thinking ahead issue 10

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THINKING AHEAD ISSUE 10 | AUTUMN 2015 A NEW APPROACH TO MANAGING THE R&D TAX INCENTIVE + THE VOICE II – DELVING DEEPER INTO AUSTRALIAN BUSINESSES + NEW OPPORTUNITIES FOR AUSTRALIA’S AGRICULTURAL INDUSTRY + TAX EXEMPTIONS FOR SMALL, START-UP COMPANIES

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Page 1: Thinking Ahead Issue 10

thinking aheadiSSUe 10 | aUtUMn 2015

A NEW APPROACH TO MANAGING THE R&D TAX INCENTIVE+ the VOiCe ii – deLVing deePeR intO aUStRaLian BUSineSSeS+ new OPPORtUnitieS fOR aUStRaLia’S agRiCULtURaL indUStRy+ tax exeMPtiOnS fOR SMaLL, StaRt-UP COMPanieS

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IT security: Is your business safe? 1Dangling the carrot 2Investing in the dining boom 3The Voice II 4Research and development: A partnership approach 6Valuing your life’s work 8Seeing your loved ones right 9Adopt, Adapt, Improve 10News 12

This is not advice. Clients should not act solely on the basis of the material contained in this Bulletin. Items herein are general comments only and do not constitute or convey advice per se. Also changes in legisla-tion may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. The Bulletin is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our prior approval. Bentleys is a national association of independent accounting firms in Australia and New Zealand. The member firms of the Bentleys association are affiliated only and not in partnership.

thinking ahead

Doing business overseas – Bentleys’ global affiliationWith advisors in over 94 countries, our affiliation with Kreston International means we can offer our clients 24-hour global coverage. Kreston offers reliable and convenient access to quality services helping you navigate cultural and language issues when doing business overseas. With 700 offices and over 19,500 professional staff, Kreston ranks as the thirteenth largest accounting network in the world. Founded in 1971, Kreston is a member of the Forum of Firms, an association of international networks of accounting firms that promotes consistent and high-quality standards of financial reporting and auditing practice.

Thinking Ahead is Bentleys’ quarterly publication of news and information for individuals and business.

Bentleys’ australia and new Zealand network of professionals At Bentleys we are more than accountants. We are business advisors in a national network of professionals who provide accounting service, audit and assurance, business advisory, corporate recovery, financial planning, superannuation advice, trust and estates planning and taxation consulting. We provide service to family business, small to medium business, listed entities, professionals, high net-worth individuals and government. Across Australia and New Zealand Bentleys employs hundreds of professionals – including specialists in aged care, agribusiness, mining and resources.

COntentS

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ManageMent

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thinking ahead IT secUrITy: Is yoUr bUsINess sAfe?new privacy principles introduced by the australian government in March 2014 have strengthened australians’ privacy rights.

To find out how you can protect your IT systems, contact McLean Delmo Bentleys IT Security Services.

Areas affected include direct marketing, the disclosure of personal information and requesting access to personal information held by an organisation. It is therefore imperative that organisations ensure their customer or client personal information is secure.

A recent Hewlett Packard survey assessing security of devices, found that 7 out of 10 devices are susceptible to compromise. It is no surprise then that the April 2014 Bentleys – The Voice of Australian Business survey listed security and data protection in the top 5 technology challenges faced by small business and small to medium enterprises (SMEs).

WHAT CAN yOu DO TO SECuRE yOuR IT SySTEMS? 1. ensure you have systems to mitigate

external and internal threats. These could include an effective firewall, antivirus software, email and website filtering.

2. introduce robust mobile device management. Develop policies that cover company mobile equipment as well as bring-your-own devices (BYOD). Include policies for application control, device security and remote wipe (in the event a remote device containing business data is lost).

3. ensure remote access is secure. Use secure access channels, such as virtual private networks (VPNs), and enforce policy restrictions.

