Be Informed August 2015 by William Buck

A W I L L I A M B U C K P U B L I C AT I O N

BE INFORMED The Winter Edition | AUGUST 2015

SPECIAL: P.6

STRATEGIC PLANNING FOR A HAPPY NEW (FINANCIAL) YEAR

plus FEATURE: P.8

TIME FOR NOT FOR PROFITS TO RE-INVENT THEMSELVES IN WAKE OF FEDERAL FUNDING CUTS FEATURE: P.12

CELEBRATING 120 YEARS OF CHANGING LIVES

FEATURED IN THIS ISSUE

A MESSAGE FROM THE MANAGING DIRECTOR

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Is the ATO effectively a beneficiary of your estate?

Strategic planning for a Happy New (financial) Year Fraud control at the press of a button

It’s with great pleasure that we celebrate our 120th anniversary this year. Few firms in Australia can lay claim to such a proud history. I’d like to thank each of our clients and friends that continue to support the firm, allowing us to do what we love most; help individuals and businesses to reach their goals. Pictured above: Nikolas Hatzistergos Managing Director

With 30 June becoming a distant memory, our article “Strategic planning for a Happy New (financial) Year” is recommended reading for those that want to start the New Year with purpose. The Federal Government’s Tax white paper Re:think has caused quite a stir in the accounting and business arenas. In this issue, we give our opinion on the white paper and what’s needed to create meaningful tax reform.

Time for not for profits to re-invent themselves in wake of Federal funding cuts

What the aged care reforms mean for your family

We also look at what businesses can do to protect themselves from fraud using the latest data mining techniques to uncover anomalies and spot fraudulent activity that might otherwise go unnoticed.

Baby Boomers expected to struggle in buyer’s market

Cloud accounting: the evolution of financial systems

As always, I appreciate your thoughts, if you have any feedback about this newsletter or any of our services, please contact me directly via email at: Nikolas.Hatzistergos@williambuck.com.

Celebrating 120 years of Changing Lives

Follow William Buck on:

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Welcome to the new financial year and to our latest edition of Be Informed.

Tax paper is positive but more unique reforms are needed

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AUGUST 2015

Whilst we always ensure that our information is accurate and well researched, advice tailored to your own situation should be obtained. Please contact your client Director of choice to discuss your specific circumstances.

Nikolas Hatzistergos Managing Director

TAX PAPER IS POSITIVE BUT MORE UNIQUE REFORMS ARE NEEDED By Greg Travers, Tax Director

— The Federal Government’s recently released Tax Discussion Paper, Re:think is an excellent starting point for addressing tax reform. The cost of complying with the tax system, however, still falls disproportionately on SMEs. SME businesses incur nearly half of the total tax compliance costs, but contribute only one third of company tax payments. Of the 800,000 companies in Australia, the upper 2,000 pay two thirds of the total company income tax. This presents a significant opportunity to simplify the tax system as it applies to the other 798,000 companies, many of which are the SME businesses that are vital to Australia’s ongoing prosperity. Some of the many examples of where the tax system adds complexity and compliance costs for SME businesses include Division 7A (loans and payments from private companies), the taxation of trusts, the eligibility conditions for various concessions and the plethora of differing definitions of small businesses. In our opinion, rather than trying to fix broken parts of the tax system, the idea of a special purpose small business entity has real merit. A properly designed, small business entity should eliminate the need for most businesses to deal with a range of complex tax issues such as Division 7A and trusts. It could also form the basis on which the various concessions available to SME businesses are accessed, overcoming the existing definition issues.

The Tax Discussion Paper makes reference to the S-Corp Model used in the United States. While this is the seed of a good idea, it’s important that Australia doesn’t replicate the complexity of the US tax system. There are numerous other areas where changes could be made to support SME businesses, and develop a fairer and more efficient tax system. These include: — Having a single tax authority (the Australian Taxation Office). The alternative, giving greater taxing authority to the States, will add significant compliance costs for SME businesses. — Removing small taxes that are ineffective or where the issue can be dealt with appropriately through other more efficient taxes.

