Maven Quarterly Newsletter - Autumn

Newsletter Autumn Edition April 2016

Our new beginnings have begun I am so proud to announce the safe arrival of baby John Cassidy on XXXXXXX. John weighed in at xxxxxkg and both he and Stav are doing very well. Here are a couple of early baby snaps of our beautiful boy. In other baby news, our Receptionist 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 ________________________________________________________________

MARKET UPDATE April 2016 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% 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%

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. 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. . 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.

5 ways to make tax time 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. easier Not looking forward to doing your tax? You’re not 3. Submit your returns online alone. While most of us dread the administration that If you expect to get a refund, you can usually get it goes with completing a tax return, it only takes a little bit faster by submitting your tax return online with the of planning to make it much less of a hassle. Here are 5 ATO using e-tax, and providing your bank account things you can do today that will have you sorted come details. Any returns are then transferred directly to 30 June. your bank account, usually within 12 business days. That means you’ll have access to the money faster — 1. Create a system to pay down debt, boost your super, or simply enjoy. It may not be exciting, but getting your tax organised If you prefer to use a tax adviser, it’s a good idea to starts with having a system. Start by filing your book them now, as after year-end is usually their papers and receipts as you go. Remember, you don’t busiest time. That way you’ll be first in line to submit have to have a filing cabinet or folders; you can keep your tax return, and get any money you’re owed back good records by scanning or photographing all your sooner. paperwork on your phone to keep your desk clutter- free and avoid the risk of losing receipts. 4. Contribute to your super Even if you do misplace or forget to keep some Tax time is also a great time to make an extra receipts, you can still claim up to $300 worth of contribution to super, and take advantage of the tax employment-related expenses without benefits it can offer. documentation. But you can claim even more with By setting up a salary sacrifice arrangement with your evidence —so it pays keep your receipts in order now. employer, you can reduce your taxable income and There are plenty of apps that can help too, such as the take advantage of the concessional tax rates for super, ATO app, which is suitable for both individuals and particularly if you’re on a higher income. But make small business owners. sure you stay under the contributions limits for concessional contributions (which also includes 2. Maximise your deductions employer payments). For the 2015-16 financial year, Unless you’ve been paying close attention to your tax, the maximum you can contribute before attracting or have a great accountant, you probably aren’t extra tax is $30,000 for those under 50, or $35,000 for claiming all the deductions you’re entitled to claim. those aged 50 or older (over 75s may only contribute This means you’re paying more tax than you legally SGC) need to, and missing out on getting money back. If you’re self-employed, you might also want to Worse, it could mean you’re paying a tax bill that you consider making after tax personal contribution, as could otherwise reduce or avoid. So it’s worth getting you can generally claim a deduction when you have clear about what you can (and can’t) claim. Claims accessible business income. The amount you can generally fall into the following categories: claim is subject to the concessional contribution  Work travel expenses, such as taxi fares or airfares mentioned earlier. (travel to and from your normal workplace is Or if your spouse earned less than $10,800 in the 2015- usually excluded). 16 financial year, it’s worth thinking about making a contribution to their super, as you could be eligible to  Special clothing, uniforms and laundry. claim a tax offset of up to $540.  Expenses from income-earning investments, such as maintenance to an investment property. 5. Get help  Tools and equipment used for your work. If you think your tax is going to be complicated, get  Subscriptions to relevant publications or services. professional help — after all, their fees are also tax- deductible. If you’re not sure, talk to your tax adviser  Self-education related to your current role. or check the ATO website to find out exactly what  Costs of a home office. you can claim this financial Year. A financial adviser can also help you make the most of tax time.  Donations.

Have you considered the Important information and disclaimer impact Disability would Information contained within this publication has been prepared by GWM Adviser Services Limited have on your family? 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. You might be thinking life insurance is something you can sort out later. But have you thought about Any advice in this publication is of a general nature what would happen to your family financially if you only and has not been tailored to your personal or your partner became suddenly disabled? circumstances. Accordingly, reliance should not be placed on the information contained in this document According to a study prepared for ANZ Wealth1 as the basis for making any financial investment, about the impact the disability of a parent has on insurance or other decision. Please seek personal Australian families, 46% of families had less than a advice prior to acting on this information. week’s notice of their spouse or partner becoming disabled. Over 34% had no warning at all. Neither the Licensee nor any member of the NAB Group, nor their employees or directors give any One of the outcomes of this was that 1 in 4 families warranty of accuracy, nor accept any responsibility had to move home due to financial pressure. for errors or omissions in this document. Any general tax information provided in this publication is What impact does the sudden disability of a parent intended as a guide only and is based on our general have on children? understanding of taxation laws. It is not intended to be a substitute for specialised taxation advice or an The study found there were wide-reaching impacts on assessment of your liabilities, obligations or claim children. For example, among the children in the study:  65% took on more household tasks and chores entitlements that arise, or could arise, under taxation  46% reduced their involvement in social law, and we recommend you consult with a registered tax agent. activities  36% stated a worsening in academic performance. Adrian Cassidy and Maven Wealth Advisors ABN Many children were forced to grow up faster than they 14008081187 are Authorised Representatives of would have otherwise, and unfortunately this often Godfrey Pembroke Limited ABN 23 002 336 254 - comes at the expense of their social lives and their Australian Financial Services Licensee., Registered studies. office at 105-153 Miller Street, North Sydney NSW 2060 Australia. A member of the National group of It’s easier than you think to protect your family’s companies. future By putting a comprehensive life insurance plan in If you wish to unsubscribe from our client newsletters, please send an email to [email protected] or place, you can help ensure your family will be contact us on 08 8410 0151. 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