In addition to protecting against outside influences, how you manage your data internally is now more relevant than ever. Introducing effective document management strategies will help ensure controlled and improved document distribution and better document organisation. This is helpful if information needs to be produced under the new privacy laws.

Finally, ensure your backup strategy is adequate to meet your needs. In the unfortunate event of a security breach,

dean Lofthouseit Manager,McLean delmo Bentleys

having qualified backup data is essential to protect your business.

These are all basic steps to securing your business against malicious attack. As an IT professional, I often hear statements like: ‘I’m not tech savvy’ ‘It all costs so much’ ‘IT requires too much specialty training’. The question here is, can you afford an IT security breach?

With technology pervasive in our lives, and the threat of security breaches ever present, securing your IT systems is essential. Investing in an IT security audit and taking preventive measures to protect your systems and data could save you a lot of money and reputational damage in the event of an unexpected threat.

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SMaLL BUSineSS

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to boost entrepreneurship and provide rewards for both employers and employees, the australian government has proposed welcome employee share scheme (eSS) legislation for start-ups.

One of the key changes for Alan’s employee is that small discounts on shares (less than 15% of market value) are to be exempt from income tax but will fall under the CGT rules (including the general 50% discount).

Another key change is that for qualifying rights to acquire shares, the CGT rules will apply instead of the income tax rules and also allows for such rights to be effectively issued for free assuming the terms of the right are appropriately structured.

Additionally, the Taxation Office is to be allowed to develop ‘safe harbour’ valuation rules and standardised documentation to help employers like Alan.

It’s encouraging that the Australian Government has acknowledged that the current ESS legislation does not accommodate the small business sector and is consulting with industry to develop a solution.

Although still in draft, these proposed changes are intended to apply from 1 July 2015 and are a welcome incentive for employers and employees alike.

To find out how your business can benefit from an employee share scheme contact your Bentleys advisor.

DANGLING THE CArrOT

In a competitive labour market, attracting and retaining quality employees is a concern for many small start-up businesses in Australia. Yet when a valued employee has shares or rights that vest upon a term of service and/or the achievement of financial and operational key performance indicators (such as revenue growth and units of output) it can create opportunities to:1. Align the employee’s goals with those of

the company.2. Improve the productivity of employees

who participate in an employee share scheme

entiCing a VaLUed Staff MeMBeR tO StayAlan is the sole shareholder and managing director of a start-up business that has a turnover of less than $50 million per year. The general manager of Alan’s business is being head-hunted by a listed company. Alan believes this employee is critical to the business’s future success. To retain his employment in the company, Alan wants to issue the general manager with an equity stake in the business.

eric BallardManager, taxation and Business ServicesBentleys, wa

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agRiCULtURe

INVESTING IN THE DINING BOOMthe demand for high quality food from countries such as australia – which is perceived as green and clean – is driving much of today’s interest behind the so-called ‘dining boom’.

Brendan gouldingdirector, international ServicesBentleys, Queensland

When preparing for investment or engaging with prospective investment partners, consider the following: 1. Make it easy for investors to

understand your business. Have information available about your business’s track record. This will help investors understand your business and determine whether they are a suitable investment partner. 2. Communicate who is managing the

business. Make it clear to investors who’s behind the company and what experience your management team has.3. State why you’re seeking an

investment partner. Outline the reasons why you are seeking an investment partner and the type of partner you think would be suitable. 4. tell them what’s in it for them. Clearly articulate to an investment partner the funding you are seeking and the benefits to them of investing in your business.5. Seek advice from experts who

understand the market and industry sector.

Your advisor will be able to provide advice for forming a partnership as well as alert you to issues you need to consider to make it a good fit for you.

Given the growing emergence of international investment interest in Australian agriculture, co-investment partnerships with international investors could be a good option for Australian agribusinesses to explore. If the investment partner is a good fit, this partnership could provide access to capital and markets.

For more information about international investment, contact Bentleys International Advisory Division.

