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  • ATO – Taking investigations to the next level

    20th April 2017

    ATO – Investigations turn to social media

    The ATO are currently undertaking new and inventive ways to ensure you are being 100% honest when lodging your Income Tax Returns.

    They have enlisted the help of data analysts to comb through your social media and online accounts to ensure your online lifestyle meets the details stated in your Income Tax Return.

    A perfect example used by the ATO is an individual with no business income stated on their return, when the ATO performed a google search it was discovered the individual had a website where they were operating an online business and even had a Facebook page promoting the business.

    The investigations do not stop at Facebook. The ATO have developed a program capable of collecting millions of pieces of data from various sources and using this to data-match. For example using insurance policies to ascertain your lifestyle assets, if you are the owner of high end vehicles, racehorses and yachts but your income does not reflect that you could afford them, this will issue a red flag on the ATO’s system.

    The ATO want to convey the message of thinking twice when deciding not to declare income, the chances of getting caught are high and people are opening themselves up to substantial penalties and prosecution.

    If you have any additional questions or wish to discuss further, the Tax team would love to hear from you.

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  • Morrow’s Audit Shield Service – What you need to know

    20th April 2017

    Morrows Shield Service

    The government has proposed an increase in audit funding for the years of 2016 to 2020. A target of $3.7 billion is anticipated for the gross revenue that will be raised as a result. So what does this mean for you? We suspect an increase in audit activity in relation to individual, business and SMSF lodged returns.

    Morrows is proud to offer our Audit Shield service as a mechanism to protect you against unplanned professional fees that can arise as a result of audit activity. Even if no adjustments are required to your lodged returns, significant costs can still be incurred in order to satisfy the requests of the ATO or other government revenue agencies.

    Renewal letters will be sent out soon. If you would like to continue your coverage please do not forget to renew your participation in our Audit Shield service. A lack of continuity could result in an audit falling between a gap created by the break in your participation.

    Alternatively, if you are not already participating in our Audit Shield service you can learn how to protect yourself by contacting our office.

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  • Morrows Staff Profile – Ethan Allen

    20th April 2017

    STAFF PROFILE – ETHAN ALLEN

    Ethan joined Morrows in 2013 as a Senior Paraplanner, Ethan has since been appointed an Associate Advisor. We spoke to Ethan of his career passions and what he does in his spare time

    What inspired you to become an advisor?

    I’ve always been interested in science and finance throughout school and university. Being a financial advisor provides the opportunity to apply the analytical thinking and problem solving that I really enjoy, to real world situations.

    What would you consider to be your proudest moment in your career?

    Working closely with the family of a disabled child to put in place a long term care funding plan a number of years ago. It was interesting and unusual work that was at times emotionally challenging. The care funding plan and advice really helped provide comfort and structure out of what had been a very tough time for the family.

    What’s the most important lesson you’ve learned from working in this profession?

    I think one of the big things has been understanding the difference between the “perfect” strategy versus the practical, achievable strategy. An effective plan is one that can be implemented well and stuck to for the long term.

    What advice do you have for young professionals?

    Go out of your way to get as much exposure as you can to what others in your industry, or related industries, are doing and thinking. It might seem daunting but it’s a great way to gain perspective and help you hone in on what you’re going to enjoy as a career.

    What is your favourite travel destination?

    I’d have to say that I am looking forward to going back to Hawaii again. The combination of Hawaiian hospitality with the amazing island scenery is a surefire recipe to get you feeling relaxed.

    Where are you planning to travel to next?

    My wife and I are looking forward to visiting Canada or Alaska for our next trip. The wilderness and vast landscapes are something that we are keen to experience.

     

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  • Morrows News – Run for the Kids & Morrows Weekend Away

    20th April 2017

    Morrows Weekend Away and Run for the Kids

    St Leonards: The staff at Morrows enjoyed a wonderful weekend away at St Leonards recently. A total of 85 people attended the weekend, The days were filled with various sports competitions, relaxation and general team building and the evening included dinner, drinks and a ‘Best Hat’ competition which saw David Alcorn and his partner take out first prize.

