedented challenges in today’s competitive market. With rising interest rates and soaring fuel costs, it’s more important than ever to focus on customer retention strategies that will keep your business thriving. With another interest rate just hitting small businesses we need to start to put strategies in place as we progress into 2024.

Ideas to start customer engagement

💡 But how do you keep your customers engaged in times of uncertainty and into 2024? Let’s explore some actionable steps that can help you strengthen your bond with customers and boost your bottom line.

1️⃣ Show Genuine Appreciation: 💙 Take the time to show your customers that you genuinely appreciate their business. Personalized thank-you messages, exclusive discounts, and surprise gifts can go a long way in making them feel valued and important.

2️⃣ Stay Connected: 📲 In today’s digital age, staying connected with your customers is easier than ever. Utilize social media platforms, email newsletters, and customer loyalty programs to keep them engaged and informed about your latest offerings and updates.

3️⃣ Offer Exceptional Customer Service: 🌟 In a competitive market, outstanding customer service is a game-changer. Go above and beyond to resolve any issues promptly, listen to their feedback, and provide personalized solutions. Remember, happy customers are more likely to spread positive word-of-mouth recommendations.

4️⃣ Tailor Your Offerings: 🛍️ Understanding your customers’ needs and preferences is crucial. Regularly analyze their buying patterns and tailor your products or services to meet their evolving demands. This shows that you value their feedback and are committed to providing them with the best possible experience.

5️⃣ Create a Sense of Community: 🤝 Build a community around your brand by organizing events, webinars, or online forums where customers can share their experiences and engage with each other. This not only fosters a sense of loyalty but also provides valuable insights into their needs and desires.

Take action and make it happen

💥 Remember, customer retention is not just about keeping your existing customers happy; it’s about turning them into brand advocates who will spread the word and bring in new business. sustainability and Corporate Social Responsibility.

Consumers are increasingly concerned about the impact of businesses on the environment and society. Small businesses just as big business does need to demonstrate their commitment to sustainability. They can do this by showing their corporate social responsibility by implementing eco-friendly practices, reducing waste, and supporting local communities. Failure to do so could result in reputational damage and loss of customer loyalty.


Let’s navigate these challenging times together by implementing customer retention strategies that work By showing genuine appreciation, staying connected, providing exceptional service, tailoring your offerings, and creating a sense of community, you’ll position your small business for long-term success.

So now you have read this, what are you going to do to keep clients happy in 2024? Act today , set a sales target to enable you to achieve your results in 2024.

📢 Share this post to help other small businesses thrive in a competitive market. Let’s empower each other to overcome challenges and celebrate the power of customer loyalty! 🙌

Need an accountant who can help talk to Geoff and his team we understand small business

#CustomerRetentionStrategies #SmallBusinessSuccess #EngagedCustomers #BusinessGrowth #ThrivingInACompetitiveMarket

November 2023 – Client Newsletter

In the November edition of the Client Newsletter we delve into the intricacies of nominating a superannuation beneficiary, examining the various types of nominations and the legal requirements they must meet.

Additionally, we tackle the complexity of tax residency in Australia. As the recent AAT case reveals, citizenship is not the sole determining factor; other elements, including double tax agreements, are pivotal to consider.

This edition also introduces you to the prospective Energy Incentive, offering a bonus tax deduction aimed at enhancing energy efficiency within your business.

Qualifying as an interdependent or financial dependant is another topic we explore, shedding light on how to ensure potential beneficiaries receive a death benefit.

Click here to download our November Newsletter

Contact us on 03 9597 9966 if you have any questions relating to matters raised in any of our Client Newsletters.

Success

Startup mindset shifts for small business!

5 Startup Mindset Shifts You Must Make as you launch your New Business.

Starting out. Grab that winning mindset from day one to conquer challenges and thrive in the competitive business world.


Starting a new business is an exhilarating experience requiring a unique mindset.
Business owners are like modern-day supermen/women, equipped with the determination and courage to face any challenge head-on. The excitement of embarking on a new small business venture is unparalleled, as the possibilities are endless, and the potential for success is immense.

Get the right startup mindset from day one!


With the right startup mindset, you as a small business owner, can conquer any obstacle that comes your way. When starting out in a new business, having the right mindset is crucial for success.
It is important to approach every task with a positive attitude and unwavering belief in oneself. A business owner must be confident to take risks and make bold decisions, even in the face of uncertainty.
This mindset of fearlessness and optimism sets entrepreneurs apart from the rest and fuels their drive to succeed.


The mindset of a business owner starting out in a new venture is akin to that of a superhero. Like Superman, they possess extraordinary powers to overcome challenges and achieve greatness.
Don’t be afraid to step out of your comfort zone and push the boundaries of what is possible. Their unwavering determination and resilience will enable you to navigate the ups and downs of business.
Starting out in a new business requires a mindset that embraces failure as a stepping stone towards success. Every setback becomes an opportunity to learn and grow, allowing business owners to improve their strategies and approaches continuously. With this mindset, entrepreneurs can turn obstacles into stepping stones towards achieving their goals.


Most people assume starting a successful business requires a great idea and a substantial cash injection. Both are correct, but to truly make your dreams a reality, the truth is your transition to being a business owner begins with a new mindset.
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If you really want to be a successful business owner, you need to shift how you think about yourself, the world, and your business!


So, where do you get started to get your startup mindset mojo?

Here are some of the most valuable mindset shifts you should make before you begin your small business journey


1. Embrace The “Growth” Startup Mindset


If you’re thinking of starting your own company, do yourself a favor and read the book Mindset by Dr. Carol Dweck. Dr. Dweck has inspired countless business leaders and entrepreneurs because she teaches what it means to abandon the “fixed” mindset.

Premiership winning Coach at Collingwood, Craig Mc Crae, recommended it, and so do I. It helps keep you in the mindset zone.

Most of us have a “fixed” mindset. This is the belief that there’s a limit to your skills, what you can do, and what you can achieve at any given time. While that might seem like a humble position, it can be detrimental. Why it place limitations on you and your company from day one?

Shifting to a “growth” mindset means embracing the belief that you can improve anything, including your company, skills, and future, whenever you choose.

Focusing on constant growth ensures you’ll always work to make your business bigger and better.


2. Stop Prioritizing Quantity Over Quality


We’ve all heard that quality matters more than quantity, but many of us are still hardwired to seek out volume instead of value.

Prioritising quality over quantity means using your resources and people as effectively as possible to generate the best results. In the same way, prioritising quality over quantity as a business owner means you’re more cautious about which projects you take on and which clients you work with.

This can save you from making expensive mistakes. Don’t take on a contract or a sale if it leaves you potentially out of pocket to get work in the door.


3. Learn to Value Yourself

You may find that being a business owner brings a fair share of impostor syndrome. This is the belief that you’ve come to a place where you don’t deserve to be.

Without delay you need to remove that thought if you want to thrive.

Above all ,everyone feels this way occasionally, but never undervalue yourself,

You need to understand what your value is and be confident in yourself.