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Continued urbanisation, coupled with the purchasing power of a fast-growing and increasingly affluent middle class in rapidly developing countries, particularly in Asia, are also factors contributing to the demand for Australian food. These trends are presenting export opportunities on our doorstep that are difficult to ignore.

Using Queensland as an example:• The beef industry is Queensland’s largest

agricultural industry. • Queensland produces over 1 million

tonnes of beef per year, with a farm gate gross value of production worth $3.25 billion per annum.

• Queensland exported over 635,000 tonnes of beef in 2012–13 to 78 countries which accounts for over 60% of Australia’s beef exports.

• Queensland’s beef export market has a value of around $3 billion per annum.

• Important markets include Japan, the United States, russia, Taiwan and South Korea.

Source: Department of Agriculture, Fisheries and Forestry, 2013

Given the current strong demand for Australia’s agricultural products, opportunities are emerging for co-funding investment agreements with investors seeking access to Australian agriculture products or exposure to the expected continued growth in global food demand.

SEEKING INTERNATIONAl INVESTMENTJoint ventures with investment partners from regions such as Europe, Asia or the USA can be a lucrative source of capital for the Australian partner while at the same time providing access to previously unavailable markets.

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THE VOICE II

In March last year, Bentleys conducted their first survey – Bentleys – The Voice of Australian Business – of 2,377 SMEs across sectors and groupings including education, health, professional services, government and agriculture.

Armed with this information, in November 2014, Bentleys launched The Voice II, surveying over 600 businesses to see what had changed and asking fresh questions about levels of confidence, perceived obstacles and opportunities. responses from 328 of the businesses surveyed were included in the final report.

Bentleys’ second business survey in less than 12 months, the Voice ii has given us an unprecedented insight into the obstacles and opportunities confronting micro businesses as well as small to medium enterprises (SMes) in australia.

THE METHOD‘We found the first survey gave us great insight but it also raised many new questions in specific areas such as technology and foreign investment. Deciding to run the survey with a smaller sample group was a logical decision and allowed us to delve deeper,’ said Bentleys Executive Officer, Mark Chapman. ‘If The Voice I was a full health assessment, The Voice II was a check of the pulse.’

The method used for both surveys was the same, covering both metropolitan and regional Australia and taking in all states and territories. Exactly 57% of businesses were based in a capital city or surrounding suburbs and classified as ‘metropolitan’. The remaining 43% were located outside of state capitals in large cities or regional or rural areas (classified as ‘non-metropolitan’).

THE DATA‘The data collected in The Voice I hinted at the difference between metro and non-metro. We wanted some reliable data to show this divide,’ explained Bentleys Chairman, Nick Storer. ‘In The Voice II we wanted to include all business types but particularly wanted to concentrate on metro versus non-metro as well as micro businesses and SMEs. We listened to what we were told in The Voice I and honed in on some of the challenges facing micro businesses of 1 to 4 employees,’ Mr Storer said. ‘We particularly wanted to get an idea of the wide variety of concerns about how SMEs feel about taxes’.

‘Paying income tax, superannuation, sick and holiday leave, etc is difficult in a small rural town where your turnover is limited by population size and access to services that are common in larger communities.’non-metropolitan, micro, information media and telecommunications

‘I think there is a huge risk to Australian businesses in general from offshore investment. Decisions are made to benefit multinationals rather than Australia.’non-metropolitan, micro, arts and recreation services

THE TAX quESTIONSIn order to understand the concerns about the effects of tax, the survey posed the following questions:• In general, do you find it hard or easy

to understand the taxes that affect your business?

• Do you think the current rate of the GST is too low, too high, or about right?

• If the GST were raised to 15%, what would be the main impacts (if any) on your business in terms of revenue, profitability, competitiveness and number of employees?

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To find out more about the results of the survey or to listen to a presentation about The Voice II, contact the Executive Officer at [email protected]

As expected, answers to these questions demonstrated a disparity in attitudes between micro and small businesses based in non-metro areas in comparison with medium, metro-based business.

