T 1800 988 5222 E cnmail@cutcher.com.au Sydney Newcastle

Providing you with the foundationsTo reach your goals.

Innovative thinking. Traditional values.

� Project audits

� Financial reporting

� Governance reviews

� Risk mitigation strategies

� IT reviews of new systems

� Data analytics and investigations

� Risk based internal audit services

� Identify financial and operating risks

� Analysis of business unit performance

� Tax and compliance audits and reviews

� Internal controls and process efficiencies

Clubs and Hospitality

Small to Medium Enterprise

Aged CareProviding insight, reducing risk and delivering audit services efficiently

Guiding you with our specialised industry expertise

Nurturing your business while it grows

� Estate planning

� Cash flow planning

� Financial reviews and structuring

� Consideration of funding requirements

� Centrelink and Age Pension assistance

� Assistance understanding fees and charges

Bringing peace of mind to you and your family

� Minimise tax

� Grow your business

� Protect your assets

� Buy or sell a business

� Structure your business

� Improve profitability and cashflow

� Audit

� KPI’s, benchmarks and trends

� Specialised reviews of departments

� Management reporting and budgeting

� Profitability analysis and improvement

� Corporate governance and strategic planning

� Tax services and Income tax calculations

for mutuality purposes

Forensic Accounting

Superannuation

Investor Large Enterprise

Software

Helping you make sense of the dollars Tailored advice for the modern day investor

Structured advice for business professionals

� SMSF audit

� Estate planning

� Pension strategies

� Retirement planning

� SMSF administration

� Limited Recourse Borrowing strategies

� Trusted advice

� Retirement planning

� Transparent and incisive advice

� Proactive portfolio management

� Proven expertise and years of experience

� System Review

� Accounts Review

� Project Management

� Product Training & Support

� Business Process Mapping

� Enterprise Mobile App Solutions

� Operational Software Product Specialists

Setting solid foundations for your futureHelping businesses make informed decisions

� Family Law matters � Personal injury losses � Commercial loss of profit � Financial records analysis � Breach of contract damages � Taxation advice and settlement structuring

� Starting up or buying an enterprise

� Operation, management and reporting

� Exiting or selling an enterprise

� Improve profitability and cashflow

� Audit services

� Software solutions

� Business structuring

Audit

We pride ourselves on the wide range of services we can provide to you.

Our services provide you with complete transparency from the very beginning and will guide you every step of the way. We care about your goals and will ensure that all of your personal, business, and financial outcomes are looked after like they are our own.

We have the team to implement, analyse and carry out all the services you require provided within the one solid foundation, leaving you with peace of mind that your wealth creation and business needs are all cared for under the one roof.

We provide specialist services to industries including:

� Medical � Dental � Manufacturing � Mining and support � Building and construction � Not For Profit � Clubs and Hospitality � Legal � Engineering � Property development

� Audit

� KPI’s, benchmarks and trends

� Specialised reviews of departments

� Management reporting and budgeting

� Profitability analysis and improvement

� Corporate governance and strategic planning

� Tax services and Income tax calculations

for mutuality purposes

Medical Accounting Not For Profit Risk Insurance

Finance

Discover our broad range of services for Dental professionals

Discover our broad range of services for medical students to retiring medical practitioners

Providing compliance requirements and much more

� Critical illness (trauma) cover

� Income protection

� Total and Permanent Disability (TPD) cover

� Life cover

� Business expenses cover

� Key person cover

� Buy / sell cover � Independent, ethical advice � Timely, transparent communication � Appropriate, effective risk protection � Regular proactive review of your needs

