Meet Brian McPhail
This month we sat down with Brian McPhail. Most of you will know Brian, you may be a client of his or, you’ve seen him in the office. He’s been there for a few years! We thought it was time you had the opportunity to learn a little more about Brian. Thank you Brian for being so candid.
- When I was little, I wanted to be a……
A VFL footballer & play cricket for Australia.
- I am currently watching…
The Golf Show. I love watching the Australians do well in the big tournaments.
- What I love about the team at McPhail and Partners is…..
The genuine interest in our clients’ affairs and working together to achieve benefits for our clients.
- What is the best piece of advice you were ever given?
Keep a To Do List and start with the hardest tasks. It’s amazing how often the hard things are not as bad as you first thought.
- If we came to dinner at your house, who would cook and what would it likely be?
My wife Sue is the only cook in our household and sets a very high standard may I add. We would have a roasted fillet of beef, scalloped potatoes, tomatoes, broccoli, pumpkin and zucchini. Dessert would be rolled pavlova with strawberries and blueberries.
- How has business (in general) changed over the years?
The development of technology with amazing computer software, email & the Internet.
- How different are the needs of clients compared to when you started McPhail and partners?
Trusts were very new when I started and superannuation was only for public servants and executives in some public companies. Now they are both very common for many people and the legal complexity is enormous.
- What is one thing that your team doesn’t know about you?
I like simple food with red, white and green vegetables.
- What advice would you give to someone who wanted to start a small business in today’s world?
Crawl before you walk. Keep costs to a minimum. Focus on marketing & satisfying your customers.
- What challenges you?
Dealing with staff changes.
Tax News, Views & Clues April 2016
Dealine looming for SMSF collectables compliance
The ATO has reminded trustees of self managed super funds (SMSFs) that if they have investments in collectables or personal-use assets that were acquired before 1 July 2011, time is running out to ensure their SMSFs meet the requirements of the superannuation law for these assets. Assets considered collectables and personal-use assets include artwork, jewellery, antiques, vehicles, boats and wine.
From 1 July 2011, investments in collectables and personal-use assets have been subject to strict rules to ensure they are made for genuine retirement purposes and they do not provide any present day benefit. SMSFs with investments held before 1 July 2011 have until 1 July 2016 to comply with the rules.
The ATO says SMSF trustees have had since July 2011 to make arrangements, and it expects that they will take appropriate action to ensure the requirements are met before the deadline.
TIP: Appropriate actions may include reviewing current leasing agreements, making decisions about asset storage and arranging insurance cover.
ATO data-matching for insured ‘lifestyle’ assets
In January 2016, the ATO advised it was working with insurance providers to identify policy owners on a wider range of asset classes, including marine vessels, aircraft, enthusiast motor vehicles, fine art and thoroughbred horses. The ATO has since formally announced the data-matching program that covers these “lifestyle” assets, and will acquire details of insurance policies for these assets where the value exceeds nominated thresholds for the 2013–2014 and 2014–2015 financial years.
The ATO said it will obtain policyholder identification details (including names, addresses, phone numbers and dates of birth) and insurance policy details (including policy numbers, policy start and end dates, details of assets insured and their physical locations). The data-matching program will provide the ATO with a more comprehensive view of taxpayers’ accumulated wealth, as well as assist in identifying possible tax compliance issues.
TIP: It is estimated that records of more than 100,000 insurance policies will be data-matched. The ATO has released a list of insurers involved with the data-matching program. Please contact our office for further information.
Overseas student debts: repayment thresholds
From 1 July 2017, anyone with a Higher Education Loan Programme (HELP) or Trade Support Loans (TSL) debt who is living overseas and earning above the minimum repayment threshold will be required to make loan repayments to the Australian Government, just as they would if they were living in Australia. The HELP minimum repayment threshold for 2016–2017 is $54,869.
TIP: If you have a student loan debt and are planning to move overseas for longer than six months, you need to provide the ATO with your overseas contact details within seven days of leaving Australia. You should also factor in potentially having to make repayments from 1 July 2017.
Market value of shares is not the selling price
The Administrative Appeals Tribunal (AAT) has ruled that the “market value” of a parcel of shares in a private company that a taxpayer sold in an arm’s-length transaction (together with the other two shareholders’ shares in the company) was not the proportion of the sale price he received from the sale of all the shares. Instead, the AAT agreed it was a discounted amount; the taxpayer was a “non-controlling” shareholder, so the market value was less than simply his one-third share of the sale price.
As a result of this AAT decision, the taxpayer passed the $6 million “maximum net asset value test”, allowing him to qualify for small business capital gains tax (CGT) concessions, where otherwise he would not have.
The Commissioner has appealed to the Federal Court against this AAT decision.
TIP: This decision demonstrates that the actual selling price of an asset may not always represent its “market value”. In this decision, the AAT agreed with the taxpayer’s valuer that “all other things being equal, the average price per share of a controlling shareholding will be higher than the average price per share of a non-controlling shareholding because of the value of control”.
Individual not a share trader
The Administrative Appeals Tribunal (AAT) has found that a taxpayer (a childcare worker) was not carrying on a business of share trading, and accordingly was not entitled to claim a loss resulting from her share transactions. In the year in question, the taxpayer turned over approximately $600,000 in share transactions (including both purchases and sales).