HEADS IN THE ClOuDS? ‘In The Voice I, we discovered that only 14% of respondents indicated they were planning to adopt Cloud computing technology for cutting edge data transfer in the next 12 months. We were surprised that interest in Cloud was this low. We had to delve further as we needed to understand what these concerns were. The results allowed us to compare and contrast the data from metro and non-metro areas as well as between micro and SMEs,’ said Mr Chapman.

The results of the survey indicated a lack of knowledge of Cloud computing and the need for education in some sectors. There were also genuine fears based on the negative experiences of businesses, including:• Security breaches• Hackers accessing business bank

accounts• Information being falsely sent from

company domains or email addresses• Attacks on Cloud-based services (e.g.

denial of use) and attacks on IT systems (e.g. ransom hacking).

‘If the GST was raised I would have to raise my prices to our clients and that would turn people away. It is hard enough to make ends meet, without increasing the tax burden on small, struggling business owners.’ non-metropolitan, micro, animal care

FOREIGN INVESTMENT – FRIEND OR FOE?The gap between those in metro and non-metro areas is widest on the subject of foreign investment. The Voice I revealed concerns about the perceived levels of foreign investment in Australia. The Voice II demonstrates this perception still holds, although the data reveals 64% of those surveyed did not know the actual extent of foreign investment in Australia.

‘I become confused with which taxes are applicable to me and at which times. I thus rely heavily on my accountant.’Metropolitan, micro, health care and social assistance

• Businesses surveyed in all states and territories, with the majority located in new South wales, Victoria, and Queensland.

• 57% of businesses located in a capital city or surrounding suburbs (classified as ‘metropolitan’); 43% located outside of state capitals (in large cities or regional or rural areas, classified as ‘non-metropolitan’).

• Professional, scientific, and technical services (15%), retail trade (13%), and manufacturing (8%) the most highly represented industries.

Business characteristics

Business size

Micro: 1-4 Small: 5-19 Medium: 20-200

employing micro, small, and medium businesses was the main focus of the survey.non-employing businesses (sole traders) and those employing more than 200 people were not included in the survey.

46% 30% 24%

the findingSBentleys will be releasing the findings from The Voice ii between february and May 2015 and will continue to offer better, more tailored services to clients in both australia and new Zealand. the aim is always to have a detailed understanding of the real challenges and opportunities facing the SMe and micro business sectors.

5%

<1%

6%

21%

36%

29%

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3%

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featURe

rESEArCH AND DEVELOPMENT:A PArTNErSHIP APPrOACH

The r&D Tax Incentive is Australia’s largest business assistance program for innovators, supporting more than 12,000 companies and r&D expenditures of over $18 billion. The r&D tax incentive is a self-assessed, rules-based program where receipt of a tax benefit is the outcome of undertaking eligible activities. The benefit can be as much as a tax refund of 45% of eligible r&D expenditure for companies that adopt solid r&D knowledge and management practices.

IF IT ISN’T WRITTEN DOWN, IT DIDN’T HAPPENAs the scheme has evolved, it has shifted from a focus on the tax to a celebration of innovation. Contemporaneous substantiation of the journey from the ‘idea’ through to the technical outcome is essential. At the same time, r&D companies must establish and maintain their legislative eligibility. The onus is on the r&D company to take an active role in knowledge management by planning r&D projects. There is also a compliance requirement to record the events (such as discoveries, challenges and observations) as they occur, providing evidence and implications of these.

Typically, at an annual ‘r&D Tax time’, r&D companies and their business advisors work furiously to prepare applications to meet a fixed 30 April deadline (for companies with a July to June financial year). A major problem with this approach is that the r&D events could date back as far as 22 months.

Collaborative Cloud technology, combined with Bentleys’ advisory power, is giving innovating businesses a bigger and better-tasting slice of the research and development tax pie.

