Morrows Group:

Insight Articles

Edition 15

Including:

Morrows in Brief – March 2014 Morrows Knows – Strategy Morrows Knows – Superannuation Contributions

.

Morrows In Brief

Morrows Insight – March 2014

Morrows In Brief

A collection of compliance, firm and client articles to keep you in touch with news and

developments at the Morrows Group.

Key Dates To Mark In Your Calendar

March

01 Registration for the Centrelink Pension Bonus Scheme closes

10 Labour Day – Public Holiday

21 February 2014 Monthly Activity Statement Lodgement

April

18 Good Friday – Public Holiday

21 Easter Monday – Public Holiday

21 March 2014 Monthly Activity Statement Lodgement

25 Anzac Day – Public Holiday

28 Jan - Mar 2014 Quarterly Activity Statements Due – Paper Lodgement

28 Super Guarantee Payments Jan-March 2014 Quarter Due

30 TFN Report for Closely Held Trusts – TFNs quoted to trustees by beneficiaries in Jan-March 2014 Quarter

May

15 2013 Tax Return Lodgement Due - All entities not required for earlier lodgement

21 April 2014 Monthly Activity Statement Lodgement

26 Jan-March 2014 Quarterly Activity Statements Due – Electronic Lodgement (via Tax Agent)

28 FBT Annual Return Lodgement & Payment

Please note the Morrows offices will be closed for public holidays during this busy period – Friday 18th April

(Good Friday), Monday 21st April (Easter Monday) and Friday 25th April (Anzac Day).

Did You Know? Commonwealth Seniors Health Care Card & Self-funded Retirees

As a self-funded retiree you may be eligible for the Commonwealth Seniors Health Care Card if you have reached

age pension age and not eligible for a Government pension. The card provides discounts on health-care costs

including discounts on Pharmaceutical Benefits Scheme (PBS) perscription medicines and travel costs.

Furthermore, the card may enable you to benefit from stamp duty concessions (state based).

Morrows In Brief

Morrows Insight – March 2014

If your adjusted taxable income is less than $80,000 per annum as a couple or $50,000 per annum as a single you

may be entitled to the card. In most cases, your superannuation pension income stream will be considered tax free

and excluded from the above limits. Furthermore, your assets are also excluded in determining your eligibility.

If you believe you may be eligible for the Commonwealth Seniors Health Care Card, Morrows Private Wealth can

assess your eligibility and assist you through the application process. Morrows Private Wealth can be contacted on

(03) 9690 5700 or at mpw@morrows.com.au

Xero & Banklink Efficiencies

As you may already be aware, our Taxation and Business Advisory departments have been using Xero for a while

now, while Superannaution relies heavily on Banklink. Both services automate and streamline the accounting

process for our Small Business and Self Managed Superannuation Fund clients.

The softwares allow Morrows to receive complete, timely and accurate transaction data. We can securely

download an electronic copy of clients’ bank transactions directly into our accounting system daily, weekly or

monthly. Both services are completely secure, with no passwords being disclosed and no internet banking

capabilities.

Banklink ensures that we can work more effectively with our SMSF clients in meeting their trustee responsibilites

and complex compliance requirements, for example, allowing us to easily monitor and manage contribution caps.

Xero allows us to stay aware of our clients’ current financial position, manage their cash-flow requirements and

help with important decision making that is time constrictive.

For our SMSF clients that are not already on Banklink, please look out for a ‘client authority form’ which we will

send out to you with your annual accounts. Utalising Banklink services is as simple as signing the form and

sending it back to us.

Please do not hesitate to contact Morrows on (03) 9690 5700 should you require further information on Xero or

Banklink.

Run for the Kids

On Sunday, April 13th 2014, nine staff members will participate in ‘Run for the Kids.’ Another initiative of the Morrows Charity Committee, money raised will go to the Royal Children’s Hospital Good Friday Appeal, helping those who are smallest and most vulnerable. With two of our staff competing in the 15km race and seven competing in the 5.5km race, training has well and truly begun so that everyone is prepared for event day. If you would like to donate to the Royal Children’s Hospital Good Friday Appeal you can do so online by creating your own personalised fundraising page. Money raised will fund projects, research and technological innovations to ensure every child receives the best treatment possible. Please visit www.runforthekids.com.au for more information.

Morrows In Brief

Morrows Insight – March 2014

Major credit reporting changes in place from 12 March 2014

Paying bills on time is more important now than ever, as changes to credit reporting under the Privacy Act

take effect from 12th March. The new “Credit Reporting Privacy Code” introduces the sharing of information

on repayments more than 5 days late on home loans, phone plans, credit cards and other loans with credit

providers. For example, they will be a black mark against your credit rating with your bank when it is

assessing your eligibility to borrow.

