In the Zone - March Quarter 2018

Have a happy and safe Easter!

Our office will be closed from Good Friday 30th March and reopen on Tuesday 3rd April 2018.

We wish you a safe and happy Easter!

From Brad, Jess, Nikki, Vanessa and Lachy.


Roger Montgomery captivates Baysiders once again!

We were delighted to present Roger Montgomery, and Damian Diamantopoulos of Australian Unity for another informative Education session for Baysiders. Held at the Royal Queensland Yacht Squadron earlier in March, we had an impressive audience of people eager to create their financial future.

Roger spoke about where he sees the markets are going and what we need to look out for. People can’t seem to get enough of Roger’s insights – there’s a reason why he’s one of Australia’s best-selling finance authors! We also awarded 6 lucky attendees with a copy of Roger’s book Value:able and backpack. Winning!

If you’d like to be informed of our next seminar, please register your interest by emailing


Running a Self Managed Super Fund?

The days of casual approach to valuations are over…

In the past, there was little the ATO could do regarding unscrupulous or unfounded valuations by SMSF Trustees. Now, however, current rules provide the ATO with greater power to impose penalties on unsubstantiated valuations.

It is not always necessary to employ a qualified independent valuer for each valuation. In some instances, it is mandated and in others it is recommended. However, if you are not using a qualified independent valuer, then appropriate documentation needs to be kept of how the valuation was arrived at.

A valuation must occur:

  • to reflect the value of all assets held as of 30 June of every year – to ensure that the financial statements and accounts of the fund can be prepared and are accurate

  • when acquiring assets, to ensure that a proper price is paid and to ensure the asset is not under or over-valued.

  • if you are setting up a pension; in which case the underlying assets must be properly valued at the time that the pension is established, and subsequently every 1 July of the year the pension is paid

  • when you sell a collectable or personal use asset (eg. art, jewellery). Moreover, it must be valued by an independent and qualified valuer, who must be an expert in that type of asset.

  • if you have in-house assets; to ensure the assets to not exceed the 5% threshold.

  • if you intend to use the CGT relief

  • if a member is in breach of the new contribution cap rules.

When an independent valuation is not required, there are many ways to value an asset.

Always be mindful to maintain records explaining the approach and be mindful that the valuation always needs to follow an accepted method of valuing and of course, be genuine.

In 2018, an area being scrutinised by the ATO is in the valuation of assets when determining if a member is or close to exceeding the contribution rules.

In the case of assets such as shares or bank accounts, the value is simply the value of the bank account at the time of valuation or the price of the share/unit at the time of valuation.

When it comes to valuing a property, there are several ways to obtain a valuation. You could:

  • use a real estate agent (though they might only give you a range);

  • utilise use an online valuation tool;

  • employ a qualified independent valuer, though this is generally not required unless it’s a commercial property;

  • value the property yourself (as Trustee) – as long as you use trusted methods and document how it is done. Two popular methods include looking at the sale of similar homes in the suburb and taking an average, or by using a previous valuation and applying the average price increase or decrease in the suburb.

If a significant change has been made to the property, for example renovations, we recommend you get an independent valuation.

In the instance that valuations are wrong, or you don’t do a valuation, the ATO has power to take action against the Trustee. Trustees face fines of $2,100 per failure to value an asset as required by the law. Furthermore, there are fines of $10,500 per Trustee for failing to keep proper accounting records which includes the need to have a valuation for assets as at 20 June each year. Finally, if the ATO determines that assets are undervalued for the purpose of the contribution cap rules, it can take further action against the Trustees.

Managing your own super fund is certainly complex, so SMSFs aren't right for everyone. It has been 10 years since the Simple Super Reforms were brought in and a decade later the system has become a labyrinth of legislation! SMSFs have become more complicated and the reporting obligations are starting to overwhelm many SMSF Trustees. We have experience in SMSFs, and we encourage people to seek advice.

Contact us on 1300 124 683 or to get started!


Investment Zone rated 'Platinum' and '5 stars'!

At Investment Zone we generate most of our business from referrals and word of mouth. Our aim is to delight our Clients and ensure that their experience in financial advice is a very positive one. We are thrilled to have achieved the highest rating; ‘Platinum’ on

Here, he has an Overall Adviser rating of 100%, an Average Customer Rating of 98% and 100% of positive reviews!

Investment Zone has also maintained its 5-star review average on Google!

From the beginning, our philosophy has been to deliver exceptional customer service, and a transparent, no-nonsense approach to quality financial advice and strategic planning that is personally tailored to each person. It really is a privilege to partner with such wonderful clients on their journey to financial freedom.

So, if you know anyone that may be interested in our services, don’t forget to share our details and give us a call or email. We often find that our best clients come from existing clients’ positive referrals, which allows us to focus on our relationship with you, our clients, rather than spending time generating leads. We’d be only to happy to chat to them and offer them our no-obligation, complimentary, first meeting.

We take the role of referrals very seriously. Your associates will be treated with the same courtesy, respect and integrity that we have shown you! We would NEVER hassle them, it would not be in anyone’s interest to do that. Our relationship with our existing clients is too important!

Easter is a social time.

If you are delighted with our service, talk to your friends, family or colleagues who you believe may also benefit from our service!

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