Trusted advice for over 75 years by sparrowjacc


									     WINTER 2009

ESSENTIAL READING FOR:                     BUSINESS OWNERS                         WAGE EARNERS                         RETIREES

Trusted advice for over 75 years
                         On 1 May this year we celebrated the 75th Anniversary of Morse Group with a staff development
                         day at Dundullimal Homestead, Dubbo. What a great setting for our full program of speakers.
                         Later in the evening our staff enjoyed a formal dinner at Western Plains Zoo.
                         One of the highlights of the day was the chance to hear from two of our long term Dubbo clients,
                         Damien Mahon (Midstate Foods) and Mark Thompson (Thompson Bros Transport). Both shared
                         their histories, stories of tough times and how they’ve emerged as stronger, more efficient
                         enterprises. We are certainly proud to have played our role in the development and growth of these
                         two excellent businesses. We look forward to continuing our role with these two clients, in fact all
                         our clients, in meeting the business challenges of the future.
                         Our founder, Alan Morse began public practice in Bathurst in 1934. In that same year Joe Lyons
                         was our Prime Minister and Donald Duck made his film debut. Alan had travelled from Western
                         Australia, during the depression and arrived in the sidecar of his uncle’s Harley Davidson.
Our 75th birthday cake                                                                                             Continued on Page 2

 New technology will improve your bottom line
 Many businesses will be using the Federal                           on the road make better use of their time, armed with a
 Government’s Investment Allowance to grab a 50% tax                 new laptop? Are your people constantly waiting for
 deduction on the purchase of new PCs, notebooks and                 things to load? What is this costing your business?
 servers. This will especially be the case for businesses
 that have struggled with older hardware and put off                 Assess your future needs
 upgrading to minimise costs.                                        What are your business goals for the next 12 months?
                                                                     Do you have the IT you need to make that happen?
 So now is a great time to make a smart IT investment,
 and here are the steps to take to maximise the benefits:            In 12 months do you expect to still be using your current
                                                                     computers? Is there new software on the horizon that
 Assess your current computer collection                             will require a better, faster system? Could life be easier
 How old are the computers in your business?                         by including a server on your network?
 The support costs for using old computers increases                 Morse Group’s trusted IT advisors can help you to
 considerably every year after your computer’s 3rd                   answer these questions and can tailor a new computer
 birthday. It also becomes more likely a critical                    package to your needs. Contact Scott or Lisa on
 component will fail and without a backup, what do you               63399200.
 stand to lose?
                                                                                       Lisa Twigg, Morse Consulting Services
 Is the productivity of your staff hampered by poor
 performing computers?
 Giving your staff the essential tools they need to do their         For more information on how you can benefit from the
 job is critical in ensuring their productivity. Could staff         50% investment allowance turn to page 3.

                            Liability limited by a scheme approved under Professional Standards Legislation

At last, some good news from
the share markets
                                                         No one can predict the future but according to the current finance
                                                         figures and trends presented at a recent client seminar, there are
                                                         some positive signs for the future.
                                                         Mark Hearne of Perpetual was guest speaker at a Morse Financial
                                                         Services client information night recently. Mark’s observations
                                                         • Australia’s banking system is robust and well placed in respect
                                                         of it’s international rivals
                                                         • The share market currently represents good value, with
                                                         historically low price/earning (P/E) ratios
                                                         • Income received from many shares is in excess of that paid on
      Mark Hearne, Business Development                  cash (term deposits) and bonds
      Manager with Perpetual delivers his                • Previous downturns have been followed by periods of
     appraisal of the current market trends.             substantial growth eg: 1930 and 1974
     He says the outlook is encouraging and
                                                         • Business sentiment is improving across the main economies of
       the share market is “good value”.
                                                         Europe, the US and China
Furthermore, inflationary concerns are easing for developed economies, including Australia, which should result in
interest rates remaining relatively low over the short to medium term.
We have more seminars planned to help improve our client’s understanding of their personal investment positions, to
see the latest market trends and identify where there may be opportunities in the future.
If you’d like to be updated on the latest market news contact Liz, our seminar coordinator on 63399200.

From Page 1

Trusted advice for over 75 years
In a twist of fate, Alan actually met his future wife             Our highly skilled and experienced team provide diverse
Marjorie on his first day in Bathurst.                            business advice in areas such as Audit and Accounting,
                                                                  Superannuation, Financial and Retirement Planning,
From these rather humble beginnings our Firm has
                                                                  Mortgage Broking, Risk Assessment, Marketing, Human
grown, on the basis of trusted, practical and valuable
                                                                  Resources and Computer Consulting.
                                                                  We thank you for your trust and support over the years
We are now one of BRW’s Top 100 accounting firms with
                                                                  and for heeding our advice. No doubt there’ll be many
offices in Bathurst, Blayney, Dubbo, Oberon and Orange.
                                                                  more challenges and opportunities in the future and we
 We provide clients with insights, analysis and advice to         look forward to tackling these with you as well. Of
help grow their businesses, increase profits, improve             course we also welcome new clients looking to improve
cashflow, protect assets and plan for the future.                 their outcomes and prospects.

