Thinking Ahead Issue 10

thinking
aheadISSUE 10 | AUTUMN 2015
A NEW APPROACH TO MANAGING
THE R&D TAX INCENTIVE
+THE VOICE II – DELVING DEEPER INTO AUSTRALIAN BUSINESSES
+New opportunities for Australia’s agricultural industry
+Tax exemptions for small, start-up companies

IT security: Is your business safe? 1
Dangling the carrot 2
Investing in the dining boom 3
The Voice ii 4
Research and development: A partnership approach 6
Valuing your life’s work 8
Seeing your loved ones right 9
Adopt, Adapt, Improve 10
News 12
This is not advice. Clients should not act solely on the basis of the material contained in this Bulletin. Items
herein are general comments only and do not constitute or convey advice per se. Also changes in legisla-
tion may occur quickly. We therefore recommend that our formal advice be sought before acting in any of
the areas. The Bulletin is issued as a helpful guide to clients and for their private information. Therefore it
should be regarded as confidential and not be made available to any person without our prior approval.
Bentleys is a national association of independent accounting firms in Australia and New Zealand. The
member firms of the Bentleys association are affiliated only and not in partnership.
thinking
ahead
Doing business overseas – Bentleys’ global affiliation
With advisors in over 94 countries, our affiliation with
Kreston International means we can offer our clients 24-
hourglobalcoverage.Krestonoffersreliableandconvenient
access to quality services helping you navigate cultural
and language issues when doing business overseas. With
700 offices and over 19,500 professional staff, Kreston
ranks as the thirteenth largest accounting network in
the world. Founded in 1971, Kreston is a member of the
Forum of Firms, an association of international networks of
accounting firms that promotes consistent and high-quality
standards of financial reporting and auditing practice.
Thinking Ahead is Bentleys’ quarterly publication of news and information for individuals and business.
Bentleys’ Australia and New Zealand network of
professionals
At Bentleys we are more than accountants. We are business
advisors in a national network of professionals who provide
accounting service, audit and assurance, business advisory,
corporate recovery, financial planning, superannuation
advice, trust and estates planning and taxation consulting. We
provide service to family business, small to medium business,
listed entities, professionals, high net-worth individuals and
government. Across Australia and New Zealand Bentleys
employs hundreds of professionals – including specialists in
aged care, agribusiness, mining and resources.
contents

MANAGEMENT
bentleys.com.au Bentleysnz.com | Bentleys thinking ahead | AUTUMN 2015 1
g IT security: Is your
business safe?
New privacy principles introduced by the Australian Government
in March 2014 have strengthened Australians’ privacy rights.
To find out how you can protect your IT systems, contact
McLean Delmo Bentleys IT Security Services.
Areas affected include direct marketing,
the disclosure of personal information and
requesting access to personal information held
by an organisation. It is therefore imperative
that organisations ensure their customer or
client personal information is secure.
A recent Hewlett Packard survey assessing
security of devices, found that 7 out of 10
devices are susceptible to compromise. It is
no surprise then that the April 2014 Bentleys
– The Voice of Australian Business survey
listed security and data protection in the
top 5 technology challenges faced by small
business and small to medium enterprises
(SMEs).
What can you do to secure
your IT systems?
1. Ensure you have systems to mitigate
external and internal threats. These
could include an effective firewall, antivirus
software, email and website filtering.
2. Introduce robust mobile device
management. Develop policies that cover
company mobile equipment as well as
bring-your-own devices (BYOD). Include
policies for application control, device
security and remote wipe (in the event a
remote device containing business data
is lost).
3. Ensure remote access is secure. Use
secure access channels, such as virtual
private networks (VPNs), and enforce
policy restrictions.
In addition to protecting against outside
influences, how you manage your data
internally is now more relevant than ever.
Introducing effective document management
strategies will help ensure controlled and
improved document distribution and better
document organisation. This is helpful if
information needs to be produced under the
new privacy laws.
Finally, ensure your backup strategy
is adequate to meet your needs. In the
unfortunate event of a security breach,
Dean Lofthouse
IT Manager,
McLean Delmo
Bentleys
having qualified backup data is essential to
protect your business.
These are all basic steps to securing your
business against malicious attack. As an IT
professional, I often hear statements like:
‘I’m not tech savvy’ ‘It all costs so much’
‘IT requires too much specialty training’.
The question here is, can you afford an IT
security breach?
With technology pervasive in our lives,
and the threat of security breaches ever
present, securing your IT systems is
essential. Investing in an IT security audit
and taking preventive measures to protect
your systems and data could save you a lot
of money and reputational damage in the
event of an unexpected threat.