In the past, credit reporting has focused on whether or not you’ve been denied credit applications but the

shift to “positive reporting” means you’ll be assessed according to whether you’ve serviced credit on time.

Lenders will be able to access information on your records gathered since December 2012 meaning it is and

your past financial habits will be clear.

Remember, it’s never too late to change bill-paying behaviour and these simple tips can help you stay on top

of payment due dates:

Set up automatic payments with direct debits or online banking

Download a reminder app on your smartphone

Note due dates on your calendar

For more information go to www.oaic.gov.au/privacy/privacy-law-reform/credit-reporting-reform/

Yarrawonga Ski Weekend

On Friday 28 February, the Morrows crew headed of on its annual water skiing weekend in Yarrawonga.

Hosted by Terry and Jan Stanley, the event is a favourite get away for everyone who goes. In 2014 we had

almost 80 in attendance and several tried water skiing for the first time (juniors to seniors!). The Morrows

“kids” made the most of every minute in the water with aquamats, chariots and the “banana” all equally

popular. We would like to note our gratitude to Terry and Jan for their generosity and opening up their home

to us all once again.

Morrows In Brief

Morrows Insight – March 2014

Staff Profile: Paul Robortaccio

Paul joined Morrows in 2009 and is a Tax & Business Advisor in our

Tax and Business Advisory Department. We spoke to Paul about his

time at Morrows and his interests:

What brought you to Morrows, and what were your first

impressions? I was first introduced to Morrows at a Victoria University

careers fair where I met Graeme Marks and I was fortunate to undertake

a co-op program here. My first impressions of Morrows were all strong,

particularly the size of the firm and the balance between professionalism

and a fun and friendly work environment.

What do you enjoy about your work? I commenced my career in Accounting not knowing exactly what I

wanted. I can truly say that I thoroughly enjoy my work and find tax interesting both professionally and

personally. It’s great to be able to help people understand tax and to help clients obtain the best results I can.

If you weren’t an Accountant what would you be? I would have liked to be a Test Cricketer for Australia.

What is your greatest strength? My enthusiasm for everything I do in life.

If you could witness a past, present and future event, what would they be? Past event would be Mark

Webber’s first F1 win (2009 German Grand Prix), Australia’s Cricket triumphs over England and South

Africa, and future will be how the Essendon saga will play out for the club and players.

What do you enjoy doing in your spare time? I am mad on sports and I am always thinking of the next

big thing.

Favourite travel destinations? Overseas, I would have to say Barcelona, Spain, and within Australia, Perth.

Favourite movie? Ace Ventura Pet Detective and Beverly Hills Cop 1, 2 & 3 are my favourite movies of all

time.

Disclaimer: The information provided in this communication is general in nature and not intended to be advice. You should contact our

office for further information or for a tailored solution to your needs.

Morrows Insight

Morrows Insight – March 2014

Morrows Taxation and Business Advice

Morrows Accounting provides you with sophisticated and forward-thinking business, taxation and accounting

services that help you meet your own, your family’s and your business’ taxation, compliance, business planning

and financial goals.

How can Morrows help?

We welcome the opportunity to discuss your strategic needs with us. We are able to provide

comprehensive advice on how to achieve your business and personal goals. Please do not hesitate

to contact us on:

Telephone: (03) 9690 5700 or Email: morrows@morrows.com.au

Morrows Knows

Intelligent Strategy saves Future Costs

Achieving exceptional results becomes easy when people from all Morrows’ divisions work collaboratively

In November 2013, Morrows surveyed its clients for their opinions on our current services, ways to

improve and the value they see in our true multi-disciplinary structure.

The responses received emphasised time savings, ease of communication, consistency and efficiency

as reasons to use a firm with multiple professions in one house. One of our clients put it this way.

“The multi-disciplinary approach/structure allows for cost/time efficiency and a higher level of situational understanding and collaborative strategic planning.”

Anonymous response to Morrows 2013 Client Survey

At Morrows, we agree, it makes sense to integrate our clients’ affairs and consult our own trusted in-

house specialists in Taxation, Business Services, Superannuation, Private Wealth and Legal.

In doing so you will have the peace of mind that we are able to address structural planning needs

early which in the long run may minimise tax outcomes in future. The Morrows team becomes your

team with our specialists from each discipline working together seamlessly to review your current

situation, understand your future goals and make sure that assets are held appropriately for the best

outcomes. If not, we will discuss changes with you and create strategies to transfer assets to the most

appropriate ownership vehicle.