� Residential home loans

� Investment loans

� Commercial property loans

� Practice finance

� Business lending

� Equipment finance � Motor vehicle finance

Expert advice, tailored solutions, personal approach

Protecting, you, your family and your business

� Surgery acquisition strategies

� Medical practice structuring

� Tailored superannuation strategies

� Tax deductible debt strategies

� Effective practice service entities

� Cloud based record keeping

� Investment and financial planning

� Estate planning

� Internal audit

� Due diligence services

� Risk based audit services

� Best practice financial reporting

� Fraud and operational risk assessments

� Improve internal systems and processes

� Cost allocation and service level reporting

� Financial analysis focusing on “real” results

� Establish new charities and tax exemption matters

Family Office

An advisor you can trust to protect your wealth

� Succession planning

� Regular financial reporting

� Tailored wealth creation strategies

� Investment advice and education

� Attending to ATO compliance obligations

� Administrative functions and bookkeeping

� Comprehensive oversight of financial assets

Dental

� Surgery acquisition strategies � Dental practice structuring � Tailored superannuation strategies � Tax deductible debt strategies � Effective Practice service entities � Cloud based record keeping � Investment and financial planning

� Estate planning

Directors & AssociAtes

ADAM LITTLEWOOD Business Services

AMBER LING Accounting & Taxation

Services

KRISTY SMITH Investment Services

MICHAEL GRAHAM Business Software & System

Solutions

NICK GAUDION Forensic Accounting

WADE JOHNSONInvestment Services

Our People

Choosing a firm to trust with your accounting, financial and business needs is a big decision. That’s where we step in.

Our nine Partners each specialise in a specific area of our service delivery, offering a wealth of knowledge and industry experience.

With over 100 staff and 9 divisions, we can provide you with all of your accounting and financial needs under the one roof.

With us, your best interest comes first. Always.

2 office locAtions

ProviDing services AustrAliA wiDe AnD connecteD globAlly

over 100 stAff

SAMUEL ARNOTT Self Managed Superannuation

Division

NICOLE BROWNSpecialist Medical Services

Division

PArtners

IAN NEALE

JARROD BRAMBLE

MARK O’CONNORPHILLIP SMITH

SHANE MORGAN JACE PEDONESE

NICK NANCARROW

STUART CHAN

Innovative thinking. Traditional values.

Our Top Tips For DITs

■ Build your financial structure on the At Risk At Wealth™ principle*

• Understand your personal tax and finance structures

■ Minimise 'bad' debt and maximise 'good' debt

• Harness the power of Superannuation

■ Understand the value of depreciation

- Stuart Chan

Partner, Specialist Medical Services Division

Starting your own practice

Starting or buying into a private

practice can be one of the most

rewarding career moves you'll ever

make. But you have to do it right.

Talk to us about

■ Structuring your practice for successand improving your financial results

• Buying into a practice -

what's it worth, what's involvedand what it really means for you

• The critical documents and issues

that help reduce risk and protectyour assets

• Becoming your own landlord- options for buying your rooms

• Reducing your debt faster

• Creating wealth outside your practice

Benchmarking your practice withAustralian Medical Benchmarks

Your inner entrepreneur

Passionate about your chosen field,

but itching to take on the challenge

of moving from a sole practitioner to

a multifaceted business operator?

Talk to us about

■ Building wealth outside your practice

■ Day Surgeries and Private Hospitals -building, establishing and running a

successful operation

• Building your Super Practice

• Effective funding models to growyour enterprise

■ Giving something back - establishing

and operating Charitable Foundationsand Not for Profit Organisations

'Al Risk at Wealth is a philosophy that should be applied throughout your whole Ide to ensure every financial decision is made to enhance wealth creation and preservation.

Innovative thinking. Traditional values.

■

i'

Winding down

You've worked hard to build a

successful practice - it's time to

start thinking about the rewards.

Talk to us about

■ Measuring, monitoring and improvingyour practice

• Benchmarking for success

■ Maximising your return

■ Restructuring for an orderly transition

• Effective business succession planning

■ An exit strategy that protects you andthe practice

■ Maximising and protecting your wealthin preparation for retirement

Let us guide you

Retirement

Time to enjoy your just rewards.

