Christmas Greetings - Cogger Gurry
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Issue Thirty Seven - December 2020
Christmas Greetings In this issue:
The Directors and staff at CoggerGurry extend our Christmas greetings to all our
valued clients. • Covid Corner – Leah provides an
update on Government financial
2020 has been a challenging year for everyone. Grappling with COVID-19, Cash
Flow Boosts, JobKeeper, JobSeeker, JobMaker, Business Development Grants, etc. support.
have kept us extremely busy. As we approach 2021, we look forward to normality
returning. • Super Fund Property – Hamish
We would like to thank our clients for their support and continued patronage, and explains regulations around
we extend our warmest wishes to you and your family and wish you a prosperous valuations required.
new year.
We look forward to working with you in the new year to achieve your goals and • Financial Markets – the volatility
celebrate your successes.
• Meet staff member Melanie J.
• October 2020 Budget – Mike
Office Closure: From 5 pm on 18 December – Opening 4 January at 8:30 am provides a recap
2021, employers will be able to claim a
COVID new Boosting Apprentices Wage Subsidy
for new apprentices of trainees who
Corner
commence during this period. Eligible
businesses will be reimbursed up to 50%
of an apprentice or trainee’s wages worth
By Leah Moore up to $7,000 per quarter, capped at
100,000 places.
As the COVID19 Pandemic continues, the JobKeeper
Australian Government has announced
From 28 September 2020 to 3 January
further stimulus packages for eligible
2021, the JobKeeper payment rates will be:
businesses.
• $1,200 per fortnight for all eligible
JobMaker Hiring Credit
employees who, in the four weeks of
Consider taking advantage of the pay periods before 1 March 2020, were
JobMaker Hiring Credit. From 7 October working in the business or not-for-
2020, the Government will pay a hiring profit for 20 hours or more a week
credit for up to 12 months for each new on average, and for eligible business
job. This is available to employers who participants who were actively • $650 per fortnight for other eligible
hire eligible employees age 16 to 35. The engaged in the business for 20 hours employees and business participants.
credit will be paid quarterly in arrears at or more per week on average in the Businesses and not-for-profits will be
the rate of $200 per week for those age month of February 2020; and required to nominate which payment rate
16 to 29, and $100 per week for those they are claiming for each of their eligible
• $750 per fortnight for other eligible
age 30 to 35. Eligible employees are employees (or business participants).
employees and business participants.
required to work a minimum of 20 hours
per week and receive the JobSeeker From 4 January 2021 to 28 March 2021, The JobKeeper payment will continue
payment, Youth Allowance or Parenting the JobKeeper Payment rates will be: to be made by the ATO to employers in
payment for at least one month out of arrears. Employers will continue to be
• $1,000 per fortnight for all eligible
three months prior to when they are required to make payments to employees
employees who, in the four weeks of
hired. To be eligible, employers will need equal to, or greater than, the amount
pay periods before 1 March 2020, were
to demonstrate an increase in overall of the JobKeeper Payment (before tax),
working in the business or not-for-
employee headcount and payroll for each based on the payment rate that applies
profit for 20 hours or more a week on
additional new position created. to each employee. This is called the wage
average and for business participants
condition.
Apprenticeship Subsidy who were actively engaged in the
business for 20 hours or more per If you wish to discuss any of these
If applicable, consider taking advantage programs, please contact your
week on average in the month of
of the apprenticeship’s wages subsidy. CoggerGurry representative.
February 2020; and
From 5 October 2020 to 30 September
October 2020 Budget
By Mike McCulloch
Instant Asset Write-Off Tax Cuts
The October 2020 Federal Budget has introduced a new measure for The October 2020 Federal Budget has introduced a tax cut for
Small Business Entities (under $10M turnover) to instantly write-off individuals in the current 2020/21 tax year by increasing the amount
any expenditure on plant and equipment from 6 October 2020 until you need to earn before entering a new tax bracket.
30 June 2022. The plant purchased must be first used or installed
and ready for use between these dates.
Original Resident Tax Rates New Resident Tax Rates
Small Business Entities (SBE) should also be aware that any 2020/21 2020/21
balance remaining in their small business depreciation pools must
be deducted in full during the 2020/21 tax year. This should be
considered for year-end tax planning.