As can be seen take the time to regularly remind yourself what you’re good at and what you’ve accomplished so far. Tell yourself you deserve to be where you are and act like a small business champion.


4. Commit to Being a Lifelong Learner


There will always be new trends and technology to understand. Learn, embrace and grow you and the productivity of your business.

You need to be willing to keep up with the changes. Committing to a mindset of lifelong learning can help with that.

If you cultivate a constant curiosity and development attitude, you’ll be more likely to seek ways to improve your business. Being a lifelong learner makes you more agile, adaptable, and willing to evolve as your business grows.

A learning startup mindset requires shifting from seeing failure as an opportunity to learn. Take your mistakes as the lessons they are and use them to help you grow.


5. Have the tools and the fan club to support you


Confidence in yourself is a big mindset tool. With this in mind, your Mindset is best when you have the tools and people behind you to make it a success when you launch. This includes people who will provide direction, support, encouragement, and objectivity.


Without delay the tools are in the form of your documented plan, the 90-day launch and the financial targets to hit need to be implemented.

The most compelling evidence is that mindset medicine helps keep you focused.


Start Shifting Your Startup Mindset


Without a doubt any great business owner will tell you passion and money will only get you so far.

Take your, mindset, attitude and mental framework to keep pushing forward and achieving your goals. Shifting your mindset in the five ways mentioned above will prepare you to thrive.
Business owners possess the superhuman qualities of determination, fearlessness, and resilience. With the right mindset, you can overcome any challenge that comes their way and achieve phenomenal success. So gear up, put on your entrepreneurial cape, and embrace the adventure of starting your own business!

Retirement and your home and SMSF property

Can I Live in SMSF Residential Property upon Retirement?

Can you live in SMSF residential property held by your Fund?” No not directly, but follow the rules at retirement, and it may be possible.

As you retire, retirement planning opens up opportunities for living and the next stage for your SMSF, your lifestyle and your needs.

An SMSF is established for the sole purpose of meeting your retirement objectives. And this is the overal objective of holding any assets in the Fund!

Retirement planning involves planning and managing your assets into the senior years of your life. Opportunities arise as clients look at the strategies such as the downsized option for superannuation contributions along with other strategies. At this stage in life, you may wonder if you can live in the SMSF residential property after retirement. The property may be a residential holiday letting or an apartment.


Unfortunately, there is a misconception that you can move into the SMSF property as soon as you retire, regardless of whether the property is still in the SMSF. This is a big misconception as, at present, the Trustee of the Fund still owns the property, and it still forms part of your existing investment strategy.

Selling the residential property to a member prior to retirement is not allowable as it may breach the non-arms-length rules.

To live in SMSF residential property, it is necessary to transfer an asset to a member upon retirement

The Trustee, upon retirement, may provide benefits to the retiring member by utilising the major asset directly to satisfy the benefit by an in-specie transfer.

Member payments are the distribution of the member’s superannuation entitlement within the SMSF. The benefit is calculated based on the proportion of net assets at market value. Accessing superannuation entitlements is subject to conditions of release.

These conditions include reaching age 65, or, retirement, or medical incapacity. Not meeting one of these conditions means members cannot access their superannuation entitlements from the SMSF
Transferring the residential property from an SMSF as a Member Payment at Retirement.

As the Trustee of the SMSF, which is you, can determine that it will pay a lump sum. Your decision will be to sell the property or assets or undertake an in-specie transfer to the member.

Another term used for residential property transfer from an SMSF is known as an “in-specie transfer.”

In this case, the market value of the asset transferred within the SMSF decreases the member’s balance drops by the same value to reduce the amount held by the Fund on the member’s behalf.

How do you ensure the property transfer is done right?

A property that can be held in a superannuation fund can be transferred out of the Fund to satisfy as a member payment providing it meets the SIS conditions.

First Step. the Trust Deed. Check that the SMSF Deed will determine whether if the Deed permits in-specie transfers of assets. The Deed also outlines any specific processes that the Trustee must follow.

The asset being transferred must be valued at its market value. Where it was part of a borrowing arrangement check that it has been fully discharged.

The member also must have sufficient member entitlements in the Fund to cover the value of the asset being transferred. Complicated transfers where the value is greater than the value of the benefit need a professional plan. Reach out, and we can help work through your strategy.

Tax and Duty Considerations


We suggest you check with your solicitor in relation to the legal matters. Your solicitor will ensure any property transfer is done correctly. As accountants, we can advise you if there will be any income tax implications behind your strategy. There may be stamp duty savings but the solicitor can help you here. Therefore to be legally binding the asset change of ownership needs to be properly documented.

Plan and do it right.

Seek advice surrounding your requirements to avoid any costly mistakes.

This article is general and should not be construed as personal advice. You should consult a qualified professional for advice specific to your circumstances.

October 2023 – Client Newsletter

Our Client Newsletter this month includes articles about:

  • Property development – recent Federal Court decision
  • Small Business skills and training boost
  • CGT Small Business concession
  • Post-tax personal Super contributions – benefits

Click here to download our October Newsletter

Contact us on 03 9597 9966 if you have any questions relating to matters raised in any of our Client Newsletters.

business growth

Passion and Grow profits

How to Build a Business You Love, A Business With Purpose: 7 Steps To Help You Find Your Passion And Grow Profits

Creating a business you love is not something that can be done overnight. It requires a lot of introspection, creativity and planning. You can do many small things to ensure your business has a purpose and that it aligns with your values. The key lies in breaking the cycle of doing things just for the sake of it. Instead, create an atmosphere where you’re creating a business for the pure joy of it. The rewards will follow and grow with your passion. In this blog post, we will discuss seven practical steps you can take to help you find your passion, and grow with purpose as a business owner:

Assessing your values

Do you have love and passion for your business? When you first start to consider building a business, the first thing you should do is assess your values. This will help you identify the values that are important for your business, and for you as a person. There are many ways you can go about this; one way is to identify the core values that form the basis of your personality. You can also look at the core values of your industry, and choose those that feel most aligned with your values. Once you have identified your core values, you can also look at how they align with your business. This is important, as you want to ensure your business is aligned with your values.

Define your business’s purpose.

When assessing your values, you must consider why you do certain things. This will help you to decide on a purpose for your business. Purposes are important in business and can help businesses align with their core values, and best fit their customer’s needs. A business with a purpose will generally align more with customers’ needs and have a higher success rate.

Decide on a growth path for your company.

Another important step is deciding on the growth path for your business. This can help you to start aligning your actions to your values. It is important to start with a growth path that fits your values and is feasible. This can help you avoid wasting months or years of your life on a growth path that does not align with your values or business goals.

