In this Issue

1. A Message from the Partners
2. Lisa Cahill wins SPAA CEO Scholarship
3. Lisa Cahill gains SPAA Super Fund Accreditaed Adviser qualification
4. Congratulations Halli
5. Fusion Partners supports Gosford Sailing Club Golf Club
6. Superannuation Update
7. Wealth Management Update
8. Tax & Business Update
9. Upcoming Deadlines

1. A Message from the Partners

Welcome to another edition of the Fusion Partners Newsletter. With the deadlines for the lodgement of many 2010 income tax returns approaching, the office is currently a hive of activity. There have also been many activities occuring outside the office with study, holidays, weddings, babies, and other staff activities making the Fusion Partners office a very exciting place to be.

2. Lisa Cahill wins SPAA CEO Scholarship

Congratulations to Lisa on being awarded the Self Managed Super Fund Professionals Association of Australia (SPAA) CEO scholarship with the University of Adelaide. The scholarship was formally awarded at the SPAA National Conference in front of approximately 1,000 delegates at the Brisbane Convention Centre. The scholarship was awarded by Andrea Slattery (SEO of SPAA), Todd Sampson (Leo Burnett CEO and panellist from the Gruen Transfer), and Andrew Daddo.

This scholarship will give Lisa the opportunity to obtain further formal recognition for the specialist knowledge that she has in the self managed superannuation industry. As part of the scholarship, Lisa will also be asked to contribute articles and research to leading Self Managed Superannuation Fund industry magazines and other Self Managed Superannuation Fund advisors in Australia.

3. Lisa Cahill achieves SPAA Accredited Adviser qualification

Congratulations to Lisa on achieving the SPAA Specialist Adviser qualification. Together with the SPAA Specialist Auditor qualification, CA qualification and numerous financial planning qualifications, Lisa has displayed a continued desire to further advance her knowledge. Fusion Partners actively encourages all its employees to continue formal education in order we be as up to date with current legislation and industry practices, so as we can best advise our clients.

Lisa is continuing in her study, currently completing the final module of her CFP (Certified Financial Planner) qualification with the FPA, and also completing a Graduate Certificate in Superannuation. Daniel is also nearing the completion of his Masters of Tax qualification at the UNSW, currently completing his final subject and John Cahill is also completing his final subject in his Masters of Applied Finance and Investment. Michelle is completing her Diploma of Financial Planning and Halli is completing her Certificate in Accounting.

4. Congratulations Halli

We are pleased to announce that our office manager, Halli Dolbel is expecting the arrival of her first child, due in July 2011. Our wishes are with both Halli and Joel for the safe arrival of their first child.

5. Fusion Partners supports Gosford Sailing Club Golf Club

On Saturday the 20th February the Gosford Sailing club social Golf Club held their annual presentation night. As the major sponsor of the golf club, Fusion Partners Central Coast was invited to attend the dinner and present the awards for the A, B and C Grade scratch and handicap winners. A great night was had by all and we congratulate all prize recipients. You can see photos of all the winners here.

6. Superannuation Update

Under current legislation the premiums paid for Death and Total and Permanent Disability (TPD) insurance within your Self Managed Superannuation Fund (SMSF), are tax deductible to your fund. However where you own these policies personally you are not entitled to claim a deduction for the premiums paid.  Currently this enables one to structure these insurance policies to access tax advantages.

On 1 July 2011 the new rules governing the tax deductibility of Total and Permanent Disability (TPD) insurance premiums within Self Managed Superannuation Funds (SMSF’s) will come into force.

Currently TPD premiums for policies held by superannuation funds are deductible to the extent that they relate to a disability benefit providing for the permanent disability of the member, however permanent disability was not defined.

From 1 July 2011 SMSF’s will only be able to claim TPD premiums as a deduction for the portion that meets the requirement of “a disability superannuation benefit”.

Under most “any occupation” policies the premiums will be 100% deductible, however policies that will pay amounts, that are not considered “a disability superannuation benefit” such as an injury or illness such as the loss of a limb or sight, or under the more generous “own occupation” policies (where a claim can be paid in an injury or illness occurs where you are unable to perform your own occupation, but could still perform an alternative occupation) will not meet the definition of a “superannuation disability benefit”

From 1 July 2011 only the premiums that relate to a “superannuation disability benefit” will be deductible. Where the policy provides for payments in more generous circumstances the part of the premiums that relate to these amounts will not be deductible. Where your TPD policy provides these, then an actuary will be required to calculate the tax deductible portion, which will add to the complexity and compliance costs.

Given that these changes will occur on 1 July 2011 occur now is a good time to review your TPD policies held within your SMSF. Should you wish to discuss how these changes might impact your policies please contact our office to arrange an appointment.

7. Wealth Management Update

We have been injecting a load of energy into new and exciting improvements to Fusion Partners Wealth Management in recent times, and have now successfully brought together our streamlined offering in the financial advice space, to include, among other things - portfolio management, wealth education and SMSF, Debt & Insurance strategies.

Our wealth management approach is straightforward, and is centered upon developing equity in your business and outside your business, with a strong focus on reviewing your net asset position on an annual basis, so that we can celebrate the improvements made.  Our goal is to assist you to achieve financial freedom.

We have recently achieved accreditation to advise on Direct Equities, through an intense certification program.  We are now working with a local stockbroker, and are able to discuss your listed securities issues with you, and provide you with the information required to make an informed decision for you and your family.

We have also recently worked closely with a number of clients, to put some more detail around goal and value road maps to give these Wealth Management clients a better understanding of their definition of financial success.  Initial client response has been enthusiastic for this approach.

Irrespective of how much we know about financial matters it is just as important that we know what type of people we are when it comes to money. How we react to certain money events? What we hope we will achieve by having money? Do we need to understand how our partners differ from us in their attitude to money? What does this explain about family relationships on money? As providers of financial strategies, it is essential that we understand what financial success looks like to you, our client.

We are currently planning our 2011 seminar series, with our first session due to be scheduled in May 2011.  If you have any topics you would like us to pay particular attention to, please let us know at lisa.cahill@fpcc.com.au.

8. Tax & Business Update

Increase the value of your business through succession planning

There are many reasons why business owners should think about the succession of their business, such as sell and retire, hand it over to a family member, or move on to new business ventures.

Most business owners go into business not only to earn an income, but also (and perhaps more importantly) to build the value of the business to sell at a profit.

Good succession planning will assist you in achieving the best outcome when exiting your business, and planning should occur long before you plan on exiting. The benefit of early planning is that you can control and build your business to maximise its value.

Successful succession planning includes  putting in place a strategic business plan outlining your personal and business goals, implementing a program of systems, procedures and controls that make you business attractive to a purchaser and able to run efficiently without your involvement. Some of the steps that you will take in formulating and implementing a succession plan is ensuring there are documented procedures and manuals in place, to make it easier for a purchaser to settle into the business and assist with the successful operation of the business quickly.

To often business owners are not prepared for their succession and will end up making decisions at the last minute, with the likely outcome to be a poor result not only for the business owner, but the clients, suppliers, staff and the purchaser.

If you would like assistance in formulating a succession plan to help you maximize the value and salability of your business please contact us to arrange an appointment.

9. Upcoming Deadlines

31 March 2011 – Tax returns due for companies and SMSF’s with income greater than $2M
28 April 2011 – Quarter 3 Business Activity Statement (paper return)
15 May 2011 – Income tax returns for all entities not eligible for 5 June concession
5 June 2011 – Income tax returns due where last year lodged was non-taxable or refund.