...................................

Brentnalls SA Commits

Support To Exciting

Entrepreneurial Youth

Initiative

Should I Invest In

Superannuation Or Pay

Off My Mortgage?

Brentnalls Goes To

Hong Kong!

Superannuation Rates

And Thresholds For

2014/15

SuperStream Has Been

delayed

Apply For A TFN At The

Post Office

Client News

Weet-bix TRYAthlon

Event

Brentnalls SA News

Issue 66 — December 2011 Issue 91 — June 2014

Brentnalls SA Commits Support To Exciting

Entrepreneurial Youth Initiative Brentnalls SA is thrilled to announce its foundation

partnership with in-business magazine’s new

youth entrepreneurial initiative 1625.

1625 is the brainchild of in-business publisher

Graham Wakeling, who saw the need to inspire and

guide a new generation of young South Australian

entrepreneurs.

Giving back has always been high on Brentnalls SA

agenda and 1625 was identified as a critical

development for SA youth and one where the firm

can closely support up and coming job creators and

visionaries.

“We share Graham’s firm vision and as a result

committed to a significant sponsorship to help get

the project off the ground,” Chairman Craig Farrow

said.

In the lead up to the recent state election,

entrepreneurial education was identified as critical

to South Australia’s future, with both major parties

making various commitments to support the start-

up community.

1625 will kick-off primarily as a resource centre for

a whole range of students (school, university,

TAFE and VET) as well as other young South

Australians who are looking to gain an

understanding of entrepreneurship as a career

strategy.

1625 will offer a series of challenges enabling

young people to understand what personal traits

an entrepreneur needs to survive, thrive and build

a sustainable business.

Technical resources developed in conjunction with

Brentnalls SA will help young entrepreneurs turn

an idea into a business, whilst simultaneously

enhancing knowledge surrounding the

fundamentals of business development.

Additionally, local case studies will help inspire

and better inform budding entrepreneurs that

South Australia is a great place to build a business.

There will be social networking opportunities for

site members to build a profile, network with other

young entrepreneurs, find mentors, work

experience and much more.

1625 recruited psychologist and journalist Alison

Barrett on a full-time basis to coordinate and

develop the site’s resources.

Alison’s skills perfectly fit the objective to guide

young people along the very personal journey that

someone takes before diving into

entrepreneurship, and while this path is not for

everyone, understanding what it takes to succeed

on a human level and a technical level is

absolutely vital.

For more information, visit www.1625.com.au

Quote:

“Persons with

comparatively

moderate powers will

accomplish much if

they apply

themselves wholly

and indefatigably to

one thing at a time”.

Samuel Smiles

Should I Invest In Superannuation Or Pay Off My

Mortgage? Whether you are close to retirement and paying

off the mortgage on your dream home, or have

just purchased your first, you should either now

or in the future put any extra savings towards

paying off your mortgage or into

superannuation. The most obvious option would

appear to be reducing your debt, but depending

on your income, it could be more beneficial to

invest into your superannuation fund instead.

When contributing extra funds to paying off

your mortgage, you are reducing the principal

loan amount. The benefit of this is reduced

interest on future mortgage payments and the

ability to pay off your mortgage sooner. These

payments, however, are made from available

funds after tax has been paid.

Compare this to contributing to your

superannuation fund, where you have the

option to salary sacrifice your contributions

before tax. This means that your Gross wages

or salary will be decreased by the amount that

you salary sacrifice. As long as these

contributions are concessional, the only tax you

will pay for this money is the tax rate within the

superannuation fund (15% for individuals with

incomes below $300,000 and 30% for

individuals exceeding this). Concessional

superannuation contributions are capped as

follows:

2013/14 Financial Year: $25,000 if

under 59 years, $35,000 if 59 years or

over on 30 June 2013

2014/15 Financial Year: $30,000 if

under 49 years, $35,000 if 49 years or

over on 30 June 2014

Example; The following example is for an

individual with a salary package of $100,000

deciding whether to salary sacrifice an extra

$15,000 of superannuation or paying this

money off their mortgage. We will assume a

home loan interest rate of 6.5% and return of

capital and income in their superannuation fund

of 7%. To show the real benefit, we will show

both contributions after tax has been paid.

Additional mortgage contributions of $15,000

p.a. less tax would be $9,225 for the year. If

this payment was split into fortnightly

payments of $354.80, the interest saving for

the first year would be $294.13. The total

interest saving and principal reduction would

be $9,519.13 for year 1.

