Having assisted with the preparation of many tax returns, and providing financial planning and taxation advice, one thing is certain, a client never overestimates their income and understates their expenses. Almost all taxpayers do not want to pay a cent more tax than they are legally obliged to pay, and nor should they have to.

Most people that are financially secure have achieved that financial position from their investment strategies. The vast majority of these investors have accumulated their wealth over an extended period of time by investing in property and shares. They have not attempted to pick the low point in the market as even most experts and leading economists do not get this right.

You may remember in the mid to late 1990s that most property experts predicted that the property market would peak in 2000. Their reason for this was that they believed that there was excess construction in preparation for the Sydney Olympics and the introduction of the GST on new property would have a negative impact on property prices, particularly in Sydney. We know now that property prices continued to rise for at least another three years. I know of an individual that sold his home on the lower North Shore of Sydney after reading these so called ‘expert predictions’ only to find he could not buy back into the market until some years later.

So, how can you utilise the benefit of investing over an extended period of time as opposed to trying to ‘pick the market’?

Dollar Cost Averaging

Instead of trying to ‘time the market’, you may be better off ‘dollar cost averaging’. ‘Dollar cost averaging’ is an investment approach where you invest the same amount of money on a regular basis, usually monthly, into a share investment.  It takes advantage of the only certainty of the share market – prices will continue to rise and fall.

Dollar cost averaging is a convenient and flexible way for investors to gain additional exposure to investments over time.  The benefit of this strategy is that it reduces the risk of investing a large amount of money in a single investment at the wrong time.

By spending a fixed amount at set intervals, you are smoothing the ups and downs of the share market.  Your fixed amount will buy more units or shares when the prices are low and fewer units or shares when the prices are high.  This means the average price paid can be lower than the average market price.

A Regular Investment Plan

A regular investment plan is a disciplined method of investing and also an excellent way to benefit from dollar cost averaging.  With a regular investment plan, a set amount of money is automatically debited from your bank account each fortnight or month.

You could use an investment plan to save for objectives such as your children’s educations, a holiday, a new car or for your retirement.

Example

John establishes a dollar cost averaging plan. He invests $1,000 per month in BHP, a listed Australian company, for 12 months (column A).

John’s regular investment is made at the same time each month.  Each month, the market price of BHP varies in line with the daily stock market fluctuations (column B).

This affects the number of shares that John received for his $1,000 investment each month (column C).

Outcome

John has purchased 333 shares for $12,000 over 12 months.  The average price of BHP shares John purchased is $36.04 (equal to $12,000 divided by 333).

By making smaller, regular, investments John has not tried to pick the optimal time to invest. He has accumulated shares at an average price of $36.04 and the share price in the last month of his investment is $39.40.

Obviously share prices go up and down over time. Where this strategy works well is where you have medium to long term goals say, a three to seven years time horizon.

Please note that we strongly recommend that when adopting this approach you diversify your portfolio, that is, do not limit the investment to only one company such as BHP.
You do not need a large amount of money to be a successful share market investor. What is important is making a commitment to a regular savings plan.

Remember, when looking to make any major financial decisions it is strongly recommended that you seek independent professional advice. This will ensure that you are making the best decisions for your individual situation as not one solution provides optimal results in every situation. Should you have any questions or require more information regarding investment, financial planning or tax advice contact us on 1300 QUINNS (784 667) or click here to submit an online enquiry.

The Program provides grants of up to $15,000 (GST exclusive) to small businesses to help meet the set-up costs of family friendly arrangements that suit the individual needs of the business. To be eligible your business must have between 1 and 14 employees and can include companies, sole traders, partnerships, non-government, not-for-profit and a group of up to 3 small businesses.

In addition, the Program supports small businesses by developing and distributing business and industry specific information to assist in implementing some of the new family friendly work arrangements. Also, experts within the Office of the Fair Work Ombudsman are available to provide assistance and advice to small businesses seeking to set up family friendly work arrangements.

