Maven Quarterly Newsletter - Autumn2016

Newsletter Autumn Edition May 2016

Our new beginnings have begun I am so proud to announce the safe arrival of baby John Adrian Cassidy on 13 April 2016. John weighed in at 8.6lb (3.78kg), 53cm long. Both he and Stav are doing very well and were home by the 18 th April. Here is a recent photo of our beautiful boy. In other baby news, our Admin Assistant, Francesca gave birth to a healthy 7.5lb (3.401kg) baby boy on the 7 March 2016. Baby Alessio and Francesca are both doing splendidly. Please enjoy the articles in this quarter’s newsletter – there are some interesting facts about how disability of parents can affect your children and household, and I’ve included some end of financial year tips many of us need to think about well before 30 June. As always, please call me if you have particular concerns or would like me to answer any questions you may have. With kind regards, Adrian Cassidy Principal Adviser Maven Wealth Pty Ltd M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 2

MARKET UPDATE April 2016 An extract from a Market Update prepared by GWMAS trading as ThreeSixty Research appears below. The Pulse  Equity and commodity markets continued to recover off mid-February lows helped by reasonable economic data, supportive central banks and improved sentiment:  Oil prices continued to move higher, up another 13% in March  China economic data was, on balance, a little better  US economic data continued to improve  The European Central Bank surprised investors with the size of the additional stimulus measures that it announced in early March to try to combat disinflation  Australian business conditions outside the mining sector continue to improve  RBA retains cash rate at 2.0% The S&P/ASX 200 Accumulation Index returned 4.7% in March. Cyclical sectors generally outperformed defensive sectors: materials and financials were the best performing sectors while healthcare was the worst performing sector. Small caps outperformed with a total return of 5.5% including dividends. Sector 1 month 3 months 1 year Energy 6.2% -0.5% -25.2% Materials 6.0% 5.2% -17.2% Industrial 2.3% 5.3% 12.8% Consumer Discretionary 5.1% 0.7% 5.0% Consumer Staples 3.0% -2.2% -5.1% Health Care 0.4% -1.6% 1.9% Financials (ex Property) 6.7% -9.7% -17.1% Info Tech 5.6% -5.0% -2.9% Telcos 4.7% -0.3% -6.9% Utilities 1.3% 3.3% 11.5% Property 2.5% 6.48% 11.4% M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 3

Global economies Global equity markets continued to rise off their mid-February lows helped by a recovery in commodity prices, particularly oil, further monetary policy stimulus from the European Central Bank and commentary from the US Federal Reserve that downplayed the likelihood of further US interest rate rises in 2016. US In the United States, soft Gross Domestic Product (GDP) and Institute for Supply Management (ISM) manufacturing readings in late 2015, which had spooked investors in early 2016, have pleasantly surprised in recent months. GDP growth in the fourth quarter was again revised higher, from an initial reading of 0.7% annualised, to 1.4% annualised. Europe As expected, the European Central Bank (ECB) introduced additional measures to combat deflation with the main surprise being the larger asset purchase program, up from 60 billion Euro to 80 billion Euro per month. China February data on the export side of the economy was weak with annual industrial production growth of 5.4% the weakest since November 2008 - but part of the slowdown was due to a large decline in tobacco production. Additionally exports contracted by 25.4% in February compared with February last year. Asia Region In Japan the second reading on fourth quarter 2015 GDP saw the economy's estimated performance revised to -1.1% annualised from -1.4% previously, thanks to a stronger than previously estimated uplift in business spending and, less positively, higher inventories. Australia The Reserve Bank of Australia (RBA) retained the cash rate at 2% at its April meeting. The RBA continues to monitor whether recent improvements in the labour market are continuing. Big Movers this month Going Up: Financials (ex Property) 6.7% Energy 6.2% Materials: 6.0% M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 4

Will changes to Social Security Pensions affect your payment in 2017? The Government is changing the Social Security Pension (including Age Pension) rules from 1 January 2017. It is estimated that 326,000 people will have their social security pensions reduced and 91,000 will lose their pensions when these changes take effect. In summary, the Government will make two changes to the pension assets test: 1. An increase to the level of assessable assets that can be owned before the pension entitlements are affected (known as the lower assets test threshold). 2. An increase to the rate at which pension entitlements reduce where assessable assets exceed the lower threshold. As a result of the second change, the upper threshold is effectively lowered, meaning the pension cuts off at a lower level of assets. These changes could have a direct impact on the pension you receive, your cashflow and living standards. The actual impact will depend on your relationship status, whether you own your home and whether your pension is assessed under the assets or income test. We can help you calculate whether you will be affected by these changes…… talk to us at your next review or feel free to give us a call. M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 5

