Is it worth obtaining a quantity surveyors report?

Many investors remain unsure about whether it is worthwhile obtaining a quantity surveyor’s tax depreciation report for a rental investment property particularly if it was built before 1987.

When a Quantity Surveyor completes an investor’s capital allowance and tax depreciation schedule, two main elements are generally included; being capital works deductions and plant and equipment depreciation. In order to produce these reports, amongst other qualifications, the quantity surveyor must be a registered tax agent, as the information contained in the report is specific tax advice.

SMSF compliance in focus

SMSF annual tax return lodgement deadline 15 May (for tax agent’s clients) is fast approaching and trustees will be faced with their annual independent SMSF audit.

No trustee wants to incur hefty penalties or be disqualified as a trustee or see their fund losing its tax concessions by being made non-compliant by the ATO.

The good news is that the ATO has since 30th May 2016 opened an avenue for the trustees to directly engage with them by introducing an “Early and voluntary disclosure service”. The ATO is encouraging all trustees that have unrectified contraventions of the SIS Act to fill in the SMSF regulatory contravention disclosure form including a proposal for fixing the breaches. The auditor of the fund is still required to lodge an Auditor Contravention Report (ACR); however the ATO will be less likely commence an audit of the fund but instead be engaging with the trustees to assist with the rectification of the matters.

Microsoft Outlook

•A good trick to managing your Outlook inbox and keeping it tidy is by creating and organising subfolders for specific emails such as invoices and payments, or if they’re from certain person or company. Doing this makes keeping track and finding emails easier, plus it gives your inbox an overall tidier and less cluttered look. To do this just right click on ‘Inbox’ and select from the drop down menu ‘New Folder’, give it a name and voila! You now have a more organised space for you to put your emails.

Are your finances fit? Get your money moving with these tips

A blue person stands out in a crowd holding a sign with question marks on it

A blue person stands out in a crowd holding a sign with question marks on it

Whether you’re a cyclist or a runner, you’ll know all about the hours of planning and dedication that’s required to be successful.

But did you know that exactly the same qualities can help you achieve your financial goals?

Here are five lessons to get your money moving faster.

1. Set a target
Whether you have a time in mind, or you just want to reach a milestone, you know how important it is to start with a goal. The same goes for saving and investing. When you know the kind of future you’re planning for and what you want to achieve along the way, you’ll be better motivated, better focused and better financially prepared.

So whether you want to retire comfortably, buy a home, or take the holiday of your dreams, start by setting a target you can focus on.

2. Don’t skimp on the training
You can’t just wake up the week before a big ride or run and decide to be part of the race, with no training or preparation. And you can’t just wait until you turn 60 before you start saving for retirement.

If you’re a cyclist or a runner, you know the earlier you start training, the easier it is to build up speed and strength, little by little. Similarly, the earlier you start saving, the more time you have to earn interest on your interest and returns on your returns, so you can finish in style.

3. In for the long haul
Long rides and runs are all about lasting the distance. Try and do too much, too quickly, and it could all end earlier than you planned.

The same goes for investing. A disciplined savings plan that builds your wealth gradually is a very effective way to get you where you want to go, without suffering too much pain along the way. Even a small amount can build up to something surprisingly big over time.

For example, if you put $1,000 in a managed fund at age 30 and then invested just $100 a month, you would have saved more than $40,000 by age 50 (assuming 7.7% growth annually after fees). If you waited until age 40 before getting started, you would end up with only around $16,000.*

4. Mix it up
You probably know that a varied training regime is better than simply running or cycling kilometre after kilometre at the same pace. Just as you should mix up your training sessions with intervals, hills and cross-training, it makes sense to use a variety of different investments to spread risk and to better enable you to reach your lifestyle goals.

So while it may be tempting to focus on paying off your mortgage, don’t forget to pay attention to your super and other investments as well. A mix of investments inside and outside of super could help you achieve your goals both now and in the future.

5. Get a good coach
Every runner and cyclist would perform better with expert advice from someone who knows the race profile, the terrain and devises a personalised training program. And that’s exactly the role a financial adviser plays when it comes to managing your money.

So if you’d like to achieve a financial PB (Personal Best), consider talking to us.

* Based on an investment return of 7.7% pa, inflation of 3% pa. This example is for illustrative purposes only and returns are not guaranteed in any way.

*John Flanagan is an Authorised Representative of RI Advice Group Pty Limited (ABN 23 001 774 125), AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. The views expressed in this publication are solely those of the author; they are not reflective or indicative of Licensee’s position, and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author.

Get smart with your cashflow

It’s often said that building financial wealth isn’t a function of how much you earn, but how well you manage it.

If you want to consider how to build your wealth, chances are you could use a little guidance, so here are some strategies that a financial adviser can talk you through to help you make the most of your hard earned cash.

Streamline your budget
With so much focus on direct deposits and cashless payments, it doesn’t take long to become separated from how much you earn and spend.
A financial adviser can show you how tracking what you spend will not only help you understand where your money is going but, more importantly, where the leaks are.
After they help you revise your budget and start directing your money into what is necessary and important to you, you will be amazed at how quickly your financial situation can improve.

Build up an emergency fund
A good rule of thumb is to always have three months’ worth of living expenses set aside for emergencies.
Given this could take some time to build up, a financial adviser can help you decide on a realistic savings goal – taking into account some inevitable slip ups along the way!
Having an emergency fund in place not only makes good financial sense, it also gives you peace of mind that you have money available should something unexpected happen.

Start an investment plan
Investing small amounts regularly is one of the easiest ways to save for what you want in life – an overseas holiday, a new car, a deposit on your first home or your children’s education.
After reviewing your situation, a financial adviser can show you how much you have available to invest and what is most appropriate for you to invest in, based on your risk profile.
Even if you start with just $100 per month, it won’t take long before you start seeing your investment building up nicely.
Having this amount taken out of your salary as soon as you get paid means you will soon get used to living without it.

Get cost-effective insurance
Many people don’t have enough insurance to protect themselves, or their family, because they believe it is too expensive.
A financial adviser can show you a number of ways to get appropriate cover, one of which involves taking out life insurance within your superannuation fund.
Having your premiums paid by the contributions and earnings within your super fund means your insurance cover will not impact your day-to-day cashflow.
Plus, you may also get access to a ‘group policy’ by doing it this way too, which often gives you better value cover than what you would receive by taking out insurance on your own.
No matter what the cost of insurance or how you structure it, you cannot argue the value of protecting your lifestyle and your loved ones. You may just need guidance on the most cost-effective way to do so.

We’re here to help
Managing your finances and implementing strategies to build your wealth can be confusing, time consuming and for many of us…a bit boring!
But with a little guidance, it can be a very fulfilling experience.
A qualified financial adviser has a range of tools and strategies that can help you stay in control of your finances and make the most of what you have.

They will work with you to focus on what is important to you and the options available.
Get in touch and let’s sort out your cashflow, it could be the most useful meeting you have this year!
Contact our office today and make an appointment with one of our professional financial advisers.

*John Flanagan is an Authorised Representative of RI Advice Group Pty Limited (ABN 23 001 774 125), AFSL 238429. This editorial does not consider your personal circumstances and is general advice only. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser. From time to time we may send you informative updates and details of the range of services we can provide. If you no longer want to receive this information please contact our office to opt out. The views expressed in this publication are solely those of the author; they are not reflective or indicative of Licensee’s position, and are not to be attributed to the Licensee. They cannot be reproduced in any form without the express written consent of the author.