Taxable Income Tax Rates Taxable Income Tax Rates
Small Business Entity 1 July 2020 to 6 October 2020 to
under $10M Turnover 5 October 2020 30 June 2022
$0 - $18,200 Nil $0 - $18,200 Nil
Plant purchased
All plant purchased is
Instant Asset Write-Off up to $150,000 is
fully deducted $18,201 - $37,000 19% $18,201 - $45,000 19%
fully deducted
Plant purchased
$37,001 - $90,000 32.5% $45,001 - $120,000 32.5%
over $150,000 is
57.5% deducted
Backing Business in the first year $90,001 - $180,000 37% $120,001 - $180,000 37%
-
Investment and the balance
is transferred
to the SBE $180,001 and over 45% $180,001 and over 45%
depreciation pool
Any balance remaining Must be fully The above rates do not include the Medicare Levy of 2%.
in the SBE depreciation - deducted in the Your CoggerGurry team member can review your personal situation.
pool 2020/21 tax year Please call reception to arrange an appointment.
2020
2020
Vanguard
Vanguard
Index
Index
Chart
Chart
Market
Market
returns
returns
- 1 July
- 11990
July to
1990
30 to
June
30 June
2020 2020
Financial Market Volatility
90 9091 91
92 92
93 93
94 94
95 95
96 96
97 97
98 98
99 9900 00
01 02
01 02
03 03
04 04
05 05
06 06
07 07
08 08
09 0910 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Hawke Hawke Keating Keating Howard Howard Rudd Rudd Gillard Gillard Rudd Rudd
Abbott Abbott Turnbull Turnbull Morrison Morrison PMs – Australia
PMs – Australia
Bush Bush Clinton Clinton Bush Bush Obama Obama Trump Trump Presidents –Presidents
US – US
Australia’s population
Australia’s 17,065,000
population 17,065,000 QANTAS float
QANTAS float Telstra floatTelstra float GST introduced
GST introduced Boxing Day Boxing
tsunamiDay tsunami First stimulus
First
package
stimulus package
Second stimulus
Second
package
stimulus package Australia’s Australia’s
population 25,631,000
population 25,631,000
$200,000$200,000 US SharesUS Shares
Mabo Mabo
WoolworthsWoolworths
float float Republic referendum
Republic referendum Second IraqSecond
war Iraq war US subprimeUScrisis
subprime crisis Facebook float
Facebook float Vanguard Australia’s
Vanguard 20th
Australia’s
Anniversary
20th Anniversary $186,799
$186,799
10.3% p.a. 10.3% p.a.
Bond Corp collapse
Bond Corp collapse Netscape Navigator
Netscapelaunched
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the internet
– the
goes
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public goes public Terrorist
in USattack in US RBA cuts interest
RBA cuts
rateinterest
6 timesrate
from6 7.25%
times from
to 3.00%
7.25% to 3.00% Gulf of Mexico
Gulfoil Mexico oil spill Vanguard’s 40th
ofspill Vanguard’s
Anniversary
40th Anniversary Brexit Brexit COVID-19 COVID-19
Iraq invadesIraq
Kuwait Superannuation
invades Kuwait Superannuation
Guarantee introduced
Guarantee introduced ASX float ASX float Dot.com bubble
Dot.com
burstbubble burst Tsunami hitsTsunami
Japan hits Japan
Australian Australian
Shares Shares
Commonwealth
Commonwealth
Bank float Bank float AMP float AMP float Bali bombing
Bali bombing Lehman Brothers
Lehmancollapse
Brothers collapse $130,457
$130,457
8.9% p.a. 8.9% p.a.
Australian9 Recession9 Asian currency
Australian Recession Asian
crisis
currency crisis Listed Property
Listed Property
$100,000$100,000 $95,395$95,395
7.8% p.a. 7.8% p.a.
Australian Australian
Bonds Bonds
$93,545$93,545
7.7% p.a. 7.7% p.a.
International
International
Shares Shares
$82,969$82,969
7.3% p.a. 7.3% p.a.
By Alan Oakley $50,000 $50,000
Cash
$44,172$44,172
5.1% p.a.
Cash
5.1% p.a.
R E C E S S I O N 12
R E C E S S I O N 12
RECESSION
RECESSION
LOGARITHMIC SCALE
LOGARITHMIC SCALE
CPI CPI
$20,439$20,439
Financial markets can be subject to their long-term investment strategy are
2.4% p.a. 2.4% p.a.
Growth of Growth
$10,000of $10,000
with no acquisition
with no acquisition
costs or taxes
costsand
or taxes
all and all Percentage
Percentage
returns (%
returns
p.a.) (%
as at
p.a.)
