The revised stage 3 tax cuts have passed Parliament and will come into effect on 1 July 2024. Before the new tax rates come into effect, check any salary sacrifice agreements to ensure that they will continue to produce the result you are after. Resident individuals Non-resident individuals Working holiday makers If you have any concerns or queries about the impact of the proposed changes please contact Collins Hume in Ballina on Byron Bay on 02 6686 3000.

Collins Hume Accountants and Business Advisers in Ballina and Byron Bay has announced the appointment of Naomi Monk as the firm's new Practice Manager, effective 7 March 2024. Naomi, who joined Collins Hume in 2017, has been promoted from an internal position and succeeds Clare Busch who stepped into the role after David Keith’s retirement at the end of 2022. Collins Hume Partner, Jamie Doyle said Naomi’s predecessor had a big and brilliant 14 months with the firm. “The changes that Clare initiated in our business will carry forward and help us for many years,” Jamie said. “An awesome legacy.” Jamie also emphasised that he and the Partners were excited about the appointment of Naomi, who is an admin and customer service specialist having previously performed roles in interstate tourism and local hospitality back office before joining Collins Hume. She has also been a key part of getting Collins Hume‘s business sustainability initiatives off the ground, as Dedicated Office Sustainability Champion. Speaking on her appointment, Naomi undertakes in tandem with Collins Hume’s leadership team to “continue to challenge and push the boundaries of what’s possible for Collins Hume’s clients and our business”.