— Target avoidance measures at larger businesses rather than SME taxpayers. This will focus the more complex measures on the most economically significant taxpayers and those with greater resources to deal with the complexity. Any avoidance measures should be as targeted on the avoidance issue as possible. verall the Government should be congratulated O for the discussion paper initiative. It is clear that a lot of thought has gone into it. With political will and constructive input from the broader public, there is a real opportunity for genuine reform of the tax system. For more information about how William Buck can assist you in reviewing your tax strategy, please contact your local William Buck advisor.

Fringe Benefits Tax (FBT) is a good example of this. The cost for SME businesses to comply with FBT is high. The majority of the benefits taxed under the FBT regime could be efficiently dealt with under the income tax regime, which is the approach that most other countries have taken, including the United States, United Kingdom and Singapore. BE INFORMED

AUGUST 2015

IS THE ATO EFFECTIVELY A BENEFICIARY OF YOUR ESTATE? By Alice Swanson, Business Advisory Manager

— The importance of having a comprehensive Will is well recognised, and few Australian adults would not have some form of legal record outlining their wishes. However, your Will is only half the picture. Without planning for how your assets are dealt with, you may be surprised to find that the Australian Tax Office (ATO) or State Revenue Office (SRO) becomes an unintended beneficiary of your hard earned wealth. While there are no direct death taxes, indirect taxes such as Capital Gains Tax and Superannuation taxes can diminish the value of the assets you’ve left to your beneficiaries. It is important that assets are structured and mechanisms are put in place so that assets end up in the right hands.

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Effective estate planning takes into account a wide range of tax issues to protect your assets, minimise tax, and ensure your money gets to the right people, at the right time. While estate planning is a complex area, we’ve outlined just two of the key tax issues you should consider. Capital Gains Tax Capital Gains Tax (CGT) is payable on the disposable of most assets acquired after 20 September 1985 (some exemptions do apply). A capital gain is the increase between the amount paid when an asset was acquired, and the amount that is received when the asset is sold. Generally CGT is triggered when the asset is transferred. CGT does not apply to the transfer of assets from a deceased estate to a beneficiary. However, it will be triggered on any subsequent disposal. For estate planning purposes, the date at which is the asset was originally purchased is critical. — Pre 20 September 1985 For assets purchased before 20 September 1985, the taxable capital gain is the difference between the value of the inherited asset at death and its subsequent disposal. — Post 20 September 1985 For assets purchased after 20 September 1985, the taxable capital gain is the difference between the value of the asset when purchased by the deceased benefactor and its subsequent disposal.

Consider the following example: Melissa Mullins has bequeathed 2 properties to her sons Ian and John. — John John receives Melissa’s beach holiday home. The property was purchased in January 1984 for $100,000. On the date of Melissa’s death the property was worth $550,000. Six months later John sells the property for $600,000. The taxable capital gain is the difference between the value of the property at disposal and the value of the property at the date of Melissa’s death. John has a capital gain of $50,000. — Ian Ian receives Melissa’s city investment property. The apartment was purchased in May 1988 for $75,000. On the date of Melissa’s death the property was worth $400,000. Six months later Ian sells the property for $500,000. The taxable capital gain is the difference between the value of the property at disposal and the value of the property when originally purchased by Melissa. Ian has a capital gain of $425,000. In this example, the property received by John is of a higher value ($150,000 at the time of Melissa’s death) that of Ian yet his tax liability is significantly lower.

Superannuation taxes In most situations, after an individual dies, their superannuation fund will pay out the remainder of their superannuation to a nominated beneficiary (usually a spouse or child).

Where the fund member does not have a valid binding death benefit nomination, the Trustee will pay the superannuation to one or more of their dependants in proportions determined by the Trustee.

The payout known as a super lump sum death benefit is tax-free if the beneficiary is dependent on the fund member. Generally speaking a spouse (including same sex spouse) and children under 18 are considered to be dependents for tax purposes.

For beneficiaries in a high tax bracket, extra payments can upset their careful tax planning and lead to the payment of additional taxes.

