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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

Tax office shines SMB spotlight on 5 key areas The Australian Taxation Office (ATO) has unveiled the five primary areas of concern currently dominating its priority list, signalling a shift from the leniency extended to late payers during the COVID-19 lockdowns. The tax office is now redirecting its attention to pre-pandemic compliance activities. Here are the focal points: 1. Unpaid Super Guarantee Charge The ATO is intensifying efforts to pursue outstanding Superannuation Guarantee Charge (SGC) payments, with small businesses constituting a significant portion of the billions owed in this category. Employing practices such as garnishee notices, directions to pay, Director Penalty Notices and prosecution actions, the ATO is committed to ensuring the resolution of unpaid SGC amounts. The tax office is unwavering in holding employers accountable and actively identifying those exploiting non-payment of employee entitlements. 2. New Self-Assessed Debts Raised by Employers Close scrutiny is being applied to new self-assessed debts raised by employers. The ATO Deputy Commissioner has expressed concerns that some taxpayers might be deferring payment until prompted by official communication from the tax office. This underscores the importance of proactively resolving debts and complying without waiting for directives from the ATO. 3. Refund Fraud Refund fraud remains a significant challenge for the ATO, with fraudulent activities siphoning off billions of dollars through fake GST refunds. The tax office is ramping up efforts to combat refund fraud, employing advanced detection mechanisms and stringent measures to identify and penalise those engaged in fraudulent activities. 4. Major Ageing Debts The ATO is closely monitoring major, ageing debts – those exceeding $100,000 and surpassing two years in age. Such substantial liabilities are now under heightened scrutiny, reflecting the tax office's commitment to addressing long-standing financial obligations that have yet to be settled. 5. Debts Resulting from Audit Actions Debts arising from audit actions initiated by the ATO constitute another top priority. While some adjustments stem from genuine errors, others result from carelessness, recklessness or deliberate attempts to evade tax payments. Taxpayers falling into this category will receive no concessions, as the ATO maintains elevated expectations for the timely settlement of raised liabilities. The renewed focus emphasises the importance of adopting a standard payment culture in the post-COVID era. As the ATO transitions away from the leniency offered during the pandemic, businesses are strongly urged to prioritise punctual tax payments and compliance. If you have any concerns about the impact of the ATO’s activities or have concerns about your levels of business debt, please contact Collins Hume in Ballina on Byron Bay on 02 6686 3000.

5 rules that successful property investors follow The wonderful thing about property investing is that it opens your world up to different ways to potentially build your wealth. However, Australian Taxation Office figures released last June showed that a quarter of Australia’s property investments are held by 1% of taxpayers. The majority of those investors are over the age of 50. If you don’t fit into this category, all hope is not lost! You can still approach property investment strategically now by following these 5 common rules successful property investors abide by. 1. They plan strategically Successful property investors have a clear understanding of their investment strategy and long-term goals. They know how much risk they are prepared to take on and this helps them to decide on the type of property investment that’s right for them. They understand their borrowing capacity, stick to their budget and plan for contingencies (like major repairs) to avoid overstretching financially. 2. They understand volatility As a property investor, it’s important not to panic at the first sign of a downturn or change in the market. Experienced property investors understand that often the best gains are made over the long term. Sometimes it pays to ride out the storm and prioritise sustainable growth over quick gains. Knowledgeable investors also diversify. That might mean buying in different states or territories to mix things up and mitigate risk. In 2023, we saw why diversification was so important, with the rate of home value growth varying greatly across the capital cities. Values rose at more than 1% each month on average across Perth, Adelaide and Brisbane after May, while in Melbourne and Sydney the pace of growth slowed sharply after the June cash rate hike. 3. They don’t procrastinate If you wait and wait until the perfect time to invest, you may end up missing the boat. Savvy property investors do their research and set their cards up so that when an opportunity arises, they are ready to act. Having your finance pre-approved and ready to go is a great place to start. 4. They keep emotions out of their decisions Property investment is about buying with your head, not your heart. Successful property investment requires a strategic approach, focusing on data and long-term returns rather than personal preferences. Remember, it’s your tenants who will make a home of the property, not you. Investors who thrive in the property market are those who approach their investments with the acumen of a businessperson, focusing on the numbers and potential for growth. This approach includes staying informed yet discerning, filtering through the noise of speculative media narratives to focus on solid, evidence-based decision-making. 5. They rely on specialists Successful property investors know there’s only so far self-education can take them. You can listen to property investment podcasts and learn as much as you can from property investment books, but you’ll still need the right specialists to guide you through your property investment journey. Mortgage brokers, real estate agents, financial planners, accountants, conveyancers, buyers’ agents, property managers – all of these professionals may help you make better, considered informed decisions. Looking to invest in 2024? Whether you’re new to property investing or want to grow your existing portfolio, we’re here to support you. Talk with David Seymour about getting pre-approved on your finance so that you’re ready to start 2024 on a high – with an investment property purchase. 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.

