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                           Maximise your
            Jan/Feb 2007

                           The    Federal    Government        announced       are 50% assets test exempt for the aged
                           sweeping changes to superannuation as part          pension. The remaining 50% of assets will also
                           of the 2006 Budget resulting in the possibility     benefit from more concessional asset testing
                           of a tax-free retirement for those who are 60       rules from that date.
                           years or over.
                                                                               Longer-term considerations include :
                           Elizabeth Timmins explains why it is important
  DOESN’T =                                                                    Concessions on the sale of a business
                           to act now to review your superannuation.
                                                                               One       of    the    most        important      changes
                           This is an exciting period for superannuation.
2. SEMINAR DATES                                                               announced in the Budget for small business
                           However many of the opportunities that
                                                                               and farming enterprises is the easier access
3. CUTTING YOUR            currently exist will cease to be available
                                                                               to the Small Business Capital Gains Tax
   FUEL COSTS              from 1 July 2007. So it is important to review
                                                                               concessions. It is possible to roll the proceeds
   Fuel Tax Credits        your superannuation and estate planning
                                                                               from the sale of a business into superannuation
                           now to take advantage of this window of
  .                                                                            to take advantage of the lower tax regime.
                                                                               Transition to retirement for 55s and over
                           Got spare cash?
                                                                               For those in the workforce who are 55
                           Put it into superannuation and receive
5. BOYCE CLIENT                                                                years or older it is important to consider the
                           benefits down the track with concessionally
   PROFILEEarly Rise                                                           advantages and disadvantages of a transition
                           taxed earnings and no tax on withdrawal of
   Baking Company                                                              to retirement pension in combination with a
                           funds post age 60.
                                                                               salary sacrifice strategy.
6. NEW STRUCTURE           Until 30 June 2007, undeducted contributions
                                                                               It   is   the   breadth           of   the   changes     to
                           of up to $1 million can be made. From 1 July
  CONTACT US                                                                   superannuation             that    make      it   extremely
                           2007 there will be a cap on undeducted
                                                                               important to seek expert advice to set
                           contributions of $150,000 per year or $450,000
                                                                               a strategy to maximise your retirement
                           averaged over three years.
                                                                               income. These changes mean that people
                           Get tax deductions while you can                    of all ages need to reconsider how to use
                                                                               superannuation from the time that they first
                           There will be a limit of $50,000 per year in
                                                                               commence contributing right throughout
                           deductible contributions (those made by an
                                                                               their lifetime.
                           employer or ‘pre-tax’).    This amount will be
                           subject to a transitional phase for the over 50s.   In    response        to    these      changes      BOYCE
                                                                               Superannuation Strategy (BSS) will be running
                           Time is running out to receive the 50% assets
                                                                               a series of seminars around the State to help
                           test exemption for Social Security benefits.
                                                                               you better understand your options. The
                           Until 20 September 2007 superannuation              seminars are free - see page 2 for date and
                           funds can commence to pay pensions that             venue details.

                     DOESN’T = RETIREMENT
See page 8           Accessing superannuation does not mean                     described above).
for details on                                                                  The result of these changes is that for
Superannuation       The Government, in its push to encourage                   many people it will be easier to manage
FREE SEMINARS        people to remain in the workforce, has made                tax and cash flow – by contributing to and
                     it easier to contribute to superannuation                  withdrawing      from    your   superannuation
                     and   at   the   same     time      access        some     account.    This may provide an excellent
                     superannuation to supplement your income,                  solution for people who have good and bad
                     past age 55.                                               income years and it also allows for funds to
                                                                                be accessed in unexpected circumstances.
                     If you are still working (for a minimum of
                     40 hours in any 30 consecutive days in the                 In addition, there are various components
                     financial year of the contribution) you may:                to your superannuation which can be
                                                                                changed     in   proportion     and     accessed
                     • Once you reach age 55 - draw up to 10%
                                                                                differentially to meet your cash flow and
                      of your superannuation balance each year
                                                                                tax circumstances, whether you are in full
                      as a “transition to retirement pension”.
                                                                                or part-time work or retired.
                     • Once you reach 60 (after 1 July 2007) -
                                                                                Elizabeth Timmins, Superannuation Strategist
                      draw up to 10% of your superannuation
                                                                                with BOYCE Superannuation Strategy can
                      balance each year without paying any
                                                                                advise you of how to best take advantage
                      tax on it.
                                                                                of these changes to superannuation.
                     • When you reach 65 (after 1 July 2007) - draw
                                                                                BOYCE Superannuation Strategy (BSS) is a
                      any amount from your superannuation
                                                                                division of BOYCE Chartered Accountants
                      tax free.
                                                                                and is licenced to provide superannuation
                     If you are under 70 years of age (75 from 1                strategy   advice       by   Lonsdale   Australia.
                     July 2007) and working you can contribute to               Elizabeth Timmins, Superannuation Strategist
                     superannuation and claim a tax deduction.                  with BSS, has more than 10 years experience
                     (The minimum working hours rule applies - as               in the area of superannuation.