To receive this payment tax-free children over 18 years old (or any other beneficiary that is not a spouse) must prove that: — He or she was financially dependent on the deceased superannuation fund member; — He or she had an ‘interdependent relationship’ with the deceased superannuation fund member. An interdependent relationship being where two people live together, and where one (or both) provide for financial and domestic support and care for the other. Where the above criteria cannot be met, the beneficiary of the death benefit must pay tax at the rates shown below. Maximum tax rate for lump sums paid to nondependants:

Indirect taxes are an important tax planning issue. Although the examples above may appear fairly straightforward, there are many intricacies to the tax and estate planning process. Without considered tax planning, your estate and beneficiaries may pay unnecessary taxes.

“ A capital gain is the increase between the amount paid when an asset was acquired, and the amount that is received when the asset is sold.”

Taxed element of benefit: 15% plus Medicare levy Untaxed element of benefit: 30% plus Medicare levy

BE INFORMED

AUGUST 2015

SPECIAL

STRATEGIC PLANNING FOR A HAPPY NEW (FINANCIAL) YEAR By Gil Abras, Business Advisory Director

— The rush leading up to 30 June is over, you can now sit back, relax and ease into the New Year… well, almost. For most business owners, the start of a new financial year signifies budgeting time. Last year’s results are reviewed and a set percentage is added or subtracted to each business area. But what if, rather than focussing solely on the numbers, you took the time to review your business strategy as a whole and use the budget as a tool to reflect and manage that strategy? If your strategy is collecting dust on the shelf, you’re not alone. Using a process called the William Buck Hour, we’ve worked with over 500 business owners and senior executives to assess their current positions. The absence of a business strategy or failure to follow the strategy has emerged as one of the top five issues in the middle market. The beginning of the new financial year is the perfect time to revisit your strategy, and begin managing your business with purpose. 6

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While each business will have its own unique considerations driven by its industry, market position and stage in its lifecycle, there are a few common issues that all businesses should consider:

— Marketing & Advertising: Often the first to go when budgets are tight, it’s important to review your marketing strategy to ensure that resources and investment are aligned with your business objectives.

— Value drivers: What are the key value drivers of the business and how effectively are they being managed?

— Products/Services: When was the last time you viewed your offering from a client’s perspective? Are there any complementary services or products you can or should be providing? What is the market life of your service or product?

— Customers & clients: What does your client base look like, and how can you increase profitability and retention? This might involve reviewing your client list by fees, repeated work and loyalty, profitability, credit rating etc. and considering how well your customers are aligned with your strategy. — Employees: Now is the time to review key employees’ performance and remuneration. The new Employee Share Scheme rules proposed in the latest Federal Budget may present an opportunity to develop a more attractive incentive programme. — Market trends: Analyse current market trends and consider possible issues that may affect your business in the coming year. — Competitors: What are your key competitors doing? How will this affect your market position? It is important to also consider emerging competitors as new technologies allow start-ups and significantly smaller business to ‘act big.’

Carefully considering these issues as a starting point will allow not only for a clearer business strategy but a far more meaningful budget. The budget becomes a true reflection of where the business is heading and its performance. For more information about The William Buck Hour, or how William Buck can assist you in reviewing your business strategy, please contact your local William Buck advisor.

FRAUD CONTROL AT THE PRESS OF A BUTTON By Grant Martinella, Audit Director

— It is one of the most pressing issues for midmarket businesses – how to stay vigilant on employee fraud when resources are limited. While there is no foolproof method of preventing fraud, certain internal controls are essential such as the physical segregation of key duties, dual authorisations and restricted access to valuable inventories. For many small to medium businesses, however, best practice internal controls are not always commercially practical to implement and conventional detection techniques like auditing can be limited in their scope. For such businesses, data mining can provide a cost-effective and comprehensive solution to detecting employee fraud. What is data mining? Data mining is essentially the analysis of large volumes of data to detect abnormalities or unusual trends. Using sophisticated software we are able to evaluate data sets at the press of a button, providing assurance over control gaps with a much smaller financial outlay than traditional methods. Unlike a typical audit where random sampling methods are used, data mining can easily review all staff, creditors and payments made during the period of the analysis. So rather than choose 5-10 employees and check samples of pay runs for those staff as happens in a traditional audit, with data mining it is possible

to map the entire workforce and quickly identify abnormalities such as duplicate payments, large or unusual payments, an excessive number of payments or payments made outside of the expected times of the day/week when the payroll payments are typically made. Data mining is generally used to focus on control gaps that exist due to limited segregation of duties, which can be established through an initial discussion around the business. The tool is then used to concentrate on those higher areas of risk, providing comfort that a thorough review is being undertaken to detect any issues.

