Accountants & Financial Planners

Business Advisory & Development

Whilst we understand that numbers are an important element in running your business successfully, we firmly believe that understanding the motivations and aspirations of people and organisational activities are critical to achieving future success.

Our Business Advisory and Development Services are focused on improving business performance and ultimately increasing the value of your business.

Services include:

• Strategic Planning
• Business Planning and Facilitation
• Strategic Financial Analysis
• Financial Health Assessments & Financial Modeling
• Development and Monitoring of KPI's
• Consultancy to Company Boards
• Business and Personal Goal Setting
• Asset Protection Strategy Development
• Business Benchmarking
• Financial Restructuring Advice
• Human Resource Management, Training and Succession Planning
• Conflict Resolution
• Business Cycle and Process Mapping
• Quality and OH&S Management System Certification and Review

Tax Planning

An integral aspect of our business philosophy is recognizing that tax minimization is a critical element in the wealth creation and preservation process. To this end, our tax consulting services are focused on legally minimizing the tax impost on your business and personal affairs.

Services include:

• Tax effective business structures
• Restructuring of Business and Family Groups
• GST Advice
• CGT Advice
• Taxation Audit Advice
• International Tax Planning
• Superannuation and Estate Planning
• Salary Packaging

Business Finance

Gaining access to cost effective capital is critical to the future success and growth prospects of any business. Obtaining finance can often be a long and arduous process. In order to make this process as painless as possible we can assist you with:

• Finance Applications & Procurement
• Finance Negotiations
• Investment Submissions
• Business Valuations
• Business Appraisals

Tax Compliance

The introduction of the new tax system has had a significant impact on the compliance requirements for small businesses. We provide a broad range of tax compliance services so that you can focus on running your business.

Services include:

• Income Tax Returns
• Fringe Benefits Tax
• GST
• PAYG
• Capital Gains Tax
• Self Managed Superannuation Funds
• Superannuation Guarantee
• Workcover
• Payroll Tax

Business Accounting

We provide a full range of Accounting Services to assist you in gaining an accurate picture of your business, to provide the basis for future planning and meeting your compliance obligations.

Services include:

• Statutory Accounts
• Periodic Management Accounts
• Budgets and Cashflows
• Special Purpose Management Reports

Auditing

Through our experience as Registered Company Auditors we recognize the importance of having confidence in financial information for making effective business decisions.

To this end our services include:

• Statutory Audits
• Specialist Reviews
• Business Risk Reviews
• Self Managed Superannuation Fund Audits
• Due Diligence reviews

Computerised Accounting Services

Quality, easily accessible management information is critical to business success in these turbulent times. In order to improve your decision making capacity we provide the following services:

• Set-up and installation of XERO, MYOB, Quickbooks and Quicken Accounting Packages
• Assistance with Accounting Software selection and implementation
• Review of Accounting Procedures

Company Secretarial Services

Owning interests and holding Offices in Private Companies has many statutory obligations attached. In order to assist you with these matters we offer the following services:

• Registered Office
• Statutory filing of Returns
• Maintenance of Company Statutory Records
• Assistance with meetings of Directors and Shareholders
• Purchasing of Shelf Companies, Trusts and Superannuation Funds

Why seek financial advice?

The decisions you make and the actions you take along the way heavily influence your financial future. It pays to make well considered decisions. Working with a knowledgeable financial adviser who takes a genuine interest in helping you improve your financial situation can make a world of difference to the life you create in the long run.

Finding the time to understand everything impacting your financial future can be time-consuming and difficult to know what you should do to ensure you are in a better financial situation. Working with Karaco Wealth gives you the benefit of a valuable partnership - receiving your adviser's insights, knowledge and practical ideas whilst remaining in complete control of what happens with your money.

What type of advice do you need?

Karaco Wealth offers straight-forward, professional advice, helping you make the most of your money. Holistic financial advice is comprehensive, taking every aspect of your financial situation and aspirations into account. This should involve a life-long relationship with a trusted adviser. Event-driven advice on the other hand is provided intermittently in reaction to things happening in your life.

The type of advice you choose may depend on goals and what stage in your life you are in. Karaco Wealth can help determine the type of advice that would best suit you and your situation to give you the most value.

What difference can financial advice make?

Comprehensive financial advice or event-driven advice can make a significant difference in your financial situation guiding the actions you do or don't take, with regard to changing legislation, how you hold your assets (financial structuring), tax-saving opportunities, your level of wealth and personal protection, fluctuating interest rates and how and when you pay off your home.