                                       LONSDALE FINANCIAL GROUP LIMITE  D
                                       ABN 76 006 637 225
                                       AUSTRALIAN FINANCIAL SERVICES LICENSEE
                                       LICENCE NUMBER 246934

Cutting Business
“The fuel tax credit rate is determined by the type of fuel      • Specified fuels (including kerosene, mineral turpentine,
and the type of eligible activity it is used for.”               white spirit and certain fuel blends) that are packaged
                                                                 in containers of 20 litres or less and sold for non-internal
Fuel tax credits provide businesses with a credit for fuel tax
                                                                 combustion engine use.
(excise duty) that is included in the price of fuel. Fuel tax
credits commenced on 1 July 2006.                                • Kerosene and heating oil that is sold for domestic home
Businesses can claim fuel tax credits for the following fuels
when used under specific circumstances. They are:                 All businesses need to be registered for both GST and the
                                                                 fuel tax credits before they can claim fuel tax credits. Once
• Petrol or diesel when used in:
                                                                 registered, businesses can claim fuel tax credits on their
- A vehicle with a gross vehicle mass (GVM) greater than 4.5     business activity statement in the same way they claim GST
tonne travelling on public roads (diesel vehicles acquired       credits.
before 1 July 2006 can equal 4.5 tonne). These vehicles
                                                                 To calculate the fuel tax credit multiply the number of
however must meet one of four environmental criteria.
                                                                 eligible litres by the relevant fuel tax credit rate.
For more information about the environmental criteria visit
                                                                 The fuel tax credit rate is determined by the type of fuel
the Department of Transport and Regional Services website
                                                                 and the type of eligible activity it is to be used for. The fuel
                                                                 tax credit rate is set at 38.143 cents per litre however, for
Note farm vehicles used primarily on an agricultural property    fuel that is for use in travelling on a public road the fuel tax
in a primary production business are excluded from these         credit rate is 18.51 cents per litre.
environmental requirements.
                                                                 As fuel tax credit rates are subject to change, visit www.ato.
- Electricity generation.                               or phone the ATO on 13 28 66 between
• Diesel only when used in activities (other than road           8am - 6pm, Monday to Friday to check the current rates.
transport) that were previously eligible under the energy        To support claims for the fuel tax credits, keep details of:
grants credits scheme (EGCS). They include:
                                                                 • The fuel acquired
Rail or marine transport
                                                                 • The use of fuel in eligible and ineligible (for example, private
- Certain primary production activities (for example,            use) activities
agriculture, fishing and forestry)
                                                                 • The basis and method for calculating the quantity of
- Mining.                                                        eligible fuel and the fuel tax credit, and
• Fuels (including diesel, petrol, kerosene, heating oil and     • Any loss, sale or disposal of fuel.
toluene) when used:
                                                                 Businesses must keep these records for five years after
- In burner applications such as heating                         making the claim.
- For any other non-fuel use, such as a solvent or as an
ingredient in the manufacture of other products (for
example, paint or plastic).