In deciding that the taxpayer was a share investor and not a share trader, the AAT considered each of the key indicators established in case law. The AAT decided that a lack of regular and systematic trade, especially in the second half of the income year, when only 10 transactions were made, went against the taxpayer’s contention that she was conducting a share trading business.
TIP: The AAT weighs up all the relevant factors in cases like this. There have been cases where the AAT has found that a taxpayer was carrying on a business of share trading, and has therefore allowed them to claim a deduction for their losses.
Tax law changes to treatment of earnouts
The Government has recently amended the tax law concerning the capital gains tax (CGT) treatment of the sale and purchase of businesses involving certain earnout rights.
Specifically, the changes provide for a “look-through” treatment. Under the amended tax law, capital gains and losses that arise in respect of look-through earnout rights will be disregarded. Instead, payments received or paid under the earnout arrangements will affect the capital proceeds and cost base of the underlying assets to which the earnout arrangement relates when they are received or paid (as the case may be).
The changes apply from 24 April 2015.
TIP: These changes to the tax law do not apply for events that occurred before 24 April 2015. However, transitional protection is provided, subject to conditions, for taxpayers who have reasonably anticipated these changes to the tax law, which were originally announced by the former Government.
Small business restructures made easier
The Government has made changes to the tax law to provide tax relief for small businesses that restructure. The tax law changes provide an optional rollover for small business owners who change the legal structure of their business on the transfer of business assets from one entity to another. The effect of the rollover is that the tax cost of the transferred assets is rolled over from the transferor to the transferee.
This optional rollover is in addition to existing rollovers available where an individual, trustee or partner transfers assets to, or creates assets in, a company in the course of incorporating their business.
The changes to the tax law will take effect on 1 July 2016.
TIP: You must meet strict eligibility requirements in order to access the rollover. Among other things, the rollover must be part of a genuine business restructure that does not change the ultimate economic ownership of the assets. There are also tax consequences you should be aware of.
8 Simple Ways to Make Your Boss Love You!
Winning your boss’s favour isn’t so hard to do! And it’s not about kissing up by complimenting their new haircut or volunteering for every single new assignment.
Instead, it’s about figuring out what they want from you and being strategic in making them feel good.
To help you ingratiate yourself with your manager, we consulted both scientific research and expert opinion. Read on for the eight most compelling insights we have learned.
1. Get to work early.
Research from the Michael G. Foster School of Business at the University of Washington suggests that employees who get into the office early are generally perceived by their managers as more conscientious and receive higher performance ratings than employees who arrive later.
And it doesn’t matter if those who get in later stay later, too.
If you feel that you’d be more productive working from, say, 10am – 6pm instead of 9am – 5pm, consider explaining the situation to your manager and confronting their potential ‘morning bias’ head-on.
2. Ask for advice.
You might be wary of asking your boss anything – whether it’s how they got to this point in their career or which marketing strategy they think you should go with.
But research from Harvard Business School suggests that asking for advice doesn’t make you look stupid – it can make you seem more competent, which is presumably how you want your boss to see you.
In one experiment, 170 university students worked on a series of computer tasks and were told they would be matched with a partner who would complete the same tasks (the partner was really a computer simulation). When they’d finish the tasks, the ‘partner’ either said, ‘I hope it went well’ or ‘I hope it went well. Do you have any advice?’
As it turns out, students who’d been asked for advice rated their ‘partner’ more competent than those who hadn’t been asked for advice.
The researchers explain that, when you ask for advice, you’re validating the person’s intelligence and experience, so they feel good about you in turn.
3. Manage up.
‘Managing up’ is a term for learning what your boss really cares about and making sure you deliver on that.
As Dave Kerpen, founder and CEO of software company Likeable Local, told Business Inside, ‘It’s about helping your manager look great to his or her manager. And ultimately by doing that you’re going to position yourself better for success.’
Kerpen expects his team at Likeable Local to manage up for him. For example, he doesn’t care that his head of marketing shows up late almost every day – as long as she’s on time Monday morning, delivering a great report at the company-wide meeting.
Kerpen recommends either asking your boss directly what’s important to them or subtly trying to figure it out on your own.
4. Set stretch goals.
Leadership development consultancy Zenger/Folkman spent more than five years collecting upwards of 50,000 360-degree evaluations on more than 4,000 individual employees.
According to their findings, there’s on behaviour that can make employees stand out (to their boss and the rest of their co-workers): setting stretch goals.
In other words, Zenger/Folkman execs write in The Harvard Business Review, top employees ‘set – and met – stretch goals that went beyond what others thought were possible.’
Interestingly, most people didn’t realise that high goals was so important, suggesting that setting stretch goals is meaningful because it’s not expected.
5. Pay attention to detail.
If you consider yourself more of a big-picture person, you’d best start attending to the small stuff, too.
Ryan Holmes, CEO of Hootsuite, wrote in a LinkedIn post that at his company ‘even what seems like a small technical glitch can end up affecting a lot of clients in a short period of time. An employee who can be trusted to catch such small errors truly begins to stand out among the crowd.’
6. Say ‘thanks’.
Expressing gratitude for your boss’s feedback – even if it’s negative – can make them feel warmer toward you, according to a 2011 study from the University of Southern California.