The Program is administered in funding rounds by the Department of Education, Employment and Workplace Relations. However, this round closes on 31 March 2010 so get it quick and take advantage of this opportunity! Flexible work arrangements are not just a benefit to your employees, happy workers equal a productive workplace.

For further information regarding the Fresh Ideas for Work and Family Grants Program or for any other employment law or small business advice contact The Quinn Group on 1300 QUINNS or click here to submit an online enquiry.

You have skilled and experienced staff who are an asset to your business. Don’t give them any reason to start looking elsewhere!

On the other hand, if you are looking to employ more staff, this is a great time to be on the lookout for people who are looking for a change.
If you are lucky, you may find you have an excess of applicants. Use our system to start sorting through that pile of resumes…

Most people are familiar with ‘SMART‘ goals. This simple acronym can also be applied to resumes and CVs - both your own and those of job candidates.

‘SMART‘ becomes an easy checklist that will save you from wasting time talking to the wrong people. Ask yourself if the resume is:

Specific - detailing achievements of the individual, not just their team or department and not too vague or generalised;

Measurable - there should be facts and figures to back up the achievements. For example, ‘increased client base by 20% in 2 years’;

Accurate - provides information that can be substantiated. For example, academic transcripts, references;

Relevant - the information supplied links directly to the role;

Timeframed - dates are given for different jobs, study, etc, and all time periods are accounted for.

Successful recruitment and retention require specific knowledge about the people concerned.

• What motivates them?

• How would they prefer to spend their time?

• Are they good with people?

• How do they perform under stress?

• Why might they want to join - or leave - your organisation?

While some of this information can be gleaned using our ‘SMART ‘checklist and structured behavioural interviewing, objective measurements using validated benchmarks can be more reliable.

TIP: Don’t wait until it’s too late to make the most of the current conditions.

ACTION: Unless you are an expert, seek advice on recruitment and retention.

Balance at Work is the human capital expert for financial services companies of 5-500 employees. We combine the most accurate, insightful and easy to use online testing tool with expert advice, to give managers confidence to hire the right people first, make the most of their potential and approach difficult performance discussions with ease, creating businesses that are highly competitive because they have productive and valued employees. To find out more about how we can help you, contact Susan on 1300 785 150 or susanr@balanceatwork.com.au

In the first 5 minutes it is critical you establish your credibility. People like to work with people they like so don’t focus
on selling your product until you have sold yourself.

Meeting the prospective client at their business premises shows genuine interest and great service, and you can benefit from seeing where and how they operate.

Look and sound the part. Pay attention to personal grooming, but also look as though you’ll be a good “fit”. Formal business attire may not always be the most appropriate. Tailor your look and terminology to your client and their industry.

Be on time. Lateness may be excusable, but it won’t make the right impression. Your body language should be warm, friendly and confident. Make direct eye contact and give a friendly smile.

Have your business cards ready. Take any business card offered and read the name/s out loud. Use the name/s a couple of times during the meeting to establish the relationship and commit them to memory.

Do some background research before the meeting. Your credibility will skyrocket if you understand the client’s business and industry. Plan your opening remarks ahead of the meeting.

Your client will want to know about you too. You may have shown your interest in their business but still need to present your credentials. Plan which are most relevant to them and give examples.

Establishing credibility is fundamental and the above ideas for achieving it are simple. You’ll put yourself streets ahead of the competition if you consistently get the fundamentals right. To find out more about making the right first impression and other marketing advice contact Deborah from Clarity Marketing on 0411 139 881 or email dcq@claritymarketing.com.au

As you can see from the diagram below organic rankings appear on the left hand side of your search result, underneath the sponsored (paid) links. The aim of SEO is to make it easier for potential clients to find your website when searching and maximise the number of targeted visitors. A well optimised site is seen to be the most relevant to the keywords that users have searched by. Essentially, the better your site is optimised, the higher your organic ranking will be.
Ways to optimise your site include:

• Regularly review the content of your website to keep it fresh and up-to-date. The more relevant the content, the greater visibility your site will have.