In comparison, additional superannuation

contributions (via salary sacrifice) after 15%

tax is $12,750 for the year. If this payment

was split into fortnightly payments of $490.38,

the return on investment after tax would be

$371.49. The net increase in superannuation

balance would therefore be $13,121.49 for

year 1.

The difference in strategy after year 1 will

result in a $3,602.36 benefit in favour of

superannuation contr ibutions versus

contributing the additional amount into your

mortgage. Continued over 10 years at the same

rates, the reduced interest and principal for

mortgage payments would be $129,715.94

compared to an increase in superannuation

balance of $173,956.91 – a difference of

$44,240.96 in favour of superannuation

contributions.

Of course, your age profile, timing of access to

superannuation, other financial and personal

needs, the actual earnings rate in your

superannuation amongst other things also

factor into what investment path you take.

If you would like to check whether contributing

to superannuation is more beneficial in your

circumstances, please contact our office.

Considered Value Issue 91 – June 2014

This Month Brentnalls SA

Is Supporting Diabetes SA

Brentnalls Goes To Hong

Kong!

In early May 2014 representatives of the

member firms of the Brentnalls National

Affiliation held their affiliation conference

in Hong Kong.

Brentnalls SA Chairman Craig Farrow

remarked “Holding the conference in Hong

Kong was a deliberate move and multi

purposed”. “It gave us the opportunity to

take affiliation members outside the

normal location of our conferences, but

still engage with bankers, government and

trade representatives, business operators,

and other professionals”.

Topics of the conference included:

Banking in Hong Kong

Culture

Doing business in China

An owners’ perspective

An accountants’ perspective

A lawyers’ perspective

Where businesses go to grow

Hong Kong’s significance to Australia

and its place in greater China

A common theme that came from the

presenters at the conference was “To be

successful in China – one must create

trust”.

All speakers had years of experience

operating in mainland China and Hong

Kong, and with the breadth of

backgrounds, each brought their own

insights, as well as very useful tips and

traps dialogue.

Rick Albertini, Managing Partner

commented “The contacts made have

already delivered opportunity on both

import and export basis for clients in

tourism, agriculture, manufacturing and

retail”.

“We know it’s important to keep working

on these initiatives, to keep investing and

looking to the future”.

The next affiliation conference is to be

hosted by the New Zealand office in

November 2014 and the representatives

look forward to another productive and

rewarding event.

SuperStream Has Been

delayed

The Government has recently announced a

delay to the implementation of

Superstream to 1 July 2015 (originally 1

July 2014). This delay has not been

legislated and as a result is not in effect at

this time.

If you are a medium-large employer or self

managed superannuation fund, we

recommend planning for Superstream to be

implemented on 1 July 2014 as explained

in our April 2014 newsletter. We will

continue to monitor the situation and

provide further updates as information is

released.

Apply For A TFN At The

Post Office

The ATO has now made it simpler for

individuals to apply for a tax file number

(TFN) by allowing applicants who are

Australian residents and aged 16 years

and older to apply online at

www.ato.gov.au/TFNapply, print the

application summary and lodge their

application at participating Australian Post

retail outlets.

Parents and guardians can also use the

service to apply for a TFN on behalf of

their children.

Superannuation Rates

And Thresholds For

2014/15

The key superannuation rates and

thresholds for 2014/2015 are as follows:

Concessional contributions cap —the

cap has increased to $30,000 for the

2014/15 year. Higher caps of $35,000

apply to older Australians aged 49

years or over on 30 June 2014.

Non-concessional contributions cap —

the cap for 2014/15 will be $180,000

($30,000 × 6). Under the bring forward

rules, the cap over three years from

the 2014/15 year is $540,000

($180,000 × 3).

Capital Gains Tax (CGT) cap amount —

the CGT cap amount for 2014/15 is

$1,355,000.

Superannuation Guarantee — the

maximum super contribution base for

2014/15 is $49,430 per quarter.

Superannuation Guarantee rate—

E m p l o y e r s m u s t p a y 9 . 5 %

superannuation on employee earnings

from 1 July 2014.

Superannuation co-contribution — the

maximum entitlement for the 2014/15

year remains at $500. The lower

income threshold increases to $34,488

and the higher income threshold

increases to $49,488 for the 2014/15

year.

Superannuation benefit caps — the low

rate cap amount for 2014/15 is

$185,000. The untaxed plan cap

amount for 2014/15 is $1,355,000.

Employment termination payments

(ETP) — the ETP cap amount for life

benefit termination payments and

death benefit termination payments

for 2014/15 increases to $185,000

from $180,000.