Can my SMSF invest in property development? Australians love property and the lure of a 15% preferential tax rate on income during the accumulation phase, and potentially no tax during retirement, is a strong incentive for many SMSF trustees to dream of large returns from property development. We look at the pros, cons, and problems that often occur. An SMSF can invest in property development if trustees ensure the investment complies with the rules. And, there are a lot of rules. A key is the sole purpose test. Trustees need to ensure the fund is maintained to provide benefits for retirement, ill health or death​. Breaches of this fundamental tenet are serious and include the loss of the fund’s concessional tax treatment and civil and criminal penalties. By its nature property development is high risk and fund trustees need to ensure that the SMSF is not simply a handy cash-cow for a pipe dream, particularly when the developers are related parties. There are multiple ways an SMSF can invest in property development if the investment strategy of the fund allows: Directly developing property An ungeared unit trust or company (the parties can be related) Investment in an unrelated entity A joint venture Directly developing property from fund assets An SMSF can purchase land from an unrelated party and develop the property in its own right. Common issues that often arise include: Acquiring the land from a related party - An SMSF cannot purchase land from a related party (unless it is business real property used wholly and exclusively in a business). This means that the lovely block of land inherited by one of the members, or owned by a family trust, that is perfect for development cannot be purchased by the SMSF. An SMSF cannot borrow to develop property – An SMSF can borrow money to purchase land using a limited recourse borrowing arrangement but it cannot use a loan to improve the asset. That is, borrowings cannot be used to develop the land. And, where the SMSF has borrowed to purchase land, it cannot change the nature of that asset until the loan has been repaid. That is, no development. Who will develop the property? Problems often occur when the property developers are related to the fund members. Whilst it is possible to engage a related party builder to undertake the work, there are strict rules that mean that the work and materials must be acquired at market value. That is, there is no advantage from “mates rates”. If you are using a related party builder, ensure that the paperwork is pristine, any transactions are at market value, and all interactions are documented. GST might apply - Goods and services tax might apply to the development and the sale of any developed property. If the ATO considers that an SMSF is in the business of developing property or is undertaking a one-off development in a commercial manner then GST could potentially apply. If your SMSF is not undertaking a property development project in its own right, there are a few ways for an SMSF to invest in property development projects: Related ungeared trust or company An ungeared company or trust is often used (under SIS Regulation, section 13.22C) when related parties want to invest in a property development together. The SMSF can invest in a company or trust that is undertaking a property development as long as the company or trust: Does not lease to a related party (unless business real property) Does not borrow money or have borrowings (must be ungeared) Does not conduct a business Conducts any dealings at arm’s length And, the assets of the unit trust or company: Do not include an interest in another entity (i.e. cannot have shares in a company) Do not have a charge over them (i.e. mortgage over any asset) Are not purchased from a related party (or was ever an asset of a related party) unless the asset is business real property acquired at market rates. Profits from the company or trust are then distributed to the SMSF according to its share. Using the provisions of 13.22C means that the SMSF can invest in property development with a related party without the development being considered an in-house asset. However, if the criteria are not met (at any point), the in-house asset rules apply, and the SMSF might have to sell the units in the trust or shares in the company to return to the maximum 5% in-house asset limit. Generally, this means the sale of the underlying property or a significant restructure. Problems arise with 13.22C arrangements where the trust or company: Needs more money to complete the development and borrows money, or issues more units and sells them (is in business) Accepts a loan from a member of the SMSF Overdrafts (may be considered loans and breach 13.22C) Uses a related party builder who either under charges for the work completed or overcharges and strips the profits that should have been returned to the SMSF. Warning on conducting a business One of the criteria for the exemption in 13.22C to apply is that the trust or company cannot be conducting a business. This requirement may prevent short-term property developments that are built and sold for profit. Typically, 13.22C arrangements are used for long term investments where the development enables the creation of an asset that is then leased by the trust or company. This could be commercial premises leased to a related or unrelated party (e.g., premises for a child care centre or manufacturing), or residential premises leased to unrelated parties (e.g., townhouses or small developments). Unrelated property developments Investing in unrelated entities for a property development is attractive as there is no limit to how much of the fund’s assets can be invested (subject to the investment strategy and trust deed allowing the investment), and unlike ungeared entities, the entity is able to borrow money/place charge over the assets. Where related parties are investing in the same entity, there are rules governing the percentage of ownership the SMSF and their related parties can hold. To meet the definition of unrelated entity for in-house asset purposes, the SMSF and their related parties must not own more than 50% of the units available. This is because the SMSF cannot control or hold sufficient influence over the entity and remain an unrelated entity. If the ATO considers the entity is related to the SMSF, then it would become a related party and the investment an in-house asset. Joint venture arrangements An SMSF can potentially invest in a joint venture (JV) property development, but the criteria are necessarily strict and there are a range of issues that need to be considered carefully. One of the issues that needs to be considered up-front is determining the substance of the arrangement between the parties, because the term JV can be used to describe a variety of arrangements. The ATO confirms that care must be taken to ensure that arrangements with related parties are true JVs. Under a JV, the SMSF invests in and has a share of the property being developed (not the entity undertaking the development). Each party bears the costs (time and/or money) of the JV and receives this same proportionate contribution from the returns. If the arrangement is not structured properly then the SMSF’s stake in the JV could be treated as an investment in or loan to a related party and be treated as an in-house asset. For example, this could be the case if the SMSF only provides a capital outlay for the arrangement and has no rights other than a contractual right to a return on the final investment. It is also necessary to consider whether the arrangement between the parties could be treated as a partnership for tax, GST and legal purposes. For example, this could be the case if the arrangement involves the sharing of income, sale proceeds or profits, rather than sharing the output from the project. It's essential to get advice well in advance - tax, legal and financial - before pursuing a JV. Is your SMSF the best vehicle for property development? Trustees need to carefully consider any investment decisions and have a sound rationale for the investment. Any advice on a property development needs to be from a licenced financial adviser. A lawyer should be used for any contracts or agreements between parties. And, compliance assistance from a qualified accountant. How to contact us We’re available to assist with advice on your self-managed superannuation. Contact Collins Hume Accountants & Business Advisers in Ballina on Byron Bay on 02 6686 3000. Note: The material and contents provided in this publication are informative in nature only.  It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

Just because an agreement states that a worker is an independent contractor, this does not mean that they are a contractor for tax and superannuation purposes, new guidance from the ATO warns. Where there is a written contract, the rights and obligations of the contract need to support that an independent contracting relationship exists. The fact that a contractor has an ABN does not necessarily mean that they have genuinely been engaged as a contractor. The ATO says that “at its core, the distinction between an employee and an independent contractor is that: an employee serves in the business of an employer, performing their work as a part of that business an independent contractor provides services to a principal's business, but the contractor does so in furthering their own business enterprise; they carry out the work as principal of their own business, not part of another.” Contracts over time The ATO points out that a contracting agreement at the start of a relationship may not continue to be one over time. For example, if the project the contractor was engaged to complete has finished, but the worker continues working for the company then the classification needs to be revisited. What happens if there is no contract? If no contract exists, then it’s important to look at the form and substance of the relationship to come to a reasonable position about whether an employment or contractor relationship exists. How to contact us We’re available to assist you with the employee classification. Contact Collins Hume Accountants & Business Advisers in Ballina on Byron Bay on 02 6686 3000.