Talk to us about

■ Protecting your wealth

• Maximising your investment returns

■ Tax Effective income streams

■ Simplifying your financial affairs

■ Estate and retirement planning- don't leave your family with a mess

• Maximising your super nest egg

- don't pay more tax than you

need to

For a no-charge, no-obligation discussion about your financial journey,

contact our Specialist Medical Services team via phone 02 4928 8500

or email medical@cutcher.com.au

-----------------------------

. Newcastle 02 4928 8500 cutcher.com.au med1cal@cutcher.com.au

Sydney 02 9923 1817

Innovative thinking. Traditional values.

Welcome to the September edition of Financial Paracetamol for 2018.

The First Home Super Saver Scheme, or the FHSSS, was introduced in the 2017 Federal Budget, as a means to get first home buyers into their first home sooner, through voluntary superannuation contributions.

We explore why you should take advantage, how the benefit is worked out, how much you could save, and how you can make the most of the FHSSS.

We look into the risk of breaching the annual concessional superannuation limit faced by high income earners. We also look into mandatory data breach reporting, and how you can protect yourself. We have also included key tax dates for the 2018/19 financial year.

Jarrod Bramble

PARTNER

FinancialParacetamol

SEPTEMBER 2018How to get into your first home sooner

First Home Super Saver Scheme

Is the FHSSS worthwhile?

Put simply, it will save you money which

you can put towards your house. This is

due to the advantageous tax rates within

the superannuation environment when

compared to personal income tax.

As a Resident or Registrar, your

marginal tax rate will be in the range

of 32.5% to 45% plus Medicare

Levy, depending on your income.

Superannuation contributions and

earnings are taxed at 15%.

How is the benefit worked out and

how much will you save?

The benefit changes along with

your income level, and it is more

advantageous the higher your income.

A Resident with a salary of $80,000

who contributes $10,000 each year

over three years towards the FHSSS will

end up with a benefit of approximately

$4,700 by accessing the scheme.

This doesn’t take into account the

added advantage of earnings achieved

in the fund being taxed at a 15% tax

rate, compared to 34.5% outside in a

bank account.

A Registrar with a salary of $190,000

who contributes $6,950 each year over

five years up to the $30,000 limit, will

end up with a benefit of approximately

$6,100 by accessing the scheme, before

considering earnings on investments

within the fund.

How can you best take advantage?

This is going to depend on your

circumstances, as you are limited to

$25,000 concessional (tax deductible)

contributions into super each year - this is

known as the CC Cap. You need to make

sure you contribute the most available

under the CC Cap each year to take

advantage of the scheme.

What are the facts?

� The scheme is for first home buyers only

� You need to live in the property (or intend to as soon as possible)

� Make up to $15,000 voluntary super contributions p.a.

� Up to $30,000 per person lifetime cap

� Apply to release before you sign a contract

� Access your money within 25 days of requested release

� Couples each access the scheme even if buying the same house

� It takes time – start planning and get your money in sooner

Continued on next page...

Innovative thinking. Traditional values.

We will outline two scenarios based on a Resident and a Registrar. The table shows how the scheme applies to the different levels of income:

The minimum years required is based on you reaching the $30,000 lifetime limit using additional concessional contributions.

You will note that the amount available under your cap decreases as your income increases. To maximise your benefit you will need to start early!

Whilst we have applied this to Doctors in Training, this FHSSS also applies to those who don’t work in the medical profession. So if you have children, relatives or friends outside the profession, make sure they know about the scheme!

With the concessional superannuation contribution cap now set at $25,000, high income earners are more at risk of breaching the annual concessional superannuation limit, particularly if they receive contributions from multiple employers.

There is currently a Bill before Parliament that provides high earning individuals with an option to opt out of receiving certain superannuation guarantee amounts from 1 July 2018.

The proposal is to allow an individual with multiple employers to stop one employer from making superannuation guarantee contributions. This option is only available where the individual is earning above $263,157 per year and it is likely they will exceed the concessional contributions cap.

Continued...

What to do nextTo find out more about how you can take advantage of the scheme, or get into your first home sooner, speak to our WealthStart Advisor, Nick Carter today.