In one experiment, about 200 undergrads were told that they had been assigned a partner and were supposed to review a draft of instructions the partner had written about how to assemble parts of equipment. In reality, there was no partner and the instructions had been written by the experimenter.
Some participants were told they were the supervisor in this relationship; others were told they were the subordinate. In addition, all participants took a pretend test of their abilities and some were told they weren’t that competent.
When the experimenters returned notes from the ‘partners’, some said, ‘I just wanted to let you know that I received your feedback on my draft.’ Others said the same thing, along with, ‘Thank you so much! I am really grateful.’
As it turns out, participants in the supervisor position who’d been told they weren’t that competent were nicer when their partners were grateful.
When their partners weren’t grateful, the supervisors whose competence had been threatened were more likely to respond by denigrating those partners, saying they were unintelligent, incapable, and incompetent. You might say gratitude prevented the threatened supervisors from acting like jerks!
7. Take a vacation.
According to analysis by Oxford Economics for Project: Time Off, workers who take all their vacation time are 6.5% more likely to get a promotion or raise than those who leave over at least 11 days of paid vacation time.
Of course, that doesn’t mean taking a vacation directly causes you to get a promotion – it could be the case that better workers feel they’re more entitled to a vacation.
But as Shawn Anchor, author and CEO of GoodThink, Inc., writes in The Harvard Business Review, these findings do suggest that working yourself to death doesn’t necessarily lead to success.
‘The extra face time doesn’t help you’, Katie Denis, senior director of Project: Time Off, told The Boston Globe. ‘There’s something to this ‘refreshed thinking,’ too. Vacations allow you to be more creative.’
It’s hard to imagine that your boss wouldn’t appreciate your increased creativity post-break.
8. Speak up.
Got an opinion? Don’t hide it from your co-workers.
Jenna Lyons, president and executive creative director of J.Crew Group Inc., told Motto that she advises people to share their perspectives: I find it impossible to understand where a person stands if they don’t join the conversation.’
Don’t be afraid of looking stupid, either. As Lyons said, you should ‘never be afraid to pitch an idea; we all have good ones, and we all have bad ones.’
Learn about the Alkira Centre - helping others.
1. Ray, you have been the CEO of Alkira for over 20 years, that is quite the milestone! How did you get end up working for Alkira, was it an industry that had a special connection for you?
Following on from an accountancy role with International Harvester; Human Resources, Production Planning and Marketing Services positions within a family Pet Food and Soap manufacturing company in Melbourne and Shepparton, I entered the Disability field in 1985 in Shepparton as the General Manager of the Goulburn Valley Centre for the Intellectually Handicapped. I then moved back to Melbourne with my family to join Alkira Centre – Box Hill in 1995 and 21 years later I am still here!
The attraction to this industry is THE PEOPLE – not only the dedicated and talented staff that are part of Alkira and are responsible for delivering the quality services, support and opportunities for the adults with intellectual disabilities that are involved in our services, but especially the people who we provide services for – their uniqueness, friendliness, joy for life and achievements are the reason why I come to work each day and have done so for so long. Like John who almost every day takes the time to come and say hello, ask about my family and “how are you today” or the big smile on Bernie’s face as she struts the catwalk in a ‘Wearable Arts’ event
2. According to your website ‘Alkira’ means a ‘happy place in the sun’. Can you tell us a bit more about how and why this name was chosen and how Alkira is different to other disability support providers?
From “A Short History of Alkira” (2000):
“And so it was that on 18th June 1955, the training centre at Thurston Street Box Hill was officially opened. One of the guests at this opening was Mr. Crosbie Morrison, who had been asked to provide a name for the training centre. After seeing the centre he stated it to be a bright and sunny place, and chose the aboriginal name “Alkira”.
The word “Alkira” comes from an Aboriginal language meaning “bright
and sunny”. For many it has come to signify “a happy place in the sun”.
3. What do you love most about your job or (this industry)?
Again, THE PEOPLE! People with disabilities, work colleagues, family members, industry colleagues, Board Members – all are generally dedicated to the cause and align with both my and Alkira’s values.
4. What would you struggle with the most in your job or in this industry?
Time – trying to balance the vastness, complexities and breadth of the role alongside the personal lifestyle and family commitments. The role is complex because it crosses over many aspects of management – from financial oversight to capacity building and development projects, property maintenance, transport logistics, keeping up to date with industry and funding changes, dealing with a range of external people and organisations and internal people management. It also has a high focus on monitoring service delivery performance to ensure Alkira is delivering what people tell us they need and want, within financial and staffing capabilities.
5. Tell us about a rewarding moment for you in the business and your involvement in it?
The closure of a 30-bed hostel and relocation of people into houses in the community. This involved gaining the commitment of the Alkira Board, convincing family members of residents at the time and the residents themselves of the potential massive benefits to their future lifestyle.
The most rewarding moments was seeing the changes in people – residents have expressed that they are now much happier, can cook their own meals, take pride in their own rooms and enjoy the homely atmosphere of where they live. Family members have also commented very positively on the changes and progress in their sons and daughters and that were also healthier now they are part of a smaller houses in which they participate in a homelike environment and have their ‘own space’ to enjoy.
6. There must be many interesting and funny incidents you would have experienced while at Alkira, can you tell us about one or two?