    Client Profile
                                 The Journey
                                 Tradition is a large part of the Early Rise Baking   Early Rise Baking now employs 85 people
    “We were born
                                 Company of Dubbo owned and operated                  in the production and retail areas and
    into the trade - it
                                 by the Stevenson brothers - Robert, Bill and         produces more than 250 varieties of pies,
    was a natural pro-           John. Their grandfathers were bakers - Aussie        pastries, breads and cakes every day; whilst
    gression from after-         Stevenson establishing his first bakery in            the bakery café offers seating to more than
    school hours spent           Dubbo in 1918 and Nicholas Kosseris in 1935;         100 people. “We distribute sliced bread,
    helping out in the           and their father John too, worked initially for      cakes and rolls throughout the western
    bakery to owning             his father before he later established his own       region of NSW”, said Robert.
                                 bakery business.
    our own bakery                                                                    It is not just any bakery product either.
    business.”                   So for the three Stevenson brothers nothing          Early Rise is a competitive force in business
                                 else was an option. “We were born into the           and baking competitions having been
    Robert Stevenson, who        trade - it was a natural progression from            awarded the highest accolade at the
    with his brothers Bill and   after school hours spent helping out in the          1999 Dubbo Outstanding Business awards
    John, has built an award-
    winning bakery business in   bakery to eventually owning our own bakery           – the coveted “Gold Rhino”, and winning
    Dubbo, NSW.                  business”, explained Robert Stevenson.               the prestigious “Great Australian Meat Pie
                                                                                      Competition” in 2003. A win they backed
                                 The business today, although based on
                                                                                      up in 2005, making Early Rise the only
                                 tradition, is very different from the bakeries
                                                                                      bakery to win this award twice.
                                 of their forebears. The Stevensons purchased
                                 the business in 1990 and have made huge              In 2005 the Stevenson’s acquired Roberts
                                 changes since that time. Early Rise Baking           Bakery in Orange which is now run by
                                 Company is the manufacturing arm of the              Robert’s brother-in-law Andrew Buckingham
                                 business whilst the retail arm is the well known     and his wife Cindy. Andrew has a long history
                                 Village Hot Bake Bakery Café – a vibrant,            with the company, commencing as an
                                 trendy space that would not be out of place          apprentice in 1990 and progressing through
                                 in any city precinct, except perhaps for the         the ranks to production and retail manager
                                 welcoming country atmosphere.                        before moving to the Orange operation.

                                 By 1996 the business established by the              This business distributes products to the
                                 Stevenson brothers had grown to such an              Central West towns of Orange, Bathurst,
                                 extent that the wholesale and production             Molong, Cudal and Wellington and employs
                                 areas   were    separated     from    the   retail   60 people. It was the recipient of the NSW
                                 operations of the business. Robert Stevenson         Baking Industry Association (BIANSW) Bakery
                                 became the general manager – wholesale               Café of the year in 2005.
                                 and administration, Bill Stevenson – retail
                                 manager, and John Stevenson - sales and
                                 production manager.

The Role Of Boyce                                              Future Plans
The Stevenson brothers have been with BOYCE Chartered          Early Rise Baking Company will be consolidating their
Accountants since 1990, initially with Richard Cummins         production plants from two operations to one in the next
(Director, BOYCE Orange) and for the majority of the past      three months and will be looking to further increase sales in
sixteen years with Caroline Wilcher (Director, BOYCE Dubbo).   the frozen pie market throughout the eastern seaboard of
“We identified early on that we needed to align ourselves
with a progressive and up-to-date accounting firm that          The company also has plans to further extend wholesale sales
could not only provide general accounting services but also    of bread and cake products into the central tablelands of
offer strategic planning, wealth creation and management       NSW; along with the planned opening of a new retail outlet
advice”, said Robert. “We have a high regard for Caroline      in West Dubbo to cater for the huge number of travellers
and the BOYCE team in general - they are an integral           that pass through Dubbo on the Newell Highway. A site has
component of our business success”.                            already been secured for this purpose and the new outlet is
                                                               expected to open by May 2007.
Robert explains that BOYCE has actively assisted their
business in a number of key areas including:                   The Stevenson brothers have come a long way on their
                                                               business journey and obviously have goals still to achieve;
• Accounting software and procedures
                                                               but they have kept true to the traditions of their forebears in
• Management and key indicator reporting                       providing a quality product and great service – so in some
• Estate and insurance planning                                ways not a lot has changed.