Develop the practices you can rely on

As you build your business, you will find that much of your time will be spent on practices. These practices can be for your staff members or your own business. Some of the practices you will find yourself investing a lot of your time in are: – Training. Businesses thrive on people who are fully trained and know how to do the job. You will need to invest time in training your staff members on best practices and make them fully aware of your values and purpose. – Managing expectations. In any business, people will have expectations. You must manage expectations by setting realistic expectations and aligning actions with values. –

Planning and forecasting. Businesses thrive on planning and forecasting for profit growth. Again, you will be on a constant planning and forecasting cycle if you get excited about your plan. Planning and forecasting will help you to make well-informed decisions and align your company’s growth path with its purpose. – Day-to-day operations. As an owner, you must monitor day-to-day operations and ensure your practices run smoothly. Practices must be well organized and managed. – Communication. Businesses thrive on communication and must ensure they communicate with their staff members and clients. Communication is a two-way process.

Build a team that reflects your philosophy.

Many small businesses struggle with hiring the right team members. This can be because they did not plan well for their company’s growth. They might not have planned for their hiring, or they might have hired the wrong people. Hiring a team that reflects your philosophy and values can help you avoid many of the struggles businesses face when hiring the right team members. It is important to note that you should hire for fit, and not just for skills. You should hire for values. This does not mean you should hire people with the same values as you, but it means you hire for a values fit. You can hire for values like passion, tenacity, creativity, etc. You can hire for less obvious values, like how people approach work. You can hire for values like high integrity or kindness.

Get out there and just do it!

Businesses thrive when profits grow when they have a purpose; you must align values. It is important to assess your values and those of the industry that you play in. This will help you identify the core values that are important to you and most aligned with your industry. When you have identified these values, you can start working towards creating a business with a purpose and a growth path aligned with these values. One of the practices that you can employ is building a team that reflects your philosophy. This will help you to avoid hiring team members who do not align with your philosophy and help you to get team members who reflect your philosophy.

SMSF property

SMSF property rules

Self-Managed Super Funds (SMSFs) allow individuals to take control of their retirement savings and invest in assets they have confidence will be right for their retirement strategy.

Property investment is a popular choice for many SMSF trustees. However, it’s crucial to understand the rules and regulations surrounding this investment strategy.

Understanding the rules

Let’s explore the golden SMSF property rules of holding property by your SMSF!


The Importance of your role as a Trustee of your SMSF

Before delving into the specifics of property investment, it’s essential to emphasise the importance of responsible SMSF management. As an SMSF trustee of your Fund, you have a fiduciary duty to act in the best interests of your members and beneficiaries. This is fundamental behind the SMSF property rules.


This means prioritising the maximisation of retirement savings as the sole purpose of your SMSF. All members in an SMSF need to be Trustees. They must understand the rules and regulations, and understanding your obligations is crucial to ensure compliance and protect your members’ financial well-being.

Common Property Investment Misunderstandings when it comes to SMSF property rules.

Investing property through an SMSF can be more complex than many trustees initially assume. T
To help you navigate this investment strategy successfully, let’s address some common property investment misunderstandings and provide valuable insights into the rules and regulations.
Location and careful planning is the key, but SMSF Rules Apply.


Selecting a property that has a return and can be sold when it is right is important. Buying and trying to borrow for an SMSF purchase in Humpy Doo won’t get Bank support. It also may be hard to sell down the track when it comes to realising assets for retirement. Property investment for retirement needs clear objectives, and using emotion and ideas of holiday thoughts is the wrong approach.


It’s important to note that the SMSF property rules and regulations significantly impact structuring the SMSF property purchase. While you may have extensive knowledge about property investment, you must familiarise yourself with the specific rules that apply to SMSFs.

The Superannuation Industry (Supervision) Act (SIS Act) governs how you, as a Trustee, can operate your SMSF. It’s crucial to understand the rules and regulations it entails. Interactions between different sections of the SIS Act can make navigating SMSF property investment complex.


Limitations on Property Ownership

When it comes to property ownership within an SMSF, certain limitations apply. If you get them wrong, it can be disastrous and costly. General rules you need to understand before committing to a property contract for your SMSF.


1. You cannot purchase a residential investment property owned by you, any related individuals, or any companies or trusts you, including any related individuals, control. It’s essential to be aware of this restriction and avoid any schemes or attempts to circumvent the rules.

The SIS Act includes an anti-avoidance provision that imposes significant fines and potential imprisonment for those caught trying to bypass the regulations.

2. You can buy a commercial property you own, but proper valuations etc. apply. Please seek our advice advice in this area.


3. You should never buy a residential property for an SMSF borrowing situation where there are two contracts i.e. one for the land and one for the build

What are the consequences of circumventing the SMSF property rules and regulations?

It could be costly to get it wrong. This could include fines, making your fund non-compliant or worse still trying and reverse the transaction.


Restrictions on Personal Use of SMSF-Owned Property


Note any property owned by your SMSF, including beach houses or apartments, etc. cannot be used by you or any of your relatives. Even renting the property to relatives at market rates is not permissible. Some attempt to circumvent the rules and this could lead to severe penalties. It’s essential to prioritise compliance and act responsibly to protect your SMSF and its members.


Limited Recourse Borrowing Arrangements (LRBAs) and Property Investment


LRBAs can be a valuable tool for funding property investments within an SMSF. You cannot Cross-collateralise SMSF properties. Therefore, this means multiple properties are used as security for a single loan. Each property needs to have its own bare trust and loan arrangement. It’s important to seek professional advice when considering LRBAs to ensure compliance with the regulations.


The Character of the Asset and LRBA Limitations


When using an LRBA to fund your SMSF property investment, it’s important to consider the character of the asset. This means the loan proceeds must only be used to acquire a single asset.
The fund cannot change the character of the asset while the loan is in place. I.e. cannot split the property or convert a property into a commercial space or enterprise.
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Purchasing a property investment within an SMSF can be a complex undertaking. We offer advice as a Superannuation accountant, and as a licensed financial accountant in SMSF, we can help you make informed decisions. Plan your property purchase and ensure it is done correctly to meet your investment strategy and long-term retirement planning needs.

September 2023 – Client Newsletter

Our September Newsletter has some interesting reading, find out about:

  • Trademarks and intellectual property
  • Can I claim my caravan for business?
  • SMSFs being targeted by schemes
  • CGT discount – what is it?
  • Self Education deductions

Click here to download our September Newsletter

Contact us on 03 9597 9966 if you have any questions relating to matters raised in any of our Client Newsletters.

How to detect about your cheating in business by your business partner

Cheating in business happens more than we like to realise.

Trust in business is the foundation upon which successful partnerships are built. Without trust, a business partnership is like a house of cards that is vulnerable to collapse at any moment. As a business owner, it is crucial to understand the significance of trust. Cheating in business has detrimental consequences when your business partner isn’t on doing the right thing!

In business, we see Trust in business as believing that your partner will act in your best interest with integrity and honesty. It means relying on their actions and knowing that they will follow through on their commitments. It’s a partnership like a marriage.

When you suspect that your business partner is cheating you and your business! It’s time to act! Recognizing the signs of potential cheating or betrayal is crucial in protecting your business, your ownership share, and profits and preserving your own well-being.