Resident RegistrarExample Salary p.a. $80,000 $190,000

Employer Contribution $7,600 $18,050

Remaining Capacity under CC Cap $17,400 $6,950

Amount of FHSS Eligible yearly $15,000 $6,950

Minimum years required to maximise FHSSS 2 5

Superannuation Opt Out for High Income Earners

What happens currently if you breach the superannuation contribution cap?

An individual’s excess concessional contributions are included in their assessable income and are taxed at the individuals marginal tax rate. A tax offset equal to 15% of the excess contributions reduces the tax payable by the individual.

Shortfall and general interest charges may also apply, as well as a balance charge to account for the additional revenue in the Fund as a result of the excess contributions.

This legislation aims to reduce the paperwork where individuals inadvertently breach the concessional superannuation cap by receiving superannuation guarantee contributions.

In summary:

� From 1 July 2018, individuals with multiple employers can apply for a superannuation contribution exemption

(provided at least one employer continues to contribute).

� Employers can only cease making compulsory superannuation contributions once the Australian Taxation Office (ATO) issues an exemption certificate.

� Individuals must lodge the application form with the ATO at least 60 days before the start of the quarter.

� A new application/certificate will be required for each financial year.

Possible risk:

One risk facing those eligible to opt out is they will obviously wish to ensure they still receive their full remuneration somehow. They will need to negotiate with the relevant employers to have the forgone contributions paid as additional salary. This may not be possible in all cases.

Should the legislation receive Royal Assent in its current form, it will commence from 1 July 2018.

All businesses and not-for-profit organisations with an annual turnover of more than $3 million.

Including private sector health service providers, with an annual turnover of $3 million or less, are required from 28 February 2018 to report any “eligible data breaches” to the Office of the Australian Information Commissioner (OAIC) and any affected, at-risk individuals.

An eligible data breach occurs when there has been unauthorised access, or disclosure of personal information, or personal information is lost in circumstances that could likely lead to unauthorised access or disclosure of information, which could lead to harm or risk to the affected individuals.

Failure to comply with the new regulations will be deemed to be an interference with the privacy of an individual for the purposes of the Privacy Act, and can attract a maximum penalty of $360,000 for individuals and $1,800,000 for body corporate.

Your financial journey starts here! You don’t need us to tell you how hard you’ve worked to get this far, but we can tell you how to reward your career efforts with a lifetime of financial security!

To get you on the right track, we have created a special service tailored specifically to the needs of doctors in training.

Your WealthStart Package includes:

� Your tax return completed and lodged � Expert advice on salary packaging � A consultation covering your financial

goals, superannuation options and long-term strategies � Property investment, tax analysis

and property profile reports WealthStart includes free access to exclusive wealth and superannuation

Mandatory Data Breach Reporting - What it is and how you can protect yourself

Security technology has come a long way in recent years, and in the dangerous digital world it’s simply unheard of to leave yourself vulnerable.

Having security software installed to protect your data is standard practice, however if these systems fail you need to be prepared.

If you haven’t already, you should prepare a data breach response plan. This is to ensure that the right steps are taken in the case of a suspected or confirmed data breach. The plan should be in writing, so that necessary steps are taken and all staff are conscious and understand the necessary procedures.

Regular reviews and testing will keep your plan up to date and will allow you to measure its effectiveness. A breach is enough to worry about, let alone finding out your procedure is inadequate.

The more in depth your plan, the more effective your team will be able to respond to a potential data breach.

It should cover things such as;

� Identifying a breach

� Reporting a breach, and a process of communication for prompt notification of those involved and who is responsible to action your strategies.

� A triage process – how bad is it? Including criteria to determine if a breach should be escalated to higher authorities.

� A strategy to record data breaches, including those that aren’t escalated.

� A post breach assessment and review of damages, processes and effectiveness of your data breach response plan.

With these new changes it is imperative to familiarise yourself with these regulations and those events included within the definition of an eligible data breach, as well as review your IT and Cyber Risk policies, procedures, preparation and insurance needs.