small business
2 AUTUMN 2015 | Bentleys thinking ahead | bentLeys.com.au BENTLEYSNZ.com
To boost entrepreneurship and provide
rewards for both employers and
employees, the Australian Government
has proposed welcome employee share
scheme (ESS) legislation for start-ups.
One of the key changes for Alan’s employee
is that small discounts on shares (less than
15% of market value) are to be exempt from
income tax but will fall under the CGT rules
(including the general 50% discount).
Another key change is that for qualifying
rights to acquire shares, the CGT rules will
apply instead of the income tax rules and also
allows for such rights to be effectively issued
for free assuming the terms of the right are
appropriately structured.
Additionally, the Taxation Office is to be
allowed to develop ‘safe harbour’ valuation
rules and standardised documentation to help
employers like Alan.
It’s encouraging that the Australian
Government has acknowledged that
the current ESS legislation does not
accommodate the small business sector
and is consulting with industry to develop a
solution.
Although still in draft, these proposed
changes are intended to apply from
1 July 2015 and are a welcome incentive for
employers and employees alike.
To find out how your business can
benefit from an employee share
scheme contact your Bentleys advisor.
Dangling
the Carrot
In a competitive labour market, attracting
and retaining quality employees is a concern
for many small start-up businesses in
Australia. Yet when a valued employee has
shares or rights that vest upon a term of
service and/or the achievement of financial
and operational key performance indicators
(such as revenue growth and units of output)
it can create opportunities to:
1. Align the employee’s goals with those of
the company.
2. Improve the productivity of employees
who participate in an employee share
scheme
Enticing a valued staff member to stay
Alan is the sole shareholder and managing director of a
start-up business that has a turnover of less than $50 million
per year. The general manager of Alan’s business is being
head-hunted by a listed company. Alan believes this employee
is critical to the business’s future success. To retain his
employment in the company, Alan wants to issue the general
manager with an equity stake in the business.
Eric Ballard
Manager, Taxation
and Business
Services
Bentleys, WA

agriculture
Investing in the
dining boom
The demand for high quality food from countries
such as Australia – which is perceived as green and
clean – is driving much of today’s interest behind
the so-called ‘dining boom’.
Brendan Goulding
Director,
International Services
Bentleys, Queensland
When preparing for investment or
engaging with prospective investment
partners, consider the following:
1. Make it easy for investors to
understand your business.
Have information available about your
business’s track record. This will help
investors understand your business and
determine whether they are a suitable
investment partner.
2. Communicate who is managing the
business.
Make it clear to investors who’s behind
the company and what experience your
management team has.
3. State why you’re seeking an
investment partner.
Outline the reasons why you are seeking an
investment partner and the type of partner
you think would be suitable.
4. Tell them what’s in it for them.
Clearly articulate to an investment partner
the funding you are seeking and the benefits
to them of investing in your business.
5. Seek advice from experts who
understand the market and industry
sector.
Your advisor will be able to provide advice
for forming a partnership as well as alert you
to issues you need to consider to make it a
good fit for you.
Given the growing emergence of
international investment interest in Australian
agriculture, co-investment partnerships
with international investors could be a good
option for Australian agribusinesses to
explore. If the investment partner is a good
fit, this partnership could provide access to
capital and markets.
For more information about international investment,
contact Bentleys International Advisory Division.
Continued urbanisation, coupled with the
purchasing power of a fast-growing and
increasingly affluent middle class in rapidly
developing countries, particularly in Asia, are
also factors contributing to the demand for
Australian food. These trends are presenting
export opportunities on our doorstep that are
difficult to ignore.
Using Queensland as an example:
• The beef industry is Queensland’s largest
agricultural industry.
• Queensland produces over 1 million
tonnes of beef per year, with a farm gate
gross value of production worth $3.25
billion per annum.
• Queensland exported over 635,000
tonnes of beef in 2012–13 to 78
countries which accounts for over
60% of Australia’s beef exports.
• Queensland’s beef export market has a
value of around $3 billion per annum.
• Important markets include Japan, the
United States, Russia, Taiwan and South
Korea.
Source: Department of Agriculture, Fisheries
and Forestry, 2013
Given the current strong demand for
Australia’s agricultural products, opportunities
are emerging for co-funding investment
agreements with investors seeking access to
Australian agriculture products or exposure to
the expected continued growth in global food
demand.
Seeking international
investment
Joint ventures with investment partners from
regions such as Europe, Asia or the USA
can be a lucrative source of capital for the
Australian partner while at the same time
providing access to previously unavailable
markets.

