Message from CEO

Dear JV Partners,

Welcome to our first JV monthly update since the commencement of 2021. We hope that you spent valuable time with family and friends over the festive period, are well rested and looking forward, perhaps like us, optimistically to the year ahead.

Whilst still recognizing the ongoing uncertainty created by the COVID-19 pandemic, and recognizing that everyone’s circumstances are different, it would appear that the economic recovery process has begun and is arguably ahead of previous expectations and, on the whole, business conditions are improving in-line with the rebound in the stock market globally.

The Prime Team across Victoria, New South Wales and Queensland in all four of our divisions are well and truly back in the swing of things with both the New South Wales and Queensland Teams back in the office and the Victorian team making a gradual return to the office as restrictions lift.

If like me you’ve had a chance to reflect and start making plans for the year ahead over the summer break now is the perfect time to meet with your key JV contacts and myself to discuss your objectives for the JV and your clients for the 2021 year. We look forward to proactively supporting you and your clients.

We will no doubt be in contact with you over the coming weeks and months and in advance of this we wish you the very best for a prosperous 2021.

All the very best from myself and the team,
Simon.

WEALTH MANAGEMENT – ADVICE, CLIENT SERVICE & EXPERIENCE

To Super, or Not to Super: that is the question!

Most Australians who’ve been in the workforce at some point since compulsory superannuation was introduced in 1992 will have some super. Click below to read more.
Read more

PRIME SMA

Monthly Commentary

Global equity markets were slightly weaker heading into the festive season with the MSCI World Index falling -0.5% in AUD terms.

READ MORE

INVESTMENT ADVICE & STRATEGY

Recent recommendations provided to clients – Purchasing CSL (CSL)

With investment markets rallying higher on the back of government stimulus and record low interest rates we continue to view the investment landscape favourably.

READ MORE

SMSF

SMSF Q&A: Ask Olivia

Olivia Long (Prime’s Managing Director – SMSF) discuss  withdrawal from a pension mode account, investing in properties using SMSF and more. Click below to have a listen.
Listen to Q&A

ACCOUNTING SUPPORT

R&D and EMDG Updates

R&D Tax Incentive Program

A bill to change the rate from currently 43.5% to instead 18.5% plus the corporate tax rate from 1 July 2021 for entities with an aggregated turnover that is less than $20M and for expenditure incurred from 1 July 2021 for companies with a 30 June year end. For those that are over $20M, the rate depends on the R&D intensity (that is the percentage of R&D expenditure incurred by the company to total expenditure).

The Research and development tax incentive was amended in November to:

  • Permanently increase the expenditure threshold cap to $150M;
  • Link the refundable tax offset for small R&D entities to the claimant’s corporate tax rate plus 18.5%; and
  • Amend the R&D offset for larger R&D entities to their level of R&D expenditure intensity.

Export Market Development Grant

Legislation was passed in December that relate to how the Export Market Development Grant (EMDG) will be administered and calculated, although detailed guidelines remaining pending. Those of you familiar with the program will be aware that historically you would apply for relevant activity that occurred in the past year. The changes reorient the EMDG to a more traditional grants scheme with upfront funding agreements for eligible exporters.

The key differences in the new program are:

  1. Likely annual application window will only be 4-6 weeks. In 2021, you can continue to apply under the existing program for export activity conducted in July 2020 – June  2021 and simultaneously under the new program for proposed export activity from 1 July 2021.
  2. Applicants will be broken into tiers and those tiers will determine how much funding you are eligible for:
    • Tier 1: New to export – maximum $40,000 each year for two years;
    • Tier 2: Expanding export promotion activity – maximum $80,000 each year for three years;
    • Tier 3: Making a strategic shift – maximum $150,000 each year for three years; and
    • Tier 4: Representative Bodies – maximum of $150,000 per year
  3. Abolition of the export earnings test.
  4. Applicants have a financial turnover of less than $20m the financial year before your application.

To determine which tier your business will fall into, you will need to use the International Readiness Indicator Tool on Austrade’s website available here.

You can also distinguish which tier your business falls into based on the following:

Tier 1: New to export
This tier will require that you demonstrate that you are ready to export through relevant training or through your understanding of what it takes to export.

Tier 2: Expanding export promotion activity
This tier will require that you demonstrate you have a plan to expand your marketing for your product and that you have already exported your product or service.

Tier 3: Making a strategic shift
This tier will require that you demonstrate you have a plan to expand your marketing for your product by making a strategic shift.

Tier 4: Representative Bodies
This tier will require that you demonstrate you have a plan to market your members products (if you are applying for funding to undertake marketing). Your plan must be for the products your members have a designated connection.

Alternatively demonstrate that you have the skills and experience to train members to become ready to export (if you are applying for funding to undertake training).

Once approved you will enter into an agreement with the government. The agreement will identify:

  • What your product is;
  • What the purpose of your marketing is;
  • How much your grant is for; and
  • (maybe) individual eligible expenses you agreed you would have.

Approved applicants will need to demonstrate that they have spent money on eligible expenses to support their export plans. The agreement will set out when you get the money. Austrade may ask for information in relation to expenditure to support the milestone payments. Prime is available to discuss this new process.

For any enquiries or support:

Melbourne team
Brendan Brown Simone Quin

Brisbane team
John Driscoll Sean Fincham

 


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.