30 as
June
at 30
2020
June
1
20201
income reinvested.
income reinvested. 1 Year 15 Year
Years 510Years
Years 1020Years
Years 20
30Years
Years 30 Years
2 2
Australian Shares
Australian Shares–7.2 –7.2
6.2 7.8
6.2 7.8
7.4 7.4
8.9 8.9
3 3
InternationalInternational
Shares Shares 5.2 5.2
9.4 12.4
9.4 12.4
3.6 3.6
7.3 7.3
periods of event related volatility rewarded for their patience and discipline,
4 4
US Shares US Shares 9.6 9.6
13.2 16.3
13.2 16.3
5.2 5.2
10.3 10.3
5 5
Australian Bonds
Australian Bonds 4.2 4.2
4.8 5.6
4.8 5.6
6.0 6.0
7.7 7.7
6 6
Listed Property
Listed Property –21.3 –21.3
4.4 9.2
4.4 9.2
6.1 6.1
7.8 7.8
$10,000 $10,000 7 7
Cash Cash 0.8 0.8
1.7 2.7
1.7 2.7
4.1 4.1
5.1 5.1
8 8
CPI (to 31 March
CPI2020)
(to 31 March 2020) 2.2 2.2
1.8 2.1
1.8 2.1
2.6 2.6
2.4 2.4
1.25 1.25
US dollar
US dollar
1.00 1.00
during which investor confidence can be against those that try to predict the
0.75 0.75
20% 20%
15% 15% 15 15
Interest rate11
Interest rate11
10 10 10 10
Inflation10
Inflation10
5 5 5 5
significantly tested. outcome of financial markets.
0 0 0 0
Average Weekly
Average Weekly Average Weekly
Average Weekly Average Weekly
Average Weekly Average Weekly
Average Weekly Average Weekly
Average Weekly Average Weekly
Average Weekly Average Weekly
Average Weekly
Earnings $463
Earnings $463 Earnings $546
Earnings $546 Earnings $623
Earnings $623 Earnings $777
Earnings $777 Earnings $969
Earnings $969 Earnings $1,136
Earnings $1,136 Earnings $1,256
Earnings $1,256
90 90
91 91
92 9293 93
94 94
95 9596 96
97 97
98 98
99 9900 00
01 01
02 0203 04
03 05
04 05
06 07
06 08
07 08
09 0910 10
11 11
12 1213 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Connect
Connect
with Vanguard™ > vanguard.com.au
with Vanguard™ > vanguard.com.au
> 1300
> 1300
655 101
655 101
Sources: Australian
Sources:Bureau
Australian
of Statistics,
Bureau ofBloomberg
Statistics,Finance
BloombergL.P.,Finance
Melbourne L.P.,Institute
Melbourne of Applied
InstituteEconomic
of Applied& Economic
Social Research,
& SocialMSCI
Research,
Inc., Standard
MSCI Inc.,& Poor’s,
StandardWM & Poor’s,
Reuters.WM Notes:
Reuters.
1. PerNotes:
annum1.total
Per annum
returnstotal
to 30returns
June 2020
to 30except
June 2020
for the
except
CPI which
for thecover
CPI which
the 29.75
cover
year
theperiod
29.75 to
year31 period
Marchto2020.
31 March
2. S&P/ASX
2020. 2.AllS&P/ASX
Ordinaries
All Ordinaries
AccumulationAccumulation
Index. 3. MSCI
Index.
World
3. MSCI
ex-Australia
World ex-Australia
Net Total Return
Net Total
Index.Return
4. S&P500
Index.Total
4. S&P500
ReturnTotal
Index.Return
5. Bloomberg
Index. 5.AusBond
Bloomberg Composite
AusBond0+ Composite
Yr Index. 0+
6. S&P/ASX
Yr Index. 6.200
S&P/ASX
A-REIT Accumulation
200 A-REIT Accumulation
Index. 7. Bloomberg
Index. 7.AusBond
Bloomberg Bank
AusBond
Bill Index.
Bank8.Bill
ABSIndex.
Consumer
8. ABSPrice
Consumer
Index. 9.
Price
Recessions
Index. 9. as
Recessions
defined byasthe
defined
Melbourne
by theInstitute
Melbourne
of Applied
Institute of Applied © Copyright© 2020
Copyright
Andex 2020
ChartsAndex
Pty Ltd.