Mike Burfielddirector, R&d ServicesBentleys, Sa

If record-keeping and knowledge management systems are deficient, eligibility may be compromised. This is because record-keeping is fundamentally linked to eligibility regardless of whether the r&D work is actually experimental or not. For the regulator, it’s a case of, ‘If it isn’t written down, it didn’t happen.’

A PARTNERSHIP APPROACHAt Bentleys, we offer an alternative model to ‘r&D tax time’. Using innovative, Cloud-based software – rdmLIVE – your Bentleys r&D tax advisor is simply a part of your company’s knowledge management system. This is a collaborative model where your advisor imparts strategic, business and compliance knowledge throughout the r&D cycle, not solely at the application preparation and lodgement time.

INTERACTION AND COllABORATIONEach r&D team member in your company can have a secure login with tailored, administrator-controlled access to system modules. rather than having to replace your existing recording system, these modules can augment them. Modules include:Planning: Users are guided through the development of an r&D plan, addressing the key questions needed for Tax Office registration and any post-registration compliance activity.Activity classification: With this tool, users can correctly determine if an activity is Core or Supporting. They can then establish the correct relationship hierarchy between activities in a project.work logs: r&D staff and contractors can record time and events and allocate these to activities in a simple, logical way.Costs: Excel worksheets are integrated and r&D costs are allocated to the appropriate expenditure categories and activities.

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file: r&D companies can upload and store supporting documents, and allocate them at an activity level.Registration: This module interacts with all other system modules and enables users to create an annual r&D tax registration form. It is even possible to export the data directly into an AusIndustry registration form.

The researchers and developers themselves have increased involvement in the registration process, deflecting the r&D preparation work from the Chief Finance Officer to those with the expert knowledge of the research and development.

THE RIGHT SuPPORT AT THE RIGHT TIMEThe rdmLIVE software has a detailed tutorial and guidance system linked to every question. By linking to user profiles, Bentleys’ expert r&D advisors can also provide support and reviews on request, as well as immediate responses to flags generated by the integrated compliance logic embedded in the system.

AN EFFICIENT METHODOlOGy The software is a precision system and assisted self-management tool that helps r&D companies complete registrations correctly and comply at best-practice levels. As the r&D application is being prepared throughout the year, registration bottlenecks are reduced.

In all areas of business, Cloud computing is becoming a necessity. For r&D companies, rdmLIVE Cloud software can make a previously time-consuming and stressful process, a streamlined and efficient one.

To find out how rdmLIVE can simplify your r&D tax registration and compliance process, contact a Bentleys advisor near you.

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SMaLL BUSineSS

you’ve put in the hours, you’ve watched your business grow and thrive. now you’re ready to reap the well-earned rewards. But is your business ready?

kim LambertClient ManagerBentleys, newcastle

WORK OuT yOuR PRIORITIESOnce you understand the business at a strategic as well as an operational level you need to set priorities. Is there a significant weakness that needs to be addressed first?

Outline how you will minimise the risks you’ve identified, including what you plan to change, how you will change it and what effect you expect the change to have on the business.

Work with your staff and accountant to identify structured procedures to ensure staff require minimal supervision. Keep track of your success with regular reviews and business revaluations.

BE REAlISTIC AND FlEXIBlEIt’s always important to keep your retirement goals realistic based on the minimum you can live on, without factoring in your dream. If you’re not able to implement the business changes within your original timeframe, you may need to review your retirement timeline, change the strategies for your business or reconsider your retirement lifestyle.

By taking some crucial steps now, you can help ensure your business reaches its full potential before you sell. With a planned approach to increase the value of your business, come retirement, you will reap the rewards.

To find out how much you need your business to be worth for your retirement, contact a Bentleys advisor near you.

VALUING YOUr LIFE’S work

‘How much is my business worth?’ This is the question on most business owners’ minds when the time comes to sell up and retire. When you’ve sacrificed so much and put so many years of work and effort into building your business, it’s easy to imagine that your business is worth a great deal more than what the professional valuation says. ‘Is that all my effort was worth?’ you think.

