WELCOME TO 'STABLE TALK',
STABLE FINANCIAL'S QUARTERLY NEWSLETTER

With the 2009 racing season recently completed, now is an opportune time to examine the performance of two year olds sold at the different yearling sales held around Australasia in the first half of the 2008 year.

With the large amount of prizemoney on offer for two year olds, coupled with the generous breeders and sales companies incentives and bonuses offered, it is no wonder that many owners and trainers place a great emphasis on getting their juveniles to the track.

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In May 2009, the Treasurer Wayne Swan announced during his second budget changes to the “non-commercial loss” (NCL) provisions, with a proposed start date of 1 July 2009.

In their current form, the non commercial loss rules allow an individual to apply their business losses against their other income provided the business satisfies one of four commerciality tests, as follows:

1. Assessable income test: Annual income exceeding $20,000;
2. Real property test: The value of real property used in the business exceeds $500,000;
3. Other assets test: The value of other assets used in the business exceeds $100,000;
4. Profits test: The business has reported a taxable profit in three of the last five years, including the current year.

For individual taxpayers with an “adjusted taxable income” of under $250,000, these rules will continue to apply.

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Are you one of the many Australians who have adopted a complacent approach to your superannuation even though its performance is likely to be the most significant influence on your financial independence?

Have you been waiting for a solution that assists you to have more control over your destiny, without the hassles and time involved in running your own super fund?

At Stable Private Clients we have recently developed an exciting new superannuation solution that will enable investors to have a greater say in how their money is invested without incurring a high level of fees.

We have used our expertise with Self Managed Superannuation Funds (“SMSFs”) and investment markets to develop a solution to be known as the Stable Self Managed Superannuation Fund (“Stable SMSF”).

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Continuing on the strong tradition that our firm has established with holding functions on the special date of 1 August (the horses birthday), this year Stable Financial was the major sponsor at the TBV Victorian Owners & Breeders Awards. It was held in the Hiskens Bar at Caulfield Racecourse with all in attendance enjoying a wonderful day that saw a number of worthy winners acknowledged for feats of excellence in the 2008/2009 season. We would like to thank all our clients and associates for attending and we look forward to continuing the tradition next year.

Please visit our website for details of the award winners and some photos of this event.

» Regan Smith, who commenced as a co-op student with us in November 2006, began full time employment with us in July 2009. Previous to this, he had been working in a part-time capacity whilst completing his university studies in 2008. Regan then enjoyed a 2 month holiday overseas and is now refreshed and ready to commence his Chartered Accountant (CA) program.

» Joel Patching was recently promoted to supervisor, recognizing his new CA status and excellent client service.

» Gus Contessotto has become licensed as an authorized representative of Lonsdale Financial Group and can now provide financial product advice to clients in Louise’s absence.

With the aim of creating more demand within the business community, the government has announced an extension of the investment allowance valid for most new assets purchased.

This will be an additional deduction based upon the cost of the asset.

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Below are some tables that outline a selection of updated tax rates for the 2009 and 2010 financial years.

Our new edition of “Business & Tax Tips”, a concise and immensely helpful reference tool focusing on the business and tax aspects of the thoroughbred industry, has now been released. It has been 3 ½ years since our last publication and so much has happened during that time.

From a business perspective, topics such as “Managing working capital” and “Improving Management decision making” are timely to say the least. Given all that’s at stake, every breeder must allocate the time and resources necessary to extract the maximum benefit from their business investment.

From a tax perspective, the horse industry has a new tax ruling (TR2008/2) and two recent tribunal cases (Block’s & D’Arcy’s) as guidance when assessing their tax obligations. Together with tax audits of the horse industry, tax concessions for horse breeders and using superannuation in the horse industry, there is a substantial amount of new ground to cover in this section of the booklet.

Overall, a lot of interesting stuff in an easy to read A5 sized booklet. We are very excited about the publication and at $20 (inc GST) it should be a no-brainer for those serious about their horse interests. Business & Tax Tips will also be available in a soft copy PDF format for $15. To order a copy or for further details, please complete the order form at www.stablefinancial.com.au or contact Melanie of our office on (03) 9629 3023.