Charts
Reproduction
Pty Ltd. Reproduction
either in whole
either
or in
in whole or in
Economic andEconomic
Social Research.
and Social10.Research.
Annualised10. Rate
Annualised
of Inflation.
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Interest Rate
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is the Reserve
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Australia’s
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2020. Allforfigures
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of Andex of Andex
From time to time, there is inevitably It is also important to have a well-
Disclaimer: The
Disclaimer:
information
The contained
informationherein
contained
is intended
hereinfor
is intended
informational
for informational
purposes only. purposes
It is notonly.
intended
It is not
as intended
investmentas advice,
investment
and must
advice,
notand
be must
reliednot
upon
be as
relied
such.
upon
No as
responsibility
such. No responsibility
is accepted for
is accepted
inaccuracies.
for inaccuracies.
Past performance
Past performance
does not guarantee
does notfuture
guarantee
returns.
future returns. Charts Pty Ltd.
Charts
(www.andex.com.au
Pty Ltd. (www.andex.com.au
or call 1800 or
242call
787)
1800 242 787)
© 2020 Vanguard
© 2020 Investments
Vanguard Investments
Australia Ltd.Australia
(ABN 72Ltd.
072(ABN
881 086
72 072
/ AFS
881Licence
086 / AFS
227263).
Licence
All 227263).
rights reserved.
All rights
Vanguard
reserved.
Investments
Vanguard Investments
Australia LtdAustralia
pays a subscription
Ltd pays a subscription
fee to Andexfee Charts
to Andex
Pty Ltd.
Charts Pty Ltd.
volatility in financial markets as investors diversified investment portfolio to assist in Visit the website for full chart details
react nervously to changes in the minimising some of the volatility. During
https://www.vanguard.com.au/
economic, political, corporate environment volatile markets, certain sections of the
adviser/en/index-chart
and unexpected events. In recent times we market may perform differently. For
have experienced increased volatility due example, by holding a mix of ‘Growth Asset classes will continue to perform
mainly to COVID (Economic & Unexpected Assets’ (Shares and Property) and differently from year to year, but as
Event) and the United States Presidential ‘Defensive Assets’ (Fixed Interest, Bonds evidenced by the above chart the data
Election (Political) and Cash) in your overall portfolio can help shows that despite inevitable short term
to smooth returns over time. price dips and volatility over the long-term
Financial markets tend to have higher
you can expect each asset class will deliver
levels of volatility during periods of The 2020 Vanguard Index Chart puts
some form of growth.
uncertainty due to the unknown factors, this into context, because it shows how
such as when will a vaccine be found for different asset classes have performed Therefore, successful investing revolves
COVID or who will win the United States over the last 30 years with some sectors around having a well planned and
Presidential Election. As a result of this delivering at different periods of time, diversified strategy that is aligned to the
uncertainty we then see emotions starting helping to limit the level of volatility. level of risk you are prepared to accept,
to impact on investment decisions. We plus having the discipline and resolve to
have a fear of falling markets or missing stay the course, even during the most
out on an opportunity. volatile investment times.
History tends to show that those who For further information on this matter
ignore the emotional swirl of short- please don’t hesitate to contact the
term market conditions and focus on CoggerGurry Team.
Staff Profile – meet Melanie (Mel) Johnstone
As a child I grew up whilst working for an agricultural passion. I joined the CoggerGurry team
in South Australia machinery manufacturer. I relocated to in 2019 and with the help of mentoring
on The Yorke Casterton after seven years, wanting a and determination I progressed into Tax
Peninsula and in small piece of land close to a family base, Services. I soon began to find my feet and
my early teens I began working for a local Agricultural truly love doing what I do every day and
relocated to NSW Equipment dealer - part of the parent couldn’t imagine doing anything else.
where I finished company finance team, my tasks included With the work/life balance, my little hobby
my High School overseeing five branch’s processes, farm at Casterton is my oasis or should I
education. policies and company compliance. say the menagerie. With horses, miniature
With the love of rural life, I bought my Wanting a change of pace, I began working ponies, goats, chooks, ducks, dogs, cats or
first property in Central West NSW. It was in the accounting industry in 2014, solely any other animal needing a home.
here I began my career development in processing Business Activity Statements
Agricultural Finance and Cost Accounting - it was here where I found my true
Evidence required to support Real Property valuations in SMSF’s
By Hamish McDonald
From 1 July 2012 when trustees prepare the an opinion that the asset is valued at market property that could materially impact its
financial statements and accounts for their value, the auditor must modify their audit value since the purchase
SMSF, they must report the fund assets at report and consider whether an Auditor
• Recent comparable sales results
market value to comply with regulation Contravention Report should be lodged.
