The Federal Government has mentioned Division 7a and unpaid beneficiary loan accounts in the last couple of budgets and now the ATO have released a Practical Compliance Guideline (PCG 2017/13) which outlines the implications of sub trust arrangements ceasing in the 2017 or 2018 financial years.

If we go back a couple of steps, the Federal Government following the Bamford case a few years ago now stated that they were going to re-write the trust tax law as it was getting all too confusing even for tax accountants and tax lawyers let alone the general business owner! This hasn’t been done, but they did add in a couple of small changes in relation streaming of capital gains and dividends form trusts. They also totally confused everyone with the unpaid loan account issue and Division 7a by introducing what we call “EA” and “EB” loans and sub trusts.

Currently there are approximately 1390 different grants available with $54.9B in funds set aside to service these grants.

The grants are offered across a very broad spectrum of industries from Agriculture to Finance to Medical to Media & Entertainment.

Some grants are provided on the basis of new employment being created whilst others are purely for the growth and expansion of the business. Some are a cash contribution towards equipment purchases and some relate to financial assistance for professional services. Others can take the form of subsidized or zero rated loans.

It should also be understood that successful application for one type of grant does not preclude you from chasing others. This needs to be done strategically though so it might be necessary to consider implementing a grant plan to work into your overall business plan.

Whilst the idea of getting grant funding sounds easy it is widely agreed that finding the right grant or even becoming aware of a grant that may apply to you is the first barrier.

LBW can assist in identifying and understanding grants that may be applicable to your business. We can then arrange and manage the application and ongoing management of the grant.

If you are interested in seeing if there is any potential grant funding waiting for you amongst the myriad on offer please speak to your LBW Principal and we can arrange a free initial assessment for you.

Trustee of a Self Managed Superannuation Fund? – Its time to consider your investment strategy

The past months have been full of changes to the superannuation laws that have affected the self managed super funds (funds) of many of our clients. However, a funds investment strategy is something that all of our super fund trustees should be mindful of. This year the LBW super team together with the super fund auditors are focusing on ensuring investment strategies are on file and current for each of our SMSF clients. c

The ATO states that a funds investment strategy should be in writing and outline investment objectives together with specifying the type of investments the fund can make. The ATO requires that the trustees of the fund review the investment strategy yearly to ensure it continues to reflect the purpose and circumstances of a fund and its members. c

The preparation and review of the fund’s investment strategy should consider the personal circumstances of all the fund members, including age and risk tolerance. When deciding which assets to invest in there must be a clear and obvious retirement purpose in the choices made. It is important for trustees to remember that the investment objectives they have set for their SMSF can be changed at any time.