Staff Christmas parties, where staff members relaxed and ‘performed’ and where we saw aspects of character that were not normally exhibited in a normal work day. The classic was the handing out of staff Christmas gifts by our own in house personalities ’Kylie Mole’ and ‘Uncle Arthur’.
7. Tell me about a memorable client you have gotten to know while working at Alkira?
Vincent Pederson is an Aboriginal client who always says hello, has a unique and special handshake that he insisted I learnt and also has a collection of different caps that must require a separate wardrobe to house.
8. If you had to sum up your time with Alkira using 5 words, what would they be and why?
- Long (but seemed short)
- Ever-changing
- Stimulating
- Engaging
- Rewarding
9. What do you do when you are not working or to relax?
Bike riding, social tennis, family time, travel, camping, beach time.
We would like to thank Ray Cranwell, CEO, for his time and for sharing his insights into this great organisation, thank you.
You can read more about Akira by visiting their website.
Caring for your Elderly Relative – Navigating the Maze
Many of us will face the daunting task of arranging care for a relative or friend in their later years, but the thought of placing our loved one into permanent residential care can fill us with dread and guilt. It is easy to delay the inevitable, which only magnifies and extends the stress.
Fortunately, there is a local service that can your assist you through this emotionally difficult time – to give you the peace of mind that the most appropriate option was selected in a timely manner.
Liz and Ron Carroll established Aged Care Connect to guide families through this stressful time and to navigate the maze of local aged care options.
McPhails have asked Liz and Ron to share their observations about the following questions:
What worries do people normally have about moving into an aged care facility?
- Elderly people can be very concerned and fearful of any change to their current situation, especially involving their health, well-being and lifestyle options
- They prefer to stay in the comfort of their family home for as long as possible
- They worry about a loss of independence, being regimented, entering an unfamiliar environment, experiencing different activities and meeting new and unfamiliar people
- They worry about being taken care of properly and treated in a dignified and respectful manner
- They are concerned about the cost of care and accommodation fees and if they will be forced to sell their cherished family home to pay for the fees
- Elderly persons often have pre-conceived ideas about aged care; based upon past models and approaches to care delivery
What are the signs that Mum or Dad might need to start thinking about aged care, including home-based or residential care options?
- Mild personality changes (lack of confidence, forgetful or vague, repetitive conversations)
- Poor nutrition, out-of-date food in the fridge, loss of appetite, changes in weight
- Problems with bill paying and house maintenance
- Not attending to activities of daily living (cooking, cleaning, personal hygiene)
- Medication mis-management (not taking or taking too many medications)
What are the signs that action needs to be taken to move into an aged care facility?
- Diagnosis of serious and advanced health conditions
- Advanced dementia – including aggressive behaviour or wandering
- In general, being under any form of risk to their health and well-being
There seems to be a lot of aged care facilities nowadays, what are the things that we should be looking for when seeking the most suitable facility?
- Quality and experienced care staff is paramount
- The Director of Care should be firm and have laid the ground rules for a professional and caring aged care home
- Appropriate ratio of staff members to resident; daytime, evening and weekends
- Quality and range of food is an important consideration to many residents
- Lifestyle activities should be frequent and diversified and individually tailored to each resident
- Large private rooms with ensuites, bright community areas
- Well maintained garden settings with opportunity to walk in a safe and secure manner
- Affordable fees and charges
- The approach taken by the aged care providers should be directed towards quality care programs (Not-for-profit versus Profit-based provider)
How can we know if one facility has a better reputation that the other?
- Talk to an experienced specialist to get the up-to-date and accurate information
- There are consumer driven review websites that consumers can access
How can we help our Mum or Dad emotionally as they move into this stage of their life?
- Pick a quiet moment, with no distractions, to have early discussions about how they are coping and the need to plan for the future
- Always be patient and respectful, but mindful that they need to find extra care
- Always have the discussion face-to-face, never by telephone or email – the tone and intent can be misinterpreted if not face-to-face
- Listen to their viewpoint and perspective and re-inforce that you have understood their thoughts, wishes and concerns
- Explain that it is not easy for yourself as well – and your objective is simply to make them as safe and risk-free as possible
- Involve them in the process, research, facility visits and decision making as much as practicable.
- Start the discussions early in the process to avoid the “limited time” approach.
- In some circumstances, if an elderly person is under significant risk or needs urgent help and they are resistant, consider seeking the support of their Pyschogeriatrician, GP, social worker, case manager or experienced placement consultant.
How we can help ourselves emotionally; we feel so guilty even thinking about moving Mum or Dad into aged care.
- Do not beat yourself up – be aware that facing the task you are facing, of discussing aged care and placing a loved one into care, can be very distressing to the supportive family member – very few people find it easy.
- Share the load – have other supportive family members by your side
- Start the process early – avoid the “limited time to get it right” syndrome
The aged care system seems so confusing and always changing, who can help us understand the complexities?
- The Commonwealth is continuing to implement major changes to aged care in Australia – it pays to stay updated with those changes
- The My Aged Care website (www.myagedcare.gov.au) is the central online gateway and resource to access and learn about the aged care system
Who would help Mum or Dad actually move into an aged car facility?