The Voice II
In March last year, Bentleys conducted
their first survey – Bentleys – The Voice of
Australian Business – of 2,377 SMEs across
sectors and groupings including education,
health, professional services, government and
agriculture.
Armed with this information, in November
2014, Bentleys launched The Voice II,
surveying over 600 businesses to see what
had changed and asking fresh questions
about levels of confidence, perceived
obstacles and opportunities. Responses from
328 of the businesses surveyed were included
in the final report.
Bentleys’ second business survey in less than 12
months, The Voice II has given us an unprecedented
insight into the obstacles and opportunities
confronting micro businesses as well as small to
medium enterprises (SMEs) in Australia.
The method
‘We found the first survey gave us great
insight but it also raised many new questions
in specific areas such as technology and
foreign investment. Deciding to run the survey
with a smaller sample group was a logical
decision and allowed us to delve deeper,’ said
Bentleys Executive Officer, Mark Chapman. ‘If
The Voice I was a full health assessment, The
Voice II was a check of the pulse.’
The method used for both surveys was
the same, covering both metropolitan and
regional Australia and taking in all states
and territories. Exactly 57% of businesses
were based in a capital city or surrounding
suburbs and classified as ‘metropolitan’. The
remaining 43% were located outside of state
capitals in large cities or regional or rural
areas (classified as ‘non-metropolitan’).
The data
‘The data collected in The Voice I hinted at
the difference between metro and non-metro.
We wanted some reliable data to show this
divide,’ explained Bentleys Chairman, Nick
Storer. ‘In The Voice II we wanted to include
all business types but particularly wanted
to concentrate on metro versus non-metro
as well as micro businesses and SMEs. We
listened to what we were told in The Voice
I and honed in on some of the challenges
facing micro businesses of 1 to 4 employees,’
Mr Storer said. ‘We particularly wanted to get
an idea of the wide variety of concerns about
how SMEs feel about taxes’.
‘Paying income tax, superannuation, sick and holiday leave,
etc is difficult in a small rural town where your turnover is
limited by population size and access to services that are
common in larger communities.’
Non-metropolitan, micro, information media and telecommunications
‘I think there is a huge risk to Australian businesses
in general from offshore investment. Decisions are
made to benefit multinationals rather than Australia.’
Non-metropolitan, micro, arts and recreation services
The tax questions
In order to understand the concerns about
the effects of tax, the survey posed the
following questions:
• In general, do you find it hard or easy
to understand the taxes that affect your
business?
• Do you think the current rate of the GST
is too low, too high, or about right?
• If the GST were raised to 15%, what
would be the main impacts (if any) on
your business in terms of revenue,
profitability, competitiveness and number
of employees?

