Future-proof your business  Mentorship isn’t just a perk; it’s a strategic investment in your team’s growth and your company’s future.   An effective mentoring program signals that your business is committed to developing and retaining talent rather than leaving their success to chance.   By fostering mentorship, you’re actively equipping your team with tools to excel and contribute more meaningfully to your organisation.  A good mentor provides a neutral space where team members can navigate workplace challenges and gain insights into the company’s operations. While not a direct supervisor, a mentor helps mentees understand the broader picture—offering advice on career advancement, navigating office dynamics, and achieving personal growth. Effective mentorship builds trust and offers support beyond day-to-day tasks, cultivating stronger leaders and more engaged employees.  Gone are the days of expecting staff to “figure it out” on their own.  In today’s competitive market, mentorship is essential for retaining talent. High-performing employees now have more career options, and companies can’t afford a passive, wait-and-see approach. By guiding them through meaningful work, offering growth opportunities, and showing them the rewarding aspects of their roles, mentors help make your organisation a place they want to stay.  A successful mentoring program relies on intentional planning and accountability.   The best mentors are experienced, credible, and genuinely invested in their mentees’ success. To create a lasting impact, ensure that mentors and mentees meet regularly and set clear, measurable goals. The program should be flexible yet structured, with evaluations to assess its effectiveness and room for adjustments based on feedback.  For business owners and executives, this investment in mentorship goes beyond individual growth. As your employees become more effective through mentorship, they’re better equipped to deliver exceptional service to customers and collaborate effectively with peers, ultimately enhancing your business performance.   If you’re looking to future-proof your business with a culture that promotes growth, start with a dedicated mentorship initiative. Assign a program champion, select credible mentors, and nurture a collaborative environment where your team feels supported. The return on this investment is a workforce that’s committed, capable, and inspired to help drive your business forward.  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 mentoring program to suit your specific requirements.

4 Essentials for Business Exit Planning  Do you have a clear succession plan for your own business? Do you know how you will ensure that customers and employees are looked after when you've moved on from the business?  Exit planning is not merely a matter of “leaving the business” but a proactive approach to maximising the business’s value, safeguarding financial security and ensuring a smooth transition for all stakeholders.   The ideal exit plan is initiated years before the anticipated sale or transfer, allowing business owners to strengthen their position and prepare for an optimal outcome.  The Exit Planning Process: What Steps Should Business Owners Take?  Business owners are encouraged to adopt a structured approach using these key steps in the exit planning process:  Define Personal and Business Goals:  Setting clear objectives for both the business’s future and personal financial needs is crucial. A well-thought-out exit plan starts with identifying goals that guide decision-making throughout the process.  Assess Business Value:  Understanding the current market value of the business allows owners to set realistic expectations and identify areas that can increase its attractiveness to potential buyers.  Enhance Business Value:  By optimising operations, reducing dependencies and addressing potential risks, owners can enhance value, making the business more appealing to prospective buyers.  Consider Exit Options:  Explore various options, including selling to a third party, transferring ownership to family members or considering employee buyouts. Each option has implications for business continuity and financial security.  How Does Collins Hume Create a Successful Exit Strategy?  Working with business owners day in and day out, we know better than anyone that the necessity of planning and documenting their plans is often overlooked.  Do you have a clear succession plan for your own business? Do you know how you will ensure that your customers and employees are looked after when you've moved on from the business?  The strategy you begin with, or planned to use 10 years ago, does not have to be the strategy you use when the time comes to transition. Your exit strategy can be a flexible, moving process that can be updated and reworked as your business grows.  The best exit strategy is the one that works for your current situation and that you've clearly thought out and written down.  If you’d like to chat about your exit strategy, please don't hesitate to reach out, and we can organise to grab a coffee. With these essential steps, we equip business owners with the knowledge to navigate the complex exit planning process confidently.