- A placement agency like Aged Care Connect has the local knowledge, experience and industry contacts to make the task easier
How long does someone typically stay in an aged care facility for?
- Across all Australia, there are 263,788 residents in 2800 Commonwealth regulated aged care homes
- Nearly 7 out of 10 (69%) of residents are women
- Average age of female residents is 86 – average aged of male residents is 81
- The average length of stay in a Commonwealth regulated aged care home is a little under 2 years (~700 days)
Our take home messages?
- Get the research and planning done as early as possible – to avoid being rushed into an uninformed decision, or having to take an option because it is the only one available at the time
- Share the activities and emotional load with supportive family members and experienced service providers
Need Further Information?
If you would like to discuss your family requirements and the local aged care options contact the friendly Liz or Ron at:
Aged Care Connect pty ltd
(03) 9879 0888 | 0400 888 381
5 Things Your Adult Child Needs But Doesn't Have
If you are a fellow parent you know how it feels when you see your kids leave home, move to a different country, get married etc. But, do you know it could be worse if you sent that son or daughter off without doing 5 critical yet pretty simple things for them? The good news is that it is not too late to get these done for your adult child whether or not they are close to home!
Below are five things we believe are important topics to discuss right now with your children.
- Take care of a Will. Most of us need Wills but your adult child may not. Most of these children own things like phones, stereos and computers and none of those need a Will to direct it to the appropriate heir in the event of a death. However, many of these children have a car and a bank account and it’s these sorts of items that need a Will to protect them.
- Prepare for health issues. Make sure you are having the right conversations with your adult children so that you know they are having regular health checks and that they inform you of any health issues they may have. The last thing you want when you are about you plunge into retirement is cancelling your cruise because you have to look after the grand children!
- Prepare for financial issues. In the hypothetical example of a nightmare car accident, disability is a higher possibility than death. A Power of Attorney enables a designated person to handle affairs that cannot be handled by the child. This can include financial, tax, banking and individual care matters. Having this on file before it is needed can help alleviate needless delays and heartache in the future.
- Decide about life support. This one is not fun for any of us. Have the open discussion that in the worst event one of you, them or you, needs life support, what are your desires? And, would you like to donate your organs?
- Cover the bills. Your adult child may be racking up some small debts as they work their way through university and the start of adulthood. While they may not think it’s needed, a conversation about life insurance can be a valuable one to have.
The bottom line is that our duties as parents don’t stop when our kids reach 18; however, our ability to be a parent is greatly diminished based on the fact that those kids are now adults.
Take the time to talk to your children about these important topics and prepare for any situation. The devil is certainly in the detail.
Have you talked to your grown kids today? Why not take a minute and call right now?
15 Things successful people do in the last 10 minutes of the workday
Perhaps you spend the last 10 minutes of your workday staring at the clock, counting down the seconds until you’re free. Or, maybe you bury yourself in work until the very last minute – then you grab your stuff and run for the door without saying goodbye to your colleagues.
If either of the above scenarios sounds familiar, it may be time to assess your end-of-day routine.
‘How you finish the workday is very important’, says Michael Kerr, an international business speaker and author of ‘The Humour Advantage’. ‘It can set your mood for the rest of your day; it may impact your personal relationships, overall level of happiness, and how well you sleep that night; and it will set the stage for the next day.’
1. They stay focused.
‘This is a classic time when your mind can drift,’ explains Lynn Taylor, a national workplace expert and the author of ‘Tame Your Terrible Office Tyrant: How to Manage Childish Boss Behaviour and Thrive in Your Job’. Typically, you’re not as sharp at the end of the day.’
Try not to allow yourself to get distracted or caught up in non-work related activities at the very end of the day.
2. They update their to-do lists.
Successful professionals always keep an eye on their ever-changing to-do lists, Taylor says.
‘But in the last 10 minutes is when they also check their final progress against that day’s objectives,’ she says. ‘They revise their final list accordingly while in the moment, rather than abruptly leave and hoping they will remember all the nuances of that day in the morning.’
3. They review what they achieved.
Taylor says in addition to focusing on what you still need to do, its important to look back on what you’ve done.
Kerr agrees. ‘Taking even one minute to review what you achieved can give you a sense of accomplishment, and on a particularly trying and busy day it can remind you that you got more done than you realised,’ he says. ‘Happiness research tells us that doing a simple routine like this, and taking the time to reflect on what you accomplished, is a key way to boost your overall level of happiness.’
4. They determine their primary goals for tomorrow.
Successful people have a list of items ready for the morning, and they identify their primary objectives for the following day. ‘You may have two or three of them that are top of mind, but commit them to writing so you have a core foundation to work from the next morning,’ says Taylor.
‘The more you can get everything down on paper that is swirling through your mind, the more likely it is you’ll be able to focus on the rest of your life with a clear head and be prepared and ready to go the following day,’ adds Kerr.
5. They vet ‘urgent’ communications.
You’re down to the wire on your day, but the communications keep flowing; some urgent and some not – but all at the last minute. ‘This is when your time management skills are put to the test.’ Says Taylor. ‘Successful people are able to decide what requires a response and what can wait.’
You want to defer long conversations that are sensitive until you and your colleague are at your best: in the morning. ‘Consider a response that suggests the discussion be held at a specific time the next day’ she says. ‘Otherwise, the matter could last well into the evening when your mutual energy is low and you feel rushed. This deferral also gives you overnight to step back and think through your immediate reaction.’