To find out more about the results of the survey or to listen to a presentation about
The Voice II, contact the Executive Officer at execofficer@bentleysaustralia.com.au
As expected, answers to these questions
demonstrated a disparity in attitudes between
micro and small businesses based in non-
metro areas in comparison with medium,
metro-based business.
Heads in the clouds?
‘In The Voice I, we discovered that only 14%
of respondents indicated they were planning
to adopt Cloud computing technology for
cutting edge data transfer in the next
12 months. We were surprised that interest in
Cloud was this low. We had to delve further
as we needed to understand what these
concerns were. The results allowed us to
compare and contrast the data from metro
and non-metro areas as well as between
micro and SMEs,’ said Mr Chapman.
The results of the survey indicated a lack of
knowledge of Cloud computing and the need
for education in some sectors. There were
also genuine fears based on the negative
experiences of businesses, including:
• Security breaches
• Hackers accessing business bank
accounts
• Information being falsely sent from
company domains or email addresses
• Attacks on Cloud-based services (e.g.
denial of use) and attacks on IT systems
(e.g. ransom hacking).
‘If the GST was raised I would have to raise my prices to our
clients and that would turn people away. It is hard enough
to make ends meet, without increasing the tax burden on
small, struggling business owners.’
Non-metropolitan, micro, animal care
Foreign investment – friend
or foe?
The gap between those in metro and
non-metro areas is widest on the subject
of foreign investment. The Voice I revealed
concerns about the perceived levels of
foreign investment in Australia. The Voice
II demonstrates this perception still holds,
although the data reveals 64% of those
surveyed did not know the actual extent of
foreign investment in Australia.
‘I become confused with which taxes are applicable to me
and at which times. I thus rely heavily on my accountant.’
Metropolitan, micro, health care and social assistance
• Businesses surveyed in all states and
territories, with the majority located in New
South Wales, Victoria, and Queensland.
• 57% of businesses located in a capital
city or surrounding suburbs (classified as
‘metropolitan’); 43% located outside of state
capitals (in large cities or regional or rural
areas, classified as ‘non-metropolitan’).
• Professional, scientific, and technical
services (15%), retail trade (13%), and
manufacturing (8%) the most highly
represented industries.
Business
characteristics
Business size
Micro: 1-4 Small: 5-19 Medium: 20-200
Employing micro, small, and medium businesses was the main focus of the survey.
Non-employing businesses (sole traders) and those employing more than
200 people were not included in the survey.
46% 30% 24%
The findings
Bentleys will be releasing
the findings from The Voice
II between February and
May 2015 and will continue
to offer better, more tailored
services to clients in both
Australia and New Zealand.
The aim is always to have
a detailed understanding
of the real challenges and
opportunities facing the SME
and micro business sectors.
5%
1%
6%
21%
36%
29%
3%

feature
Research and
development:
A partnership
approach
The RD Tax Incentive is Australia’s largest
business assistance program for innovators,
supporting more than 12,000 companies
and RD expenditures of over $18 billion.
The RD tax incentive is a self-assessed,
rules-based program where receipt of a tax
benefit is the outcome of undertaking eligible
activities. The benefit can be as much as a tax
refund of 45% of eligible RD expenditure for
companies that adopt solid RD knowledge
and management practices.
If it isn’t written down, it
didn’t happen
As the scheme has evolved, it has shifted
from a focus on the tax to a celebration of
innovation. Contemporaneous substantiation
of the journey from the ‘idea’ through to the
technical outcome is essential. At the same
time, RD companies must establish and
maintain their legislative eligibility. The onus
is on the RD company to take an active
role in knowledge management by planning
RD projects. There is also a compliance
requirement to record the events (such as
discoveries, challenges and observations)
as they occur, providing evidence and
implications of these.
Typically, at an annual ‘RD Tax time’, RD
companies and their business advisors work
furiously to prepare applications to meet a
fixed 30 April deadline (for companies with a
July to June financial year). A major problem
with this approach is that the RD events
could date back as far as 22 months.
Collaborative Cloud technology, combined with
Bentleys’ advisory power, is giving innovating
businesses a bigger and better-tasting slice of the
research and development tax pie.
Mike Burfield
Director, RD
Services
Bentleys, SA
If record-keeping and knowledge
management systems are deficient, eligibility
may be compromised. This is because
record-keeping is fundamentally linked to
eligibility regardless of whether the RD
work is actually experimental or not. For the
regulator, it’s a case of, ‘If it isn’t written down,
it didn’t happen.’
A partnership approach
At Bentleys, we offer an alternative model
to ‘RD tax time’. Using innovative, Cloud-
based software – rdmLIVE – your Bentleys
RD tax advisor is simply a part of your
company’s knowledge management system.
This is a collaborative model where your
advisor imparts strategic, business and
compliance knowledge throughout the RD
cycle, not solely at the application preparation
and lodgement time.
Interaction and
collaboration
Each RD team member in your company
can have a secure login with tailored,
administrator-controlled access to system
modules. Rather than having to replace your
existing recording system, these modules can
augment them. Modules include:
Planning: Users are guided through the
development of an RD plan, addressing
the key questions needed for Tax Office
registration and any post-registration
compliance activity.
Activity classification: With this tool, users
can correctly determine if an activity is Core
or Supporting. They can then establish
the correct relationship hierarchy between
activities in a project.
Work logs: RD staff and contractors can
record time and events and allocate these to
activities in a simple, logical way.
Costs: Excel worksheets are integrated and
RD costs are allocated to the appropriate
expenditure categories and activities.