• Detailed budgeting and forward business planning for
expansion into new markets and wealth creation assistance.

Secrets To Success
Robert Stevenson shares some of his insights into running
a successful business. “Operating a business today in
such a competitive global market requires that you plan
well into the future. You need to measure your financial
performance and identify your strengths and weaknesses,
and then concentrate on improving those weaknesses.”

“Today’s business owner should be constantly evaluating
the market and other operators in their industry so emerging
trends can be anticipated and changes implemented to
keep your business at the forefront of your market.

“Quality products and service are important however you
must make your business special and give it a distinct point
of difference to give consumers a reason to by-pass your
competitors and come to you.

“All businesses are about people and this issue is one of
the biggest hurdles to overcome in any business. You must
constantly work to keep your staff happy and believing
that they are contributing to the organisation.

                              IT Data Storage
    Have you ever had         Types Of Storage
    problems with computer    When deciding what type of storage to use,
    files you thought you      consider the following:
    had saved to a floppy      • USB KEY: The modern day equivalent to a
    disk only to discover     floppy disk. They come in different storage
    that the files can’t be    sizes, can be used on any modern computer
                              and are rewriteable (so you can save and
    retrieved because
                              delete files as many times as you like). USB keys
    the disk doesn’t work?    are also known as thumb drives and memory
    To help you avoid         sticks. Some also come with built in password
    frustrating situations    protection for added security – a must if you
                              are sending the device via the post. USB keys
    like this we offer some
                              are great for short term information that you
    tips on file storage and
                              want to re-write multiple times.
                              • DVD: Similar to a CD, but able to hold a lot
                              more information. You need a DVD drive to          • FLOPPY DISKS: Floppies are a last resort
                              be able to read and save information to the        when it comes to storage; they are very low
                              disk. No security as such, so make sure the file    quality and environmental factors can be a
                              itself has a password on it. Great for long term   high risk to the performance of the disk. Best
                              data storage                                       to avoid these if at all possible..

                              • CD: With more storage space available            Saving Your Files
                              than a floppy or zip disk you can store a lot
                                                                                 When saving to any type of storage device
                              more information; they are also more resilient
                                                                                 you should keep the following in mind:
                              to environmental conditions (and Australia
                              Post) and have a longer life expectancy. CDs       • STRUCTURE: Saving files to the same folder all
                              come in different varieties - some can’t be        the time will reduce the risk of misplacing files
                              over-written over but others can. Security is      and make backing them up easier (You DO
                              the same as for a DVD. CDs are also a good         back-up your critical files regularly and make
                              choice for long term storage.                      sure you have an off-site copy don’t you?)

                              • ZIP DISK: These disks are basically the same     • NAMING: You should always give the file a
                              as floppy disks, but can hold more information.     suitable name, and try to include a date. Eg,
                              Again quality is sometimes suspect but the         “2006 06 BAS Workings ”. This will ensure that
                              main issue is that anyone wanting to read the      you will not overwrite an existing file, and also
                              disk must have the same type of zip drive on       makes organisation of the contents of the
                              their computer.                                    folder much easier


                                                                21 February 2007
                                                                Final date for lodgement and payment of
                                                                January 2007 monthly activity statements.

                                                                28 February 2007
                                                                Due date for lodgement of Superannuation
                                                                guarantee charge statement - quarterly
                                                                and payment of superannuation guarantee
                                                                charge for quarter 1 October - 31
                                                                December 2007Final date for lodgement
                                                                and payment of 1 October to 31 December
                                                                2006 quarterly activity statements. Final date
                                                                for lodgement payment of GST instalment
                                                                notices - form S&T.