6. They take a moment to reflect on the day.
Successful people not only think about the projects they have handled that day; they try to analyse when and why things went right and wrong. ‘Savvy professionals know that if they’re not learning, they’re not growing,’ says Taylor.
7. They say thank you to someone.
Great workplaces are built on foundations of gratitude and recognition. ‘Creating a habit around thanking someone at the end of your workday is an incredibly effective way to boost your own happiness level and allow yourself and others to leave on a high note,’ says Kerr.
8. They review their schedule for the next morning.
There’s no worse way to start your day than arriving at the office and learning you have a big meeting in five minutes.
‘Successful people know to review their schedule and plan for the following day – and most importantly, visualise how the day will unfold,’ Kerr says. This will allow you to go into the next workday feeling better prepared, more confident and less stressed.
9. They don’t leave people hanging.
How terrible would you feel if you found out a co-worker waited around all night for you to send that file you promised, only to eventually realise you’ve already left for the day, and that file probably isn’t coming?
Successful people don’t always accomplish everything they planned to, or respond to every email they said they would – but they do at least let others know that they weren’t able to get to the task, or make the decision, or respond to their email today, and they usually provide a status update, as well.
10. They organise their desk and desktop.
Your projects take much longer to complete when you’re not organised. ‘Having an orderly desktop and desk will help you think more clearly and prioritise more effectively. It will also help you quickly find important documents when you need them.’ Says Taylor. ‘File digital and hard copy documents for easier access and greater efficiency when you need them next.’
11. They let everyone know they’re about to leave.
Successful people give their colleagues or employees a heads-up that they will be heading out in a few minutes.
This way, if anyone has anything urgent to discuss or ask you, they won’t do it when you’re literally walking about the door.
12. They let colleagues know how accessible they will be between now and the morning.
The most successful people take a minute to determine how accessible they can and need to be between now and the following day, and then they communicate that to whoever needs to know.
13. They say their goodbyes.
A friendly ‘goodnight’ is highly underestimated and requires very little effort. ‘It reminds your boss and team that you are a human being, not just a colleague,’ Taylor says. It also gives your co-workers a heads up that you’re leaving for the day.
14. They leave on a positive note.
Before you head out, give yourself a psychological boost by smiling, Taylor recommends. ‘It will prepare you to exude a more upbeat vibe as you check out with your co-workers.’ Successful leaders leave a good impression at the day’s end, as that’s the demeanour that sticks until the next morning.
15. They actually leave.
Successful people avoid the temptation to linger. They know how important work-life balance is, so they try to leave the office at a decent hour.
‘Staying around for no good reason will limit your level of energy and success when you need it tomorrow’, Taylor explains.
Jacquelyn Smith – Business Insider
Tax News, Views & Clues - March 2016
Tax relief for small businesses that restructure on the way Small businesses are important to the Australian economy, as they facilitate growth and innovation. However, as a small business develops over time, its initial legal structure may no longer be suitable for the business. Where a business has to restructure to accommodate growth, the transfer of assets from one legal structure to another could give rise to unwanted tax liabilities, even though the underlying economic ownership remains the same.
With this in mind, the Government has proposed amendments to the law to provide tax relief for small businesses that restructure on a genuine basis. If the legislative amendments are enacted as proposed, the changes would apply for restructures occurring on or after 1 July 2016. In introducing the Bill, the Assistant Treasurer said that this legislation completes the Government’s $5.5 billion Growing Jobs and Small Business package. Ms. O’Dwyer said the Bill will reduce risk and complexity, and will make it easier for businesses to grow.
Trusts’ ABNs to be cancelled if no longer carrying on business
The ATO has advised that the Registrar of the Australian Business Register (ABR) will begin cancelling the Australian Business Numbers (ABNs) of approximately 220,000 trusts, where there is evidence they are no longer carrying on an enterprise.
A trust’s ABN will be cancelled where available information indicates that the trust has not lodged business activity statements and/or trust income tax returns for the last two years. Exclusions to these ABN
cancellations apply for trusts that are registered with the Australian Charities and Not-for-profits Commission (ACNC) or are non-reporting members of a GST or income tax group.
The ATO said entities will receive a letter if their ABNs had been cancelled. This letter will include the reason for the cancellation, and a phone number to ring to have the ABN reinstated immediately if the entity does not agree with the decision.
Withholding tax for car allowances
Car expense deductions for individuals were simplified from 1 July 2015. Employers who pay their employees a car allowance need to withhold tax on the amount they pay over 66c per kilometre. If employers have not been doing this, the ATO notes they should start now to avoid their employees having a tax debt.
TIP: Employers should consider having a discussion with affected employees about whether to increase the withholding amount for the remainder of the financial year to cover the shortfall. If you have any questions, please contact our office.
Travelers with student debts need to update contact details
Australians with a Higher Education Loan Programme (HELP) debt and/or a Trade Support Loans (TSL) debt who are moving overseas for longer than six months will need to provide the ATO with their overseas contact details within seven days of leaving the country. International contact details can be provided to the ATO using its online services (eg an ATO account linked to myGov).