• Create a blog that is regularly updated with topical articles. It is important to ensure that any content you publish includes the keywords you aim to be ranked for.

• Link building. Your ranking can be boosted if you have a healthy number of others websites linking to your site. Target sites that have a similar client base to yours - not necessarily the same product but the same type of customers – and offer a reciprocal arrangement where you place a link to their website on your site and they return the favour.

There is value in pursuing SEO in conjunction with, or instead of, Pay Per Click (PPC) advertising for a number of reasons.

• As some potential customers place greater trust in organic results over paid results.

• While there are costs to update and maintain you site, SEO costs can be considerably less than the costs of PPC advertising.

• SEO boosts your sites overall relevancy and produces long-term results. The effects of PPC are immediate and if you stop, your visibility will almost instantly decrease.

• SEO can provide you with multiple listings for one search term, where PPC can usually only provides one listing for any one search term.

If you’d like to find out about how to introduce an SEO campaign to your website contact Deborah from Clarity Marketing on 0411 139 881 or email dcq@claritymarketing.com.au.

Local Court
Serves as an entry point to the court system in all criminal and some civil and family law matters. Decisions are made by Magistrates (and not judges) without a jury.

District Court
Indictable criminal matters (except murder), appeals from magistrates and civil cases with claims below $750,000 are heard here. A judge, and usually a jury, decide on the outcome.

Supreme Court
A court of appeal and has unlimited civil jurisdiction. The Supreme Court handles the most serious criminal matters. There are other more specialised courts and tribunals, such as:

Coroners Court
Inquires into the circumstances surrounding reported deaths within NSW and determines the cause of death. The Coroner also has jurisdiction to inquire into fires and explosions where people have been injured or where property has been destroyed or damaged.

Consumer, Trader and Tenancy Tribunal (CTTT)

Is an independent decision making body that offers dispute resolution services. The CTTT has nine different divisions, each with its own legislation, jurisdiction and case management practices.

Here at Quinns we have the ability to represent you in a range of courts and tribunals. Visit our dedicated website All Court Matters for more information about the various court and tribunal systems. Click here to submit an online enquiry or call 1300 QUINNS (784 667) to speak to us about your legal matter.

Some of these items could include.

• Car or other vehicles owned or leased by the business available to employees for private use.

• Loans provided at reduced interest rates to employees.

• Employee released from an owed debt.

• A non-business expense incurred by an employee paid for, or reimbursed.

• A house or unit of accommodation provided to your employees.

• Employees provided with living-away-from home allowances.

• Entertainment provided by the way of food, drink or recreation to your employees.

• New salary package arrangements for any employees or any employees on existing salary package arrangements.

• Employees provided with goods at a lower price than they are normally sold to the public.

As an employer, if you have provided any of the above items to your employees then you could be liable for Fringe Benefits Tax. Fringe Benefits Tax (FBT) is a tax paid by employers on the value of certain benefits that have been provided to their employees’ in relation to their employment. These benefits or ‘payments’ are considered separately to salary or wages.

The Fringe Benefits Tax (FBT) year ends on 31 March each year and payment of any necessary FBT is due by 21 May. Eligible benefits that are paid must be recorded on employees’ payment summaries for the income year ending 30 June of the same year.

As a business owner, it is your responsibility to determine whether you have provided fringe benefits to your employees during the course of the FBT year, and consequently, whether you are liable to pay FBT on those benefits.

If you have provided any of the above items to your employees since 1 April 2009 you may be liable for the payment of FBT. For further advice in relation to your business’ FBT liabilities or for any related queries such as company tax returns contact The Quinn Group on 1300 QUINNS (784 667) or click here to submit an online enquiry.

Fixed trust
Under a fixed trust, the beneficiaries have a fixed interest in the assets of the trust and a fixed entitlement to income.

