How Strategy360 By Collins Hume helps business owners unlock growth through mastering margin and capital interplay.  With the ever-evolving business landscape, understanding how to strategically position your business for profitability is more critical than ever.  Strategy360 guides businesses through the four key quadrants of financial efficiency. Businesses in the ideal quadrant achieve superior profitability and scalability.   Read on to find out how we’re providing business owners with expert insights and actionable strategies to help them transition into the ideal quadrant and drive sustainable success.  The Four Business Quadrants  Understanding where your business falls within four quadrants—low margin-high capital, low margin-low capital, high margin-high capital and high margin-low capital—allows you to strategically position your business for growth.   The Gold Standard: High Margin, Low Capital Businesses  Operating with high margins and low capital outlay provides the ultimate outcome for any business owner. This model ensures strong profitability with minimal investment, enabling you to scale quickly and unlock tremendous value.  Differentiation Drives Margin Growth  Differentiation is a factor in increasing margins so a prime strategy that offers unique products or services is essential for business success. Standing out from your competitors through innovation or superior customer service allows your business to command premium pricing and improve customer loyalty, ultimately boosting profitability.  Profitability Through Gross Profit and Capital Management  It’s essential to have the financial insight needed to optimise operations, maintain liquidity and sustain long-term success, and Collins Hume provides guidance on the levers to pull when calculating gross profit and managing capital requirements.  Avoiding the Pitfalls of High Capital, Low Margin Businesses  Many businesses face significant challenges when operating with low margins and high capital requirements. By offering actionable strategies to reduce capital outlay while improving profitability, we help businesses in this quadrant often struggling with strained cash flow and longer payback periods by devising the right strategies to mitigate risks.  A Proven Pathway to Success  Through Strategy360, Collins Hume empowers businesses to strategically navigate their financial landscape, boosting revenue, reducing capital needs and differentiating their offerings to drive long-term profitability and growth. We regularly see opportunities to improve the amount of cash and profit a business generates by making subtle adjustments to managing working capital.  Mastering the balance between margin and capital is crucial for business success. Our goal is to help businesses transition to high-margin, low-capital models, making them well-positioned for growth and superior valuation.  Elevate your business to new heights. Contact Nathan McGrath  on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you achieve a better performing business and lifestyle.

The findings of the Aged Care Royal Commission were handed down way back in 2021.  We are now about to see aged care – how it is funded and who pays for it – redefined in “once in a generation” changes to take place this year. What does it mean to you and your family? This article will focus on residential aged care and my next article will turn its attention to home care. The overarching Government focus doesn’t change – they aim to ensure aged care is available for everyone. When it comes to moving into a residential care facility, if you (currently) have assets over $206,039, you will still be responsible for paying the market price (think RAD and DAP in aged care speak) for your accommodation. There is no-change to the means-testing of the family home – it’s included up to the capped value of (currently) $206,039 unless a “protected person” remains living in the home, in which case the home is exempt. The refundable accommodation deposit (RAD) cap increased from $550,000 to $750,000 on 1 January this year.  The cap is simply the amount a facility can charge for a room without obtaining Government approval.  Does a rising tide lift all boats?  It appears the case in aged care with room prices increasing around the country since 1 January. RAD’s are currently returned in full less any outstanding costs when someone voluntarily or involuntarily leaves the facility.  From 1 July this year, facilities will charge an exit fee of 2% per year of your RAD paid for up to 5 years.  For example, if you paid a RAD of $750,000 - $75,000 will be deducted when you leave after 5 years. People who choose to pay by daily accommodation payment (DAP) will have their fee indexed at the-then CPI rate twice a year, rather than the current fixed rate. Everyone will still pay a basic daily fee regardless of your financial means.  Beyond this you will pay a hotelling supplement and a capped non-clinical care contribution based on your assets and income, and a higher everyday living fee if you choose to get “extras”. When it comes to the ongoing cost of your aged care, the Government will pay for clinical care. If you are a current resident, or have family who are in a residential care facilitiy, they will be protected under the "no worse off" principle.  This will ensure current facility residents won't see their costs increase. The Government estimates that about 30% of full-pensioners and 75% of part-pensioners may face higher costs.  While it’s been communicated that wealthier Australians will pay more for aged care, it seems that the reality will be most Australians will pay more – in some cases, much more. How Family Aged Care Advocates (FACA) work Family Aged Care Advocates guide you and your family through this ever-changing aged care maze so you can clearly understand what all these changes exactly mean for your particular situation. Mistakes or misunderstandings can be costly and time-consuming to fix. Feel free to visit FACA at www.familyagedcareadvocates.com.au or call Shane Hayes on 0411 264 002.

