Collins Hume is Accounting Practice of the Year

Collins Hume named Accounting Practice of the Year by GPS Wealth

GPS Wealth named Collins Hume Accounting Practice of the Year 2018 at their annual conference held in Vancouver over the weekend.

Accounting Practice of the Year The award recognises best-practice wealth advice solutions and marks Collins Hume association with GPS Wealth, which started when ASIC regulation compelled accounting firms to obtain accreditation in order to provide self-managed superannuation advice.

"There were a number of high-quality finalists however, Collins Hume demonstrated an unparalleled commitment to providing their clients with quality advice through their relationship with GPS Wealth," says GPS Wealth Conference Coordinator Cathy Evans. 

"They are a regular participator in GPS Wealth events and provide much assistance and input into the understanding of the important Adviser and Accountant relationship. This partnership provides a personalised, tailored approach to meet their clients' investment needs and objectives."

Read more…

Testamentary Trusts quick summary

Testamentary Trust Wills

A type of Will that establishes a Trust or Trusts upon the death of the testator. 

trustThey are designed to protect the deceased's assets because they belong to the Trust rather than any individual. This allows flexibility for how capital and income generated by those assets is distributed.

Testamentary trusts are created by a need to provide a greater level of control over the distribution of assets to beneficiaries. There are also tax advantages available through testamentary trusts, making them an effective estate planning tool. 

Read more…

Gifts vs loans

Loaning money to family or friends fraught with pitfalls

'Mates rates' interest can lead to high emotional cost.

contractIn 2017, a Brisbane court heard the case of a son who refused to repay $280,000 that his parents loaned him to keep his business running, with loans taken from his parents 13 times over four years for both personal and business reasons.

The son said he'd accepted his parent's money as a 'gift' and not as a loan. The parents could not prove they had legally enforceable loan agreements with him. Even though the son had declared in an email that he would pay back the money, it was no more than a moral obligation, not a binding loan agreement. The parents later appealed and the Court of Appeal ordered the son to repay his parents $286,471 with interest. This illustrates often overlooked principles when lending to loved ones.  Read more…

Transfer Balance Cap

Transfer Balance Cap reporting 

What does it mean for you?

julyFrom 1 July 2017, superannuation fund members are subject to a $1.6 million transfer balance cap (TBC), which limits the tax exemption for assets funding super pensions.

The TBC encompasses a significant amount of monitoring for an individual. This monitoring is to be facilitated by the Australian Taxation Office's (ATO) event-based reporting framework.

Event-based reporting is a significant shift in SMSF administration processes. Therefore, it is essential SMSF trustees understand the event-based reporting framework and get it right.  Read more…

Personal super contributions

Personal Superannuation Contributions

10% rule repealed 

deadlineWith the end of the financial year fast approaching, it is time to start thinking about income tax deductions. 

Under the new Government changes to super, effective 1 July 2017, the 10% maximum earnings condition for personal superannuation contributions was removed for the 2017-18 and future financial years. 

This rule provided that an individual must have earned less than 10% of their income from their employment-related activities to be able to deduct a personal contribution. 

Read more…