A more realistic response would be ‘How much do I need my business to be worth?’ To find the answer to this, you need to ask yourself two key questions:1. When do I want to retire?2. What retirement lifestyle do I want? For

example, do you want to live a quiet life by the beach? Or is travelling the world what you’ve always wanted to do?

ANAlySE yOuR BuSINESSThe first step to increasing the value of your business is to identify its strengths, weaknesses, opportunities and threats. Consider asking your key operational staff to do this exercise as well – you might be surprised at how the answers differ.

Also consider the following:• Does the business perform to industry

benchmarks? • How much old and outdated stock is

on hand?• How are exchange rates affecting

sales?• Are there any debtors outside of

payment terms?• Does most income come from a few

customers?• Are the business premises key to

business success? If so, is the tenure secure?

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aged CaRe

In a country where longevity is becoming the norm, the Australian Government has acknowledged the growing demand for aged care services and is placing an increasing focus on user pays. To meet these demands, it is vital that families are prepared and make important financial and care decisions before being hit with a medical emergency.

1. Plan. Frank and open discussion is the first step to an effective decision-making process. Convene a family meeting to: • Explore priorities and preferences and

help your family arrive at a common view• Understand how aged care works and the

range of care options available• Consider the role of the family home in

funding the entry fee to an aged care facility

• review your loved ones’ ongoing cashflow requirements

• Ensure the estate plan continues to reflect your loved ones’ wishes and the family’s decision.

An advisor can help you through the process by offering an impartial and objective view. 2. assess healthcare needs. To determine the level and type of care required – be it home care, or in a residential facility – speak to your family doctor to arrange an assessment of your loved ones’ health.3. Search for services. Think about the important criteria when deciding on a service or facility. Do you need to consider the location, amenities and access to health services? 4. Understand the costs. Paying for aged care is generally divided into contributions towards accommodation (where required), care and additional services. The

SEEING YOUr LOVED ONES rIGHTfor many families, the need for aged care services is precipitated by an emergency, such as an accident or illness. as a result, options may be limited, adding stress to an already emotionally-charged scenario.

Jodi Luptonassociate director and aged Care SpecialistBentleys, Queensland

cost depends on the service chosen and the assessable assets and incomes of your family member.

The total payable can be hard to calculate. Your advisor can explain the fees and calculate an estimate. 5. Cover the costs. review the financial situation and develop a plan to help make decisions around covering the costs of care. Talk to your advisor about:• What are the options regarding the

family home?• Is it best to pay a residential

accommodation deposit (rAD) or a daily accommodation payment (DAP)?

• What are the Centrelink considerations?• How do we manage taxation

implications?6. Plan your estate. Consider the impacts that any changes made to living or care arrangements will have on estate plans such as a Will, investment nominations and powers of attorney. Many documents can only be put in place while an individual is deemed of sound mind, so it’s important to establish them early.7. Moving. If new care arrangements involve a move into a residential facility, a resident agreement will be set up, and fees may start once the place is accepted. There is a 28-day period in which you will need to decide whether accommodation will be paid for as a lump sum (rAD) or as a daily fee (DAP).

Although most people would prefer to live their remaining years at home, the reality is, not everyone will be able to continue to live independently. By being prepared and talking to your advisor, you can reduce the financial and emotional stress of having to move to residential care.

For help with planning for your family’s aged care needs contact your Bentleys advisor.You will find resources and help to find services and facilities at www.myagedcare.gov.au

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a family business often starts out small – being your own boss is appealing and you take your passions from being a hobby to a vocation for the future.

ADOPTWhen you start out your accountant may suggest an ideal family business structure for your immediate circumstances. As your business grows beyond everyone’s expectations and evolves into an intergenerational business, the structure that was suitable at the outset may no longer be efficient to achieve your wealth creation goals or your family’s goals.