Our clients know they can rely on Morrows to assess all the required conditions to be met and the

advantages and disadvantages of taking action in different ways (considering your age and financial

situation) or, of course, taking no action at all.

Various strategies are not for everyone so we would simply encourage you to have your structures,

long term goals and options reviewed by your Morrows representative. Having a discussion may be

all that is needed to determine whether you can benefit from our four specialist departments working

together to ensure a strategy is seamlessly executed. Ultimately, you will then have peace of mind

your tax savings are maximised, all transactions are compliant and all legal requirements are met.

Morrows Insight

Morrows Insight – March 2014

Morrows Knows

Personal Deductible Superannuation Contributions

The rules for claiming tax deductions on super contributions made to your self-managed

superannuation fund (SMSF) can be complex depending on your work situation. Here we discuss these rules and the concessional contributions cap:

Concessional Contributions Cap

Personal deductible contributions count towards a person’s concessional contributions cap. Concessional Cap – 2014 Financial Year

$25,000 for members aged under 60 and $35,000 for members aged 60 and over Concessional Cap – 2015 Financial Year

$30,000 for members aged under 50, and $35,000 for members aged 50 and over

Concessional contributions include the superannuation guarantee (SG) made by your employer on your behalf, any personal deductible contributions or any salary sacrifice contributions you make.

Concessional contributions in excess of the cap attract the normal contributions tax of 15% plus an additional 31.5%. The excess concessional contributions also count towards the individual’s non-concessional contributions cap for the financial year.

Please note, the concessional contributions cap does not limit the tax deduction an eligible person can claim for personal contributions. However, a person cannot claim a tax deduction for a personal contribution that is in excess of their taxable income for the financial year.

Eligibility

To be entitled to claim a tax deduction for a superannuation contribution, the following conditions must be met – these will be explained further:

Restrictions apply is you are 65 years of age or older.

You must be either entirely self-employed (sole trader or through a partnership), engaged in employment activity in the financial year but have employment income below a certain level, or not working at all.

If engaged in employment activity (for Superannuation Guarantee purposes) in the financial year, the ‘less than 10% rule’ must be satisfied.

Provide your superannuation fund with a ‘notice of intent’ that you wish to claim a tax deduction for all or part of the contribution.

Morrows Insight

Morrows Insight – March 2014

Morrows Superannuation

Morrows Superannuation Consulting is acknowledged as a leader in Self Managed Superannuation Funds.

We have established an impressive performance record by providing a high level of technical expertise,

skill, judgement and service.

Please contact us on 03 9690 5700 or via superannuation@morrows.com.au for any assistance.

Age Requirements

To make eligible contributions, from age 65 a Work Test applies – a person must be gainfully employed for 40 hours in 30 consecutive days in the financial year. Post age 75 only Mandated Superannuation Guarantee or award contributions can be made.

Employment

Only three categories of people may be eligible to claim a deduction for a personal superannuation contribution:

Entirely self - employed people.

People who are engaged in employment activity in the financial year but derive less than 10% of their income from employment.

People who are not engaged in an employment activity in the financial year, but who derive income from investments (interest, dividends, rent and capital gains), social security and income streams.

A person who fits into one of the above categories will need to meet the less than 10% rule in order to claim a deduction for their personal contributions.

Less than 10% Rule

To meet the ‘less than 10% rule’ the following elements are considered:

The sum of assessable income, reportable employer superannuation contributions and reportable fringe benefits that are attributable to ‘employment’ activities. The above elements added together must be less than 10% of

The sum of assessable income, reportable employer superannuation contributions and reportable fringe benefits from all sources.

Given the significance of meeting this rule various strategies can be considered that will help you qualify. With forward planning, Morrows can provide you with a range of strategies and help implement the right one.

Notice of Intent

Upon determining eligibility to claim a tax deduction for personal contributions, the eligible individual must provide their fund with a valid notice of their intention to claim the deduction, within specific timeframes. Superannuation funds may also supply their own form, which Morrows provides for their SMSF clients.

How Can Morrows Help

Claiming your contributions as a tax deduction could reduce the amount of tax you need to pay on your income. So, depending on your marginal tax rate, you may pay less tax overall. Morrows is able to advise you of a concessional contributions strategy to help you minimise the tax you pay, whilst boosting your super account.

Disclaimer: The information provided in this communication is general in nature and not intended to be advice. You should

contact our office for further information or for a tailored solution to your needs.