your partner in business health and personal wealth
 

We welcome you to our August e-Bulletin

In this issue ...


 
 

Manufacturing and the Third Industrial Revolution

Our market analyst Fred Strauss provides an overview of how technology is changing manufacturing, including the impact of digital technology and the 3D printing phenomenon.

The first industrial revolution began in Britain in the late 18th century, with the mechanisation of the textile industry. Tasks previously done laboriously by hand in hundreds of weavers' cottages were brought together in a single cotton mill, and the factory was born. The second industrial revolution came in the early 20th century, when Henry Ford mastered the moving assembly line and ushered in the age of mass production. The first two industrial revolutions made people richer and more urban. Now a third revolution is under way.

A number of new technologies are converging: clever software, novel materials, more dexterous robots, 3D printing (also called additive manufacturing) and a whole range of web-based services. The factory of the past was based on cranking out millions of identical products: Ford famously said that car-buyers could have any colour they liked, as long as it was black. However, the cost of producing much smaller batches of a wider variety, with each product tailored precisely to each customer's whims, is now falling. The factory of the future will focus on mass customisation-and may look more like those weavers' cottages than Ford's assembly line.

To read more of Fred's snapshot, including his summary and outlook,
click here.


           

Fred Strauss is an independent and highly regarded investment expert, and is part of our investment committee.

Fred keeps a close eye on international markets, and USA in particular.

If you would like to get more of Fred's insights or to discuss your individual investment strategy, contact our financial advisors on 03 5144 5207.


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Homing in on aged care changes

Changes to aged care funding have brought the family home more keenly into focus.

The
changes, which came into effect on July 1, basically reflect a shift to a user-pays system with means testing on both income and assets to determine what you will pay for aged care accommodation or in-home care.

For
the first time, an accommodation bond will be payable to secure a place in both high and low care with the new payment system applying to all levels of care.

Charges
for care

There
are up to four charges involved when moving into an aged care facility:
•    An accommodation paymen
t
•    A means-tested care
fee
•    A basic daily
fee
•    Fees for additional optional services.

The accommodation payment, also referred to as the bond, must be made within 28 days of moving into an  aged care facility. It is basically an interest-free loan to the aged care home.

For
those on the full pension, the government will cover the cost of the accommodation payment but you will still pay a basic daily fee of up to 85 per cent of your pension.

If you are on a part-pension, then you will receive some government assistance in paying the bond
.

But for those paying the accommodation in full, the amount will be negotiated with the aged care provid
er.

To read the full article, click here.

          
                      Ian Mein    



If you would like find out more about the aged care changes, contact Ian Mein or your financial advisor on 03 5144 5207.







   
     
                  
  
 
 
  

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Fuel tax credit rates increase following the repeal of the carbon tax

In our Winter Business Briefing, we reported that some fuel tax credit rates are changing. The Government is proposing to remove the carbon charge for fuels acquired from 1 July 2014 and to index excise duty rates for most fuels every six months from 1 August 2014.

We can now confirm that the Clean Energy Legislation (Carbon Tax Repeal) Bill 2014 received Royal Assent on 17 July 2014, officially repealing the carbon tax.

This repeal affects taxpayers who are registered to claim fuel tax credits for fuel used for off-road activities.

For the table of charges, refer to page 12 of our Winter Business Briefing.

        
             Rob Del Busso   

If you would like to clarify the changes to the fuel tax credit rates, contact Rob Del Busso or your accountant on 03 5144 4566.
 
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Modern Awards matter

A word from David Bates, our specialist employee relations partner.

Finding the correct Modern Award is one of the most important tasks for Australian employers, yet many still have no idea what a Modern Award is, let alone how to find one! This month, we take a look at why Modern Awards matter to employers.

What is a Modern Award?

Modern Awards are documents which detail minimum terms and conditions of employment that employees must provide to their workers within certain industries and occupations. The types of entitlements imposed by Modern Awards include:

  • Annual leave loading
  • Allowances
  • Overtime, and
  • Penalty rates

There are two types of Modern Awards: Industry Awards and Occupational Awards. An Industry Award, as the name suggests, is one that applies right across an entire industry. For example, the General Retail Industry Award applies to almost all retail employees right across the country.

An Occupational Award is one that applies to people who perform a certain type of work regardless of the industry within which their employer operates. For example, the Clerks-Private Sector Award applies to workers performing clerical/administrative functions. Importantly, an Occupational Award will generally only apply to a person if an applicable Industry Award doesn't contain a classification covering that specific employee's position.

For David's full article, including minimum rates of pay and additional benefits, click here.

 

To find out more about Workforce Guardian, jump onto their website - Workforce Guardian offers subscriptions to access expert advice and resources:

http://www.workforceguardian.com.au/
services?partner=PHILLIPSONS
 

The FAQs in this article reflect the types of questions the WFG team of HR experts answer every day for its HR Essential and HR Professional subscribers. For more information about these services, call WFG on 1300 659 563.

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Maffra Cheese Co wins again!

Phillipsons would like to congratulate Maffra Cheese Co on being awarded Australia's Best  Cheddar Cheese … again!

The cheddar was judged Best Australian Cheese at the International Cheese Awards in the United Kingdom, for the second year in a row. In addition, Maffra's Tanjil Blue was awarded a silver medal and its cloth-aged Red Leicester bronze.

This is another feather in the cap for owner operator Ferial Zekiman, who has won many awards over the years for the specialty cheeses made on her Gippsland farm.

Maffra Cheeses can be purchased at all good specialty cheese stores and major retailers.

To read the Maffra Cheese media story, click here.

  
            
             
                                 

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And finally, a word from the editor ...

Well and truly into the new financial year. Make sure that your obligations are all up to date, especially for employers. Between superannuation, payroll tax, workcover, PAYG withholding and contractor reporting, there is a large number of items to attend to at this time of year. If you are not sure of what needs to be done, please make sure you speak to your accountant.

 

Watch out for our next issue of SuperScene, which is full of news for Self-Managed Super trustees. If you are interested in this publication, you can subscribe online or contact our office to be put on the mailing list.

All the best for the rest of the month – until next time.

Cheers,
 

          

Kurt Best
General Manager

Phillipsons.com.au






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