ADAPTIt’s therefore important not to set and forget. Your original structure may need to be adapted to accommodate growth and future succession. Family circumstances can also change as you may see in the following scenario, where we have a family/discretionary trust with a corporate trustee.

kirsten taylor-MartinClient director, Business advisoryBentleys, nSw

Mum Hope and Dad Hope have two children, Paige and Peter. Paige decides she wants her own career and is never involved in her parents’ business, whereas Peter has worked in the family business from the time he left school. Peter is paid a wage from the business. In the past, the trustees have decided to distribute the remaining profits to Mum and Dad Hope then evenly to both children.

Scenario 1. Mum and dad decide to retire. Can they access cash?Mum and Dad decide they will just sell an asset in the trust. But do they own the assets in the trust? No they don’t. Fortunately, there are ways to get funds out of the trust for retirement and capital gains tax (CGT) rollover relief may be available to restructure.

Scenario 2. Peter wants equity in the business. Can the trust structure adapt?Unfortunately, Peter’s wish is not going to come true. The business is structured as a

faMiLy BUSineSS

ADOPT, ADAPT, IMPrOVE

PeteR dad MUM Paige

is it a corporate trustee?

if corporate trustee, who will be director upon the parents’

death?

who is the appointer?

i want equity

i’m getting divorced

we want to retire!

tRUStee

tRUSt

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For advice on the best structure for your family business, contact a Bentleys advisor today.

discretionary trust with the assets managed by the trustee. In this case, it is a corporate trustee and Mum and Dad are the directors. The trustee can distribute the profits at their discretion. They could distribute 100% of the profits to Paige, and ignore Peter.

Scenario 3. Paige is getting divorced. are the trust’s assets safe?This will depend on whether or not Paige has been paid her trust distributions each year.

If she has an unpaid present entitlement, those funds will become part of the divorce settlement. This could mean the business is forced to sell assets to pay the entitlement.

Scenario 4. Mum and dad pass away. who is in control?What happens when Mum and Dad pass away depends on whether they mention in their Will who is to take over their shares in the trustee, enabling that person to appoint new directors of the trustee company. Additionally, if there is an appointor for the trust, the appointor

may have the right to remove the trustee and appoint another company as trustee. Often a trust is set up quickly with little thought as to who will be appointor (if the deed requires one to be nominated). The appointor may be a previous accountant, solicitor or someone else you no longer have regular contact with.

IMPROVEIt’s always important to speak to your advisor when your business is taking a new direction as family matters could impact the business or put working capital at risk. Always fully inform your accountant or advisor of the individual circumstances impacting you, your business and your family. This will help your advisor determine the best structure for your business to adopt so you can always adapt and continue to improve.

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Kirsten Taylor-Martin is accredited by Family Business Australia

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ExPANDED NETWOrK FOr BENTLEYS TASMANIAthe Paragon BdS and Bentleys tasmania merger on 1 January has brought together two of Tasmania’s leading Xero service providers. Both firms are pioneers in Cloud solutions, resulting in Bentleys Paragon becoming a Platinum xero partner, one of only three listed nationally. This is a significant achievement for a Tasmanian firm.

‘we are delighted to welcome Paragon BdS to the Bentleys family. the merger supports Bentleys’ national expansion plans and strengthens the expertise of the growing Cloud Solutions division of Bentleys,’ said david wilson, Managing director, Bentleys Paragon. ‘an added bonus to the merger is our first female partner in tasmania, karen gambles, previously the director of Paragon BdS.’

Bentleys Paragon now has offices in Hobart, Ulverstone and Sheffield with a new office in Launceston to open shortly. ‘All our staff have stayed with us in the merge, creating a diverse and strong combined team of 35,’ said Ms gambles.

‘The combined firms’ expertise in audit and advisory services and Cloud Solutions accounting means our clients can enjoy a greatly expanded service.

