Key Discussion Points | September 2020

Message from CEO

Dear JV Partners,

I hope this note finds you well.

By now you would have received copies of our recommended budgets for FY21, we look forward to any feedback you may have.

As always, there is plenty of activity and it was nice to have such great client attendance and interest at our recent webinar / forum on residential property markets which also included an overall equity market update from Jonathan Bayes, one of his last sessions with clients before he finishes up on 4 September. By way of update, the investment committee members and participants continue to meet weekly reviewing core holdings and opportunities as we see out the rest of reporting period, we are also engaging with market participants to make sure clients gain access to the best advice and opportunities.

In other interesting news, Prime’s Capital & Corporate Advisory division was pleased to advise long term Prime Accounting & Business Advisory client, Quad Lock on its recent sale of a majority equity interest to Quadrant Private Equity, through the $400m Quadrant Growth Fund, for more information please click here for the Media Release. Congratulations to founders Rob Ward and Chris Peters on such a successful outcome in what was a hotly contested process for such an exceptional business.

If you have any queries or would like to discuss any client opportunities please don’t hesitate to contact us.

Best,

Simon Madder.

WEALTH MANAGEMENT – ADVICE, CLIENT SERVICE & EXPERIENCE

Corporate Actions & Updates

As part of keeping you up to date on the communications that we are discussing with clients, please click below for the most recent note we sent out.

2020.08.21
Magellan Update – DO NOTHING
Sent to fee paying clients who have investments in either the Magellan Global Fund (MGE0001AU), the Magellan Global Equities Fund (MGE) or the Magellan Global Trust (MGG)

WEALTH MANAGEMENT – ADVICE, CLIENT SERVICE & EXPERIENCE

The value of having a person when life is presenting significant stress points

Written by Dylan Cresswell CFP®, Private Client Adviser

In September 2018, whilst completing a review with an existing client, I enquired about his income protection needs. Our client was mid 50s medical specialist earning high wages. His first comment was “I’ve had my XXX policy for years and I still need the cover”. I explained that whilst the benefit is required, we can review for quality coverage and premium.
Read more

EVENTS

Wealth Forum Recording: Current Investment Property Landscape in Australia

During our recent Wealth forum, Phillip Almeida (Director of Property Advisory & Research – Performance Property Advisory) spoke about the current investment property market. Click below to watch.
WATCH NOW

EVENTS

Business Owners Strategy Forum Recording: The Entrepreneurs Journey

During our last forum, Matt Murphy discussed how to identify the right opportunities to build a scalable & sustainable business, the importance of emerging technology and the range of capital funding solutions available for a business.
WATCH NOW

SMSF

Benefits of an SMSF

Olivia Long (Managing Director, Prime SMSF) discusses the benefits of setting up an SMSF during these uncertain times.
WATCH NOW

SMSF

SMSF Q&A: Ask Olivia

Olivia also answers a number of questions relating to self-managed super funds, including around tax obligations, capital gains and more. Click below to have a listen.
LISTEN TO Q&A

ACCOUNTING SUPPORT

R&D and EMDG Updates

R&D Tax Incentive

R&D tax incentive applications for the previous tax year ended 30 June 2020 can now be lodged with AusIndustry.

There is also still an ability to lodge R&D tax incentive applications for the previous tax year ended 30 June 2019 due to a COVID-19 extension. The extended lodgement date is 30 September 2020.

Accessing the government’s 43.5% R&D tax incentive cash rebate could provide a vital form of funding to assist your business get past the current COVID-19 situation.

Prime can also provide introductions to R&D financiers that may lend up to 80% of your expected R&D rebate from the 2019 or 2020 tax years. There is also an opportunity to lend against your R&D rebate that is being accrued for the current year ended 2021.

Note: Proposed legislation has been re-introduced into Parliament to reduce the current 43.5% R&D refundable tax offset to 41%. This legislation may passed to apply retrospectively for expenditure incurred during the tax year ended 30 June 2020. We will monitor progress of the legislation and update accordingly but at this stage looks like it is being delayed.

Export Market Development Grant (EMDG)

EMDG applications for the previous financial year ended 30 June 2020 can be now lodged with Austrade.

This grant provides exporters with an annual reimbursement of up to $150k – based on 50% of their eligible promotional expenses. There are several expense categories including online advertising, appointment of overseas reps and securing overseas patents and trademarks.

As such there is still an ability to incur eligible expenditure without leaving Australia.

Austrade’s recently announced COVID-19 stimulus measure for the EMDG include:

Removal of the requirement to generate export income from the businesses 3rd claim onwards.
Increase in the first tranche payment to $100,000 (previously $40,000).

Note: The above measures are only planned to apply for this claim year.

For any enquiries or support:

Melbourne team
Brendan Brown Simone Quin

Brisbane team
John Driscoll Sean Fincham

CAPITAL

Press Media Release

Quad Lock Co-Founders, Rob Ward and Chris Peters engaged Prime Capital to provide advisory services and assist in the identification and securing of an appropriate investment partner.
Read more

The information in this page contains general advice and is provided by Primestock Securities Ltd ABN 67 089 676 068, AFSL 239180 (‘Prime’). That advice has been prepared without taking your personal objectives, financial situation or needs into account. Before acting on this general advice, you should consider the appropriateness of it having regard to your personal objectives, financial situation and needs. You should obtain and read the Product Disclosure Statement (PDS) before making any decision to acquire any financial product referred to in this page. Please refer to the FSG (https://www.primefinancial.com.au/fsg) for contact information and information about remuneration and associations with product issuers. This information should not be relied upon as a substitute for professional advice, and we encourage you to seek specific advice from your professional adviser before making a decision on the matters discussed in this page. Information in this page is current at the date of this page, and we have no obligation to update or revise it as a result of any change in events, circumstances or conditions upon which it is based.

DOCUMENTS

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Key Discussion Points - September 2020