In this article we discuss the need for SME’s in the mining and resources sectors to implement Shareholder Agreements and why these documents are crucial for protecting your business interests, and in turn, your personal prosperity. SME Business Success = Personal Prosperity #2 Getting the most from your shareholders agreement Let’s face it, building personal prosperity is…
Life can be complex for the owners of an SME. Not only do you need to manage significant financial, business and legal matters, you also need to address growing your personal prosperity – otherwise, what’s the point? The fact is, working long and hard will be a bitter pill to swallow if you fail to…
Stratus Financial Group has (for the second time) been awarded Practice of the Year at the Fortnum Financial Advisers gala awards night held in August this year on the Gold Coast AND now in September, the prestigious ifa Excellence Award for Holistic Advice Firm of the Year. “We’ll be honest, awards are important to us as…
As a small business owner it’s likely you have been investing in your business at the expense of making personal superannuation contributions. But the good news is, the small business CGT concessions may provide opportunity for you to reduce Capital Gains Tax AND catch up on your superannuation contributions. What are the small business CGT concessions?…
The SIXTH annual ifa Excellence Awards finalists have just been announced and Stratus Financial Group is among the top contenders for the coveted Holistic Advice Firm of the Year category. Brett Cribb, Principal Practice Director, Stratus Financial Group said he is pleased to be among the finalists in this particular category. “This award recognises that…
If your goals as a professional in mining and resources include purchasing your first home, the new First Home Super Saver Scheme (FHSSS) is well worth your consideration. The FHSSS allows individuals to make voluntary superannuation contributions with the ability to withdraw them (plus associated earnings) for the purchase of their first home later. The…
We have written this important strategy paper for business owners in mining & resources, as well as those considering starting their own business. The paper focuses on these THREE key matters that delivered 10 significant (and life-changing) outcomes for the business owner: 1. The issues affecting a small business that grows significantly into a much larger…
This strategy paper overviews five important areas in financial planning for professionals in mining and resources: superannuation; insurance; cash flow; home/property ownership; and estate planning. Take your first step towards building and protecting your wealth by downloading my strategy paper NOW. Read the full strategy paper here.
Your passing will be difficult enough without unnecessary complications arising from an invalid Will. Ensuring clarity and a smooth process for the implementation of your final wishes will be much appreciated by grieving loved ones, so while it might appear to be the modern thing to do, our advice is to think twice before making…
This case study illustrates the collaboration between financial (myself), legal and business advisers to create a seamless plan for our client, a business owner in mining and resources, and his wife to help them achieve their financial goals and leave a legacy for their children. Knowing that protecting the family’s current lifestyle was important to John…
This case study outlines how I provided financial planning advice and coordinated business and legal advice for a mining executive who had worked overseas for 30 years. There were multiple issues relating to complex executive options and share plans in a variety of structures across a variety of taxation jurisdictions and in addition, my client had…
This case study outlines how we coordinated buyer advocacy services to help a mining executive who was relocating to Brisbane from overseas. The client was able to purchase a family home that exceeded their expectations. Not only was it located in a sought-after suburb, it offered all the lifestyle benefits they had hoped for. Importantly, they…
Written for mining and resources executives and professionals to help you enjoy and benefit from living and working overseas, this important strategy paper considers the complex and interacting matters – personal, family, professional, social and financial – that need to be taken into account before you relocate. These matters include: risk & investment strategies; super/SMSF; asset protection;…
Building wealth effectively within superannuation is an important consideration for mining and resources personnel, particularly when a change in super legislation may be of benefit. 2018/19 is the first financial year you may be able to boost your superannuation balance by carrying forward unused superannuation concessional contributions cap amounts. Part of the Government’s superannuation reforms,…
This case study outlines how we guided our client, a business owner providing services to mining & resources, through a myriad of legal issues to arrive at selling his business for a great price, maintaining his intellectual property to meet his future goals, and setting up his estate planning for the benefit of future generations. Read…
After many years developing their business providing specialised services to mining and resources, our clients wanted to investigate how they might realise the potential value of their firm, implement a plan to achieve that value upon selling the business, and in doing so, maximise their retirement savings. This case study outlines our approach and advice,…
Your life as a mining and resources professional will always be busy but as the end of financial year (EoFY) approaches, it could be highly beneficial for you to stop and take stock of your financial situation, goals and objectives, and do any necessary fine-tuning before June 30. My EoFY planning tips for mining and…