Apply for up to $1,000 towards the cost of workplace health and safety items Rebate information Status: Ongoing Grant amount: Up to $1,000 Who can apply: Small business owners and sole traders who have an ABN and fewer than 50 full-time employees. Charities and not-for-profits can also apply. Program objective If you are a small business owner in NSW, this $1,000 rebate will help you purchase safety items to improve work health and safety for you and your workers. Eligibility The application must be in the name of the registered business owner. The registered business owner must agree to the terms and conditions. Who can't apply Businesses that have already received the rebate in the past five years. This includes businesses that have multiple ABNs and have already used one of their ABNs to claim a rebate a co-owner of an ABN where a rebate has already been paid to one owner (you can only use the same ABN once) large businesses that have more than 50 employees business owners that have already received a rebate for the eligible safety item from any Commonwealth, State, Territory or local government subsidiary of a larger business, government departments, councils and voluntary associations. Program is funded and administered by SafeWork NSW.

Estate planning and family wealth protection resolutions for 2024 As 2024 unfolds, prioritising estate planning and family wealth protection has never been more crucial. Taking action on some key resolutions can offer relief from the stress around uncertainty. Here are our top resolutions to ensure the security of your family's future. 1. Create or Update Your Will Your will forms the bedrock of your estate plan. If you don't have one, make it a priority to draft one this year. If already in place, review and update it to align with your current wishes and circumstances. 2. Establish EPOA Designate someone to manage your affairs in case of incapacity using an Enduring Power of Attorney is a critical measure applicable to individuals of all ages. 3. Review Beneficiaries Sense check the beneficiaries listed on your life insurance, superannuation and other financial products to reflect changes in relationships and preferences. 4. Consider using trusts to create and protect your wealth Different trusts allow for the distribution of income and assets to heirs, avoiding the protracted and costly probate process. Testamentary Trusts offer significant tax benefits and allow for great asset protection for your spouse and children. 5. Organise Your Digital Assets Consider digital assets such as social media account credentials, digital currency account details and online banking to include in your estate plan. 6. Plan for Your Business's Future Develop a succession plan for your business, especially if you are the sole director or shareholder, ensuring smooth operation for the benefit of your family and employees. 7. Secure a Life Insurance Policy Review your existing life insurance policy to ensure it adequately meets your family's financial needs. 8. Tackle Your Tax Understanding Grasp the impact of estate taxes and implement strategies to minimise their effect on your assets. 9. Establish a Healthcare Directive Ensure your medical wishes are honoured through a Healthcare Directive and Living Will, particularly if you're unable to communicate them yourself. Embarking on these resolutions not only safeguards your family's wealth but also provides peace of mind, knowing you're prepared for whatever the future may hold. Estate planning isn't exclusive to the wealthy or elderly; it's for anyone wishing to protect loved ones and uphold their desires. Don't let another year pass without addressing these essential tasks. Yours and your family's future hinges on it. Given the complexity of estate planning, consult with Collins Hume’s specialists sooner rather than later to ensure legally sound plans are aligned with your wishes. Contact us in Ballina or Byron Bay on 02 6686 3000.

A Step Towards Sustainability and Koala Conservation On a lush macadamia farm in Brooklet, amidst the cooling rain, a few of the Collins Hume team recently embarked on a remarkable environmental initiative. Together we planted 100 eucalyptus trees at Farmer Rob's property, provided by the generous Friends of the Koala, we've further cemented our commitment to supporting local wildlife, particularly our precious local koalas. "This event underscores our dedication not only to our community but also to the broader goals of environmental stewardship and sustainability," said Partner Peter Fowler. Collins Hume's involvement in environmental initiatives extends beyond a single event. We're proud to affirm our commitment to 1% for the Planet, a testament to our ongoing dedication to environmental causes. By contributing 1% of our annual sales to nonprofit organisations focused on environmental protection, we're taking concrete steps towards making a significant, positive impact on our planet. Moreover, our efforts to achieve climate neutrality stand as a cornerstone of our environmental strategy. With climate-neutral certifications, we've meticulously offset our carbon footprint, ensuring that our operations contribute to the health of our planet rather than detract from it. This dedication reflects our broader commitment to sustainability and responsible business practices. The eucalyptus tree planting day is a vivid illustration of how we, as a community and as a business, can come together to support our local environment and wildlife. "Our heartfelt appreciation goes out to Friends of the Koala for their crucial support, Farmer Rob for hosting the event, and our team members who demonstrated their commitment by participating in this initiative despite the inclement weather," Peter added. Collins Hume is more than just a business; we are a team dedicated to making a difference in the world. We believe in taking actionable steps towards environmental conservation, supporting our local community, and aligning our operations with our values of sustainability and responsibility. We thank you for your continued support of Collins Hume, together we are making a difference. Read more here » #liveyourlegacy