Karaco Wealth can show you where money is going out when it should be staying with you as legislation rates and interest rates change reaching milestones and different stages in your life. There are many ways to make your money work harder when you are making an investment or saving for a child's education - earning you more in less time and cost cutting. For example, guidance from a financial expert can take years off the duration of a home loan, saving many people from spending more than they should on home loans.

Whatever you're aiming for, a relationship with Karaco Wealth can give you insight into how you can achieve long-term financial success and protect your wealth.

Karaco Wealth can identify any financial risks with that you and your family may be exposed to and ensure you look after what is important and that they're taken care of down the track - no matter what life brings. When you're busy focusing on your work and life, prepare for the unexpected to avoid something spoiling your plans or taking away something you have worked hard to gain.

Our Advice Process

Step 1: Structures – which are the most suitable for optimum outcome
We consider which legal or tax environment will provide you the optimum outcome: personal, company, trust or SMSF? What structure is appropriate not only now but in the future? We help you understand the pros and cons of each investment structure and the flexibility, accessibility, tax implications and short/long term ramifications of investing.

Step 2: Strategic asset allocation to minimise risk
In understanding your risk tolerances and investment needs both short and long term, we then help you understand the implications and investment decisions around which assets and investments are suitable for you and how to structure your returns for both short and long-term goals.

Step 3: Tactical investment selection
Knowing what investments to purchase relies on an in-depth understanding of the market and continuous benchmarking of your portfolio's performance. This is the active and interactive process of actually choosing, purchasing and adjusting the investments over time during which we regularly consider our Investment Committee's view on the economy, assets, risk and the most suitable investment styles.

Step 4: Regular portfolio reviews
The importance of regular reviews cannot be overestimated given the constant change in global markets - with legislation, technology and economics and political decisions. Our regular and disciplined monitoring of your investment portfolios are directed at enhancing and identifying potential problems before they emerge.

Superannuation

Superannuation is still the most tax effective investment vehicle to help save for your future retirement. The rules governing superannuation are always changing presenting both challenges and opportunities.

Our team of strategic wealth advisors are able to provide advice that allows our clients to continue to maximise the tax benefits within superannuation and implement strategies today to future proof your superannuation against future legislative change.

Self Managed Super Funds

Setting up an SMSF is a major financial decision requiring the expertise of both an accountant and a qualified financial advisor. At Karaco we make it easier for you - our wealth advisors and accountants work together to offer end-to-end SMSF advice and services from set-up, administration, investment advice, audit, compliance management, right through to wind down.

You can discuss with your Karaco Wealth Advisor if an SMSF is the right choice for you in meeting your retirement needs.

Investments - Active Portfolio Management

In today's dynamic and global economy with changes to legislation, technology and investment markets, a different approach is required.

Our team of specialists together with our Investment Committee are constantly reviewing the latest changes and investment opportunities and have a proven track record in providing strategic investment advice tailored to the individual's investment time frame and risk profile.

Retirement Planning

Australians are living longer, healthier and more active lives in retirement, but how much money will be enough to suit your lifestyle and retire comfortably?

We can help you work out how much you will need to retire and the most effective investment strategies to ensure your money lasts and takes advantage of the government regulations and tax allowances.

Wealth Protection

If you and your partner were unable to work due to major trauma, illness, injury or death, what would happen to your current lifestyle, business and your retirement plans?

No matter what age you are, having the right insurance protection is essential to your financial security and in protecting your family's lifestyle. Given the number of insurance providers in the market and different types of cover, it is important to talk to our specialist risk advisors to make sure you get the rights insurance to protect your family and your business.

Financing & Lending Services

Our team of lending specialists via Partners Lending are a full-scale finance brokering business specialising in providing tailored lending solutions for your personal and business needs.

We look at every lending solution in the market place across all the financial providers and present to you the right lending solutions and best negotiated rates.

Legal Services: Safeguarding Your Family's Wealth

Partners Legal provides specialist wealth management, estate planning, commercial, and property law advice and works closely with Karaco Accountants to deliver end-to-end integrated and seamless solutions.

Our role is to partner with you and your accountant to help protect your personal wealth, business and commercial interests through smart, innovative solutions and advice for even the most complex needs.

Business Succession Planning

What happens if a business partner wants to leave a business or experiences a serious health or life event that forces them out?

Such a departure raises serious questions concerning the effective ongoing operations of a business and its future ownership. Having a predetermined plan to govern ownership and transfer of management responsibilities can minimise disruption to the business, protect your wealth and avoid painful and costly disputes.