File: RD companies can upload and store
supporting documents, and allocate them at
an activity level.
Registration: This module interacts with all
other system modules and enables users to
create an annual RD tax registration form.
It is even possible to export the data directly
into an AusIndustry registration form.
The researchers and developers
themselves have increased involvement in
the registration process, deflecting the RD
preparation work from the Chief Finance
Officer to those with the expert knowledge of
the research and development.
The right support at the
right time
The rdmLIVE software has a detailed
tutorial and guidance system linked to
every question. By linking to user profiles,
Bentleys’ expert RD advisors can also
provide support and reviews on request,
as well as immediate responses to flags
generated by the integrated compliance
logic embedded in the system.
An efficient methodology
The software is a precision system and
assisted self-management tool that helps
RD companies complete registrations
correctly and comply at best-practice levels.
As the RD application is being prepared
throughout the year, registration bottlenecks
are reduced.
In all areas of business, Cloud computing
is becoming a necessity. For RD
companies, rdmLIVE Cloud software can
make a previously time-consuming and
stressful process, a streamlined and
efficient one.
To find out how rdmLIVE can simplify
your RD tax registration and
compliance process, contact
a Bentleys advisor near you.

small business
You’ve put in the hours, you’ve watched your business
grow and thrive. Now you’re ready to reap the well-
earned rewards. But is your business ready?
Kim Lambert
Client Manager
Bentleys, Newcastle
Work out your priorities
Once you understand the business at a
strategic as well as an operational level you
need to set priorities. Is there a significant
weakness that needs to be addressed first?
Outline how you will minimise the risks
you’ve identified, including what you plan
to change, how you will change it and what
effect you expect the change to have on the
business.
Work with your staff and accountant to
identify structured procedures to ensure
staff require minimal supervision. Keep track
of your success with regular reviews and
business revaluations.
Be realistic and flexible
It’s always important to keep your retirement
goals realistic based on the minimum you
can live on, without factoring in your dream.
If you’re not able to implement the business
changes within your original timeframe, you
may need to review your retirement timeline,
change the strategies for your business or
reconsider your retirement lifestyle.
By taking some crucial steps now, you
can help ensure your business reaches its
full potential before you sell. With a planned
approach to increase the value of your
business, come retirement, you will reap the
rewards.
To find out how much you need your
business to be worth for your retirement,
contact a Bentleys advisor near you.
Valuing
your life’s
work
‘How much is my business worth?’ This
is the question on most business owners’
minds when the time comes to sell up and
retire. When you’ve sacrificed so much and
put so many years of work and effort into
building your business, it’s easy to imagine
that your business is worth a great deal
more than what the professional valuation
says. ‘Is that all my effort was worth?’ you
think.
A more realistic response would be ‘How
much do I need my business to be worth?’
To find the answer to this, you need to ask
yourself two key questions:
1. When do I want to retire?
2. What retirement lifestyle do I want? For
example, do you want to live a quiet life
by the beach? Or is travelling the world
what you’ve always wanted to do?
Analyse your business
The first step to increasing the value of
your business is to identify its strengths,
weaknesses, opportunities and threats.
Consider asking your key operational staff
to do this exercise as well – you might be
surprised at how the answers differ.
Also consider the following:
• Does the business perform to industry
benchmarks?
• How much old and outdated stock is
on hand?
• How are exchange rates affecting
sales?
• Are there any debtors outside of
payment terms?
• Does most income come from a few
customers?
• Are the business premises key to
business success? If so, is the tenure
secure?