The controversial case of the taxpayer who claimed a loss on their home A decision by the Administrative Appeals Tribunal has the tax world in a flurry after the Tribunal found in favour of a taxpayer who sold the apartment she lived in for a loss, then claimed the $265,935 loss in her tax return as a deduction. In this case, the taxpayer successfully argued that the purchase and sale of the apartment was a short-term profit-making venture and that the loss generated from this could be claimed as a tax deduction. The tax rules generally allow you to deduct losses that relate to a commercial activity, although you cannot claim the loss if it is private or capital in nature. The taxpayer argued that she acquired the apartment in order to make a short-term profit and that the loss that was made on the sale should be deductible, even though she had lived in the property as her private residence across the ownership period. The Australian Taxation Office (ATO), as you can imagine, had a different point of view. The facts of the case were: July 2015 – The taxpayer lived in a large family home. When her husband passed away, she entered into an ‘off-the-plan’ contract to purchase an apartment intended to be completed by 30 June 2019. December 2016 – The taxpayer was notified that completion of the off-the-plan apartment was delayed until 30 June 2020. May 2018 – Taxpayer settles on the sale of her family home on advice from her real estate agent that it was a good time to sell. May 2018 – Taxpayer settled on another apartment, as a purchaser, in the same complex that had been completed. She had money from the sale of her family home that she could use, and only intended to keep the property for a short period of time as she needed to use the funds to settle the off-the-plan apartment. Her position was that it was an opportunity to make a profit. April 2020 – The taxpayer entered into a contract to sell the apartment at a loss during the first COVID lockdown. July 2020 – Settlement on sale of the apartment occurred. July 2020 – The purchase of the off-the-plan apartment completed and was settled. A substantial portion of the proceeds of the sale of the other apartment, and some of the proceeds of the sale of the family home, were used to settle the off-the-plan apartment. The Tax Commissioner’s position was that someone approaching the opportunity in a business-like manner as a profit-making venture would not live in the apartment and would have waited to sell if the market was not favourable. The Tribunal set a low bar for proof of a profit-making intention and found that the fact that the taxpayer lived in the property was secondary to her profit-making intent. The reason why this case is controversial is not simply because of the loss claimed by one taxpayer. It is because of the broader implications to property owners if the ATO determines that a transaction is commercial in nature and taxes any profit as ordinary income rather than under the Capital Gains Tax (CGT) provisions. For example, if the taxpayer in this case had made a profit instead of a loss, she would have paid tax on the profit at her marginal tax rate. She would not have been able to apply the main residence exemption or the CGT discount. One of the important things to take from this case is that living in a property doesn’t necessarily guarantee that the sale of the property will be taxed under the CGT rules or will qualify for the main residence exemption. For example, property ‘flippers’ who buy and renovate a house may face a significant personal tax bill on any gain they make with no access to the concessions that exist within the CGT rules. It will be some time before we know the full implications of this case and the ATO is yet to confirm whether it will appeal the decision. Either way, determining whether a transaction is taxed on revenue or capital account can be a complex process and it is important to seek advice before entering into transactions involving property. How to contact us It's important to speak to a financial professional before taking any action. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000.