Estate Planning

Estate planning is a specialised area that can involve many financial complexities. While no one intentionally leaves behind complications for their loved ones, countless families are burdened with the difficulties of an out-of-date will.

You can make sure it's easy for your loved ones to receive what you leave behind. Karaco Wealth will work in conjunction with you and your solicitor to ensure your assets will pass smoothly and tax-effectively to your loved ones.

Starting A Family

Welcoming a first, second or third child may be one of the most exciting and overwhelming times of your life. With a new child comes a new budget with many changes and a whole new life stage.

Financial decisions need to be made and it certainly pays to plan well ahead for such a significant time in life, especially if there's the chance your situation means changing from two incomes to one for any length of time. The cost of child care or an income reduction will have a financial impact throughout the child's lifetime and both or one parent may continue working and, depending on what's best for your family, the cost of child care while you're at work or a reduction in income will have a financial impact. The financial costs associated with having a baby can be surprising and related costs in raising the child need to be considered also.

When preparing for the arrival of your child, you may find yourself meeting the initial costs of furnishings for the nursery while you consider the day-to-day costs of looking after a baby. Some decide to buy another car while some may think about a larger home with a bigger backyard. The time also arrives when the options and costs for a child's education need to be considered.

Karaco Wealth can ensure these expenses are planned for, that your family and all you have worked hard to gain are protected and you can give your children the best start to life - regardless of what life brings.

Changing Jobs

Changing careers can be stressful. Whether you love your job or you've been thinking about finding a new one, being without work or having to change careers unexpectedly can be planned for.

You may find yourself considering career options you hadn't given serious thought to before: undertaking training, seeking further education, looking for part-time work or considering working for yourself and starting your own business.

Have you considered the financial and emotional implications of changing jobs? These can be overwhelming and can affect other areas of your life. There are many options to be considered to ensure you'll be satisfied with the changes you're making and that you receive the entitlements due to you when you leave your current job.

Making time to speak with Karaco Wealth can give you the opportunity to explore the viability of your options, assess your future and ensure you stay on track to reach your goals.

Caring for Aging Parents

As Australia's population continues to age, the proportion of people over 65 is rising. Many elderly people aim to remain independent and live in their own homes. But in some cases this isn't possible.

Fortunately, there are many options. Sometimes staying at home with regular support is possible and sometimes full-time in-home care is required. You may find that eventually you're faced with the difficult decision of helping your parents move to another residence where their wellbeing can be better supported.

Working with Karaco Wealth will ensure you're aware of the options available to your parents, that their needs are met and they do not unintentionally forego any financial entitlements.

Karaco Wealth will look at the structure of your parents' assets to maximise Centrelink aged-care and health-care benefits to help their savings and support them to stay at home.

The impact of capital gains tax as a result of the sale of any assets may also be reduced or avoided altogether.

Karaco Wealth can be there with you from the start to assist you with every aspect of exploring and managing your parents' options and needs. For example, by:

• connecting you with care assessment teams and home support services
• participating at family meetings to help ease the stress of challenging conversations during difficult times for your family
• working with your accountant and lawyer to ensure the needs of your parents are well supported.

Receiving An Inheritance

Receiving an inheritance can leave you with mixed feelings. Dealing with the loss of a loved one, grief and other emotions can make it difficult to decide what to do. Sometimes during emotionally challenging times, the impact of tax and inheritance rules can be the last thing on your mind.

At such times, it can be comforting - and in your best interests - to speak with your financial adviser. You can then go through the grieving process more freely with the assurance that tax and inheritance rules won't eat into your money unnecessarily.

Depending on the types of assets you inherit and the way any money is passed on to you, there can be issues to consider and manage in order to maximise the amount you receive.

Often when a loved one dies we can be reminded about the importance of planning for our own beneficiaries and ensuring everything is as uncomplicated for them as possible.

Karaco Wealth can work with you and your accountant and lawyer to ensure you end up making the most of your inheritance, and can guide you in what you can do to ensure your loved ones are taken care of when you die.

Buying A Property

Advice from Karaco Wealth can make a big difference in how quickly you can own that home or investment property you have been thinking about buying. How you structure your mortgage, and considering any existing loans and savings accounts you have-makes a big difference to your long-term financial success.

Assess your financial position with Karaco Wealth and you can take years off the duration of your loan and own your property quicker.

Managing A Divorce

Whether you are married or in a de facto relationship, separating from your partner can be one of the most challenging times in your life. Current trends suggest that one couple in three will face the complicated emotional and financial issues of a separation or divorce.