When things are wrong at worst, It may indicate that the business relationship is over. You will need to determine the extent of business cheating and organise a business exit plan.
Warning signs that indicate that things are not right include sudden changes in behaviors or attitude. Your business partner may have unexplained secretive actions, excessive control or manipulation, frequent and unexplained financial discrepancies. There also be a lack of transparency or accountability.
If you notice any of these signs, addressing them promptly and openly is important. Ignoring these red flags can damage your business and personal life irreparably.


What drives people to cheat?

You might be aware why things are right such, but leads people to undertake to cheat against you maybe reasons such as:


+ A feeling of being undervalued.
+ Greed
+ Marriage and other personal problems
+ Addiction such as gambling or drug and need to make extra.
+ Other influences such as offers of a better deal.


Trust your instincts and gather evidence before confronting your partner about your suspicions. It then means you can have a clear, evidence-based conversation rather than relying purely on emotions or assumptions.


3 tell-tale things that may mean things are right!

Be diligent and watch for hidden business relationships.

Discovering that your partner is working with competitors or starting side businesses without your knowledge can be common for those looking at going out alone.


· The decline in business performance: A sudden drop in business performance without any valid explanation could signify mismanagement or unethical practices.
· Lack of commitment or interest: If your partner appears to be less involved or engaged in the business, it may indicate that their attention is focused elsewhere.
· Unavailability or avoidance: Difficulty reaching your partner or constant avoidance of meetings and discussions might indicate they are hiding something.

Ways to detect cheating or fraud in your partnership.

Detecting cheating or fraud in a partnership requires a combination of vigilance, attention to detail, and a proactive approach.

Approaches to deal with business cheating may include:


– Regular financial review of the records may uncover discrepancies or irregularities.
– Monitoring cash flows, expenses, and financial records is essential to detect any signs of embezzlement or misappropriation of funds.
– Implementing robust internal controls, such as segregation of duties and regular reconciliations, can deter fraudulent activities.
– Understanding all aspects of your business, not just your area of control
– Be curious and ask questions.

Do you have open lines of communication with your partner? These should include regularly discussing the state of the business, sharing financial information. You must ensure transparency which can help identify any inconsistencies or discrepancies. Being vigilant about changes in behavior or attitude by conducting background checks on potential partners can also provide valuable insights into their integrity and trustworthiness.

If your business partner stops talking about their life outside of business, it could be a sign they are becoming secretive.

The impact of cheating on your business

Cheating or betrayal in a business partnership can have severe consequences for your business, both financially and emotionally. It can lead to financial losses, reputational damage, and the erosion of client trust. The fallout from a cheating partner can disrupt operations. It will strain relationships with employees, suppliers, and customers, and even result in legal battles. The emotional toll of betrayal can be equally devastating, causing stress, anxiety, and a loss of confidence in future partnerships.

The impact of cheating extends beyond the immediate fallout. It can create a culture of mistrust within your organization and make attracting and retaining talented employees and clients more challenging. Rebuilding trust after a betrayal takes time, effort, and a commitment to change. It requires acknowledging the pain caused, taking responsibility for one’s actions, and implementing measures to prevent a recurrence.

Steps to prevent cheating or betrayal in business.

Preventing cheating or betrayal in future partnerships starts with due diligence and careful partner selection. Thoroughly vetting potential partners, conducting background checks, and seeking references can help identify any red flags or warning signs. Choosing partners who share your values, have a track record of integrity, and are committed to open and transparent communication is essential.

Establishing clear boundaries from the outset and a robust shareholders agreement are crucial in preventing cheating or betrayal. This includes defining roles and responsibilities, setting up internal controls, and regularly reviewing and discussing the state of the business. Implementing checks and balances, such as regular audits, can deter fraudulent activities and provide peace of mind for both partners.

The role of communication and transparency in maintaining trust


Communication and transparency are the cornerstones of maintaining trust in a business partnership. Regular and open communication allows for sharing of information, ideas, and concerns. It fosters a collaborative environment where both partners feel heard and valued. Transparent communication involves being honest and forthcoming about the state of the business, financial matters, and any challenges or concerns that may arise.

Transparency also extends to decision-making processes. Ensure that both partners have an equal say and are informed about important decisions in the business. This includes sharing financial information, including revenue, expenses, and profitability, to build a shared understanding and ensure accountability. By fostering an open communication and transparency culture, partners can build trust and strengthen their partnerships over time.


Before pursuing legal action, it is important to gather evidence and document any instances of cheating or fraud. This may include financial records, emails, contracts, or witness statements. Presenting a strong case will increase the likelihood of a favorable outcome and hold the offending party accountable for their actions. Legal action should be considered as a last resort after all other avenues of resolution have been exhausted.


Addressing cheating or fraud in a partnership can be emotionally and legally complex. Professional help can also provide an objective perspective and help navigate the legal aspects of addressing cheating or fraud. Advisers can offer insights into the best course of action, potential risks, and the likelihood of success.


Professionals can see things that may not be obvious to you. Engaging the services of professionals with expertise in business partnership issues early can greatly assist in achieving a fair and satisfactory resolution.

Call to Action:

Protect your business and partnership by prioritizing trust and vigilance. Regularly communicate with your partner, If you suspect your business partner of cheating or unethical behaviour, addressing your concerns openly and honestly is crucial. In many cases, denials will be the first reaction Consider discussing the matter with them directly but have your ducks lined up so that you understand that if your business partner has been undertaking actions that are detrimental to you, you have a plan as to what to do next.


Invariably cheating in a partnership is irreparable, and a solid exit plan for you to salvage any undermining or financial loss is imperative for a successful outcome. As a small business accountant we can assist you in developing a plan with an outcome that protects your interests and sanity.


#cheating #trustinbusiness #businessowners #exitplanning #businessdisputes

August 2023 – Client Newsletter

Enjoy the read! This month our newsletter contains tax issues such as:

  • Tax debt & why do I have one?
  • Gifting to employees – is this FBT?
  • R&D – the basics
  • Super withdrawals – what are my options?
  • Should I have a Family Trust?

Click here to download our August Newsletter

Contact us on 03 9597 9966 if you have any questions relating to matters raised in any of our Client Newsletters.

tax audit

Dumb ways to get a tax audit !

A tax audit is often a result of business owners not doing something that’s the norm. Doing dumb things that alert the ATO that some things are not quite right.

It is becoming imperative that you prepare your GST records appropriately to avoid unnecessary scrutiny by the Taxation Office which may lead to a tax audit for your Bas. These include:

 Failure to allow for car expenses for vehicles that are used partly for business purposes.
 Claiming all the GST paid on the following expenses: (similar to last year )
o car operating expenses, a log book must be kept
o home electricity, – diary evidence floor area
o home rates,
o internet access and
o home telephone bills,

Partial Business Usage

When these items were only used partly for business purposes claim only part of GST. If you use computerised accounting software be careful with this one, as special procedures are required.
 Claiming GST on non-business items.
 Claiming all GST or not claiming GST when not applicable
o Most bank charges. Merchant fees charged by banks, for retailers to have credit card facilities, do have GST in them. Refer to the monthly merchant statement for the GST amount.

