December Newsletter
In this edition
End of Year Wrap
Holiday Office Closure
BT Ongoing Advice Fee Review
NSW Property Tax Proposal
Elder Financial Abuse
Barriers to Advice Costing $630bn
21 Trends to Watch in 2021
End of Year Wrap
At the start of 2020, there was no way that anyone could have predicted what the year would hold.
However, as I look to close out 2020 and move into 2021, I am feeling much more optimistic. (Most of you know that at the time the COVID19 numbers were depressing to watch with you in each meeting seeing the numbers rise). However, we are winning the battle in Australia and we should find a new normal as restrictions continue to ease and borders open.
On the economic front, we have seen the recession end with a 3.3% rise in GDP in the last quarter and the outlook for growth is certainly encouraging.
We have seen unprecedented global collaboration and medical innovation to develop a vaccine and there are high hopes that this will help defeat the disease around the world. We have seen some great leaps forward in how vaccines are developed and in the speed at which they can be developed.
I have also been extremely fortunate that the business has gone from strength to strength. The team’s commitment to delivering service to you, our clients, has continued.
Of course, if you can think of anything further that you would like us to deliver on – please let us know.
None of this would have happened without your support, and for that, I extend a sincere thank you. This is an incredible affirmation that clients like you value the honest, consistent, and friendly service.
Looking forward to 2021, you can expect more of the same from Hell Yes! Financial Advice. Service is – and always will be – our top priority, with the team dedicated to helping provide that service to you.
Before closing, I wanted to acknowledge the value of advice – and all advisers who provide such advice to Australian families. In the recent IOOF Research report, True Value of Advice, more than 11,600 advised and over 1,000 unadvised individuals participated. The research found clear tangible and intangible benefits for advice. This includes:
90% of advised clients saying accessing financial advice has left them in a better position financially.
89% of advised clients reporting receiving advice has allowed them to lead their desired lifestyle.
90% of advised clients agreeing their adviser is a critical partner in their financial success.
93% of advised clients rating their adviser as good or very good with respect to the value of their services.
As a country, we’ve been able to navigate our way through this crisis better than most and the future is looking brighter.
The greatest achievement for us as a firm has been that those clients who invested with our advice continue to remain invested. This time around we kept 100% of our clients invested during what must have been a very nervous time for all.
I think every Australian has earned their summer holidays this year, and I’m sure most will be toasting farewell to 2020 with extra enthusiasm come New Year’s Eve.
On behalf of the Hell Yes! Team we wish you and your family a safe, healthy, and well-deserved break.
Vicki
BT Ongoing Advice Fee Review
As part of their response to the Royal Commission, BT is reviewing their ongoing advice service records.
If all records are in order, there will be no further action. However, if any records are incomplete or inadequate (i.e. not enough evidence that the service was provided as promised), you may be compensated for ongoing advice fees paid during that period.
BT will advise you of the outcome of their review, but if you have any questions in the meantime you can contact BT on 1800 630 374 or adviceenquiry@btfinancialgroup.com.
NSW Property Tax Proposal
As part of the 2020-21 State Budget, the NSW Government has announced that it will reform inefficient property taxes to reduce the up-front cost of acquiring homes and other properties.
The Government has commenced consultation on the proposal to transition away from the current transfer duty and land tax regimes to a single property tax model. Based on the consultation paper released, the following is proposed:
a purchaser of real estate will be given the choice to stay with the current regimes (i.e. pay stamp duty and, where payable, land tax), or to opt for the new regime
once a property is subject to the new property tax regime, subsequent owners of that same property must pay the property tax (i.e. there will be no choice to the purchaser)
a price threshold may be imposed to limit the number of properties initially eligible for transition
the property tax rates under the new regime will differ depending on the nature of the property concerned, with a lower rate applying to residential and primary production properties, a higher rate payable in relation to investment properties and even higher rates payable for commercial properties
safeguards will be put in place to ensure that the new property tax does not result in rent increases without a tenant’s agreement (relevant where a purchaser acquires an already tenanted property and opts for the annual property tax)
a hardship scheme will be introduced to cover certain situations where the property owner’s financial situation changes over time and is unable to pay the annual property tax
existing stamp duty concessions for first home buyers could be replaced with a grant of up to $25,000.
Submissions will close on 15 March 2021. If you have any comments on the proposals in the consultation paper, you can email the CA ANZ Tax Team before 18 December 2020.
Elder Financial Abuse
Sadly, elderly people are vulnerable to being taken advantage of financially. Adult children and other adult relatives have been known to persuade elderly parents/relatives in their care to part with property or significant sums of money without any independent legal or financial advice in circumstances where the elderly parents/relatives are left with no security in return for the funds advances and insufficient funds for their own care and maintenance including future nursing home care.
Time and again, the courts hear cases concerning vulnerable elderly people who have been taken advantage of financially by their own family members. Courts have the power to set aside unconscionable dealings and make orders for reparation.
Barriers to Advice Costing Australia $630bn
The economy could be better off by over $630 billion each year if every Australian accessed professional taxation and financial advice, but regulatory red tape continues to deter people from seeking advice.
Jotham Lian, 25 November 2020
While acknowledging that a fully advised population would be realistically impossible, new research by CPA Australia and CoreData has found that just increasing the uptake of professional advice by any amount could deliver significant windfalls to the economy.
Professional advice covered in the report includes accounting, taxation, financial, superannuation, business, and mortgage broking advice. However, barriers to seeking advice, including a widely held belief in their own abilities, affordability and a lack of trust, continue to restrict uptake.
The research also found the current regulatory framework does not cater to the average consumer, who is often looking for advice on budgeting and saving, investment decisions, and retirement planning – advice that is governed by different legislation and regulations.
CPA Australia is now calling for the government to consider simplifying the current complex regulatory frameworks to cater to a true consumer-centric advice model.
Read the full article…