Tax-free part of genuine redundancy

payments and early retirement scheme

payments — for genuine redundancy

and early retirement scheme payments

for 2014/15, the base limit is $9,514

and, for each complete year of service,

$4,758.

Considered Value Issue 91 – June 2014

Brentnalls SA Chartered Accountants

and Advisors

Partners

John Crouch Craig Farrow

Rick Albertini Karen Nyberg

Matthew Holden

Associates

Sharon Lloyd Shali Manolev

Renee Feltrin Aimee Campbell

Gavin Mitchell Sally Storey

Nadine Hill

Brentnalls SA Advisors Pty Ltd

Australian Financial Services Licence Number 264083

Directors

John Crouch Craig Farrow

Rick Albertini Karen Nyberg

Matthew Holden

255 Port Road

PO Box 174

HINDMARSH SA 5007

Tel: 08 8241 8444

Fax: 08 8241 8488

Email: admin@brentnalls-sa.com.au

We welcome the opportunity to assist you

and discuss any matters in our newsletter

Should you wish to receive our

Newsletter electronically, please

E-mail us with ‘Newsletter’ in the

Subject line.

Disclaimer

The information provided in this

newsletter does not constitute advice. The

information is of a general nature only and does

not take into account your individual objectives,

financial situation or needs. It should not be

used, relied upon, or treated as a substitute for

specific professional advice. We recommend

that you contact Brentnalls SA before making

any decision to discuss your particular

requirements or circumstances. Brentnalls is not

a partnership or a joint venture. Instead, the

business of Brentnalls SA is independently

owned and operated and it is an independent

member of the Brentnalls Affiliation of

Accounting Firms. Individual member firms do not

accept responsibility or liability for the actions or

inactions of any other individual member firm.

Client News

In celebration of a life that has raised

awareness and inspired significant

change, our client Knights Roses have

released the Daniel Morcombe Rose (a

Hybrid Tea Bush Rose). This rose has

exquisite, dark red velvety blooms and

continuous flowering throughout the

growing season, performing well during

our hot summers.

This magnificent deep red rose is named

to honour Queensland boy Daniel

Morcombe (1989 - 2003).

http://www.knightsroses.com.au/daniel-

morcombe-rose.htm

Congratulation to John Bishop and

Vickie Davy on being recognised as

social entrepreneur (Western Region) in

the EY Entrepreneur of the Year awards.

This is in recognition of their innovation

and tireless campaigning since co-

founding PetRescue in 2004 alongside

Michelle Williamson.

We wish John and Vickie good luck as they

progress to the national awards being

held in November 2014.

Weet-bix

TRYAthlon

Event

As a corporate supporter member of the

Rotary Club of Adelaide South, we had

a team of 4 employees volunteer to be

part of the “Help Team” for the Sanitarium

Weet-bix Kids TRYathlon Event at

Adelaide Aquatic Centre on Sunday the

27th of April.

The event was open to children from 7-15

years old with over 1,000 participants.

The kids had a wonderful time and put in

a huge effort to complete the course.

Our staff enjoyed helping out with crowd

control and participant preparation on the

day. Thanks everyone for getting

involved.

Brentnalls SA News

Congratulations to John Crouch and Ellie

Ely on their recent engagement.

Congratulations to Christina Gulliver and

her husband Andrew on the birth of their

daughter, Isla Marie.

Congratulations to Shannon Sims who

recently embarked on the True Grit

challenge (a 10-12km military style

obstacle course) to raise money for

Legacy. Shannon successfully raised a

total of $670 for the organisation.

Congratulations to Amanda Christofis on

reaching 20 years of service with

Brentnalls SA. Amanda joined Brentnalls

SA straight out of high school and is now

a dedicated and astute Personal Assistant.

Congratulations to Sophie Farmer and her

partner Brad who recently announced

their engagement.

The firm wishes to announce the

impending departure of Renee Feltrin

effective 30 June 2014. Renee has been

with Brentnalls SA since the start and

progressed through to Equity Associate.

Having completed an MBA in recent years,

this clarified her wish to move into a

corporate type role outside the

profession. We wish Renee all the best,

thank her for her service and look forward

to her remaining a friend of the firm.

Meet Gypsy-Jade Hancl

Hi my name is Gypsy-Jade Hancl. I joined

the Brentnalls SA team in August 2012 as

an undergraduate.

This is my first job in the role of an

accountant which has been very

rewarding. When I first joined the firm, I

worked in the superannuation division and

have recently joined the accounting and

advisory division. I am currently studying

a Bachelor of Commerce at the University

of South Australia which takes up a lot of

my time.

In my spare time I enjoy catching up with

friends and family as well as keeping

active.