GST amounts are often not shown on normal bank statements.
o Motor Vehicle Registration fees.
o Stamp duty and most government fees.
o Rates on business premises.

Sales and GST

 Not charging GST on all sales – NOT RECORDING ALL GST ON SALES
 Not charging GST on the Sale of equipment

Partial GST

Assuming the GST is exactly one-eleventh of every amount paid. This assumption is not correct in the case of :
o Workers Compensation premiums, (which include GST-free stamp duty)
o Yellow Pages Advertisements paid by instalments, which often require all the GST to be paid “up-front”.
 Failure to put the correct “tax codes” on receipts or payments when using a computerised accounting system

Take some time to understand what the codes are and the types of income/expense which each tax code should be used for. As a small business tax accountant, we can help you get it right.

 Using “Cash accounting” when should be “accrual accounting”.
 Not including “Instalment Income” for PAYG or using the correct rate.

Spending the time to get some of these rights may help you to avoid a tax audit and the ATO snooping around into your affairs

estate planning

Our Guide to Managing a Deceased Estate’s Tax Return

Lodging a final Deceased Estates Tax Return is one of the important things to do when managing someone’s final affairs. Dealing with the loss of a loved one is a deeply emotional and challenging time. Beyond grief and sorrow, there are often a number of administrative tasks to navigate. One of these tasks is managing the deceased person’s tax return. It’s a task that can seem daunting, especially if you’re unfamiliar with the tax system. However, understanding the process can make it less overwhelming. We as Accountants that specialise in this area can help.

In the Australian context, the taxation obligations of a deceased person don’t simply disappear upon their death. These obligations can transfer to their legal representative or the executor of their will.
. It is a crucial step in finalising the deceased’s affairs and ensuring compliance with the Australian Taxation Office (ATO).

Understanding a Deceased Person’s Tax Return in Australia

When a person dies their tax obligations do not automatically cease. Rather, these obligations transition to their deceased estate. This means that any income earned from the day after the person’s death until the end of the financial year must be declared in the deceased person’s tax return.
In general, a deceased person’s tax return is prepared in the same way as a living person’s tax return. This includes all forms of income, deductions, and tax offsets until the date of death. However, there are some specific rules and regulations related to the taxation of deceased estates. These include the treatment of superannuation death benefits, capital gains tax, and the taxation of testamentary trusts.


Legal responsibilities for managing a deceased affairs

The responsibility for managing a deceased estate’s tax falls primarily to the legal representative. This can be the executor of the will, an administrator appointed by the court, or a trustee.
The legal representative is responsible for lodging the deceased person’s tax return from the start of the income year until the date of death. They must also lodge a tax return for the deceased estate for any income earned after the date of death by the estate.


In addition to lodging tax returns, the legal representative must also pay any tax owed. They may use the assets of the deceased estate to do this. It’s important to understand that as a legal representative, its your role to ensure that all tax obligations are met.


Who is responsible for filing a final tax return for someone who has died?

The executor of the will, the court-appointed administrator, or the trustee is responsible for filing the final tax return for someone who has died. This individual is often referred to as the legal personal representative (LPR), . Their role is to manage the deceased’s tax affairs.


The LPR’s tasks include notifying the ATO about the person’s death. It also involves gathering all necessary financial information, preparing, and lodging the deceased person’s tax return, and paying any outstanding tax from the estate’s assets.

We recommend working slowly through the issues. Don’t be pressured by beneficiaries keen to get their hands on the money.


Steps in filing a deceased person’s tax return

Filing a deceased person’s tax return involves several steps.

First, the legal representative should notify the ATO about the death.

This can be done by sending a copy of the death certificate, along with a written notice, to the ATO. Though often the ATO gets notified by other sources such as birth death and marriages.

Next, the representative should gather all necessary financial information. This will likely include bank statements, investment reports, and details of any superannuation funds. The data will be used to prepare the deceased person’s tax return.

The third step involves completing the tax return. Therefore after the tax return has been lodged, the representative must then pay any outstanding tax before making final distributions


Remember, these steps can take time and require attention to detail. It’s crucial to stay organised and keep accurate records throughout the process.

Common issues in managing a deceased estate’s tax return


Managing a deceased person’s tax return is not always straightforward. Various issues can arise, complicating the process.


One common issue is incomplete or missing financial records. This can make it difficult to accurately complete the tax return. In such cases, the legal representative may need to contact banks, investment companies, and other institutions to obtain the necessary information. Always plan by actively undertaking Estate planning so that when you die some of the complexity is ironed out.


Another common issue is the complexity of the deceased’s financial affairs. If the deceased had multiple income sources, substantial investments, or owned a business, the tax return could become quite complicated. In these situations, it might be necessary to engage professional help.

Being an executor can be a big responsibility. However, with a basic understanding, organisation, and patience, it can be managed effectively. Take time to work through the processes and reach out if you need guidance along the way.



July 2023 – Client Newsletter

As we start the New Financial Year, this month our newsletter contains topics including:

  • Small Business Lodgement Amnesty
  • Is it time to restructure my Business?
  • SGC increase to 11% for Employers to pay
  • Work-related car expenses updated

Click here to download our July Newsletter

Capital Gains Valuation – often done retrospectively.


When do you need a Capital Gains Valuation. Selling your home or acquired property through inheritance, demolishing a home or rental for property development gst matters, you may need to obtain a retrospective valuation capital gains property report.

The capital gains report may be referred to as backdated property valuation or a capital gains valuation.

The property valuation will outline the property market value at a specific time in the past by a certified valuer. This assists you with helping you work out your capital gains tax liability by providing a market value at a specific date required.

The Tax Office will require the taxpayer to have acquired a capital gains tax property valuation report to establish the correct capital gain made on the sale of their property in some circumstances. This Valuation, in many cases, forms the basis for the cost base of the property.

A Valuer, using historical data, knowledge, and historical facts will be able to provide you with a valuation that can be used on a specified date. Failing to provide such evidence may result in the ATO using their own Valuation methodology and not necessarily coming up with the expected result you desire.

Many years ago, the ATO would accept a one-liner on a real estate agents letterhead. This now is not the case, and the Valuation must be substantiated to provide an accurate figure.

Check with us to determine what date you require and why before engaging with a valuer. We have no alliance with the following Valuers, but we are aware our clients have used these businesses in the past:

http://www.insightproperty.com.au
http://www.duotax.com.au/property-valuations

Recording obsolete stock in your accounting system

Identifying and recording obsolete trading stock write-offs for a small business involves several steps.

Its that time of year, when you should undertake you annual stock take. We suggest to be practical in your approach. Use scales and estimates for small items such as screws , widgets and small items.

A practical approach – obsolete items.