Protect Your Assets: Considerations Before Redrawing Investment Loans The ATO estimates that incorrect reporting of rental property income and expenses is costing around $1 billion each year in forgone tax revenue. A big part of the problem is how taxpayers are claiming interest on their investment property loans. We’ve seen an uptick in ATO activity focussing on refinanced or redrawn loans. This activity is a result of a major data matching program of residential property loan data from financial institutions from 2021-22 to 2025-26. This data is being matched to what taxpayers have claimed on their tax returns. Those with anomalies can expect contact from the ATO to explain the discrepancy. If you have an investment property loan and redraw on the loan for a different purpose to the original borrowing, the loan account becomes a mixed purpose account. Interest accruing on mixed purpose accounts need to be apportioned between each of the different purposes the money was used for. On the other hand, if the redrawn funds are used to produce investment income, then the interest on this portion of the loan should be deductible. For example, if you have redrawn on the loan to pay for a private holiday, or pay down personal debt, then the interest relating to this portion of the loan balance is not deductible. Not only will the interest expenses need to be apportioned into deductible and non-deductible parts, but repayments will normally need to be apportioned too. Withdrawals from an offset account are treated as savings rather than a new borrowing. If you have a loan account and an interest offset account is attached to this account that reduces the interest payable on the loan, withdrawing funds from the offset account will typically increase the amount of interest accruing on the loan, but won’t change the deductible percentage of the interest expenses. That is, when you withdraw funds from the offset account this is really a withdrawal of savings and won’t impact on the extent to which interest accruing on the loan account is deductible. If you have a home loan that was used to acquire your private home and you have funds sitting in an offset account, withdrawing those funds to pay the deposit on a rental property won’t enable you to claim any of the interest accruing on the home loan. However, if you redraw funds from the home loan to acquire a rental property then interest accruing on this portion of the loan should be deductible. The tax treatment always depends on how the arrangement is structured. Think you might have a problem? Contact us and we can investigate the issue before the ATO contact you. Ballina or Byron Bay 02 6686 3000.

Uncertainty has reigned over the last few years, but can we expect more consistency as we head into 2024? We explore some of the key issues and influences. Inflation and labour supply RBA Governor Michelle Bullock stated, “Inflation is past its peak and heading in the right direction, but it is likely to return to target a bit more slowly than we previously thought.” While there have been encouraging signs, uncertainty remains. Domestically, inflation is persistent, growth has slowed but the labour market remains tight. And, the Australian economy remains at risk with uncertainty over the Chinese economy and ongoing international conflicts. At this stage, the RBA have not ruled out further interest rate increases. The unemployment rate remains at 3.7% and the labour market tight. Wages grew 1.3% for the September 2023 quarter and 4.0% over the year, pushing wages to a 14 year high. High-skilled workers are particularly difficult to source, and we appear to have reached a point now where employers are unwilling to pay inflated salaries to acquire those willing to move. Income tax cuts and the end of some concessions From 1 July 2024, the stage 3 tax cuts that radically simplify the personal income tax brackets come into effect. The tax cuts collapse the 32.5% and 37% tax brackets into a single 30% rate for those earning between $45,001 and $200,000 – this is assuming the May Federal Budget does not postpone or scrap them! The superannuation guarantee rate will rise again on 1 July 2024 to 11.5%. For small and medium businesses with group turnover of less than $50m, a series of concessions are set to end or reduce back to conventional levels: The Skills and Training Boost ends on 30 June 2024. The boost provides a bonus deduction equal to 20% of eligible expenditure for external training provided to your workers for costs incurred between 29 March 2022 and 30 June 2024. The Small Business Energy Incentive is scheduled to end on 30 June 2024, although legislation to introduce this concession still hasn’t passed through Parliament. The incentive is intended to provide an additional 20% deduction on the cost of eligible depreciating assets that support electrification and more efficient use of energy. The instant asset write-off for businesses with group turnover of less than $10m is due to reduce back to $1,000 from 1 July 2024. The cost threshold is meant to be $20,000 for the 2024 financial year, but legislation relating to this measure hasn’t passed through Parliament yet. Worker rights and rewards There have been a myriad of changes and enhancements to workplace laws across 2023 and employers can expect greater scrutiny in 2024: A 5.75% increase in the minimum wage to $23.23 per hour from 1 July 2023. New rules and a 2 year limit to some fixed term employment contracts (no renewing). A landmark case that defined how to determine whether a worker is a contractor or employee. The ATO has followed through with new rulings to ensure employers are paying the correct entitlements. It’s essential that employers have assessed contractors to ensure that they are classified correctly. Greater flexibility for unpaid parental leave. How to contact us It's important to speak to a financial professional before taking any action. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000.