When separating from your partner you'll need to review any joint investments, bank accounts, superannuation funds, personal insurance, health insurance, and possibly your tax arrangements. If you have children, you may need to address child maintenance arrangements too. In certain circumstances one or both parents may be entitled to temporary or long-term parenting payments from Centrelink.

By talking with Karaco Wealth you can be confident in your entitlements and options. Many people benefit from Karaco Wealth's insights and assistance when negotiating with their partner.

The challenges can be complex and Karaco Wealth can guide you through the financial implications of separation and help you prepare for the next chapter in your life.

Cyber Security – How Would Your Business Manage a Significant Data Breach?

With the Australian Government’s Notifiable Data Breach laws that have recently come into effect and the EU’s GDPR policies, data security is now a much bigger issue and the focus for managed I.T. service providers should be to protect end user data and reduce risk exposure for clients.

One specific incident occurred with a client. Their network was breached and all their files encrypted. Unfortunately the Anti virus solution did not pick up the specific strain of ransomware as it was a new variant in the wild. After encrypting the files, the attacker then proceeded to demand a monetary amount as ransom to release the data. Fortunately, their Managed I.T. Provider was monitoring their backup solutions, which were intact.

The I.T. engineers were able to remove the infection, restore the data back into the system and allow the organisation to keep working. The impact to the client was under one day to get the systems back up to a point that everything was business as usual. This then opened a conversation with the client resulting in improved security processes and the introduction of Next Generation Firewalls with Intrusion Detection, Malware detection, 2 Factor Authentication for log-on and policy consultation for Notifiable Data Breach Response plans and Disaster Recover/Business Continuity plans.

Karaco’s network of professional contacts includes an exceptional IT Managed Service Provider who can capably assist businesses to be more efficient and effective using technology to drive change and process.

To organise a consultation please contact by e-mail or ring on 03 9836 5711

Till Death Us Do Part

“I don’t need a will because everything will go to my partner anyway.” Sound familiar? True, if an asset is owned as ‘joint tenants’ it is as if each owner actually owns 100% of the asset. The laws of survivorship apply such that, if one joint owner dies, ownership will automatically vest in the surviving owner alone. The provisions of the deceased person’s will are irrelevant.

Some years ago, a young professional couple, let’s call them Jim and Bella, decided to formalise their 10 year relationship and marry before starting a family. During their 10 years together, Jim and Bella had accumulated a significant asset portfolio, including a home, an investment property, a blue chip share portfolio, and a healthy bank account. All of these assets were owned as joint tenants. In their personal names, they had some relatively nominal superannuation entitlements, modest life insurance and a European car each.

Jim and Bella were not ‘high net wealth’ as usually defined, but they certainly had accumulated an impressive array of assets and had been financially responsible at every opportunity.

In lieu of wedding presents, Jim and Bella requested cash gifts that would be used to reduce the home loan balance their home. Thanks to the significant generosity of Bella’s parents, a 6-figure amount was deposited into the couple’s joint bank account as they left for the airport on the following Monday morning, en-route to an exotic pacific island to enjoy a romantic honeymoon.

Their trans-pacific flight from Australia was uneventful. The light plane flight to the island was unsuccessful. All 7 people on board the 12-seater aircraft that Monday afternoon died instantaneously.

Where there is no estate planning documentation in place, the laws of intestacy determine how wealth is to be distributed, and the key issue in relation to jointly owned assets is whether they are owned as joint tenants or tenants in common.

For Jim and Bella, virtually their entire asset portfolio was owned as joint tenants. Where a couple have assets owned as joint tenants and die in the same incident, the law has a ‘tiebreaker’ rule that deems the younger of the couple to have survived the older.

In other words, the younger person to die will be deemed to own 100% of all jointly owned assets and, therefore, the younger person’s estate plan regulates the distribution of all wealth.

In this case, Jim was some 5 months younger than Bella, so the home, investment property, and share portfolio were, for the purposes of the estate administration, solely his. The cash at bank was also solely his, including the significant 6-figure deposit that had been gifted by Bella’s parents just a couple of days before the plane crash.

As Jim died without a valid will, the intestacy rules applied and all his wealth passed to his parents.

The relationship between the two sets of parents had always been at best awkward, and as the exact legal position in relation to the assets began to unravel, the relationship became positively hostile. Jim’s parents refused to share any of the wealth with Bella’s parents, and would not return the cash gift that they had made.

And the morals of the story? Beware of the distribution of jointly owned assets where all joint owners die, and ‘No Estate Plan = an Estate Plan’ - it just might not result in a desirable outcome.