aged care
In a country where longevity is becoming
the norm, the Australian Government has
acknowledged the growing demand for aged
care services and is placing an increasing
focus on user pays. To meet these demands,
it is vital that families are prepared and make
important financial and care decisions before
being hit with a medical emergency.
1. Plan.
Frank and open discussion is the first step
to an effective decision-making process.
Convene a family meeting to:
• Explore priorities and preferences and
help your family arrive at a common view
• Understand how aged care works and the
range of care options available
• Consider the role of the family home in
funding the entry fee to an aged care
facility
• Review your loved ones’ ongoing
cashflow requirements
• Ensure the estate plan continues to reflect
your loved ones’ wishes and the family’s
decision.
An advisor can help you through the
process by offering an impartial and objective
view.
2. Assess healthcare needs.
To determine the level and type of care
required – be it home care, or in a residential
facility – speak to your family doctor to
arrange an assessment of your loved ones’
health.
3. Search for services.
Think about the important criteria when
deciding on a service or facility. Do you need
to consider the location, amenities and access
to health services?
4. Understand the costs.
Paying for aged care is generally divided into
contributions towards accommodation (where
required), care and additional services. The
Seeing your
loved ones right
For many families, the need for aged care services is
precipitated by an emergency, such as an accident
or illness. As a result, options may be limited, adding
stress to an already emotionally-charged scenario.
Jodi Lupton
Associate Director
and Aged Care
Specialist
Bentleys, Queensland
cost depends on the service chosen and
the assessable assets and incomes of your
family member.
The total payable can be hard to calculate.
Your advisor can explain the fees and
calculate an estimate.
5. Cover the costs.
Review the financial situation and develop a
plan to help make decisions around covering
the costs of care. Talk to your advisor about:
• What are the options regarding the
family home?
• Is it best to pay a residential
accommodation deposit (RAD) or a daily
accommodation payment (DAP)?
• What are the Centrelink considerations?
• How do we manage taxation
implications?
6. Plan your estate.
Consider the impacts that any changes
made to living or care arrangements
will have on estate plans such as a Will,
investment nominations and powers of
attorney. Many documents can only be put
in place while an individual is deemed of
sound mind, so it’s important to establish
them early.
7. Moving.
If new care arrangements involve a move
into a residential facility, a resident
agreement will be set up, and fees may
start once the place is accepted. There is
a 28-day period in which you will need to
decide whether accommodation will be
paid for as a lump sum (RAD) or as a daily
fee (DAP).
Although most people would prefer to live
their remaining years at home, the reality
is, not everyone will be able to continue to
live independently. By being prepared and
talking to your advisor, you can reduce the
financial and emotional stress of having to
move to residential care.
For help with planning for your family’s aged
care needs contact your Bentleys advisor.
You will find resources and help to find services
and facilities at www.myagedcare.gov.au