Are you one of the Sandwich Generation? This is the Sandwich Generation: people in their 40s and 50s caught between the demands of aging parents and dependent children. Caring for two generations at once can create new financial pressure on your household — so here’s how to lighten your load. The financial juggling act Running a household is tough enough on its own. You’ve got bills and school fees to pay, and groceries to buy — not to mention repayments on the home and car. So how do you manage to keep your head above water when you’re taking care of children and parents at the same time? As always, the trick is striking the right balance between your income and your spending. Start by making a list of your outgoing expenses, including the costs of care for both your parents and your children. When working out a realistic budget to cover you and your family, remember that it’s more than just your day-to-day costs. If you are a primary carer, you may be taking time off work to accompany your dependents to their doctor’s appointments and other commitments — be sure to factor any loss of income into your budget planning as well. Making the most of family benefits The good news is, there is a wide range of benefits and allowances to help ease the financial burden of looking after your loved ones. And you may be entitled to more than you’re currently receiving — so it’s worth doing a little research to make sure you’re not missing out on what you deserve. Providing for your parents First, make sure that your parents are receiving all the benefits that they are eligible for, such as the Age Pension, Pharmaceutical Allowance and Seniors Card discounts. If they’re still living at home, they may also be eligible for a range of subsidised in-home care services — see myagedcare.gov.au to find out more. M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 6

Then check if you’re able to claim any benefits yourself — particularly if you have a parent living with you. For example, the Carer Payment and Carer Allowance give ongoing financial support to people who are unable to work full-time because of their care role. In addition, the Carer Supplement is a lump sum payment to offset some of the costs of care. If your parents have assets, then it can be worth finding out whether they can be structured differently to maximise their Age Care benefits and pension eligibility. However, this can be complex and will be different for everyone, so be sure to seek professional help. Caring for your children The Family Tax Benefit and the Parenting Payment can provide you with added income to help cover the costs of raising your children. And while your children are still young, you may be eligible for the Child Care Benefit or Child Care Rebate, or Child Care Fee Assistance to support you through work, training or study. If your children are older and considering their study options, they may be able to apply for an Austudy allowance — so they can cover their own costs throughout their education. Getting professional advice It’s not easy trying to figure out the best financial options for your family on your own. To find out more about how to get on top of your finances as a caregiver, feel welcome to give us a call. Source: GWM Adviser Services Limited ABN 96 002 071 749 AFSL 230692, a National Australia Group Company, 105-153 Miller Street, North Sydney NSW 2060 Australia. M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 7

5 ways to make tax time easier Not looking forward to doing your tax? You’re not alone. While most of us dread the administration that goes with completing a tax return, it only takes a little bit of planning to make it much less of a hassle. Here are 5 things you can do today that will have you sorted come 30 June. 1. Create a system It may not be exciting, but getting your tax organised starts with having a system. Start by filing your papers and receipts as you go. Remember, you don’t have to have a filing cabinet or folders; you can keep good records by scanning or photographing all your paperwork on your phone to keep your desk clutter-free and avoid the risk of losing receipts. Even if you do misplace or forget to keep some receipts, you can still claim up to $300 worth of employment-related expenses without documentation. But you can claim even more with evidence —so it pays keep your receipts in order now. There are plenty of apps that can help too, such as the ATO app, which is suitable for both individuals and small business owners. 2. Maximise your deductions Unless you’ve been paying close attention to your tax, or have a great accountant, you probably aren’t claiming all the deductions you’re entitled to claim. This means you’re paying more tax than you legally need to, and missing out on getting money back. Worse, it could mean you’re paying a tax bill that you could otherwise reduce or avoid. So it’s worth getting clear about what you can (and can’t) claim. Claims generally fall into the following categories:  Work travel expenses, such as taxi fares or airfares (travel to and from your normal workplace is usually excluded).  Special clothing, uniforms and laundry.  Expenses from income-earning investments, such as maintenance to an investment property.  Tools and equipment used for your work.  Subscriptions to relevant publications or services.  Self-education related to your current role.  Costs of a home office.  Donations. If you’re not sure, talk to your tax adviser or check the ATO website to find out exactly what you can claim this financial year. M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 8