8.02B of the Superannuation Industry • Rates notice.
Some of the documentation considered
(Supervision) Regulations 1994 (SISR). During the 2020 and 2021 financial years, if
acceptable evidence for substantiating the
It is the trustee’s responsibility to provide market value of Real Property may include: the trustee has difficulty obtaining valuation
documents requested by their auditor which evidence due to the impacts of COVID-19,
• An external valuation
supports the market valuation for their they should provide reasons as to why the
assets. It is not the auditor’s role to determine • Independent appraisals from a real estate trustee was unable to obtain the appropriate
the market value of the fund’s assets. agent evidence to ensure the contravention will
not result in penalties.
Where the evidence is not sufficient and • Contract of sale if the purchase is recent
appropriate to enable the auditor to form and no events have occurred to the
Considered Value Issue Thirty Seven - December 2020
44 Gray St (PO Box 689)
Hamilton VIC 3300 Welcoming everyone through our
Phone ... 61 03 5571 0111 doors again
reception@coggergurry.com.au
After being closed to the public for eight long environment, and we ask that everyone
www.coggergurry.com.au months, CoggerGurry are welcoming clients visiting the office to please adhere to the
ABN 77 661 052 414 back to the office. All staff have returned Department of Health and Human Services
and it’s fantastic to have everyone working guidelines. Distancing and using sanitiser
under the same roof again. on arrival. We will also need to record all
details of everyone attending scheduled
Covid-19 has changed the lives and mindsets
appointments.
of many. While our team of almost 30 staff
have worked continually since March, many We move forward to 2021 with all the
have had to manage though very challenging precautions we can. We look forward to
times; working from home, schooling seeing you at 44 Gray Street.
children, juggling deadlines, keeping pace
In the lead up to opening to the public, to
with the evolving Government Stimulus
lighten the masked-mood and have a little
Packages and managing client appointments
workplace fun we arranged 1980’s dress-up
using all manner of technologies.
day. Some staff needed only go to their own
Directors The protective screens, masks and sanitiser wardrobes for a ‘costume’ . Can you guess
Michael Fitzpatrick CA now an ever-present part of the office who’s who?
Andrew Heazlewood CA
Hamish McDonald CPA, Affiliate CAANZ
PMS 8483 (Metalic) PMS 375
Lachlan Wark CPA, Affiliate CAANZ
Principals
Andrew Bradbury FCA
Stacey Shelden FCA
Toni Wright FCA
Associates
Mike McCulloch
Kay O’Connell
Consultant
Laurie Cogger FCA
financial planners
CG Wealth Pty Ltd
trading as CG Wealth
ABN 45 734 343 699 Nine prize draws,
Madison Financial Group Pty Ltd
AFSL 246679
PMS 8483 (Metalic) PMS 375
now that’s some raffle !
Authorised Representatives Something you may not know about your CoggerGurry
Vicki Kearney accounting team, every year the staff support many
local and other charities. At this time of year, they all
Alan Oakley
donate goods toward a special inhouse raffle, then
buy tickets and donate 100% of funds raised to local
charities. There can be up to nine prize draws in the
famous Christmas Raffle.
Funds donated though out the year, though staff fund
raising and through the Workplace Giving Program is
well over $2,000.
It’s the perfect time of year to think of supporting
charities who are helping make a difference in our local
and broader community.
DISCLAIMER
The information provided in this newsletter does not constitute advice. The information is of a general nature only and does not
take into consideration your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a
substitute for specific professional advice. We recommend that you contact CoggerGurry before making any decision to discuss your
particular requirements or circumstances. Brentnalls is not a partnership or a joint venture. Instead, the business of CoggerGurry is
cgfinance independently owned and operated and it is an independent member of the Brentnalls Affiliation of Accounting Firms. Individual
member firms do not accept responsibility or liability for the actions or inactions of any other individual member firm.
finance broking
Liability limited by a scheme approved under the Professional Standards legislation*.
Alan Oakley *Other than for the acts or omissions of financial services licences.
PMS 8483 (Metalic) PMS 375
Considered Value Issue Thirty Seven - December 2020
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