Here’s a general guide on how to approach this process:

  1. Identify the stock items: Begin by reviewing your inventory records and identifying any old trading stock that needs to be written off. Look for items that are damaged, expired, obsolete, or unsellable due to other reasons.
  2. When doing a stocktake, use round stickers (i.e. red dots) or straws to identify those items that you have counted.
  3. Assess the value: Determine the value of the stock items that need to be written off. This can be done by assessing their original purchase cost, current market value (if applicable), or any other relevant valuation method.
  4. Document the write-off: Maintain proper documentation for the write-off. This should include details such as the date, description, quantity, unit cost, and total value of the stock items being written off. Store this information for future reference, especially for tax and audit purposes.
  5. Update inventory records: Adjust your inventory records to reflect the write-off. This helps ensure accurate reporting and tracking of your remaining stock items.
  6. Tax considerations: See Geoff and his team

Remember, if need help contact us .

You should combine your stocktake with a sales budget that should be done for coming year

Once you have undertaken your list let us know and we will help you record it in your accounting system. Happy new financial year.

sabotaging your business

Are you inadvertently sabotaging your small business?

Sabotaging your business can happen in several ways. It’s a silent killer of businesses for growth and success. It’s like wood termites that infiltrates behind the framework of your home as a result when finally uncovered it results disastrously.

Where on the surface, a business can look amazing. Sillly things people do can turn a business into a disaster. So are you quietly sabotaging your business?

The other day I visited a modern-looking café. At the cafe the staff allocated me a table. However they failed to clean it resulting in us having to move the dirty dishes of ourselves. Only a small thing but bad service. Then after we finally ordered a coffee, it came in paper cups . The staff apologized, stating they had run out of cups. Though more likely lack of cups probably they weren’t clearing the tables and understaffed was the main reason for poor service and delivery.

Well, the outcome was a big nar. Next time we will go somewhere else; the poor service sabotaged customer service and what had the hallmarks of an excellent place for a coffee.

How and why people sabotage their business !

While it is unfortunate, there are several ways in which a business owner may sabotage their own small business. As a result here are a few common examples of what we see as pure an unecessary self sabotage of a business

Poor financial management is a killer for a small business . Failing to keep track of finances, not budgeting properly, or mishandling funds can quickly lead to financial problems and the downfall of a small business. Disregarding the ATO debt and even following up with your own debtors will as result lead to a cashflow disaster.

Fail to plan and lack of strategy. Not having a clear business plan, neglecting market research, or failing to adapt to changing trends can hinder growth and sustainability. Without proper planning and strategy, businesses may struggle to compete and survive. This includes exit planning.

Ineffective marketing and branding marketing efforts or a lack of brand development can make it difficult for a business to attract customers. Neglecting to promote the business effectively or failing to build a strong brand identity can lead to limited visibility and diminished customer interest. Unable to project your vision means you may not be attracting the right customers.

The big killer and one that can be easily fixed!

Poor customer service is a massive sabotage for a small business. Failing to prioritize customer satisfaction can damage a business’s reputation and result in lost customers. Ignoring customer feedback, providing subpar service, or not addressing customer concerns promptly can lead to negative word-of-mouth and a decline in sales.

The final one that impacts a business is Internal conflicts and mismanagement: Disagreements among business partners, ineffective leadership, or a toxic work environment can create internal conflicts that distract from the company’s goals. Poor communication, lack of accountability, or an unproductive work culture can impact by undermining employee morale and overall business performance. A toxic environment is a bad business.

A strategy for you to build growth.

Developing your growth and exit plan needs careful planning. A business owner’s reluctance to adapt and lack of resilience can unknowingly sabotage the business. A business owner must adapt rapidly to a changing business landscape. Sometimes the inability to adjust to market trends, consumer demands, or industry disruptions can lead to business failure.

Resilience, flexibility, and a willingness to embrace change are essential for long-term success.
Part of what we do for our clients is help them plan. For growth Growth, prepare for change and plan for an eventual exit.

As a Chartered Accountant and business adviser, we help you through the journey. Ask these questions if you are at a fork in your business journey pathway.

  • Am I happy with my business and my lifestyle?
  • Is it time to consider if the business still lights my passion or am i over it?
  • If your business faces change or uncertainty, are you prepared for it or ignoring it will sabotage the business.
  • What are my options now and into the future concerning my role and ownership in the business?

Any decision about business direction needs to be quietly evaluated. Sometimes not stopping and assessing you and your business as a package is a sure way to sabotage the business. Move forward with confidence by having a plan that works for you with a clear direction that make your business a winner.

Gst at property settlement is a cashflow trap for those mum and dad developers.

GST at property settlement is a tax that needs to be deducted at settlement. It continues to catch out Mum and Dad developers walking the cashflow-type rope. Many are not aware that they will only have effectively 90% of the sale at settlement to play with. This can cause pain as interest rates bite and property prices decline in some areas.

Since July 2018, you may need to pay GST at settlement if you are selling or buying new residential premises or potential residential land. How GST is paid for certain property transactions affects purchasers, suppliers, and their financiers. For those non-residents, there is a further hit of non-resident withholding tax.

What is remitted at gst at property settlement

In essence, the purchaser must remit 10% (being GST) or 7% withholding GST margin scheme to MR ATO at settlement. This is regardless of if there is a first mortgage on the property.

A reconciliation of the final GST is done in the vendor’s next BAS and any amount payable or refundable is collected then. This puts the ATO squarely in the front of the cash handouts and leaves the balance scrambling. Those who rely on making a deal with the ATO for a repayment plan are unable to do so, and potentially if things a tight, a vendor could come out short.

Some penalties will apply if the Vendor fails to provide the required Notice or fails to notify the Purchaser of the required details.  If either occurs, a penalty of $21,000 would be payable. This assumes the Vendor is an individual and maybe five times that if a corporate entity is involved.  The ATO can catch up with people using its data-matching systems.

There is no requirement for Purchasers to be registered for GST.

GST withholding notification.

Before the settlement of GST property settlement, a GST property settlement withholding notification needs to be completed. This needs to be lodged online to the ATO; a conveyancer or legal representative can do this on the Purchaser’s behalf. This Form needs to be completed as soon as possible, and the ATO will provide a unique payment reference number (PRN) and lodgement reference number (LRN).

Once settlement has occurred, the GST property settlement date confirmation. The form must be completed with the unique PRN and LRN provided by the ATO.

Don’t panic a purchaser does not have to pay a GST withholding amount at the time when they deliver a genuine deposit on the property paid or the deposit is forfeited.

GST complications

Should it be found that the deposit is not a genuine deposit, it will be treated as part of the consideration for the supply. This means the purchaser may be required to pay a GST withholding amount on or before paying the vendor’s deposit.

Some developers think we can avoid the 10% withholding regime. They try this using an instalment contract. Under this arrangement, when the purchaser pays the purchase price balance. Instalment contracts mean that the first payment under an instalment contract is the first day the purchaser pays any of the consideration for the supply. Therefore, the purchaser must pay the GST withholding amount on, or before, the day they provide this first instalment payment. GST withholding amount to be paid.

Again, if instalments extend over 12 months, the ATO gets their money well before full settlement.

Under these rules, the ATO gets paid first. If liquidation occurs, the Bank may be short of its loan as the ATO has snaffled the first 10%. Effectively, the Bank will argue that the ATO has received a preferred payment. Then the Bank will chase the 10% from the Vendor who, in most cases, guaranteed the loan. This is important to note if the development goes into liquidation. It also may delay settlement as the Bank will not release a clear title.

