STABLE FINANCIAL'S QUARTERLY NEWSLETTER

WELCOME TO STABLE TALK - SUMMER 2012 EDITION

In this edition we take a look at trends in the Thoroughbred Industry. We also brace ourselves for the introduction of the Personal Properties Securities Register on 30 January 2012. Family Businesses make up a very important sector of the economy and also make up a large portion of the Stable's clients so we have considered the family in this edition. Louise provides an update in respect of superannuation and we give TBV a pat on the back. Finally, we are introducing a "Meet the Stable" section and look forward to featuring a Stable team member each edition of Stable Talk.

Happy reading and a successful 2012 to all!

Adam and Louise

TRENDS IN THE THOROUGHBRED HORSE INDUSTRY

By Adam Tims
IBIS World writes over 500 Australian industry reports.
A report is prepared on an annual basis for "Horse Farming
in Australia". This is defined by IBIS World to "Include breeding
of thoroughbreds, other horse breeds and ponies.

Thoroughbred horses are predominantly sold to trainers for
the horse racing industry, while other breeds are generally
sold to the public for recreational purposes."

The IBIS World "Horse Farming in Australia" report published in 2011 reveals a continuing improvement to performance compared to its 2010 publication. Revenue increased by $42.4M to $808M in the 2009-10 season. Annual growth FY11-FY16 is expected to be 8.1% to total $1.19billion by 2016. Exports also increased by $18M to $130.2M or 16%.

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THE LITMUS TEST

By Adam Tims
Magic Millions each year tends to set the scene for Australasia's yearling sales. With approximately 40 international buyers missing and a very lacklustre opening session, thoroughbred breeders across Australia may have been refining budgets downwards.

There was almost a back flip on Day 2 and onwards for the 2012 premier yearling sale to officially record a small increase in average (3%) and a $10k increase ($90,000-$100,000) in median with a respectable clearance of approximately 85%.

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PERSONAL PROPERTIES SECURITIES REGISTER (PPSR)

By Adam Tims
The PPSR commences on 30 January 2012. If you have never heard of it you must not have read our updates as we have been warning businesses for 6 months to get prepared.

This national online register deals with the securitisation of personal property interests, including horses. The register consolidates approximately 70 registers previously in place eg. Motor Vehicle register. In essence it will radically change the notion of legal title over property.

It is extremely important that businesses and individuals not only implement procedures to deal with the PPSR but also ensure that they train their own administration staff to recognise and register security interests over personal property.

On 22/12/11 the Racing Information Services Australia (RISA) sent an email to all registered horse owners with information concerning the PPS Act and how it affects racehorse ownership. Our office has fielded a high number of queries from clients since reading the RISA information.

» READ MORE

BOARD OF MANAGEMENT : OUTSIDE THE FAMILY

By Adam Tims
Small to medium sized family businesses (SMFB's) are at the heart of the Australian economy. They contribute enormously to our economy and our culture. At Stable Financial, we work with a large number of family businesses. Obviously each family has a unique culture, a unique way of doing business. However, we find that each family faces similar issues and these include managing and resolving conflict, grappling with compensation and equality, ensuring proper management and strategic decision making, intergenerational differences and ultimately business succession. We should acknowledge that there are other valid reasons for being in business than purely financial gain. However, it appears that family businesses fall well short when you consider "best practice" for corporate governance.

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STABLE PRIVATE CLIENTS – FINANCIAL PLANNING UPDATE

SELF MANAGED SUPERANNUATION FUNDS

By Louise Morris
The Australian Taxation office has released a much
anticipated "draft ruling" that clarifies its views on some
of the key concepts in respect to borrowings by SMSFs
via limited recourse borrowing arrangements. ("LRBA")

Whilst the draft ruling confirms that the ATO has relaxed
some of its views in respect of LRBA's entered into after
7 July 2010, it is important to remember that this is a
very complex area of the law and advice should be obtained
from a suitably qualified SMSF adviser before proceeding
with a LRBA.

The draft ruling has clarified the definition of a "single acquirable asset" so that assets that are for practical purposes inseparable or where there is an ancillary asset of a small value, would be classified a single asset which is a requirement of the LRBA rules.

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THOROUGHBRED BREEDERS VICTORIA (TBV)

By Adam Tims
This is a call to sign up as a member of TBV.
Tim Johnson (President) and Richard Andrews
(Executive Officer) together with fellow committee
members are achieving some notable outcomes on
behalf of Victorian Breeders including;

1. TBV (especially James O'Brien and Richard Andrews)
designed and lobbied State Government and Racing
Victoria for the introduction of VOBIS Gold. This new
breeding initiative will deliver increased interest in the
Victorian bred product and will result in significantly
increased prize money across the state for eligible horses.

» READ MORE

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