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
4 IT - DATA STORAGE
. to take advantage of the lower tax regime.
Transition to retirement for 55s and over
Got spare cash?
4. KEY DATES
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
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
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
“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.
As fuel tax credit rates are subject to change, visit www.ato.
- Electricity generation. gov.au/fuelschemes 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).
EARLY RISE BAKING COMPANY
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.
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
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
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@example.com Email: Moreereceptionists@boyceca.com
(02) 6452 3344 or firstname.lastname@example.org
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@example.com Email: firstname.lastname@example.org Email: email@example.com
Knowledge. Insight. Experience.