    Run for the Kids: Some of the Morrows staff took to the pavement to raise money for the Good Friday Appeal in the annual Run for the Kids. Despite the less than favourable weather conditions, all the staff finished in great time and managed to raise a total of $1,231.30 which smashed the original target of $800.

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  • Budget Changes, New Rules and SMSF Trust Deeds

    21st March 2017

    There is no time to waste!  In fact, Morrows Private Wealth is calling on you to consider the following matters of importance for any Self-Managed Superannuation Fund (SMSF):

    1. Needing to upgrade your SMSF’s deed in light of recent legislative amendments announced in the 2016 Budget;
    2. Ensuring any instructions made by you with regard to how your death benefits held within your SMSF are to be paid is compliant with recent case law; and
    3. The importance of having a corporate trustee.

     

    There are wide-ranging changes to superannuation rules which recently became law and largely take effect from 1 July 2017, including:

    • Introducing a cap of $1.6 million on the total amount that can be transferred into ‘retirement phase’ accounts, such as account-based pensions;
    • Reducing the before-tax (concessional) contributions cap to $25,000 per year regardless of age; and
    • Reducing the after-tax (non-concessional) contributions cap to $100,000 per year for those with superannuation balances below $1.6 million, with a 3 year bring forward rule available for individuals under age 65.

     

    Morrows Private Wealth has the view that a failure to vary the Trust Deed to take account of these legislative changes has the potential to adversely impact a member’s superannuation benefits.  Also, that it is essential that your SMSF’s deed is upgraded if you want your SMSF to be able to take advantage of the latest strategies that have been developed following the recent changes.

     

    Experts also agree that in addition to the new rules, there are reasons to update now, including recent innovations in SMSF trust deed drafting, cases on binding nominations and conflicts of interest as well as substantial guidance from the ATO on a range of superannuation issues.

     

    To find a better way forward, contact our MPW team today

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  • International Women’s Day

    8th March 2017

    Happy ‘International Women’s Day’ from Morrows!

     

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  • The Deadline is up for Compliance with ATO’s Safe Harbour Rules!

    31st January 2017

    SMSF trustees have until midnight tonight (31 January 2017) to get their related party/non-bank  LRBA’s compliant with the ‘safe harbour’ guidelines.

     

    In order to avoid triggering the NALI (non- arm’s length income) provisions, the terms of a related party/ non-bank loan must comply with the ATO’s Practical Compliance Guidelines (PCG 2016/5).

     

    PCG 2016/5 sets out the safe harbour terms for new and existing complying LRBA’s which, if adopted, will mean the LRBA is taken to be consistent with an arm’s length dealing.

     

    Under the guidelines there are three methods for meeting these requirements:

    1. Ensure your terms and conditions of the loan align with the safe harbour guidelines: OR
    2. Re-finance the loan with a commercial financier.
    3. The LRBA is brought to an end.

    The ‘safe harbour’ guidelines do have different terms depending on the nature of the asset being acquired under the LRBA .

     

    LRBA safe harbour terms for Real Property:

    lrba-table-1

    LRBA safe harbour terms for listed shares and listed units:

    lrba-table-2

    The ATO at paragraph 4 of PCG 2016/5, confirms that compliance is not mandatory.   If the trustee(s) of an SMSF decide not to comply with these guidelines it does not mean that the LRBA will be subject to the NALI provisions. However, to demonstrate your arrangement is commercial and consequently the income from the LRBA not treated as NALI, you will have to provide documentary evidence that related party loan’s terms and conditions are the same as those available from a commercial financier.

     

    Where Morrows audits the superannuation funds that have a related party LRBA in place, we will require confirmation from an independent mortgage broker, that the loan is commercial and the superannuation fund would have been able to obtain a similar loan with the same conditions.

     

    Where a member has obtained a personal bank loan and lends that money to the superannuation fund under a LRBA , the auditor will require documentation from the bank that the loan would have been approved if the borrower was the superannuation fund and not the individual.

     

    How can Morrows assist to ensure that your LRBA is within the Safe Harbour guidelines:

    • Register Mortgage – cost estimate of approx. $1,000.
    • Lodgement and associated fees – cost estimate of approx. $150
    • Amend Loan agreement to bring within the Safe harbour as follows;
    • Security under the loan
    • Duration of loan
    • Interest rate
    • LVR
    • Monthly repayments of principal and interest.