Remember when a tenner could get you a decent lunch and filling up the car didn't feel like a second mortgage payment? Everyone has been feeling the pinch at Woolies, paying for fuel, and even when enjoying a cappuccino. It's like your money is shrinking faster than a cheap t-shirt in the wash! To put it into perspective, the price of beef has increased by 6.3%  j ust in the past year, which makes a weekend BBQ a lot more expensive! How Aussie Households are Feeling the Pinch Inflation isn't just an abstract economic concept; it's something we feel every time we swipe our debit cards or check our bank accounts. Rising prices are still affecting everyday Aussie households: Grocery bills soaring:  The ABS reports that food and non-alcoholic beverage prices rose by 2.9% in the year to November 2024. This means families still have to make tough choices about what goes in the trolley, even if the increase isn't as dramatic as it was over the last 2 years. You can find the details here . Petrol prices are unpredictable:  Petrol prices have been on a rollercoaster ride and can go from surprisingly low to eye-watering in the space of a few days (or a few km!).   Rent and mortgage stress:  Australia’s housing crisis doesn’t seem like it’s easing anytime soon. The average person is feeling this through mortgage stress, unpredictable rent increases, and of course, soaring property values.  Housing has contributed to inflation and has also been impacted by it. While the easing of interest rates is predicted for this year, economists doubt that this will bring housing costs down (in fact, it’s anticipated to drive them higher). How does inflation impact shares or real estate? Inflation doesn't just affect your weekly grocery bill; it also has a significant impact on your investments and retirement funds. For share investors, inflation can be a double-edged sword. On the one hand, companies may be able to pass on increased costs to consumers, leading to higher profits and potentially boosting share prices. On the other hand, high inflation often creates economic uncertainty, making investors nervous and potentially causing share prices to decline. To navigate this tricky landscape, it's crucial to diversify your investments across different sectors and companies to reduce risk. If you like to select your own shares (instead of using ETFs for example), focus on companies with solid financials, proven track records, and the ability to adapt to changing economic conditions. Real estate has traditionally been seen as a good hedge against inflation (the value of your property can generally increase, depending on location). However, rising interest rates have made borrowing more expensive, making it harder to secure a mortgage (particularly for an investment property). Given the multiple factors at play in the Australian housing market, we’ve seen house prices escalating at the same time. This has ‘priced out’ many would-be investors in real estate while rewarding those who bought property before  it ‘boomed’. When planning your investment strategy, it’s good to think about how you can protect against the impacts of inflation, rising fees & costs, or interest rate fluctuations.  Consider your timeline as well - for example buying real estate at the peak price might require holding it for quite a few years to see a capital gain. Is Cash really King? It can be tempting to hoard cash when things feel uncertain. But holding too much cash can be a bad thing in times of inflation. Why? Because your money is losing value.  If you have $100 today and inflation is 3%, that 100% will only buy you $97 worth of goods next year. This “purchasing power erosion” is especially dangerous for long-term goals like retirement. So how do you make your money work harder, even with inflation sticking around? You need to choose things that will outpace inflation, and grow wealth over the long term. Diversifying your investments - spreading your money across different asset classes like shares, property, and bonds - is probably the most accessible way of doing this. Being alert to the dangers When you’re young, you’ve got time to weather inflationary economic seasons. However, when you’re approaching retirement, it’s something you have to be more careful of. For example, some may keep large portions of their superannuation fund in cash, or withdraw their retirement fund in one lump sum. Both of these situations will see some or all of that retirement fund slowly reducing in value. And, if you’ve had a large portion of your superfund in cash for some time, you have lost out to both inflation and not benefiting from share market growth over that time. While the appropriate retirement fund strategy for you will probably include a portion in cash, it’s valuable to continue with some diversification into retirement. The right balance of investments is best determined as part of a holistic retirement plan. If you’re unsure of how to plan for this, reach out to our experienced retirement planners for more information. More Ways to Anticipate and Manage Inflation Beyond the day-to-day savings strategies, here are some additional steps to consider: ➔   Review your debt:  High-interest debt, like credit card debt, becomes even more expensive during periods of high inflation. Prioritise paying down those debts as quickly as possible. ➔   Consider fixed-rate loans:   If you're considering taking on new debt, such as a mortgage, explore fixed-rate options to provide certainty and protect yourself from rising interest rates. ➔   Build an emergency fund:  A financial safety net is crucial during economic uncertainty. Aim to have 3-6 months   of living expenses  saved in an easily accessible account. ➔   Stay informed:   Keep an eye on economic news and inflation forecasts. This will help you make informed decisions about your spending, saving, and investing. ➔   Seek professional advice:  If you're feeling overwhelmed or unsure about how to manage your finances, ask us how a financial planner could help. Being proactive and understanding how money and inflation works can help you deal with it more confidently. Every little bit counts!  