From the 2016–2017 income year, anyone who has a HELP or TSL debt and earns above the minimum repayment threshold will be required to make repayments regardless of where they live.
TIP Students’ debt will be indexed each year until it is paid off. You can make additional voluntary repayments at any time, including from overseas, to reduce the balance of your debt.
Small business tax concession refused as threshold as threshold test failed
The small business capital gains tax (CGT) concessions contained in the tax law allow eligible small businesses to access tax concessions on capital gains made from the sale of certain CGT assets.
There are threshold tests for accessing the concessions outlined in the tax law. Importantly, the taxpayer must be a small business entity, or a partner in a partnership that is a small business entity, or the taxpayer’s net assets, together with certain associated entities’, must not exceed $6 million. This is the Maximum Net Asset Value (MNAV) test.
A recent case before the Federal Court examined whether a taxpayer was entitled to the tax concessions. In particular, the Court looked at whether the taxpayer had correctly excluded a debt (a pre-1998 loan) from the MNAV test calculation. The taxpayer had not included the pre-1998 loan on the basis that it had no value, being “statute-barred” under the relevant state legislation, in this instance the Limitation of Actions Act 1936 (SA).
However, the Court dismissed the taxpayer’s appeal. The Court confirmed that the pre-1998 loan could not be regarded as having no value, and that the loan amount of $1.1 million should be included in the MNAV test calculation. The inclusion of the amount meant that the sum of the net values of the relevant CGT assets exceeded the $6 million MNAV threshold. As a result, the small business CGT concessions were not available to the taxpayer.
TIP: This case highlights the importance of satisfying the basic conditions to access the small business CGT concessions, in particular when an asset originally excluded from the MNAV test is subsequently included in the test calculation and results in the breach of the MNAV threshold.
‘Wildly excessive’ tax deduction claims refused
A professional sales commission agent has been largely unsuccessful before the Administrative Appeals Tribunal (AAT) in claiming tax deductions for work-
related expenses, including home office expenses, various grocery items and overtime meal allowances.
The case concerned the taxpayer’s deduction claims in his 2011 and 2012 tax returns. The taxpayer worked as a professional sales commission agent and his employer did not provide him with a dedicated office or workspace. His original claims (which changed throughout the course of the AAT proceeding) totalled over $63,000 for 2010–2011 and over $53,000 for 2011–12, representing at least 30% of his employment income. During the proceedings, the taxpayer abandoned a claim for a $5,388 payment to his seven-year-old son for his “secretarial assistance”.
The AAT found that the taxpayer’s home office claims were “wildly excessive”, and that the taxpayer and his representatives failed to critically analyse how these claims helped produce the taxpayer’s assessable income. The AAT rejected everything claimed under “staff and client amenities”, as it considered the products were overwhelmingly consumed by the taxpayer’s family, making the claims “outrageous and utterly unacceptable”. The claimed meal allowances were also rejected in their entirety. However, the AAT did not disturb heating and lighting expenses allowed by the Commissioner.
GST credits not available for payments on behalf of super funds
The ATO has issued GST Determination GSTD 2016/1, which provides the Commissioner’s view on whether employers can claim input tax credits for expenses paid on behalf of superannuation funds.
The Determination notes that employers may pay expenses on behalf of superannuation funds for administrative convenience. It provides that an employer is not entitled to an input tax credit if a superannuation fund makes an acquisition and the employer pays the expense on the fund’s behalf
(eg the super fund obtains legal advice but the employer pays the legal adviser). This is because the advice is supplied to the fund and not to the employer. However, the Determination notes that the fund may be entitled to claim a reduced input tax credit under the financial supply rules (contained in the GST Act), provided the requirements of those rules are satisfied.
IMPORTANT: Clients should not act solely on the basis of the material contained in Client Alert. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. Client Alert is issued as a helpful guide to clients and for their private information. Therefore, it should be regarded as confidential and not be made available to any person without our prior approval.
Employee of the month
Meet our employee of the month! Rebecca Pratt is the assistant to our directors, Brian and Wayne, and this month we sat down with her to answer a few questions…
What’s one thing about you that your work colleagues don’t know about?
I can speak, write and read Hungarian.
How would you describe McPhails?
McPhails is a great place to work. The team is friendly and has a family feel with lots of laughs.
What is your role at McPhails?
My role is Assistant to Directors - to help aid the growth of the business.
Who is your boss and what are they like to work for?
I work for both of the Partners, Brian McPhail and Wayne Durdin. They have different personalities and it’s great as they both have strengths in different areas of the business. I hold them accountable and sometimes give them a bit of a prod to get things done.
McPhails employees never leave! What do people like about working at McPhails?
I think the team environment and everyone is willing to help each other out is what people like the most.
What was your nickname at school and why?
Becsta- nothing specific but relates to my name Rebecca
If you were given $200 [yes for no reason!] what would you do with it and why?
Shopping of course! Shoes, shoes and more shoes. Call me Imelda Marcos lol
Favourite holiday destination as a child?
Queensland because of the theme parks and beaches
If you could have any job in the world, what would it be?