    (A quote will be given for amended loan agreements).

     

    Please contact Maureen Allan from our office for further information.

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  • Deadline Looms for Compliance with ATO’s Safe Harbour Guideline!

    5th January 2017

    SMSF trustees have until 31 January 2017 to get their related party/non-bank  LRBA’s compliant with the ‘safe harbour’ guidelines.

     

    In order to avoid triggering the NALI (non- arm’s length income) provisions, the terms of a related party/ non-bank loan must comply with the ATO’s Practical Compliance Guidelines (PCG 2016/5).

     

    PCG 2016/5 sets out the safe harbour terms for new and existing complying LRBA’s which, if adopted, will mean the LRBA is taken to be consistent with an arm’s length dealing.

     

    Under the guidelines there are three methods for meeting these requirements:

    1. Ensure your terms and conditions of the loan align with the safe harbour guidelines: OR
    2. Re-finance the loan with a commercial financier.
    3. The LRBA is brought to an end.

    The ‘safe harbour’ guidelines do have different terms depending on the nature of the asset being acquired under the LRBA .

     

    LRBA safe harbour terms for Real Property:

    lrba-table-1

    LRBA safe harbour terms for listed shares and listed units:

    lrba-table-2

    The ATO at paragraph 4 of PCG 2016/5, confirms that compliance is not mandatory.   If the trustee(s) of an SMSF decide not to comply with these guidelines it does not mean that the LRBA will be subject to the NALI provisions. However, to demonstrate your arrangement is commercial and consequently the income from the LRBA not treated as NALI, you will have to provide documentary evidence that related party loan’s terms and conditions are the same as those available from a commercial financier.

     

    Where Morrows audits the superannuation funds that have a related party LRBA in place, we will require confirmation from an independent mortgage broker, that the loan is commercial and the superannuation fund would have been able to obtain a similar loan with the same conditions.

     

    Where a member has obtained a personal bank loan and lends that money to the superannuation fund under a LRBA , the auditor will require documentation from the bank that the loan would have been approved if the borrower was the superannuation fund and not the individual.

     

    How can Morrows assist to ensure that your LRBA is within the Safe Harbour guidelines:

    • Register Mortgage – cost estimate of approx. $1,000.
    • Lodgement and associated fees – cost estimate of approx. $150
    • Amend Loan agreement to bring within the Safe harbour as follows;
    • Security under the loan
    • Duration of loan
    • Interest rate
    • LVR
    • Monthly repayments of principal and interest.

    (A quote will be given for amended loan agreements).

     

    Please contact Maureen Allan from our office for further information.

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  • UPDATE! Morrows’ Charity Committee – Supporting Movember 2016

    14th December 2016

    Morrows’ Charity Committee actively supported Movember this year by forming the Morrows’ OneTeam and taking 30 days of action to stop men dying too young.

    Our very own ‘mobrothers’ and ‘mosistas’ raised a total amount of $2,470.00 (exceeding their $2,000 target) and ranked in the top 1200 teams Australia-wide!

    This was an amazing effort by all involved and we would like to sincerely thank you for your donations.

    Together we have helped change the face of men’s health.a_small

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  • NEWSFLASH! Fair and Sustainable Superannuation Package Passes Parliament

    23rd November 2016

    Wednesday 23rd November, 2016.

     

    The Government budget changes to superannuation have passed both houses of Parliament.

    The ‘Fair and Sustainable Superannuation’ package covers broadly:

    • – The Transfer Balance Cap, initially set at $1.6 million
    • – Lowering the concessional contributions cap
    • – Lowering the non-concessional contributions cap and restricting non-concessional contributions for people with high super balances
    • – Introducing the Low Income Super Tax Offset (LISTO), which replaces the LISC
    • – Making it easier for people to claim tax deductions for personal super contributions
    • – Carry forward rules for unused concessional contributions
    • – Changes to the tax offset for spouse contributions
    • – Removing the earnings tax exemption for assets supporting Transition to Retirement Income Streams (TRIS)

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