We might not be able to control the economy, but we can control where our money is kept and where we’re spending it to make sure we're getting the most bang for our buck. Question from a client: I'm feeling a strong urge to take early retirement. I'm 58, with about a year of accrued leave. I estimate that my super will sustain me for 25 to 30 years. Should I prioritise my well-being and retire now on my own terms, or wait?  It’s fantastic that you’re in a position to consider early retirement at 58 - well done! If you feel confident that your financial situation will allow that, then I say go for it. Here are a few things to consider to make sure you’ll be successful in having a great retirement: 1. Financial Readiness: Superannuation:  As you were born in 1967, you won’t be able to access your super until the preservation age (60). With your year of leave, that leaves you with a year until you can withdraw your super. If you want to retire now, perhaps you have other means of funding your early retirement such as investments or the sale of a property.After the age of 60, you can access your super  as a transition-to-retirement pension, or account-based income stream, or withdraw it as a lump sum (you’ll want to look into the tax implications of each option). I suggest that you might want to wait at least 1 more year, then use your accrued leave to get you to preservation age. Age Pension: You’re not eligible for the Age Pension until 67, so factor in those years without government support. Healthcare: Consider potential health insurance costs and out-of-pocket expenses as you’ll be younger than most retirees. Detailed Budget: Your calculations are a great start. I also recommend creating a comprehensive budget to understand what you’re spending now, and what kind of lifestyle you want to live. Seek advice from a financial advisor to make sure your money will last those 25-30 years. What Ifs : Do you have plans in place for dealing with unexpected expenses, like a health crisis or home repair? Are your income streams set up to withstand market changes? Do you have built-in flexibility in case your retirement goals change? Think about how you can give yourself options. 2. Life Beyond Work: Purpose and Passion: Create a plan for what you want to fill your days with. Travel, hobbies, volunteering, spending time with family? Having a clear vision can make your retirement more fulfilling. Social Connections: Work often provides social interaction. How will you maintain connections, make new friends, and avoid isolation? Our friendships are one of the most important parts  of living a long and happy life.  Will you be living close to loved ones, or will you need to make an effort to stay connected from a distance? Mental and Physical Health:  Think about how you will stay active and mentally stimulated. A 2016 study found that delaying retirement was linked to an 11% lower risk of death over 18 years - because of the social and physical benefits we get from working. Being able to retire early and enjoy that freedom is a gift. Weigh your financial security and talk to a financial adviser to get your ducks in a row. Think about your personal goals and emotional readiness. Then, enjoy your freedom and the new possibilities that await you!    Super Guarantee Rate Increasing: Important Reminder for Employers The superannuation guarantee (SG) rate is increasing again this year, up to 12% of an employee's ordinary time earnings by July 2025 . If you’re an employer, make sure you stay informed about the current SG rate and payment deadlines to avoid incurring the super guarantee charge (SGC) for unpaid super. The ATO website provides detailed information . Overall, the outlook for the Australian economy is positive, with growth expected to pick up as the central bank eases monetary policy. However, the unemployment rate and the impact of global economic conditions remain key factors to watch. For more clarity on how advice could help you, please feel free to get in touch with Essential Wealth and Retirement: P . 02 5562 6260 (Ballina) P.  07 5230 4198 (Gold Coast) E:   support@ewar.com.au   W:   www.ewar.com.au     Ballina Office Address: 97 Tamar Street, Ballina, NSW 2478 Gold Coast Office Address: 80-82 Upton St, Bundall, QLD 4217 BallinaGCFP Pty Ltd ABN 12 670 111 583 trading as Essential Wealth & Retirement is a Corporate Authorised Representative no. 1305335 of GPS Wealth Ltd AFSL 254 544.   A word of caution for - the included material in this newsletter has been provided as General Advice only. We have not considered your financial circumstances, needs or objectives and you should seek the assistance of your Adviser before you make any decision regarding this communication. We have taken care to prepare this material, but any decisions or actions you take as a result of you reading this communication are entirely your own.