Key grant information Funding is available to help high-emitting manufacturing and mining facilities in NSW develop and deploy decarbonisation projects, from feasibility studies through to commissioning. Status: Ongoing Grant amount: Up to $305,000,000 Who can apply: NSW high-emitting manufacturing and mining facilities that emit more than 0.09 MtCO2e per year. Program objective High-emitting industries funding will help NSW achieve significant and sustained industrial emissions reductions by 2030, in line with NSW’s target of net zero by 2050, through the following 3 objectives: Supporting decarbonisation in high emitting facilities – help NSW manufacturing and mining operations deliver value for money emissions reduction projects. Accelerating transformative decarbonisation projects – prioritise innovative and ambitious low emissions projects to fast track NSW’s progress to net zero. Helping industry thrive in a low carbon economy – build local skills, knowledge and jobs to ensure NSW industry prospers in a new low carbon economy. Application timeframe HEI funding will open for applications in October 2022 and a rolling assessment process will be implemented over a period of 2 years. This means that applications can be submitted at any time and they will be assessed immediately following receipt. This program is administered by Office of Energy and Climate Change and funded by NSW Treasury.

It’s a new year, and a new year calls for new goals! As some of us return to work and others enjoy the last few sun-soaked weeks of holidays, the property market remains quiet as many vendors hold off for the summer months. This can be a good time to do some property research, investigate financing options, or set your property plans and budget in place. So, if you’re planning a property purchase this year, speak to us about getting pre-approved on your finance so you can put your plans in motion. Read on to find out what’s in store for interest rates and the property market in 2024. Interest rate news This year, the Reserve Bank of Australia (RBA) will undergo significant reforms following the recommendations of the independent review of the central bank in April last year. Among the changes affecting homeowners, there will be eight monthly meetings to decide on the cash rate, instead of 11. The meetings will be longer, kicking off on the Monday afternoon, and continuing on the Tuesday morning. The RBA will meet and make cash rate decisions on the following dates: 5–6 February 18–19 March 6–7 May 17–18 June 5–6 August 23–24 September 4–5 November 9–10 December Borrowers can expect the cash rate decision to still be announced at 2.30pm on the Tuesday. Governor Michele Bullock will hold a media conference at 3.30pm explaining the decision. The December quarter consumer price index is due on January 31. All eyes will be on the figures as an indication as to whether the RBA may lift the cash rate to 4.6 per cent at its first policy meeting of 2024. Word on the street is that the RBA will likely lower the cash rate in the second half of the year, as inflation continues to fall. If you’re considering refinancing, get in touch to discuss your options. We’ll check whether you could secure a more competitive home loan with another lender. Home value movements In 2023, we saw Australia’s national home values increase 8.1% following a 4.9% drop in 2022. Some markets fared particularly well – Perth, for example, saw housing values surge 15.2% in 2023 – while others less so. Regional Victoria, for instance, saw values drop -1.6% throughout the year. December had the smallest gain in national monthly home values (at 0.4%) since prices started increasing in February. “After monthly growth in home values peaked in May at 1.3%, a rate hike in June and another in November, along with persistent cost of living pressures, worsening affordability challenges, rising advertised stock levels and low consumer sentiment, have progressively taken some heat out of the market through the second half of the year,” CoreLogic’s research director Tim Lawless said. “In Perth, Adelaide and Brisbane, housing affordability challenges haven’t been as pressing relative to the larger cities, and advertised supply levels have remained persistently and substantially below average.“ “The cities where home value growth has been lower or negative through the year are showing higher than average levels of advertised supply alongside annual home sales which ended the year below the five-year average.” Is 2024 the year you start your property-purchasing journey? Email David at Regional Finance Solutions or phone him on 0418785747. Article used with permission from David Seymour at Regional Finance Solutions Pty Ltd, Australian Credit Licence Number: 484980 | ABN: 71 163 893 945. Sources: * Monthly Home Values figures as of 31 December 2023 * Australian auction results, clearance rates and recent sales for the week ending 14 January 2024 * The clearance rate is preliminary and current as of 7:30 p.m. 16 January 2024

Free entry — register now Collins Hume's NRL Footy Tipping Competition kicks off for 2024 Footy season starts 3 March and Collins Hume would like to invite you to participate in our annual NRL Tipping Comp. Prize Information First prize $300 Second prize $100 Third prize $50 Knockout Comp Winner $100 5 quick steps to join: Go to https://www.iTipFooty.com.au Click the 'REGISTER' button if you don't already have an account with iTipFooty.com.au Once you have successfully registered, log in and click the JOIN COMP button Enter Comp #103098 and Comp Password CH1234 Click join comp... DONE! Check-in for results each week. Prizewinners will be announced at the end of the season. Good luck!