• INBUILT BACK-UPS: Always use your accounting program’s
inbuilt backup mechanism for taking backups, this will ensure
                                                                21 March 2007
you always have the correct file to send via email or to copy
onto a USB Key or to burn onto a DVD/CD.                        Final date for lodgement and payment of
                                                                February 2007 monthly activity statements.
• MULTIPLE COPIES: Always make sure you
have a copy of any file that you send via post,
just in case the disk gets lost, stolen or broken.
                                                                31 March 2007
• SECURITY: To protect confidential data from being read by
                                                                Due date for lodgement of Superannuation
unauthorised people, make sure you password protect the
                                                                Member Contributions Statement (MCS) for
file. This can be done in all Microsoft Office programs, such
                                                                self managed superannuation funds (SMSF)
as Word and Excel. Enter ‘Password’ into the inbuilt help.
                                                                or by the due date of the fund’s income tax
• ORGANISATION: Always label or write on your disk, so that     and regulatory return, if due later than 31
you can identify it easily.                                     March 2007.
If you would like more information or advice about what type
of storage you should be using please contact your local
                                                                1 January 2007
BOYCE Accountant who will direct you to the appropriate
person in our IT Division.                                      Superannuation guarantee quarter 3
Sarah Pye - BOYCE Technologies, Dubbo

Boyce Superannuation Strategy (BSS) invites you and a friend to join us at our

How to maximise your superannuation

                                                                                             Knowledge. Insight. Experience.

Elizabeth Timmins, Superannuation                   Topics to be discussed include:
Strategist with BSS will help you to
                                                    1. An overview of the new superannuation landscape
understand the recent changes to
                                                    2. The importance of contribution planning
superannuation and how to best                      3. Improvements to superannuation legislation for the self-employed
take advantage of the opportunities                 4. Superannuation for those aged 55 or over who are still working
these changes present.                              5. Retirement - what happens to your superannuation?
                                                    6. Estate planning and superannuation
                                                    7. Concessions on the sale of a business or farm

Bombala and Cooma                                   Goulburn                                    Moree
Date:      Tues 27th February 2007                  Date:  Mon 5th March 2007                   Date:  Mon 19th February 2007
Time:      6.00 pm - 8.00 pm                        Time:  5.00 pm - 7.00 pm                    Time:  6.30 pm - 8.30 pm
Venue:     Bombala RSL Club                         Venue: Trappers Motel                       Venue: Town and Country Club
           156 Maybe Street, Bombala                       2 Lockyer Street, Goulburn                  5 Frome Street, Moree
Date:      Thurs 1st March 2007
Time:      6.00 pm - 8.00 pm                        RSVP:      Wed 28th February                RSVP:      Wed 14th February
Venue:     Cooma Ex-Services Club                   Contact:   Georgina Kennedy                 Contact:   Joy or Bernadette
           Vale Street, Cooma                       Phone:     (02) 4821 1466                   Phone:     (02) 6752 7799
RSVP:      Thurs 22nd February to Alison Haylock    Email:             Email:
           (02) 6452 3344 or

Orange                                              Dubbo                                       Wagga Wagga
Date:  Wed 14th February 2007                       Date:  Mon 12th February 2007               Date:  Wed 7th February 2007
Time:  5.30 pm - 7.30 pm                            Time:  5.30 pm - 7.30 pm                    Time:  5.30 pm – 7.30 pm
Venue: Ambassador International                     Venue: OEC Function Centre                  Venue: The Lawson Motor Inn
       Motor Inn                                           212 Darling Street, Dubbo                   117-121 Tarcutta Street,
       174 Bathurst Road, Orange                                                                       Wagga Wagga
RSVP:      Fri 9th February                         RSVP:      Wed 7th February                 RSVP:      Fri 2nd February
Contact:   Kristie O’Brien                          Contact:   Katie Moncrieff                  Contact:   Cathrine Reeves
Phone:     (02) 6361 9577                           Phone:     (02) 6884 6499                   Phone:     (02) 6971 0600
Email:                      Email:           Email:

                                                                                                             Knowledge. Insight. Experience.

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