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50% tax deduction - a great
opportunity for small business
In a positive move for small business, the Federal               Here’s a couple of examples:
Government has extended their temporary investment
                                                                 A small business farmer purchases a tractor for
allowance. The redesigned package now provides an
                                                                 $100,000 in January 2009. When lodging his 2008-09 tax
additional 50% tax deduction for eligible equipment
                                                                 return, he will able to claim a tax deduction of $54,167.
purchases made prior to 31 December 2009 for small
                                                                 This includes depreciation calculated at $4,167 (based
businesses (those with a turnover of less than $2m). For
                                                                 on a useful life span of 12 years) plus the Investment
large businesses the investment allowance will continue
                                                                 allowance of $50,000 (50% of $100,000)
to operate in the manner previously announced – ie an
additional 30% deduction for equipment purchases over            A small business bakery
$10,000 made prior to 30 June 2009 and an additional             enters into a contract to        Make your
10% deduction for equipment purchases over $10,000               purchase a new oven on
made between 1 July 2009 and 31 December 2009.                   September 3rd 2009 at a          computers
                                                                 total cost of $50,000. The
The investment allowance represents 50% of the cost of
                                                                 oven has a life span of 10       safer and
any qualifying asset. The equipment only needs to be
valued at over $1000. A car or motorbike could qualify as
                                                                 years and will be installed in
                                                                 November 2009. When this
                                                                                                  faster . . .
could equipment like lathes, presses, hoists, pumps or
                                                                 business lodges its 2009 -10
even computers.
                                                                 tax return, they will be able
Here’s what our tax expert, Dave Latham says, “The               to claim a total deduction of
                                                                                                  Upgrade to a new
government's investment allowance provides business              $28,333. Once again, this
with a great opportunity to obtain an additional tax             includes depreciation plus       computer system
deduction in both the current financial year and the next.       the Investment allowance of      custom designed to
If a business is contemplating the purchase of a new             $25,000 (50% of $50,000)         suit your business.
item of depreciable plant then the timing could not be                                            Stress no more and
                                                                 If you are considering
better. As always, the most important thing to consider                                           save time and
                                                                 purchasing any new
when acquiring a new capital asset is whether it makes
commercial sense.”
                                                                 equipment, then now is a         money.
                                                                 great time to do so. Talk to
                                                                                                  “I have been
Of course there are qualifications and conditions. The           us soon so we can help
                                                                                                  very happy with the
main ones include:                                               ensure your investments          professional support
• Must be a new asset worth more than $1000 for small            meet all criteria.               provided by Morse IT”
  businesses (For other businesses the value is $10,000 and      Our finance broker, Glyn                   - Dr Bruce Whitmill
  the allowance is 30% for the 2009 year or 10% for the 2010
                                                                 Crouch, from Morse Loan          Call our Disaster
                                                                 Solutions has already            Recovery and MYOB
• Must be used for a business purpose                            assisted many clients in this
• Contracts must be entered into, and the equipment ready                                         software specialists
                                                                 area. He has access to more
  for use, prior to 30 June 2009 to qualify for this financial   than 30 lenders nationwide       on 1300 727 616
  year                                                           so he can help you find the
• To qualify for next year, the equipment must be ordered by     best finance deal around.
  31 December 2009 and ready for use by 31 December 2010.        Call him on 6883 2200.

  MORSE I REPORT                                                                                                            3

Clever Superannuation Strategies                                                                                               MORSE NEWS
for those of us over 55
Can I afford to retire ?
Once you reach the age where you can access your super you have a number of
options available to you, for example:
• You can stop work and use your super to maintain your lifestyle.
• You can work part-time and convert your super to a ‘pre-retirement pension’.
• You can carry on working full-time and continue to accumulate money in
  super. Once you’re over age 60, lump sum withdrawals and pension income
  payments are tax free.
Do I have enough super to stop work?
The decision to retire permanently largely depends on whether you have the
financial resources available to last the rest of your life (which could be twenty
years or more). Working out how much super you need to retire on is a good idea.
If you think you might have enough and want to retire soon, there are some                                                     Last month one of our long term
strategies you can use to save yourself some tax.                                                                              Dubbo clients Coral Green
                                                                                                                               celebrated 50 years in the
When considering retirement you might also want to consider delaying
                                                                                                                               hairdressing industry. Her Morse
retirement until after age 60 as all super payouts will then be completely tax free.
                                                                                                                               Group advisors Lucy Estens and
Work part-time and access your super at the same time                                                                          Adam Hanns decided to mark the
                                                                                                                               achievement with a chocolate
If you don’t have sufficient money to permanently retire or you want to keep
                                                                                                                               mud-cake (Coral’s favourite).
working, a pre-retirement pension (Transition to Retirement Pension) is a great
option if you’re over 55 and under 65. It allows you to convert your super into a                                              UPCOMING SEMINARS:
regular income stream. You can also continue to contribute (using salary                                                       Global and Economic Market Outlook
sacrifice) back into your super to maintain or even grow your super balance for
when you retire permanently.                                                                                                   Wednesday 17 June, Forbes
                                                                                                                               Thursday 18 June, Bathrust
For more information on your superannuation, clever planning strategies,                                                       Contact Liz on 63399200
calculating how much superannuation or savings you will require in retirement
and Transition to Retirement Pensions, please contact the team at                                                              Understanding Fair Work Australia
Morse Financial Services.                                                                                                      Tuesday 23 June, Bathurst
                                                         Ron McCumstie, Morse Financial Services                               Contact Marguerite on 6339 9200

        The Morse Report is printed on100% recycled paper

 Visit our website ( for more information on articles in the Morse Report or contact your nearest Morse Group office:
 Bathurst                                                          Orange                                                   Oberon
 6339 9200                                                         6361 4266                                                6336 0333                                                     
 Dubbo                                                             Blayney                                                  Gilgandra
 6883 2200                                                         6368 3481                                                0429 998 938                                                       

Please Note: The Morse report is prepared as a helpful guide to clients. This is not advice. Clients should not act solely on the basis of the material contained in this report.
Please be aware that changes in legislation may occur quickly. We recommend that our formal advice be sought before acting in any area. The Report should be regarded
as confidential and not be made available to any person without our prior approval.

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