The last few years have been a rollercoaster ride of instability. Next year, 2025 holds hope but not a guarantee of greater stability or certainty. We explore some of the key changes and challenges.  An election  Welcome to political advertising slipping into your social media, voicemail, and television viewing - most likely with messages from the opposition asking if you are better off, and from the incumbents telling you all the reasons why you are.  The 2025-26 Federal Budget has been brought forward to 25 March 2025. This suggests an election will be held in either March or May 2025 but no later than 17 May 2025.   Legislation in limbo  The Senate pushed through 32 Bills on the final sitting day of parliament for 2024 including seven of direct relevance to business and to the financial interests of some Australians. However, two key announcements remain in limbo:  $3m tax on earnings in a superannuation fund  The proposed Division 296 tax, which imposes a 30% tax rate on future earnings for superannuation balances above $3 million, is proposed to commence from 1 July 2025. The Bill enabling the new tax is stalled in the Senate. It’s unlikely that this tax will pass parliament prior to the election; at which point, the Bill lapses. It then becomes a question of whether the elected Government chooses to rectify the concept or let it fade into oblivion as a bad idea.  $20,000 instant asset write-off for small business  In the 2024-25 Federal Budget, the government announced the extension of the $20,000 instant asset write-off threshold for small business for a further year to 2024-25. The concession enables businesses with an aggregated turnover of less than $10 million to immediately deduct the full cost of eligible depreciating assets costing less than $20,000. Without this measure, the threshold returns to $1,000. This concession was removed by amendment from the enabling legislation at the last minute in the final sitting of Parliament of 2024. The removal of this measure is unfortunate, as once again, SMEs now have no confidence about the tax treatment of investments in assets that they might be looking to make, or have made, in the current financial year.  Tax and super changes  Foreign resident capital gains withholding changes on sale of property  One of the Bills pushed through Parliament at the end of 2024 changes how capital gains withholding applies to foreign residents from 1 January 2025.   Currently, residents selling taxable Australian property must provide a clearance certificate to the purchaser at or before settlement to avoid having 12.5% withheld from a property sale where the value of the property is $750,000 or more. If applicable, the withholding is then made available as a credit against any tax liability. The vendor only receives any refund due after their next income tax return is processed at tax time.  From 1 January 2025 however, the threshold will be removed and the withholding rate increased so that:   The withholding is increased from 12.5% to 15%; and   The withholding applies to the sale of all Australian land and buildings by foreign residents, regardless of the value of the assets.  The reforms apply to acquisitions made on or after 1 January 2025.  Superannuation rate increases to 12%  The Superannuation Guarantee (SG) rate will rise from 11.5% to 12% on 1 July 2025 - the final legislated increase.  Super on Paid Parental Leave  From 1 July 2025, superannuation will be paid on Paid Parental Leave payments. Eligible parents will receive an additional payment based on the superannuation guarantee (i.e. 12% of their PPL payments), as a contribution to their superannuation fund.  Interest rates  At the last Reserve Bank Board (RBA) meeting, RBA governor Michele Bullock recognised the easing of headline inflation from 5.4% to 2.8% over the year to September 2024 but suggested that the economy still has some way to go before inflation is sustainably  within the 2% to 3% target range. The RBA appears wary of volatility and wants to see inflation sustainably trending down before making any move. Commbank is predicting a February 2025 rate cut, ANZ and Westpac May 2025, and NAB June 2025.  Cost of living pressures  The National Accounts released in early December took economists by surprise with living standards growing by a mere 0.2% in the September quarter – the expectation was much higher. Discretionary spending only increased by 0.1%.   The personal income tax cuts that came into effect from 1 July 2024 helped households, as did energy subsidies, but the impact is still working its way through the system. At the same time, mortgage costs continue to rise as past increases continue to impact.  Through the year, Australia’s economy grew 0.8%, the lowest rate since the COVID-19 affected December quarter 2020. Economic activity in the Australian economy right now is heavily dependent on Government spending.  Slow and steady is the expectation for 2025.  The ‘Trump effect’  President-elect Trump will recite his oath of office on 20 January 2025. The Trump administration will hold the presidency, Senate and the House.   For Australia, the question is the likely impact of some of President-elect Trump’s stated policy objectives including the imposition of tariffs. On social media, Trump has said:  “…as one of my many first Executive Orders, I will sign all necessary documents to charge Mexico and Canada a 25% Tariff on ALL products coming into the United States, and its ridiculous Open Borders.”  “…we will be charging China an additional 10% Tariff, above any additional Tariffs, on all of their many products coming into the United States of America.” This in response to claims that China is responsible for massive amounts of drugs, in particular Fentanyl being sent into the US.  The issue for Australia is the secondary impact of a trade war. China is Australia's largest two-way trading partner, accounting for 26% of our goods and services trade with the world in 2023. A slowdown in the Chinese economy impacts Australia and the region generally.   An immediate impact of the idea of a trade war has been the decline of the AUD/USD, currently sitting at around 64c.   Fuel efficient cars  New standards for vehicle manufacturers come into effect from 1 January 2025. Vehicle manufacturers will have a set average CO2 target for all new cars they produce, which they must meet or beat. The target will be reduced over time and car companies must provide more choices of fuel-efficient, low or zero emissions vehicles.   Suppliers can still sell any type of vehicle they choose but with more fuel-efficient models offsetting any less efficient models. If suppliers meet or beat their target, they'll receive credits. If they don’t, they will have two years to either trade credits with a different supplier, or generate credits themselves, before a penalty becomes payable.  Wage theft criminalised  As of 1 January 2025, the intentional underpayment of workers will be criminalised.   Employers will commit an offence if:  they’re required to pay an amount to an employee (such as wages), or on behalf of or for the benefit of an employee (such as superannuation) under the Fair Work Act, or an industrial instrument; and  they intentionally engage in conduct that results in their failure to pay those amounts to or for the employee on or before the day they’re due to be paid.  Employers convicted of wage theft face fines of up to 3 times the amount of the underpayment and $7.825 million. Happy Christmas! From all of the team, we want to take this opportunity to wish you a safe and happy Christmas. The year has gone quickly and has no doubt had some challenges. The Christmas holidays are an opportunity to take stock and revel in the spirit of the season.  We look forward to working with you again in 2025 making it the best possible year for you and wish you and your family the warmest of Christmas wishes.