The key to not only achieving but surpassing your business and personal wealth goals will lie in the quality of the legal advice you receive. If you are considering selling or buying a mining and resources business, you run the risk of adverse legal impacts if you choose to manage the complexities involved by yourself.…
In this strategy paper, Brett Cribb of Stratus Financial Group demonstrates his high level of understanding of the issues affecting mining and resources executives and outlines the financial planning solutions necessary for you to optimise your income. Download this strategy paper here: The Advice You Need for Mining & Resources Executive Remuneration Packaging & Complex Tax…
Our client was a successful business owner in mining and resources whose business and personal financial affairs were tightly entwined, raising concerns that needed to be addresses. This case study describes how we partnered with the client and his wife to prioritise and address their complex financial requirements: building business assets and investment worth; asset…
After years of dedication and hard work, you deserve to realise the full value of your business upon its sale. You also deserve to maximise your retirement savings. To achieve both outcomes, questions concerning your preferred exit option, business value, tax and CGT implications and what type of buyer you should attract will all need…
If you are a business owner or are planning to transition from employee to employer in mining and resources, this series of four articles is for you. As a business owner you need to protect your assets, plan your financial future (including your retirement) and realise the full value of your business upon its sale.…
If you are considering downsizing to free up capital or reduce your mortgage payments, or you just want to free up your time spent on maintenance and cleaning, you need to consider more than an optimal sale price for your family home. Planning the purchase of your next property is just as important if you…
Selling your family home and downsizing can be an effective means of freeing up capital or reducing your mortgage payments, eliminating time spent on cleaning and maintenance and often reducing significantly large utility bills. If your grown-up children have left home, now may be the time to consider downsizing. Maximising the sale price of your…
While your work day might involve drilling, drones, geology or any number of other fee generating tasks, the fact is, it’s understanding your numbers that will ultimately bring business success. You’ll be able to take control of your business once you know what the information in your financial reports actually means, and understanding ‘the numbers’…
For absent property investors living overseas and investing in property back home in Australia, there is significant risk of paying too much for properties that can fail to live up to their purchase price or longer-term return on investment. If you are living and working in a country other than Australia (or may do so…
Proposed changes to Capital Gains Tax have the potential to massively impact your tax position as an executive, professional or business owner in mining & resources. If you are already overseas or are preparing to relocate overseas for work there are wide-ranging tax matters that will need to be addressed before you go and then…
Your employer has offered you a role overseas and you are looking forward to the professional development and the experience of living and working in a different country. However, there is a range of legal matters you will need to consider, including the obvious – and complex – one of negotiating the terms of your…
Are you currently living and working in another country or could your job take you overseas in the near future? If you are an executive, professional or business owner in mining and resources who is spending 12 months or more living an expatriate life, this series of articles is for you. Over the next four weeks,…
It’s the time of year when many professionals in mining and resources are preparing to move house before taking up new positions in 2019. It’s also the start of the silly season, which brings a host of additional demands on your time, so that when it comes to setting up (or reviewing) your home loan,…
In Establishing a Consultancy Business in Mining & Resources Part 1 we set out various important issues for your consideration. Here we expand on three of them: asset protection & tax minimisation, funding, and employment law issues. 1. Asset protection and tax minimisation Most consultancies are set up as a sole trader, partnership, company or…
Whether you are thinking about starting a business in mining and resources or you already have a business in this sector, there are FIVE key questions you need to be able to provide definitive answers for, either BEFORE you start your business or during REGULAR REVIEWS to ensure your business remains relevant and positioned for…
If your income stopped today, who would pay your bills? Your partner, your parents? Or do you have enough savings to meet expenses for the rest of your life? If the answer is no, then you should consider income protection insurance. Your ability to generate an income is arguably your greatest asset, yet only 31%…
A mining and resources consultancy business can be relatively simple to establish: it can be done with no employees, no stock, limited equipment and perhaps no premises if you work from home. On the other hand, a consultancy business may not start small and/or may grow quickly. Whatever your circumstances when setting up your own…