Criminal Profiler
15 qualities of smart business people
What exactly is "smart"? Being smart is more than having a high IQ. It has been proven time and again that IQ is fixed. The way we learn at 15 is the same way we learn at 50. To be smart one has to bring more to the table than intelligence alone. At the core of smart people is an acute and ever expanding self-awareness. Smart people tend to be quick and prompt, mentally ready, shrewd, clever, effective, neat or trim in their appearance, socially elegant, sophisticated, current and charismatic. Smart is the sum total of many character traits expressing itself globally through a person’s impact on their world.
1. Intuitive
Smart people do not just rely on facts, they listen to and follow their intuition. They are aware of when and how their intuitions and insights come to them. They are internally tuned-in to make wise decisions. Smart people are able to clearly see the reasons and motivations of other people. Because of this, they can selectively choose when, what and with whom to align themselves. They use their intuition in decision making, to chart new paths and in being diligent in surrounding themselves with only the highest quality people, programs and customers.
2. Conscious
Smart people know who they are and are conscious of their emotional and behavioral tendencies across situations. They know their strengths, weaknesses, personality traits, values, morals and beliefs. Smart people are wise to others but know that self-awareness is the ticket to their personal enlightenment and business advancement. They show the deepest commitment to themselves and to their own development. They are keen in knowing that the more conscious they are of themselves, the better they are able to know and predict others.
3. Reflective
Smart people look back on, and learn from, experiences. They do not get stuck in the past but know they must look in the review mirror to properly navigate the front window. As they look back they take inventory on what they can learn from their experiences. They either perfect and repeat past efforts or abolish strategies that clearly did not work. They take the time to think about decisions before jumping in, and afterward, actively reflect to gain deeper insight into what worked and what didn’t.
4. Creative
Smart people are never satisfied with one level of advancement of their product, themselves or their business. They are drawn to new ideas, radical thoughts and innovative ways of changing and doing things. Smart people desire to chart new paths and crave progressive thinking, concepts and people. Their natural thought process is out-of-the-box. Stepping outside their comfort zone is something they see as imperative to their success.
5. Open-minded
Smart people welcome different perspectives and see opportunities where most do not. They see the mind as a parachute -- it works best when open. Smart people are comfortable in paradoxical situations and have a passion for problem solving and fixing things in new and inventive ways. They are willing to listen to different points of view on how to strategize in problem solving situations. They let go of having things be their way when they come across more effective solutions.
6. Timely
Smart people recognize and respond immediately to opportunities and people. They act and react quickly, taking care of what needs to be done well ahead of schedule. Procrastination is not their habit, as losing opportunities is not an option. All opportunities, along with mutually respectful relationships, develop from promptness and dependability.
7. Resourceful
Smart people know where to get whatever information, resources, supplies, training and education they need when they need it. They have copious resources. They are well-networked and have many people to call on for referrals. This type of resourcefulness makes them successful as they are never short of ways to get to their goals
8. Independent
Smart people habitually question authority. They do not blindly accept what so-call experts preach. They ask deeper questions others do not so as to discover their own truths. It is only through the discovery of their own truths that they can validate implementing new strategies.
9. Lifelong learners
Smart people use their minds to the fullest. They are consummate learners. They are not lazy in their thinking and see the discovery of all new information as upgrades to their skills, knowledge, cutting edge information, attitudes and beliefs. Smart people crave and gather the collective brain power of others by reading books, magazines and articles that assist their own development. Learning is never a drag or a bore because for smart people learning is intrinsically rewarding.
10. Lighthearted
Smart people do not take life or themselves too seriously. They have a sense of humor about things and recognize the importance of finding the joy in the irony and comedy of everyday life. Smart people find blessings in the bummers, silver linings in challenges and solutions in the problems. It is through this that they continue to be successful and personally satisfied in life.
11. Explorers
Smart people are willing to try new things, knowing that if what they try at first doesn’t work out as they had hoped, it is no harm, no foul. They accept their failures as cleverly disguised learning opportunities. They take risks often. They are curious and adventurous in their business pursuits. They are willing to leap in to the unknown. Their risks usually pay off.
12. Believe in themselves
Smart people, knowing who they are, believe and trust in themselves first foremost. They do not need the validation of others to make decisions. They instinctively know what is right for them and they go after it. They do not want or wait for change. Being in the holding patterns of waiting or wanting doesn’t fit their style. They take action and create change. They know the only person they can count on completely is themselves.
13. Write goals on paper
Smart people have well-developed life strategies that include writing of goals, visions, desires and dreams they want to achieve. They tend to be avid journalers, list makers and dreamers. Writing is their first step in making their dreams a reality.
14. Pay it forward
Smart people are the generously give success, knowledge and information to others. They are teachers, guides, mentors and helpers. They put themselves out here so the rest of us can benefit. Smart people share. They uplift and make others better. In exchange, their own learning grows and develops because they are actively talking about, researching, understanding and expanding their own field of knowledge.
15. Reinvent themselves
Smart people abhor status quo and cannot stand being stagnated. They crave growth and development and are willing to shift their image, brand, logo, company name or change their direction entirely if necessary. To stay current or ahead of the game. They know exactly with whom to collaborate and are known to reinvent themselves over and over again.
Smart people are always adding to their knowledge and network base, while at the same time removing relationships, customers or strategies that no longer serve them. Experience, intelligence, class, wisdom and self-awareness are what set the smart apart from the average.
http://www.entrepreneur.com/article/252178