Legislation enabling an extra 15% tax on earnings on super balances above $3m is before Parliament. While not a concern for the average worker, if enacted, those with significant property or other illiquid assets in their superannuation fund are most at risk, for example farmers and business operators who own their business property in their self managed superannuation fund (SMSF). The issue is how the tax is calculated. The tax captures the growth in the balance of a member’s superannuation over the financial year (allowing for contributions and withdrawals). It captures both: Realised gains from the sale of assets, and Unrealised gains triggered by an increase in the value of superannuation assets. For example, if the value of a property increases. If the member’s total super balance has decreased — the loss can be offset against future years. The ATO will calculate the tax each year. Members with balances in excess of $3 million will be tested for the first time on 30 June 2026, with the first notice of assessment expected to be issued to those impacted in the 2026-27 financial year. If you are likely to be impacted by the impending new tax, it is important to speak to your financial adviser. While keeping assets within superannuation will remain the best option for many from a tax and planning perspective, it’s important to ensure that you’re in the best possible position. How to contact us It's important to speak to a financial professional before taking any action. Contact Collins Hume Accountants & Business Advisers in Ballina or Byron Bay on 02 6686 3000.

Christopher Atkinson, CEO at Collins Hume, shares a big thank you for your support through our recent changes. We appreciate your understanding and value your trust in our commitment to delivering top-notch services. Get ready for 2024! We're thrilled to announce a new service for our business clients, offering valuable tools for business and lifestyle success. Stay tuned for updates! Wishing you a Merry Christmas and a successful holiday season. Our offices will be closed from 22 December 2023 to 2 January 2024. Cheers to a fantastic year ahead from all the Collins Hume team! 🎉🎄

In the intricate world of finance, where decisions can carry lasting consequences, individuals and businesses seek a guide they can trust. Introducing Colby Atkinson, a Financial Advisor at Essential Wealth and Retirement (EWAR), armed with an extensive background and a genuine commitment to his clients' financial well-being. Colby's transition from a Physiotherapy Degree to Financial Planning was not merely a career shift; it was a conscious choice driven by passion and purpose. During university, he discovered his affinity for Financial Planning, realising that he wanted to help individuals attain financial freedom earlier, offering choices beyond a life of relentless work. In his current role at EWAR, Colby's routine involves conducting initial discovery appointments. These sessions delve into clients’ current financial situations, their goals and any gaps that are identified are filled with tailored strategy options. The second meeting in the advice process is conducted after extensive research and the client receives all of their recommendations. “What sets EWAR apart is our commitment to doing the heavy lifting for our clients and ensuring the seamless implementation of recommendations, whilst providing accountability through regular reviews,” says Colby. He also notes an innovative approach and collaborative spirit among EWAR staff. “EWAR is not just an employer but an organisation that nurtures individuals into financial planners, fostering a culture of hard work and career enjoyment.” Colby's strengths lie in his exceptional listening skills and effective communication, prioritising transparency and setting clear client expectations. His ability to relate to diverse individuals, from young accumulators, family groups, pre-retirees and retirees, is a testament to his adaptability. His specialties include cash flow, personal investment planning, superannuation, personal risk insurance and estate planning. Outside his financial planning world, Colby is a sports enthusiast, equally passionate about playing and watching various codes. As such, he’s a handy member to have on any trivia team covering the sporting question round! Colby's collaboration with Collins Hume adds another layer to his professional journey. The partnership aims to identify clients in need of financial planning advice and facilitate meetings to explore how EWAR can provide valuable solutions. In the tapestry of financial advising, Colby Atkinson emerges not just as an advisor but as a dedicated partner. His passion, expertise and commitment to client satisfaction make him stand out in the financial planning landscape for those seeking financial freedom. Colby is based in Collins Hume's Ballina office every Thursday. To make an appointment, please call us on 02 6686 3000 or ask your Collins Hume Accountant to set up a meeting or email Colby at EWAR. Colby's journey into Financial Planning began with a Bachelor of Commerce majoring in Financial Planning and Accounting from Griffith University. Eager to deepen his knowledge, he completed a Certificate IV in Finance & Mortgage Broking from AAMC Training Group, an Advanced Diploma in Financial Planning from Monarch Institute and a Financial Planning Diploma from the International Institute of Technology. From being a Financial Advisor at Wealthmed Australia to a Private Wealth Manager at MedCapital - Financial Services for Doctors, Colby's experience spans different facets of the Financial Planning sector. His previous role as Financial Advisor at Future Assist where he worked with everyone from mum and dad investors to high net wealth individuals, underlines his versatility.