Our clients also now have access to one of the world’s leading accounting networks – kreston international – with the additional resources and support of Bentleys’ national organisation,’ said Ms gambles.

Since its inception in 1975, Bentleys WA has been providing reliable and timely services to private and commercial clients, particularly the small to medium enterprise (SME) sector.

‘Most of our directors come from the “Big 4” accounting firms. But being a mid-tier firm, we’re free from the constraints imposed by the larger international firms. We offer our clients a high level of expertise with a more personal service. And of course our clients have all the benefits of the firm being part of the Bentleys national network,’

SPOTLIGHT ON PErTH, WAOur vision is to create long-term and trusted relationships with our clients and deliver quality service. By collaborating with our clients we make a positive contribution to the financial affairs of every one of them.

SeRViCeS:• Audit and assurance• Taxation and business• Corporate and business

advisory• Financial planning and wealth

creation.

says Phil rix, Bentleys, Perth Managing Director.

‘They’ve got the small business mentality with big business expertise,’ says Paul Galvin, co-owner of Galvin’s Engineering. Michael Malone, founder and former CEO of iinet confirms, ‘I’ve been working with these guys for a decade, and they’ve just never let me down.’

Bentleys, WA is a full service accounting firm of finance professionals with 6 Directors, 1 Associate Director and a team of over 40 staff.

gavin fernandes (centre) of xero with Robin allardice and karen gambles of Bentleys.

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Committed to changing the face of men’s health – Movember newcastle Despite complaints of ‘it tickles, it rubs and the missus isn’t keen on it,’ the lads from Newcastle sported some interesting moustaches last November, raising over $340.

lONG AND lOyAl SERVICEa tremendous achievement, Bentleys Brisbane’s Company accountant, Maria tsoumbaras, celebrated her 35-year anniversary with the firm in January. Beginning her Bentleys career in the ‘computer’ department in 1980, Maria was a true pioneer – Bentleys was the first accounting firm in Queensland to install a computer to process clients’ accounts. Maria’s loyalty and dedication are invaluable – we look forward to many more years together!

BENTlEyS SuPPORTS THE ulTIMATE TEAM SPORTBentleys Tasmania has begun a 3-year rowing Tasmania sponsorship. One of the best rowing courses in the world, the picturesque Lake Barrington is a 10-minute drive from Bentleys Paragon’s Sheffield office. www.rowingtasmania.com.auElite rowers from across Australia competed on 14 and 15 February at the NSW rowing Championships regatta for selection into the NSW State Team and pre-qualification for selection into the rowing Australia team. Congratulations to all of the athletes who competed.

Supporting the Championships Regatta and the NSW King’s and Queen’s cup teams since 2012. www.rowingnsw.asn.au

CORINNA CONTEMarketing and Business development Manager, Corinna Conte joined Bentleys, wa in august last year working closely with directors to promote the Bentleys brand in wa.

BentLeyS weLCOMeS new R&d adViSORy exPeRt Joining Bentleys’ SA office, Mike Burfield will help develop and build an r&D Tax Incentive services advisory capability. Mike brings over 25 years of r&D Tax experience, applying the requirements of the r&D Tax program to most commercial scenarios and industry sectors. He has worked in r&D tax advisory in Big 4 as well as in his own businesses.

image [Left to Right] – Bentleys Directors – Bob Evett, Kevin Cranfield, Chris hope and nigel Banks with Sarah Pound – Bentleys staff member and elite nSw and australian Rower.

BeNTleys.com.Au & BeNTleysNZ.com | BeNTleys ThiNkiNg AheAd | AUTUMN 2015 13

financial Review Client Choice award finalistMcLean Delmo Bentleys was announced Finalist in two categories of the 2015 Awards: Best Accounting Firm (revenue under $50m) and Best Victorian Firm (region award). Thank you to all our clients who nominated us.

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Bentleys is a national association of independent accounting firms in Australia and New ZealandThe member firms of the Bentleys association are affiliated only and not in partnership.