Discretionary trust
An ordinary discretionary trust differs from other trusts in that the beneficiaries do not have a fixed entitlement or fixed interest in the trust funds. Instead, the trust deed generally defines the potential beneficiaries of the trust very broadly, and the trustee is then given complete discretion to determine which of these persons are to receive the capital and income of the trust and how much each of them can receive.

Family trust
Although many discretionary trusts (and even some unit trusts) are often referred to as “family trusts”; a family trust is generally established by a family member for the benefit of members of the “family group”.

Unit trust
A unit trust exists where the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares. In an ordinary unit trust, a beneficiary (or unit holder) is entitled to the income and capital of the trust in proportion to the number of units held. Like a company, it is possible for a unit trust to have different types of units with different rights attached.

Hybrid trust
A hybrid trust, as the name suggests, is generally a hybrid of a discretionary and a unit trust. The term “hybrid trust” is a generic term for a trust which has elements similar to both discretionary and unit trusts, and there are many different forms of hybrid trusts. Therefore, when a tax practitioner talks about a hybrid trust they could be referring to one of a number of different forms.

With so many different products available, it is important that you seek the advice of a professional to ensure you choose the right structure. To find out more information about the correct trust structure for your circumstance please contact The Quinn Group on 1300 QUINNS (784 667) or visit our dedicated website All Trust Structures and submit an online enquiry.

You may have unreported offshore income if you:

• Changed your country of residence, or
• Are unsure how to deal with investments in offshore funds or bank accounts

The ATO has been advised in recent years that many taxpayers that may fall into one of the above categories want to come forward and set things right, but are concerned about the consequences of doing so, particularly fearing the potential for criminal investigation. In light of this, the ATO has come up with an Offshore Voluntary Disclosure Initiative (OVDI) that provides the following benefits:

• You can approach the ATO anonymously with the details of your potential declaration
• The ATO will indicate whether they would investigate these for any potential criminal law breaches
• They will reduce any potential shortfall penalties. If your additional taxable income is:
o $20,000.00 or less in a tax year, you will not need to pay a shortfall penalty for that year, or
o More than $20,000.00 you will only need to pay 10% of the applicable shortfall penalty for that year.
• They will also provide concessions for the general interest charges applicable

The OVDI will take into consideration any difficulties in making payments and are able to develop payment plans according to individual circumstances.

This offer will be available to all taxpayers until 30 June 2010.

It is important that you take early advantage of the OVDI as the offer will not be available after notification of an audit.

For more information about the Offshore Voluntary Disclosure Initiative or for assistance with your Offshore Income declaration and liability, contact The Quinn Group on 1300 QUINNS or click here and submit an online enquiry.

The debt can only be collected by the ATO after a Director Penalty Notice has been issued. The directors then have 14 days to comply with the notice or they will face personal liability for the amount. The time limit here is of great importance as the ATO has no discretion to extend the period and the 14 days begin when the notice is sent and not when it is received.

If you have received a Directors Penalty Notice, you should:

• Pay the amount in full and if possible without delay

• Enter into a payment arrangement with the ATO

• Such an arrangement may mean repayment by instalments or otherwise, however it is important to keep in mind that the 14 days are still running while negotiations are occurring so it would be highly valuable to seek our professional advice.

• Appoint a voluntary administrator

• The directors can, by majority, appoint a voluntary administrator to the company; however it is important to do this quickly and properly.

• Appoint a liquidator.

Important things to consider include:

• Loan repayments may not avoid personal liability

• If the right address is not recorded with ASIC personal liability can occur without the director(s) actually receiving a Directors Penalty Notice

• The 14 day time limit strictly applies and the ATO has no discretion to extend it.

It is important to seek urgent advice on each of these options in order to ensure the directors personal liability is avoided if it is possible to do so.

For more information about the Directors Penalty Notice or for assistance with your PAYG liability, contact The Quinn Group on 1300 QUINNS click here to submit an online enquiry.