YOU. That’s all we focus on. You, your family, your wealth, your business and the legacy you (and we) leave. That’s it. Join us on this amazing journey. Let's Begin NEWS. Collins Hume 6 hours ago Business Exit Planning Essentials Exit planning is a proactive approach to maximising business value and ensuring a smooth transition for all involved. 0 Collins Hume 1 day ago What’s ahead in 2025? The last few years have been a rollercoaster of instability. Next year 2025 holds hope, but no guarantee of greater stability or certainty. 3 Collins Hume 2 days ago Xero changes to classic invoicing Xero extends classic invoicing to Feb 2025, giving users more time to switch and offering tips to make the transition smoother. 0 Collins Hume 3 days ago Tax and tinsel Q&As What can you do to make the staff Christmas party tax deductible or tax-free? 3 1 2 3 4 5 Our purpose is to inspire business owners to achieve success in powerful and meaningful ways. Giving. Always give more than we receive. Inspiring. Today and every day, we will inspire others to achieve their best. Caring. We care for our team, clients and everyone we connect with. Lifestyle. We work to live, not live to work. Make it enjoyable and meaningful in every way.

STRATEGY360° Inspiring, Powerful, Meaningful Advice for Your Business Just as elite athletes rely on expert coaching teams to unlock their potential, businesses can achieve greater success with guidance from an experienced advisory firm. Our advisers provide strategic insights and practical solutions to help businesses overcome cash flow, risk management and succession challenges. Expert advice helps businesses navigate challenges, make informed decisions, and drive growth, profitability, and value. This partnership turns obstacles into opportunities, ensuring long-term success and competitiveness. As well as being award-winning accountants, Collins Hume are also highly sought after Business Advisers that help business owners and business leaders implement plans and actions that add value to their businesses. Our holistic business solutions help business owners: Increase the financial returns they earn from their business Grow the valuation of their business, de-risk and reduce owner reliance, or prepare a business for sale or Tap into mentoring to provide direction, accountability and knowledge to assist in reaching their business goals. Does any of this ring true for you? Are you ready to improve your profit, boost cash flow and enhance your long-term business value? 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. Case Study: How Collins Hume Helped Family Aged Care Advocates Thrive Dec 4 Case Study: Quadracon Building's Journey to Success Oct 1 Katapult Design's Journey with Collins Hume Jul 5 1 2 Our purpose is to inspire business owners to achieve success in powerful and meaningful ways. We simplify the complexities of business, partnering with you to focus on achieving meaningful and worthwhile outcomes, specifically: Improving cash flow and profit performance Increasing the value of your business Enhancing the lifestyle outcomes you experience from owning a business Harnessing your purpose and legacy. You, that’s all we focus on. You, your family, your wealth, your business and the legacy you (and we) leave. That’s it. You’ll access services designed to enhance growth, drive value creation, foster sustainable development, and navigate key transitions and challenges with us. Contact Nathan McGrath on 0435 400 202 for an obligation-free discussion on how Collins Hume can help you tailor a program to suit your requirements. WHAT ARE YOU INTERESTED IN? CONTACT NATHAN

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.