If you have any further questions about these changes and how they effect you, then feel free to get in touch.

seminars, special online wealth education resources including RP Data, Australia’s largest property research database, plus medico-related financial news and updates. You’ll also recieve $100 off your 12 Month AMA membership The total value of your WealthStart Package is over $1000, however you pay just $299 (including GST) which is tax deductible. If you’re ready to start your financial journey, contact us for the next step.

Freecall 1800 988 522 or email wealthstart@cutcher.com.au

A Doctor in Training’s guideto financial success

Innovative thinking. Traditional values.FREECALL 1800 988 522 EMAIL medical@cutcher.com.au

Important Disclaimer: The material contained in this publication reflects General Advice only, and has not been prepared to provide specific Personal Advice to any particular individual(s). It does not take into account the individual circumstances, risk profile, needs and objectives of specific individuals. The examples are used for the purposes of illustration only. Readers should not act upon any matter or information contained in or implied by this publication without seeking appropriate professional financial planning advice. The publishers and authors expressly disclaim all and any liability to any person, whether a client of Cutcher & Neale or not, who acts or fails to act as a consequence of reliance upon the whole or any part of this publication. If the advice relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure Statement before making any decision.

Liability limited by a Scheme approved under Professional Standards Legislation.

21 July 2018 Lodge and pay June 2018 monthly business activity statement (BAS).

28 July 2018 Make super guarantee contributions for quarter 4, 2017–18 to funds by this date.

21 August 2018 Lodge and pay July 2018 monthly BAS.

25 August 2018 Lodge and pay quarter 4, 2017–18 activity statement if you lodge electronically.

21 September 2018 Lodge and pay August 2018 monthly BAS.

30 September 2018 Lodge PAYG withholding payment summary annual report if prepared by a BAS agent or tax agent.

21 October 2018 Lodge and pay September 2018 monthly BAS.

28 October 2018 Make super guarantee contributions for quarter 1, 2018–19 to funds by this date.

31 October 2018 Lodge tax returns for all entities if one or more prior year returns were outstanding as at 30 June 2018.

21 November 2018 Lodge and pay October 2018 monthly BAS.

25 November 2018 Lodge and pay quarter 1, 2018–19 activity statement if you lodge electronically.

1 December 2018 Pay income tax for companies and super funds when lodgment of the tax return was due 31 October 2018.

21 December 2018 Lodge and pay November 2018 monthly BAS.

21 January 2019 Lodge and pay December 2018 monthly BAS.

28 January 2019 Make quarter 2, 2018–19 super guarantee contributions to funds by this date.

21 February 2019 Lodge and pay January 2019 monthly BAS.

21 March 2019 Lodge and pay February 2019 monthly BAS.

31 March 2019 � Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more. � Fringe Benefits Tax (FBT) Financial Year End.

21 April 2019 Lodge and pay March 2019 monthly BAS.

28 April 2019 Make super guarantee contributions for quarter 3, 2018–19 to the funds by this date.

15 May 2019 � Lodge 2018 tax returns for all entities that did not have to lodge earlier and are not eligible for the 5 June 2019 concession. � Due date for companies and super funds to pay if required.

21 May 2019 Lodge and pay April 2019 monthly BAS.

26 May 2019 Lodge and pay eligible quarter 3, 2018–19 activity statements if you lodge electronically.

28 May 2019 � Pay Fringe benefits tax annual return. � Lodge and pay quarter 3, 2018–19 Superannuation guarantee charge statement - quarterly.

05 June 2019 � Lodge tax return for all entities with a lodgement due date of 15 May 2019 if the tax return is not required earlier. � Lodge tax returns due for individuals and trusts with a lodgement due date of 15 May 2019 provided they

also pay any liability due by this date.

21 June 2019 Lodge and pay May 2019 monthly BAS.

30 June 2019 Super guarantee contributions must be paid by this date to qualify for a tax deduction in the 2018–19 financial year.

Important tax dates 2018/19 Financial Year