WiC Industry Innovation Program (IIP) Year 2 The Women in Construction Industry Innovation Program - Year 2 (IIP) grant supports industry initiatives that will encourage participation and retention of women in the construction industry. Key grant information Grant amount: From $30,000 to $300,000 Application closes: 19 February 2024, 2:00 pm Program objective The objective of the Women in Construction Industry Innovation Program (IIP) Grant Year 2 is to support industry initiatives that will encourage the participation and retention of women in the construction industry by: Creating inclusive workplace cultures, including by improving employee wellbeing and supporting flexible working arrangements; Increasing the number of women entering and staying in the industry; and Supporting women in leadership and female employees. The NSW Government has developed the Women in Construction strategy which includes the following complementary pillars: Removing obstacles: removing obstacles that prevent women from entering the construction industry and implement reforms to create safe and inclusive workplaces. Creating desire and awareness: creating desire and awareness to encourage women to choose a career in construction, with a focus on the benefits and opportunities construction offers. Fulfilment / retention: creating easy and clear pathways for women to apply, enter and progress in the industry and providing active support and case management to retain women in the industry; and Accountability: keeping government and industry accountable to increase the number of women in construction. Eligibility — Who can apply Eligible applicants must: Be an Australian legal entity that has the legal right to execute an IIP Funding Deed in its own name. Be a construction business, trade union or construction industry association in any Australian Bureau of Statistics (ABS) recognised construction sector or a business partnering with construction-related business(es), including delivering services to construction businesses. Be a legal entity with a current Australian Business Number (ABN) or Australian Company Number (ACN). Provide construction or construction-related services in NSW or be an industry association or trade union representing members in NSW. Construction businesses or construction-related businesses must demonstrate current employment of women in non-traditional occupations. Trade union or industry association must demonstrate current membership of women in non-traditional occupations (refer to Definitions section). Be financially viable and have the capacity to deliver proposed project within the term of IIP Grant Year 2 funding. Where an application comprises a consortium or partnership arrangement with more than one entity, the application needs to clearly identify the lead party that NSW Government will enter into the funding agreement with, should the application be awarded funding. For further information about Eligibility and how to apply, please go to Women in Construction IIP Grant Guidelines Year 2. This program is administered by Department of Education and funded by Infrastructure NSW.

Update from Family Aged Care Advocates Care at home is the government's primary answer to the question of delivering age-related care to a significantly increasing demographic. However, we know based on our experiences helping families and older people that while the theory is a sound one the reality is quite different. Now we have the Older Person’s Advocacy Network (OPAN) which analysed data based on their experiences dealing with almost 40,000 advocacy cases during 2022-23. Their report highlighted communication issues as a key problem for people receiving aged care – they are feeling dismissed, ignored and not listened to. There were numerous cases where a person had concerns and made multiple attempts to address these concerns with their provider with no success — they left messages but these often went unanswered. Other issues include home care providers: failing to contact the client when there has been a change to their service time or scheduled care-worker listening or responding to the client’s express needs following through on actions they had agreed to with the client communicating or consulting the client on changes to their care plan in a clear and transparent manner. The report also identifies a lack of choice and control as a top issue for people in home care settings. People were unhappy that they “were simply not consulted or included in decisions relating to their care in their own home". Home care clients also reported being unhappy with their provider but were unsure of alternative options available to them. StewartBrown’s Aged Care Financial Performance Survey Report analysed data from 71,269 home care packages. The report stated that the average number of care hours for people on a home care package was just over 5 hours a week and unspent funds have increased to an average of $12,604 for every care recipient. In total, unspent funds are now in excess of $2.9 billion. Ironically, it seems the government is contributing to this problem inadvertently, by now enforcing a lengthy list of exclusions and requiring an increased level of compliance from organisations to demonstrate that the money is being spent appropriately. Which tends to lend itself to a lot of ‘no’ when it comes to package requests. Is that good enough? We think not. We offer a home care coordination service that aims to address these problems mentioned above. If you're interested in finding out more, just give us a call on 0411 264 002. How Family Aged Care Advocates work FACA provides guidance and support to help families identify the relevant options to help you make informed decisions to get the best care outcomes for the people you love and care for most. They're independent aged care specialists only interested in the right outcomes for your family … that’s all that matters and there’s no trade-off with that. www.familyagedcareadvocates.com.au