Collins Hume | We have one focus — YOU —with us, you'll be looking way beyond the traditional horizons most accountants are restricted to. FBT13 Should you lodge an FBT return? FBT14 Potential FBT Audits FBT15 What is a car fringe benefit? FBT16 Providing cars to employees FBT17 Entertaining, meals and FBT FBT18 Minor and infrequent benefits exemptions FBT20 Workhorse Vehicles 2024 Tax Preparation Fees Guide 2024-25 Federal Budget Guide Client to Agent linking_Online Services for Business already set up Client to Agent linking_Online Services for Business not set up Achieve Ultimate Financial Freedom Your Financial Safety Checklist Individual Tax Return Preparation Checklist Minimise Your Personal Tax Minimise Your Business Tax Tax Items to Consider Tax Deduction Checklist Deduction substantiation requirements Rental Property Tax Deductions (ATO Factsheet) DIY Business Structures Your Single Touch Payroll questions answered Should you give your employees shares in your company Testamentary Trusts Everyone Needs an Estate Plan

Collins Hume | YOU. That’s all we focus on. You, your family, your wealth and the legacy you (and we) leave. That’s it. Join us on this amazing journey. Discover the Power of 360° Business Solutions At Collins Hume, our "360" approach means comprehensive, all-encompassing solutions tailored to your needs. Because everyone’s journey is different, we take a holistic approach to helping You. Whether optimising finances, growing your business or securing your legacy, we provide a full-circle strategy that puts you at the centre. Let’s navigate your success together. Strategy360° Business owners often face challenges like unpredictable growth, financial inefficiencies and navigating complex market environments. Strategy360 by Collins Hume simplifies these complexities by providing tailored strategic advisory services designed to improve profit, boost cash flow and enhance your business’s long-term value. Through expert guidance in financial management, business restructuring and succession planning, we help you overcome operational hurdles and maximise opportunities. Our proactive approach ensures we address common frustrations, such as poor cash flow management or inadequate risk mitigation, transforming them into strategic advantages. By partnering with Strategy360, you’ll gain clarity and control over your operations, improve profitability, increase business value, and secure a sustainable future for your business. Elevate your business to new heights. Contact Nathan McGrath on 02 6686 3000 for an obligation-free discussion on how Collins Hume can help you tailor a program to suit your requirements. Learn more Wealth360° Do you ever wonder if you're on the right path to creating wealth and securing your financial future? Is your superannuation working as hard as it could be? Are you paying too much tax, or could your investments be better structured? What about leaving a legacy—will your family be hit with significant taxes or risk losing it due to failed business operations, bankruptcy or divorce? At Collins Hume, we bring the experience and expertise to guide you through these important decisions. Working closely with a trusted network of financial planners, lawyers, finance brokers, and retirement specialists, we tailor personalised solutions to maximise wealth, protect assets, and pass them on to future generations. With our proactive, holistic approach, you’ll have peace of mind knowing your financial affairs are in order—so you can enjoy a comfortable retirement. Partner with Collins Hume today to safeguard your future, minimise tax, and secure financial stability. Tax360° At Collins Hume, we provide strategic tax solutions that minimise your tax, create wealth, and protect your assets. We go beyond the usual ATO compliance lodgements and work with YOU to educate and empower you to make smarter, more informed financial and tax decisions. By focusing on business and investment structuring, tax minimisation, and long-term wealth creation, we help you optimise your tax position and meet ATO deadlines so you can focus on yourself and your business. Whether you're an investor or a business owner, we partner with you to minimise tax, safeguard your family’s assets, and achieve your financial goals. Let us guide you through the complexities of the tax system to build a secure, successful future. Books360° Managing the books can be overwhelming and time-consuming for business owners. And let’s face it, your time and expertise are better focused on other parts of your business. Books360 by Collins Hume takes the stress out of managing your ATO obligations. Whether you need BAS lodgement, payroll, or one-off bookkeeping expertise, our specialist team ensures accuracy and compliance, allowing you to focus on growing your business. Work with us today to streamline your bookkeeping and ensure you keep up with the ATO’s relentless deadlines. We help simplify your operations and provide real-time financial insights. Being efficient and adopting technology saves you time, reduces costly errors, and improves cash flow, directly benefiting your bottom line. With the expertise of our experienced bookkeepers, including Certified Xero Professionals, you’ll have peace of mind knowing your books are in order. Let Books360 by Collins Hume keep your business running smoothly.

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