“ Data mining can provide a cost-effective and comprehensive solution to detecting employee fraud.” The process is most effective when a complete data set is provided directly out of your business’s system for all payments made (creditor and payroll) along with the underlying source data for all employees and creditors within the system. We are then able to cross-check relationships to ensure all the key abnormalities are being reported, for example phantom employees or creditors. Data mining is still an analytical tool and relies on the data being used. Therefore, the accuracy and completeness of your internal data

is important. Experience and critical analysis are essential to getting the best results out of data mining. Used in isolation it can be just another metric. For small to mid-market businesses, particularly those with a finance team of less than ten people, data mining can provide a practical and comprehensive solution to monitor potential fraudulent activity without involving a huge financial investment. Data mining in action In a recent engagement, William Buck was asked to discretely look at the expenditure of an employee over a given period. As part of the initial meeting we established that their spouse worked part time in the business, helping out with some administrative functions. By documenting the business’ processes and looking for control gaps we were able to limit our investigations within a targeted scope, which included the spouse. Running a full analysis of all payments, some significant payments made to the employee’s spouse throughout the year were detected. The investigation concluded that leave balances had been adjusted fraudulently, with over one thousand hours put to their annual leave balance and then paid out over time. Following the investigation, it was found that collusion between the employee and their spouse had occurred, with a jail sentence being imposed as a result.

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F E AT U R E

TIME FOR NFPs TO RE-INVENT THEMSELVES IN WAKE OF FEDERAL FUNDING CUTS By Leo Tutt, Head of Audit Focus Group

— Thousands of not for profit organisations (NFPs) are struggling to keep the doors open following the tightening of funding, including the Federal Government’s decision to cut $271 million from the Department of Social Services (DSS) Discretionary Grants Program over the next four years. Without core Government funding, Australia’s capacity to support the charitable services sector will be severely reduced, yet the need for these services remains unchanged, if not increased. Family, health, emergency relief, and housing services, as well as policy and advocacy are just some of the areas where not for profit organisations are stepping in where the Government doesn’t operate. With the State Governments unable to make up the funding shortfall; not for profits seeking funding from other avenues must stand out from the crowd. To achieve this requires a shift in mind-set. NFPs should think and behave more like a commercial business to compete for public support and funding. Commercial businesses know that they need to strike a balance between short term results and long-term sustainability. In my experience as Head of William Buck’s national audit focus group, Chair of Diabetes NSW, and Director of Diabetes Australia, I’ve seen first-hand the benefits that come with adopting a commercially focused approach to running a NFP. Diabetes NSW appointed Sturt Eastwood, an executive with a senior commercial background, as CEO in January 2014. One lesson Sturt brings with him from the commercial world, is the need to become more nimble and customer orientated. 8

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“ The Government grant application process is traditionally very academic. NFPs prepare a substantial treatise with multiple references to legislative and economic impacts. What a grant application often lacks, however, is a clear value proposition for the end user. In today’s environment, NFPs need the ability to package up their value proposition very quickly and succinctly as often they are looking for funding from multiple small donors. Most NFPs do not have the corporate marketing skill set to deal with this.” Drawing on William Buck’s experience of working with hundreds of NFP organisations, we’ve observed 5 key principles from the commercial sector that NFPs should incorporate into their business model. These include:

01 Demonstrate value to community

funders Commercial organisations that rely on continued shareholder support tend to have very astute corporate affairs teams. NFPs need to communicate their value through all channels, including annual reports. Step away from a focus on costs and minimum disclosures and demonstrate the value the organisation brings to the wider community. Real life examples and data supporting where funding is spent can help achieve this.

02 De-risk income streams

Look for ways to reduce dependence on one or two key income sources. For example, a women’s refuge may secure a corporate sponsorship to fund their everyday back office function, allowing 100% of funds raised from the public to go directly to helping vulnerable Australians.