A family business often starts out small – being your
own boss is appealing and you take your passions
from being a hobby to a vocation for the future.
Adopt
When you start out your accountant may
suggest an ideal family business structure
for your immediate circumstances. As
your business grows beyond everyone’s
expectations and evolves into an
intergenerational business, the structure that
was suitable at the outset may no longer be
efficient to achieve your wealth creation goals
or your family’s goals.
Adapt
It’s therefore important not to set and forget.
Your original structure may need to be
adapted to accommodate growth and future
succession. Family circumstances can also
change as you may see in the following
scenario, where we have a family/discretionary
trust with a corporate trustee.
Kirsten Taylor-Martin
Client Director,
Business Advisory
Bentleys, NSW
Mum Hope and Dad Hope have two
children, Paige and Peter. Paige decides she
wants her own career and is never involved
in her parents’ business, whereas Peter has
worked in the family business from the time
he left school. Peter is paid a wage from
the business. In the past, the trustees have
decided to distribute the remaining profits
to Mum and Dad Hope then evenly to both
children.
Scenario 1. Mum and Dad decide to retire.
Can they access cash?
Mum and Dad decide they will just sell an
asset in the trust. But do they own the assets
in the trust? No they don’t. Fortunately,
there are ways to get funds out of the trust
for retirement and capital gains tax (CGT)
rollover relief may be available to restructure.
Scenario 2. Peter wants equity in the
business. Can the trust structure adapt?
Unfortunately, Peter’s wish is not going to
come true. The business is structured as a
FAMILY BUSINESS
Adopt, Adapt,
Improve
peter DAD MUM PAIGE
Is it a
corporate
trustee?
If corporate trustee,
who will be director
upon the parents’
death?
Who is the
appointer?
I want
equity
I’m getting
divorced
We want
to retire!
TRUSTEE
TRUST

For advice on the best structure for
your family business, contact a
Bentleys advisor today.
discretionary trust with the assets managed
by the trustee. In this case, it is a corporate
trustee and Mum and Dad are the directors.
The trustee can distribute the profits at their
discretion. They could distribute 100% of the
profits to Paige, and ignore Peter.
Scenario 3. Paige is getting divorced. Are the
trust’s assets safe?
This will depend on whether or not Paige has
been paid her trust distributions each year.
If she has an unpaid present entitlement,
those funds will become part of the divorce
settlement. This could mean the business is
forced to sell assets to pay the entitlement.
Scenario 4. Mum and Dad pass away. Who is
in control?
What happens when Mum and Dad pass away
depends on whether they mention in their Will
who is to take over their shares in the trustee,
enabling that person to appoint new directors
of the trustee company. Additionally, if there
is an appointor for the trust, the appointor
may have the right to remove the trustee and
appoint another company as trustee. Often
a trust is set up quickly with little thought as
to who will be appointor (if the deed requires
one to be nominated). The appointor may be a
previous accountant, solicitor or someone else
you no longer have regular contact with.
Improve
It’s always important to speak to your advisor
when your business is taking a new direction
as family matters could impact the business or
put working capital at risk. Always fully inform
your accountant or advisor of the individual
circumstances impacting you, your business
and your family. This will help your advisor
determine the best structure for your business
to adopt so you can always adapt and
continue to improve.
Kirsten Taylor-Martin is
accredited by Family
Business Australia

Expanded network for
Bentleys Tasmania
The Paragon BDS and Bentleys Tasmania merger on 1 January has brought together two
of Tasmania’s leading Xero service providers. Both firms are pioneers in Cloud solutions,
resulting in Bentleys Paragon becoming a Platinum Xero partner, one of only three listed
nationally. This is a significant achievement for a Tasmanian firm.
‘We are delighted to welcome
Paragon BDS to the Bentleys
family. The merger supports
Bentleys’ national expansion
plans and strengthens the
expertise of the growing Cloud
Solutions division of Bentleys,’
said David Wilson, Managing
Director, Bentleys Paragon.
‘An added bonus to the merger
is our first female partner in
Tasmania, Karen Gambles,
previously the Director of
Paragon BDS.’
Bentleys Paragon now has
offices in Hobart, Ulverstone
and Sheffield with a new office
in Launceston to open shortly.
‘All our staff have stayed with
us in the merge, creating a
diverse and strong combined
team of 35,’ said Ms Gambles.
‘The combined firms’ expertise
in audit and advisory services
and Cloud Solutions accounting
means our clients can enjoy a
greatly expanded service.
Our clients also now have
access to one of the world’s
leading accounting networks
– Kreston International – with
the additional resources and
support of Bentleys’ national
organisation,’ said Ms Gambles.
Since its inception in 1975, Bentleys WA
has been providing reliable and timely
services to private and commercial clients,
particularly the small to medium enterprise
(SME) sector.
‘Most of our directors come from the
“Big 4” accounting firms. But being a mid-
tier firm, we’re free from the constraints
imposed by the larger international firms.
We offer our clients a high level of expertise
with a more personal service. And of course
our clients have all the benefits of the firm
being part of the Bentleys national network,’
Spotlight on
Perth, WA
Our vision is to create long-term and trusted
relationships with our clients and deliver quality service.
By collaborating with our clients we make a positive
contribution to the financial affairs of every one of them.
Services:
• Audit and assurance
• Taxation and business
• Corporate and business
advisory
• Financial planning and wealth
creation.
says Phil Rix, Bentleys, Perth Managing
Director.
‘They’ve got the small business mentality
with big business expertise,’ says Paul
Galvin, co-owner of Galvin’s Engineering.
Michael Malone, founder and former CEO of
iinet confirms, ‘I’ve been working with these
guys for a decade, and they’ve just never let
me down.’
Bentleys, WA is a full service accounting
firm of finance professionals with 6
Directors, 1 Associate Director and a team
of over 40 staff.
Gavin Fernandes (centre) of
Xero with Robin Allardice and
Karen Gambles of Bentleys.