Should you not wish this to happen to you please contact us for a free consultation.

Establishing The Right Structure From The Start Can Save You Time, Money And Heartache

We were involved with a start-up business 20 years ago who requested our advice when establishing an operating structure for the business. The structure recommended was a Family Trust for flexibility together with a Trustee Company for limited liability. Both also provided some perpetuity for the future.

In order to reduce exposure to liability for the spouse and to retain ultimate control of the operating business by the client, it was agreed that the client be the sole director and shareholder of the trustee company and the sole appointor of the trust. As the business expanded, distributions were shared amongst the family in the most tax effective manner. Unfortunately, the client and the spouse separated and ultimately divorced.

The structure allowed for the client to continue operating the business with limited interference from the spouse during the break-down of the marriage. Although the structure was included in the assets of the family pool, it enabled the spouse to receive a tax effective settlement funded by the business for a period after the divorce. The client was able to retain the business and the structure as part of the settlement which allowed the continued operation of the business with minimal interruption. Throughout this process we were able to assist both parties to reach a mutually acceptable outcome with the assistance of mediation.

Goal Attainment = Small Business + Professional Help

When Chris and Jessica came to us, they were in their late 40’s, married with three children and running a personal training/fitness business. They came to us to help grow their business so that they could sell it and use the proceeds to fund their retirement. We started off by preparing a valuation for the business to confirm where they stood. We worked with them and our financial planning arm, Karaco Wealth to calculate the gap between where they were and where they’d need to be, in order to retire when they wanted and enjoy their desired standard of living for the rest of their days.

We helped transition the business to a live cloud-based accounting platform so that Chris and Jessica could spend less time attending to bookkeeping and more time growing the business. As we now had access to live data, we prepared budgets for the business and met with Chris and Jessica on quarterly basis to review the results, identify problems early in the process and discuss strategies for growing sales.

On an annual basis, we undertook a fresh valuation of the business to measure the progress made towards their goals as a result of our collaboration. After 10 years of working with Karaco, Chris and Jessica have recently sold their business and the proceeds, now invested through a self-managed superannuation fund, have provided a healthy nest egg, which has allowed them to retire, spend their days travelling as they eagerly await grandchildren. In addition to helping grow the business, we also identified other issues that needed to be addressed to ensure Chris and Jessica’s financial security and peace of mind.

We sought to restructure the business from being in joint names to a family trust, ensuring a greater degree of asset protection for the family home, while avoiding any tax impost through the use of the small business restructure rollover provisions. Furthermore, once we saw the interest rate that Chris and Jessica were paying on their home loan, we arranged for refinancing, which saved Chris and Jessica approximately $9,000 a year. As their wills were drafted before they became parents, we arranged for them to see the team our referral partners to have the wills brought up to date, which when combined with an insurance review undertaken by Karaco Wealth, provided peace of mind that their children would be properly looked after in the event of a tragedy.

If you’d like to become a part of the Karaco family and have a team of dedicated professionals looking out for you, please contact us on (03) 9836 5711.

Please enjoy the links to these free tools supplied by MoneySmart - a great resource for general financial information. Please get in touch if you would like to discuss any questions that you may have as a result of using these calculators.

Tax Planning

Please click on the following links to access the checklists most appropriate to your needs.

Individuals

Company Trust Partnership

Superannuation Funds

Tax Diary

Tax Deductions by Job

Fix Key Risk & Value Drivers To Get Your Business Back On Track

The business landscape has shifted significantly. Non-financial internal and external risks, most notably COVID-19, have had a devastating impact on businesses with many having to close and face the prospect of never re-opening.

Our new research confirms that SMEs that survive have plans in place. Businesses that identify, adapt and take advantage of opportunities will emerge stronger.

Business planning involves analysing and fixing key risk and value drivers in your business that, when addressed and resolved will protect one of your major sources of income and wealth – YOUR BUSINESS!

Start your business plan by completing our free Short Risk and Value Driver Assessment (RAVDA) to identify key non-financial risks.

Business Plan (Short Risk and Value Driver Assessment (RAVDA))

Legal Disclaimer

Information provided on this website is general in nature and does not constitute financial advice.

Karaco Wealth will endeavour to update the website as needed. However, information can change without notice and Karaco Wealth does not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time.

Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs.

Karaco Wealth does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, Charter Financial Planning, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person.

Unless otherwise specified, copyright of information provided on this website is owned by Karaco Wealth. You may not alter or modify this information in any way, including the removal of this copyright notice.