03 Take advantage of partnerships

Corporate mergers can offer a number of benefits including economies of scale, greater market reach and security of funding. While a merger may be off the table for an NFP – the benefits are not. NFPs can reap these benefits by partnering with a complementary organisation.

04 Plan for the long term

Corporations plan for the long term. All too often, NFPs focus on the next grant funding cycle or annual membership drive. NFPs need to start thinking about what sort of organisation they need to be to respond to competitive and social pressures over the next 5 – 10 years.

05 Make use of new technologies

NFPs generally make good use of new tools, such as social media, to communicate with stakeholders. However, they often lag behind their corporate counterparts when it comes to embracing technologies that enhance efficiencies. These could include cloud accounting software, client relationship management (CRM) systems or supply chain management.

WHAT THE AGED CARE REFORMS MEAN FOR YOUR FAMILY By Janine Williamson, Wealth Advisory Director

— Aged care reforms announced by the Government last year have changed the way in which aged care fees are assessed. The changes, designed to make Australia’s aged care system more sustainable, have resulted in many Australians paying a higher contribution towards home care and accommodation costs.

Some individuals have their accommodation costs met in part or in full by the Government. Government contributions are determined by an assessment of income and assets as outlined below.

If your family members are among the one million Australians that may require aged care services, it’s more important than ever to obtain comprehensive financial advice. The reforms may affect a number of key financial issues for your family including:

— A lump sum refundable accommodation deposit (RAD); or — A daily accommodation payment (DAP); or — A combination of both

— Whether your family home should be sold, retained or rented — How accommodation will be funded — Funding the daily care fees — Private company and family trust implications — Maximising age pension eligibility — Your family’s future cash flow position — Investment decisions — Estate planning The Facts Aged Care Assessments To be eligible for Government provided aged care services, a person must undergo a free assessment by a member of an Aged Care Assessment Team (ACAT). Accommodation Costs Accommodation costs are determined by the accommodation deposit advertised by the facility. The cost of rooms are published on the ‘myagedcare’ website to facilitate comparison of prices.

Accommodation costs can be paid as:

Residents have 28 days to decide whether they want to pay an upfront lump sum or an amount to be included in their fortnightly or monthly bill. With the limited timeframe to make such a choice, it important that you understand the financial implications of each option which will be dependent on your family’s unique circumstances. Ongoing Care Costs — Basic Daily Care Fee: to cover living costs such as meals or laundry. — Means Tested Fee: this is an additional contribution towards living costs which is determined by the income and assets assessment outlined below. Income and Assets Assessment Anyone moving into an aged care home needs to have their income and assets tested to establish the accommodation costs and means tested care costs they may need to pay. The assessment is conducted by the Department of Human Services (DHS).

The individual’s home is included as an asset (at a capped amount) unless occupied by a protected person (a spouse or dependent child). The decision to sell, keep or rent the home can have a substantial impact on the result of the assessment. And as a consequence impacts on the Centrelink/DVA benefits received and ongoing care fees an individual is expected to pay.

“ Aged care reforms announced by the Government last year have changed the way in which aged care fees are assessed.” At a time of transition, such a decision can be highly emotional. If you or a family member are thinking about moving into an aged care facility, William Buck can assist in determining the financial impact of either selling, retaining or renting out the home, together with strategies to minimise Aged Care costs and enhance Centrelink/DVA benefits where possible. We can also assist in developing estate planning strategies and providing investment advice for the whole family.

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AUGUST 2015

BABY BOOMERS EXPECTED TO STRUGGLE IN BUYER’S MARKET By Tony Hood & Daniel Coote, Corporate Advisory Directors

— Over 270,000 mid-market business are expected on the market in the next five years, as the Baby Boomer and Builder generations prepare their businesses for sale. However, with a limited pool of buyers, competition is expected to be fierce. These are the results of our latest Exit Smart Survey which looks at the exit plans of middlemarket business owners. The Move to Market Three quarters of business owners surveyed intend to sell their business over the next ten years, with 65% of these expecting to exit in the next five years. Applying these statistics to the current number of mid-market businesses across Australia (those with between 3 and 200 employees), we could expect to see approximately 270,000 businesses on the market by 2020. And expectations are high, a third of business owners are seeking a sale price above their business’ current market value. 10