NEWS
Committed to changing the face of men’s health –
Movember Newcastle
Despite complaints of ‘it tickles, it rubs and the missus
isn’t keen on it,’ the lads from Newcastle sported some
interesting moustaches last November, raising over $340.
Long and loyal
service
A tremendous achievement, Bentleys
Brisbane’s Company Accountant,
Maria Tsoumbaras, celebrated her
35-year anniversary with the firm
in January. Beginning her Bentleys
career in the ‘computer’ department
in 1980, Maria was a true pioneer –
Bentleys was the first accounting firm
in Queensland to install a computer
to process clients’ accounts. Maria’s
loyalty and dedication are invaluable
– we look forward to many more
years together!
Bentleys supports the
ultimate team sport
Bentleys Tasmania has begun a 3-year
Rowing Tasmania sponsorship. One of
the best rowing courses in the world,
the picturesque Lake Barrington is a
10-minute drive from Bentleys Paragon’s
Sheffield office. www.rowingtasmania.
com.au
Elite rowers from across Australia
competed on 14 and 15 February at the
NSW Rowing Championships Regatta
for selection into the NSW State Team
and pre-qualification for selection into the
Rowing Australia team. Congratulations to
all of the athletes who competed.
Supporting the Championships Regatta
and the NSW King’s and Queen’s cup
teams since 2012. www.rowingnsw.asn.au
CORINNA CONTE
Marketing and Business Development
Manager, Corinna Conte joined
Bentleys, WA in August last year
working closely with Directors to
promote the Bentleys brand in WA.
Bentleys welcomes
new RD advisory
expert
Joining Bentleys’ SA office,
Mike Burfield will help develop
and build an RD Tax Incentive
services advisory capability.
Mike brings over 25 years of
RD Tax experience, applying
the requirements of the RD Tax
program to most commercial
scenarios and industry sectors.
He has worked in RD tax
advisory in Big 4 as well as in
his own businesses.
Image [Left to Right] – Bentleys
Directors – Bob Evett, Kevin Cranfield,
Chris Hope and Nigel Banks with Sarah
Pound – Bentleys staff member and
elite NSW and Australian Rower.
Financial Review Client
Choice award finalist
McLean Delmo Bentleys was
announced Finalist in two
categories of the 2015
Awards: Best Accounting Firm
(revenue under $50m) and
Best Victorian Firm (region
award). Thank you to all our
clients who nominated us.

Think ahead
Talk to Bentleys today
Find out how we can help – call an office near you.
Brisbane, Sydney, Melbourne, Adelaide, Perth, Hobart, Newcastle,
Auckland and centres across Australia
bentleys.com.au
bentleysnz.com
Bentleys is a national association of independent accounting firms in Australia and New Zealand
The member firms of the Bentleys association are affiliated only and not in partnership.

Thinking Ahead Issue 10

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