Be ready to remit gst at property settlement.

As a seller, get your ducks lined up early. This will ensure you can proceed smoothly toward settlement. Make sure you have enough money to clear the title. If not, consider delaying the settlement and finding the potential shortfall or consulting a professional insolvency expert for advice on your actions.

June 2023 – Client Newsletter

As we end this Financial Year, this month our newsletter contains topics including:

  • Tax Planning strategies at year end for Small Business
  • SMSF Client Webinar
  • Work related deductions
  • Rental property deductions
  • Seniors Health Card
  • Hobbies and tax
  • Maximising cashflow

Click here to download Newsletter

SMSF 2023 Client Webinar

Regulatory Changes: The Australian government frequently reviews and updates regulations related to SMSFs. SMSF trustees must stay informed about changes to compliance requirements, reporting obligations, investment restrictions, or contribution caps.


What we will cover
• New Labour Government – whats changing after the May 2023 Budget

• Investment Strategy Compliance: SMSFs must have an investment strategy that aligns with the retirement goals and risk profile of the fund’s members

Limited Recourse Borrowing Arrangements (LRBAs): LRBAs allow SMSFs to borrow funds to invest in property or other assets. However, there are specific rules and restrictions around LRBAs, and trustees must ensure they comply with these regulations to avoid penalties or possible disqualification of the fund. Review

Contributions and caps – what can I contribute and the work test

Valuation of Assets: SMSFs must report their assets’ market value each financial year. What Trustees need to do.

What the Super Fund auditor looks for

Cybersecurity and Data Protection: With the increasing reliance on technology, SMSFs are exposed to cybersecurity risks. Trustees should implement robust security measures – discussion scams and how to protect your data.

When a Self-Managed Superannuation Fund (SMSF) member passes away, several important considerations exist for the fund and its trustees. Here are some critical points regarding SMSFs and death:

Trust Deed and Member’s Will – is your aligned

Taxation of Death Benefits: Depending on various factors, including the age of the deceased member and the recipient, death benefit payments from an SMSF may be subject to taxation. Tax treatment may differ between dependents and non-dependents, and it is crucial to understand the applicable tax rules and seek professional advice. – let’s discuss

Reversionary Pensions: If the deceased member passes, does this help in the estate planning process

Death Benefit Nominations: SMSF members can make binding or non-binding death benefit nominations. Should I do one?

Trustee Succession Planning: SMSF trustees need to have a succession plan in place in case of the death or incapacity of a member/trustee.

Downsider strategy – how it can help me?

Super above 3 million balance, or if one partner dies and it pushes you over – what should you do?

Let us know if you can join us either in person or online via zoom !
Essential for all those who run and operate an SMSF, both using our services or other professionals. All welcome!
Please RSVP to Chris @ chris@gartlyadvisory.com.au

Budget Edition Newsletter  – May 2023

Enjoy our Federal Budget summary Newsletter which includes:

  • Superannuation is to be paid with wages – starting from 2026
  • Instant asset write-off, down to $20k
  • GDP adjustment factor
  • Superfund non-arms length expenditure review new rules
  • ATO compliance program – more strength to collect taxes and keep you on your toes
  • Some free tickets for non-lodgers of returns in getting their taxes up to date with some penalties waived
  • New taxes with large superannuation balances

Take a look at our Newsletter here

Reach out to us if you need clarification on any budget matters.

May budget month

May 2023 – Gartly Newsletter

Enjoy the read! This month our newsletter contains tax issues such as:

  • Temporary Full Expensing ceases in July
  • Federal Budget – what to expect
  • Latest developments in Trust distribution
  • SMSF changes from July 2023
  • Which option to finance my new car?

Click here to download Newsletter

Estate planning and smsf

Estate Planning and SMSF : Leveraging the Power of SMSF

Estate planning and SMSF can play a large role when it comes to Estate planning, which is an often-overlooked aspect of financial planning when executing your Will, superannuation, and wishes.

Estate planning determines how your assets will be distributed once you pass away. However, estate planning can be complicated and overwhelming, which is why Self-Managed Super Funds (SMSFs) have become popular.

SMSFs are a powerful tool for estate planning and managing your retirement savings.
Whether you’re new to estate planning or simply looking for a more efficient way to manage your assets, leveraging the power of SMSF can help you achieve your financial goals and ensure that your assets are distributed according to your wishes.

estate planning

Understanding SMSF and its benefits for estate planning

SMSF is a type of super fund that is managed by its members. It provides more flexibility and control over your retirement savings compared to the public APRA super funds. SMSFs can invest in a wide range of assets, including property, shares, and managed funds. This makes them a popular choice for those who want to take a more active role in managing their retirement savings and buy property direct.

Estate planning and SMSF provide benefits for estate planning that should not be overlooked. Unlike other super funds, SMSF members have more control over how their assets are distributed after their passing. With an SMSF, you can nominate who receives your benefits and how they are distributed. This means your assets can be distributed according to your wishes, which can provide peace of mind for you.

SMSF vs. other estate planning options

An SMSF forms part of a structure to manage your estate planning wishes. This, combined with your wills, a family trust and other measures, ensure the correct outcome.

SMSFs also provide tax benefits for estate planning. For example, assets held in an SMSF are not subject to capital gains tax (CGT) when they are sold after the member’s death. This can provide significant tax savings for your beneficiaries.

Creating an estate plan using SMSF

Creating an estate plan using SMSF involves several steps.

We first must look at the Fund’s assets and the members’ wishes. Look at the age and composition of your SMSF . Are there others in the Fund that may continue after your death?


Those in pension mode may choose to allow the Death Benefits to be rolled over to a remaining dependent in the fund via the use of a reversionary pension. The advantage to this is that the benefit does need to come out of Super.


Other members may choose to prepare a binding death benefit nomination (BDBN). This legal document specifies who will receive your benefits and how they will be distributed after your passing.
When creating a BDBN, it’s important to consider the needs of your beneficiaries. For example, you may want to provide for your spouse’s retirement needs or ensure that your children receive an education. You should also consider the tax implications of your estate plan and how they will affect your beneficiaries.
Once you have created a BDBN, you should review it regularly to ensure it still reflects your wishes. You should also keep your beneficiaries informed of your estate plan so they know what to expect after your passing.

Understanding who is a dependent for Superannuation purposes

Under the Superannuation Industry (Supervision) Act 1993 (SIS), benefits may be paid to one or more of the member’s dependants or their legal personal representative (LPR), i.e. the estate, subject to the fund’s governing rules.(check Trust Deed)

A dependant for these purposes (known as an SIS dependant) includes:
• the member’s spouse – legally and de facto
• the member’s child (of any age), and
• someone with whom the member has an interdependency relationship (generally someone with whom the member has a close personal relationship and lives, and where one or each of them provides the other with domestic support and personal care).