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A limited pool of buyers With a rush of businesses on the market, vendors are expected to outweigh purchasers. Demographics play a major role. A trade sale is the most popular exit option with a majority of survey respondents believing their business will be bought by a competitor. However, with 77% of business owners aged 51 and above, there’s a likelihood that obvious purchasers are also considering their exit strategies. This begs the question; where are the Generation X and Y entrepreneurs? In the current financing environment; banks and other lenders require substantial collateral to secure a loan. This is a luxury that many in the younger generations do not have. The end result is a potential downward pressure on price; unwelcome news for our business owners who have worked in their business since inception. Indeed for 59% of owners their business represents the culmination of a lifetime’s worth, having started from scratch.

Get Exit Smart In our experience, most business owners only seek advice when they are actually ready to sell. While it’s possible to prepare the business for sale quickly, it can often lead to a band-aid approach to issues rather than a structured process that truly adds value. If you’re looking to exit in the next five years, it’s critical that you plan early and obtain comprehensive advice. In doing so you’ll be better able to position the business to attract buyers and gain maximum value. To request a copy or our Exit Smart Survey or Exit Smart checklist, please email research@williambuck.com

CLOUD ACCOUNTING: THE EVOLUTION OF FINANCIAL SYSTEMS By Damian Sutherland, Business Advisory Director

— While cloud computing has been around for a number of years, only now is it beginning to be adopted as a mainstream business tool. As business advisors, we’re often asked about what exactly the cloud is. In the simplest terms, cloud computing involves storing and accessing data and programs over the internet instead of your computer’s hard drive or server. Service providers use large networks of remote servers with specialised connections to share the load of processing and storing data on behalf of their users. What is cloud accounting? “Cloud accounting” is more specifically the utilisation of bookkeeping and accounting software in the cloud for the processing and recording of your business’ financial transactions. The development of cloud based accounting software represents the next generation of record keeping technology and can be a more efficient and innovative way to monitor and follow the financial performance of your business. The benefits of cloud accounting For many business owners, a cloud accounting solution can have many benefits over traditional desktop accounting solutions including: One data file Cloud accounting programs have a multi-user function allowing you and your accountant to access the same data and work on the data simultaneously, savings enormous amounts of time. No longer does your accountant have to contact you for a file, update it and send it

back. Adjustments to entries can be processed instantaneously by you or your accountant. Spending less time on data management translates to less cost to your business.

will this ensure your data is being treated correctly, it also eliminates the need to purchase and install regular software updates, saving both time and money.

Additionally, data can be set to ‘read only’ rights for some users, allowing your key stakeholders to access information at any time while maintaining its integrity.

Access to third party programs Most cloud accounting programs run on an Open Application Programming Interface (Open API) which allows third party providers to create modules and add-ons. These can cover anything from payroll and HR to ecommerce, inventory tracking and property management.

Daily bank feeds and real time information Your business’ bank transactions can be retrieved daily. Daily bank feeds allow you to access information about the performance of your business in real time. This puts you in a better position to take advantage of opportunities or address financial issues faster than ever before. Additionally, by combining your accounting software with electronic banking, many transactions can be prepared automatically. This removes the need to handle repetitive transactions multiple times. Flexibility Cloud accounting enables users to access their data from any location as long as they have an Internet connection. This provides the ability to work from home, while travelling or from a second location. Many of the large providers are also configured to operate on tablets and smart phones.

Australia’s most popular accounting software providers, MYOB and QuickBooks have brought cloud-based products to the market in addition to their standard off-the-shelf packages. A third significant provider in Australia is Xero which only offer cloud based accounting software packages. Moving your financial data to the cloud demands a high level or trust between you and the provider and it’s important to ensure that the specific needs of your business are met. William Buck is a licensed distributor for some of the major cloud accounting suppliers. Our experts can assist you in the selection, design, implementation and ongoing management of a cloud accounting solution. To find out more about cloud accounting and how it could help your business, please contact your local William Buck advisor.