3. Submit your returns online If you expect to get a refund, you can usually get it faster by submitting your tax return online with the ATO using e-tax, and providing your bank account details. Any returns are then transferred directly to your bank account, usually within 12 business days. That means you’ll have access to the money faster — to pay down debt, boost your super, or simply enjoy. If you prefer to use a tax adviser, it’s a good idea to book them now, as after year-end is usually their busiest time. That way you’ll be first in line to submit your tax return, and get any money you’re owed back sooner. 4. Contribute to your super Tax time is also a great time to make an extra contribution to super, and take advantage of the tax benefits it can offer. By setting up a salary sacrifice arrangement with your employer, you can reduce your taxable income and take advantage of the concessional tax rates for super, particularly if you’re on a higher income. But make sure you stay under the contributions limits for concessional contributions (which also includes employer payments). For the 2015-16 financial year, the maximum you can contribute before attracting extra tax is $30,000 for those under 50, or $35,000 for those aged 50 or older (over 75s may only contribute SGC) If you’re self-employed, you might also want to consider making after tax personal contribution, as you can generally claim a deduction when you have accessible business income. The amount you can claim is subject to the concessional contribution mentioned earlier. Or if your spouse earned less than $10,800 in the 2015-16 financial year, it’s worth thinking about making a contribution to their super, as you could be eligible to claim a tax offset of up to $540. 5. Get help If you think your tax is going to be complicated, get professional help — after all, their fees are also tax-deductible. If you’re not sure, talk to your tax adviser or check the ATO website to find out exactly what you can claim this financial Year. A financial adviser can also help you make the most of tax time. Article Source: GWM Adviser Services Limited ABN 96 002 071 749 AFSL 230692, a National Australia Group Company, 105-153 Miller Street, North Sydney NSW 2060 Australia. M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 9

Have you considered the impact Disability would have on your family? You might be thinking life insurance is something you can sort out later. But have you thought about what would happen to your family financially if you or your partner became suddenly disabled? According to a study prepared for ANZ Wealth1 about the impact the disability of a parent has on Australian families, 46% of families had less than a week’s notice of their spouse or partner becoming disabled. Over 34% had no warning at all. One of the outcomes of this was that 1 in 4 families had to move home due to financial pressure. What impact does the sudden disability of a parent have on children? The study found there were wide-reaching impacts on children. For example, among the children in the study:  65% took on more household tasks and chores  46% reduced their involvement in social activities  36% stated a worsening in academic performance. Many children were forced to grow up faster than they would have otherwise, and unfortunately this often comes at the expense of their social lives and their studies. It’s easier than you think to protect your family’s future By putting a comprehensive life insurance plan in place, you can help ensure your family will be financially supported if something happens to you, you can cover your medical expenses if you suffer a serious illness or accident and you can keep paying your bills if you’re not able to work. 1 ’Impact of parent’s disability on the family’ – Research conducted by Ipsos, prepared for ANZ Global Wealth, June 2015 Article Source: OnePath Limited M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 10

Important information and disclaimer Information contained within this publication has been prepared by GWM Adviser Services Limited ABN 96 002 071749 trading as ThreeSixty Research, registered office 105-153 Miller Street North Sydney NSW 2060. This company is a member of the National group of companies. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Accordingly, reliance should not be placed on the information contained in this document as the basis for making any financial investment, insurance or other decision. Please seek personal advice prior to acting on this information. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Any general tax information provided in this publication is intended as a guide only and is based on our general understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an assessment of your liabilities, obligations or claim entitlements that arise, or could arise, under taxation law, and we recommend you consult with a registered tax agent. Past performance is not a reliable guide to future returns. Before acquiring a financial product, you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product. The information in this document reflects our understanding of existing legislation, proposed legislation, rulings etc as at the date of issue. In some cases the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way. Opinions constitute our judgement at the time of issue and are subject to change. Neither, the Licensee or any of the National Australia group of companies, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document. Adrian Cassidy and Maven Wealth Advisors ABN 14008081187 are Authorised Representatives of Godfrey Pembroke Limited ABN 23 002 336 254 - Australian Financial Services Licensee., Registered office at 105-153 Miller Street, North Sydney NSW 2060 Australia. A member of the National group of companies. If you wish to unsubscribe from our client newsletters, please send an email to [email protected] or contact us on 08 8410 0151 M a v e n W e a l t h A d v i s o r s A u t u m n N e w s l e t t e r P a g e | 11