Whether your mining and resources business is a startup or a growing concern, you need to think carefully about how to protect it. Business insurance policies can potentially save your business when things go wrong, but only if you’ve taken the time to check that the business and its assets are adequately and appropriately covered.…
When purchasing property in SMSF, knowing which property to avoid is just as important as knowing which to target. If you are considering buying property for your SMSF, my advice is to exercise extreme caution. Before going ahead, make sure you fully understand your strategy and have thoroughly investigated the property in question. The number…
What is cash flow management? For many professionals in mining and resources, high incomes are often accompanied with an overspend on discretionary expenses and limited savings, despite best intentions. Spending less than you earn sounds simple, yet it can be difficult without knowing how much and exactly what you’re spending money on. If you’re finding…
Are you compromising your personal prosperity by not making regular superannuation contributions for yourself? It’s common for mining and resources business owners to pay everyone else and reinvest profits back into their business before paying themselves a regular wage AND superannuation. It’s important to understand that short changing yourself can have significant consequences for your…
What is a testamentary trust? A testamentary trust is established when a testator leaves assets to their spouse and/or their children (or other beneficiaries) by way of a trust in their Will, rather than to the beneficiaries in their personal capacities. A Will can establish any number of testamentary trusts. The testamentary trustee will hold…
If you are in business, it is important that you are aware of the basic elements of a contract to ensure that you do not find yourself in the unfavourable position where you cannot properly enforce what you understood to be the binding promise of another. In Australia, there are six basic elements that must…
A common misunderstanding among business owners is that your tax bill is solely reliant upon your tax return preparation. In our experience, most successful businesses in mining and resources begin their tax planning in July… at the very beginning of the financial year. However, if that ship has sailed, your next best opportunity is now, in mid…
Whether you’re just starting out as a professional in mining and resources, or have been well established over the last decade, even the slightest surplus income can make a difference to your overall financial position. Loosely defined, surplus income refers to funds that remain after you have met your expenses and taxation commitments. If your…
The 2018-19 Federal Budget announcements were wide-ranging and much of the detail has not yet been released. Announcements include: $20K accelerated depreciation extended until 30 June 2019 for SMEs Introduction of a three-year cycle for SMSF audits for compliant funds Seven year personal tax cut plan For further details, please refer to our concise and…
Failing to keep accurate records of your executive share scheme (ESS) shares could see you paying way too much tax. It is important to understand that as a recipient of shares or options under an executive/employee share scheme, you are responsible for understanding and properly managing the tax implications. Failure to do so can result…
How to understand the after-tax value of executive share scheme holdings is a common challenge for the mining and resources executives I meet.
When was the last time you reviewed the structure of your mining and resources business? The type of entity in which your business operates will impact upon many issues: tax effectiveness, asset protection, business succession, flexibility, simplicity/complexity and administrative cost. Also, the types of risks your business faces will influence the structure. These are potentially…
Executive Share Schemes can be extremely complex, but effective management by an experienced professional can help you make the most of this wealth creation opportunity.
Executive share schemes (ESS) can be an effective way to accumulate wealth, however each vesting period gives rise to a number of considerations, each with different consequences. In Australia and in other countries, the shares awarded under an executive share scheme have a taxing point at the time of vesting to an employee. Regardless of whether…
For many mining and resources professionals, relocation is often a consequence of progressing your career path. Purchasing a property in your new town or city may form part of your personal wealth accumulation strategy. You may have equity in an existing property that you have retained as an investment, but limited cash available for purchasing…
Many mining and resources executives in executive share schemes (ESS) feel they are paying too much tax, and sometimes they are.
Our advice on superannuation for mining and resources professionals is this: Do what you can, as early as you can, to take advantage of the tax-efficient savings environment that the Australian super system offers. Your decisions around super are all the more important since 1 July 2017 as the lowered concessional contributions cap may have…
The funding of life insurance within a super fund can provide various taxation concessions that are not usually available for life insurance policies held outside of superannuation. Having sufficient insurance in the event of death is vitally important, especially for younger families with mortgages and young children to support. An important consideration is whether to…
Not only did we see significant falling commodity prices in 2015, but a World Bank analysis expected 37 out of 46 commodities to drop further in price in 2016 1 . Prices did rise during 2016, but if they slump again, the value of the shares in your Executive Share Scheme (ESS) may drop dramatically.…