A “SIS dependant “also includes someone who is a dependant within the ordinary meaning of that term (an ‘ordinary meaning’ dependant), such as a person who may not be a spouse or child but who depends on the member financially. If an individual is not an SIS dependant, they can only receive a member’s death benefits via the deceased member’s estate.

Common mistakes to avoid in SMSF estate planning

There are several common mistakes to avoid when creating an estate plan using SMSF.

These mistakes include:
• Failing to create a BDBN: Without a BDBN, your benefits may not be distributed according to your wishes.
• Failing to understand who may control your SMSF after your death.
• Failing to have your Trust Deed updated regularly and referring to this in the Estate planning process.
• Best practice is to have a corporate trustee
• Failing to set up the right pension and the conflict between DBBN and reversionary pension.
• Failing to recognize who is dependent vs nondependent.
• Failing to review your estate plan regularly: Your circumstances may change over time, so it’s important to review your estate plan regularly to ensure it still reflects your wishes.
• Failing to keep your beneficiaries informed: Your beneficiaries should be informed of your estate plan, so they know what to expect after your passing.

Choosing the Right Accountant for estate planning

Choosing the right SMSF provider is important for estate planning. You should look for a provider that has experience in estate planning and can provide professional advice.
Our role at Gartly Advisory is to help advise Trustees in the Estate Planning process.
In many cases, we will assist the Trustee in the decision process of whether it is appropriate to wind up the SMSF and to be strategic about their estate planning and smsf.

SMSF estate planning checklist

To help you create an estate plan using SMSF, here’s a checklist of things to consider:
• Create a BDBN and make sure your will works in conjunction with your super strategy
• Review your estate plan regularly.
• Brief your POA and appointer legal representative of your wishes post death as they should be appointed to your SMSF to act post death
• Keep your Deed up to date.• Keep your beneficiaries informed.
• Consider the tax implications of your estate plan
• Choose the right SMSF provider
Estate planning should not be overlooked.

By leveraging the power of SMSF, estate planning can give estate planning control over your retirement savings and can be used to create a tax-efficient estate plan. Peace of mind knowing that your superannuation ends up with the right loved ones is a powerful aspect of having an estate plan.

business plan

How can I make my small business successful?

How can I make my small business successful is something all business owners strive to do. The road to success is not always smooth, and there are obstacles to overcome. However, with the right strategies and mindset, you can achieve your goals and thrive in today’s competitive marketplace.

In this article, we’ll explore some key tips and tactics that can help you take your small business to the next level. From defining your niche and target audience to creating a strong brand and building a solid online presence, we’ll cover everything you need to know to make your small business a success.

Defining my small business successful vision


Before we dive into the strategies that can help your small business succeed, it’s essential to understand what success means to you. Success means different things to different people, and what may be considered successful to one person may not be to another. For some, success may mean financial independence, while for others, it may be the ability to make a positive impact in the world.
Regardless of what success means to you, it’s crucial to have a clear idea of what you’re aiming for. Setting clear goals and objectives will help you stay focused and motivated as you work towards achieving your vision. It’s also essential to track your progress regularly and make adjustments where necessary.

The importance of a business plan

Having a solid business plan is essential for any small business growth. A business plan is a written and outlines your business goals, strategies, and financial projections. It serves as a roadmap for your business and helps you stay on track as you work towards achieving your goals.
A business plan should include a description of your business, your target market, your competition, your marketing strategy, and your financial projections. It should also outline your unique value proposition and how you plan to differentiate yourself from the competition.
A well-crafted business plan can help you secure funding, attract investors, and make informed decisions about the direction of your business. Our team can help you here.

Understanding your target audience

Knowing your target audience is crucial for the success of your small business. Your target audience is the group of people who are most likely to buy your product or service. Understanding their needs wants, and preferences are essential for creating a marketing strategy that resonates with them.

Once you have a clear understanding of your target audience, you can tailor your marketing messages, product offerings, and customer service to meet their needs.

Developing a unique value proposition

A unique value proposition (UVP) is what sets your business apart and helps with small business growth. It’s the reason why customers should choose your product or service over others. Your UVP should be concise, clear, and compelling.

To develop a UVP, start by identifying your target audience’s pain points. Then, think about how your product or service can solve those problems or meet those needs. Your UVP should communicate the benefits of your product or service in a way that resonates with your target audience.
Your UVP should be prominently displayed on your website, marketing materials, and social media

channels. It should be a key part of your brand identity and messaging.

Building a strong brand identity


A strong brand identity is essential to make a small business successful. Your brand identity is how your business is perceived by your target audience. It includes your logo, colour scheme, messaging, and overall aesthetic.

To build a strong brand identity, start by defining your brand values and personality. Think about what you want your brand to represent and how you want to communicate with your target audience. Your brand identity should be consistent across all your marketing materials, from your website to your social media channels.

Crafting a marketing strategy

A marketing strategy helps in reaching and engaging with your target audience. It is the fertaliser for small business growth. It includes the tactics and channels you’ll use to promote your product or service. A marketing strategy should be tailored to your target audience and should align with your business goals.

Leveraging technology to streamline operations

Technology can be a powerful tool for streamlining your business operations and improving efficiency. There are many software solutions available that can help you automate tasks, manage inventory, and track customer data.

Investing in a customer relationship management (CRM) system can also help you keep track of customer interactions and improve customer service. A CRM system can help you identify patterns in customer behaviour and tailor your marketing messages to their needs and preferences.

Managing finances, and taxes effectively find a good small business accountant

Managing your finances effectively is crucial in making your small business successful. It’s essential to keep track of your income and expenses, create a budget, and plan for unexpected expenses.
Investing in accounting software can help you automate financial tasks and generate reports that provide insight into your business’s financial health. At Gartly Advisory we love working with small businesses. It’s important to work with an accountant advisor who can help you make informed decisions about managing your finances, taxes and your future.

Understand where you are in areas such as:

  • Taxes
  • Profitability
  • Your future
  • And the value of your business

Take our 13-minute in-depth Value Builder quiz and get your free report

Continuously adapting and evolving


Lastly, it’s important to remember that making your small business successful is not a one-time event. It’s a continuous process of adapting and evolving to meet the ever-changing needs of your target audience and the marketplace.

Building a successful small business takes hard work, dedication, and a bit of strategy. By defining your niche and target audience, developing a unique value proposition, building a strong brand identity, and crafting a marketing strategy, you can create a business that resonates with your target audience and stands out from the competition.

Leveraging technology to streamline operations, building a strong team, managing finances effectively, and continuously adapting and evolving can help you stay ahead of the curve and achieve your business goals. Remember, success is not a destination; it’s a journey. Stay focused, stay motivated, and keep moving forward.

April 2023 – Gartly Newsletter

Welcome to our April 2023 Newsletter. Our newsletter this month contains tax issues such as :

  • Clarity on Trust Distributions
  • the new rules on $3m Super balances
  • Electric cars exempt from FBT
  • How to Spot a Crypto Scam
  • GST Audits and How to avoid them
  • How to find lost Super

Press here to access our latest newsletter

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