Automation Online software is regularly updated for changes in the accounting and taxation environment, such as new tax rates or legislative amendments. Not only

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AUGUST 2015

F E AT U R E

CONTACT —

CELEBRATING 120 YEARS OF CHANGING LIVES —

Sydney Office Level 29, 66 Goulburn Street Sydney NSW 2000 Telephone: +61 2 8263 4000 Parramatta Office Level 7, 3 Horwood Place Parramatta NSW 2150 PO Box 19, Parramatta NSW 2124 Telephone: +61 2 8836 1500 nsw.info@williambuck.com Melbourne Office Level 20, 181 William Street Melbourne VIC 3000 Hawthorn Office Level 1, 465 Auburn Road Hawthorn East VIC 3123 PO Box 185, Toorak VIC 3142 Telephone: +61 3 9824 8555 vic.info@williambuck.com Brisbane Office Level 21, 307 Queen Street Brisbane QLD 4000 GPO Box 563 Brisbane QLD 4001 Telephone: +61 7 3229 5100 qld.info@williambuck.com Perth Office Level 3, 15 Labouchere Road South Perth WA 6151 Telephone: +61 8 6436 2888 wa.info@williambuck.com Adelaide Office Level 6, 211 Victoria Square Adelaide SA 5000 GPO Box 11050, Adelaide SA 5001 Telephone: +61 8 8409 4333 sa.info@williambuck.com Auckland Office Level 4, 21 Queen Street Auckland 1010, New Zealand PO Box 106 090 Auckland 1143, New Zealand Telephone: +64 9 366 5000 info@wbcg.co.nz

This year we’re proud to celebrate William Buck’s 120th anniversary. There are few firms in Australia that can lay claim to such a rich heritage, and we’d like to thank our clients for their support, without whom we wouldn’t be here. The William Buck story is one of enthusiasm, determination and vision. In 1895, in the midst of economic depression, Mr William Buck fulfilled his dream of starting an accounting practice. With a passion for helping people and their businesses reach their full potential, William Buck soon built an irrefutable reputation among the Melbourne business community as the firm of choice; a reputation that has stayed with the firm as we’ve expanded across Australia and New Zealand. Over the next 30 years, Mr Buck went on to help a diverse range of clients, from small family businesses to mid-market corporations, and his practice became a tremendous success.

Joining the firm in 1925, William Buck’s son, Bill Buck Junior, took the helm shortly thereafter. Known as a man of clear thinking and ‘ever ready’ wit, he was popular among his clients and the wider community. Using his position of influence for the positive ‘Bill Buck’ became closely involved in numerous community boards and associations; activities that have become a cornerstone of William Buck’s culture. An impressive figure in his own right, Bill Buck continued to guide the firm throughout the 50s, 60s and early 70s. The 80s and 90s saw a change in leadership. With a strong respect for the firm’s origins, its new leaders instilled the structure required for growth. A national board was created, intellectual property was registered and William Buck became a brand. The remaining decades of the 20th century saw the firm develop a national presence, cultivate stringent quality assurance measures and introduce speciality services.

William Buck’s desire to help the business community extended beyond his own firm; his goal was to raise the quality of the Australian accounting profession. Founding his own accounting school, William Buck helped thousands of students attain their professional qualifications and be admitted to Chartered Accountants Australia and New Zealand.

This multi-disciplinary approach became the start of the 360 degree support offered today. With a wider range of services William Buck is now able to help our clients to grow and prosper in more ways than ever before.

A role model for our current leaders; William Buck was described by his students as courteous, generous and a ‘true friend’; taking a personal interest in each of his students and providing a life changing experience.

We’re exceptionally proud of our heritage and the William Buck name. Our firm today reflects the original vision and principles of our founder, as we continually aspire to create a positive difference in the lives of our clients, our profession and our people.

DISCLAIMER The material in this newsletter is for the benefit and information of clients. The items are in the nature of general comments only, and are not to be used, relied or acted upon without seeking further professional advice. William Buck accepts no liability for any errors or omissions, or for any loss or damage suffered as a result of any person acting without such advice. Liability limited by a scheme approved under Professional Standards Legislation other than for acts or omissions of financial services licensees. This newsletter is printed on environmentally friendly paper made from sustainably managed forests.

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