You are never too smart to get advice.

“In life, you need many more things besides talent. Things like good advice and common sense.” Hack Wilson

In the financial world what constitutes good financial advice may not be seen straight away.
Recent news from the banking royal commissions and our increased access to information it is not hard to understand why people rely on family and friends or simply go it alone.
Usually, when we read about a financial guru we seem to isolate themselves as an oracle and the original source of that advice and therefore their success is purely self derived.
When we seek out answers, we look for definitive answers in which we don’t consider the moving parts of our lives. Where possible we try to abbreviate and spend as little time possible to achieve the best possible outcome with the least amount of money spent.
This may work in many other professions where there may be natural constraints or other concepts which can be relied upon, in the world of finance it is usually much more complicated.
In a recent post in which Andrew Aravanis a Bankruptcy Trustee shared the top 10 professions that are more likely to go bankrupt according to his data. These are:
  1. Managers (sales, marketing, PR, business administration, ICT)
  2. Machine and stationary plant operators
  3. Road and rail drivers
  4. Business, human resource and marketing professionals
  5. Health professionals (nurses and midwives)
  6. Design, engineering, science and transport professionals
  7. Construction trade workers
  8. Other labourers
  9. ICT professionals
  10. Electrotechnology and telecommunications trade workers
Although, this may not be definitive it does reveal that regardless of your education, status or income you are not immune to poor financial outcomes. In fact, in many of the professions listed above their income would be well above the average Australian and the educational requires extensive.
What gets unsaid about financial advice, is the separation between the information gathered and the decision making process.
Information is king, and it shapes how we investment. More importantly, we trust that the information is correct and verifiable and for the most part it is …. from a certain point of view.
Many of those at the top of the financial game, have vast infrastructures in place to ensure they get accurate and verifiable information in a timely manner. Additionally, those that present opinions and ideas are vetted.
They wont just be analysts either, it would be a diverse group of individuals experts including law, tax, accounting and subject matter experts.
All of this enables them to be the best decision makers possible by exploring all of the alternatives on the table, and selecting the right decision for them. They extrapolating their own point of view. Yet, this does not immune them from loss, sometimes loss affects everyone and they lose less than the rest of us.
For now, we can ask ourselves the following questions:
  • If I just read the financial section of the news what is the difference between that and the racing form guide? What about advice from Uncle Bob or my friend Suzy?
  • If I don’t ask critical questions of those offering advice, how good is that advice?
  • Do I have an infrastructure in place to help me make decisions?
  • What could go wrong with my investments? What are the consequences?
  • If I have outsourced my financial decision making, have I really gained control of my life?

Its always easier to be proactive and take the time to ensure you are on the right path. Call our office on 03 9846 6542 or email:

General Advice Warning

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on the author’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.







Freedom of movement could be the wealth of the future: Top passports

Along with privacy, we could see freedom of movement be the realm of the wealth. Having the ability to easily move around and perhaps work in another country may be the difference, especially as technology disruptions become larger and more frequent.

According to the Age Newspaper and theHenley Passport Indexhere are the most powerful passports:

1. Japan 190 (number of countries a Visa is not required)
2. Singapore 189
3. Germany 188
France 188
South Korea 188
6. Denmark 187
Finland 187
Italy 187
Sweden 187
Spain 187
11. Norway 186
UK 186
Austria 186
Luxembourg 186
Netherlands 186
Portugal 186
United States 186
18. Belgium 185
Switzerland 185
Ireland 185
Canada 185
22. Australia 183
Greece 183
Malta 183

New HELP Repayment schedules

From 1st of July 2019 a new payment minimum of 1% at income of $45,881 and a maximum threshold of 10% at $134,573

For comparison here are this years HELP rates:

2018–19 repayment income thresholds and rates for HELP, SSL, ABSTUDY SSL and TSL
Repayment income (RI*) Repayment rate

Below $51,957


$51,957 – $57,729


$57,730 – $64,306


$64,307 – $70,881


$70,882 – $74,607


$74,608 – $80,197


$80,198 – $86,855


$86,856 – $91,425


$91,426 – $100,613


$100,614 – $107,213


$107,214 and above




Home attached to your business? Better read this

Cross-posted from

An insolvency specialist is warning business owners to be alert to the risks associated with falling property prices, given the family home is often used as security for business finance.

Trent Devine, a partner at Jirsch Sutherland, suggested that the huge boom in values – particularly on Australia’s east coast – has helped many businesses stay afloat by dipping into equity. But this strategy may now come back to bite them, amid a backdrop of falling property prices and banks hiking interest rates.

“Any business that has used personal finances for business borrowings is at risk,” said Mr Devine.

“In the past, when times were tough, struggling businesses have been able to lean on the equity of their home. Now, with falling house prices and other factors, this can have a disastrous knock-on effect for businesses.

“As property prices continue to fall, there is reduced levels of equity with which to finance or prop up a business.”

According to Mr Devine, a key risk for business insolvency is an “ill-advised link” between personal and business finances. Yet this is often unavoidable for new businesses.

“SMBs often use the same bank for the business that they use for personal banking, therefore they’re likely cross-collateralised,” he said.

“They may have their mortgage and business loan with the same bank. They don’t separate one from the other.”

This situation makes it much easier for the bank to assess the health of the business owner’s finances and make much earlier decisions on whether to push for insolvency.

“Rises in interest rates and resulting mortgage stress can certainly flow onto businesses as we’ve witnessed over the past 12 months. If a business is struggling, banks might now note that there’s now no property to support that business because the mortgage is under stress. Clearly, this means that business insolvency becomes a strong possibility,” said Mr Devine.

He urged business leaders to protect themselves by separating business and personal finances.

“Use different banks for business and personal uses so that cross-collateralisation is not an issue. If you are utilising personal funds, perhaps a secured loan to the business rather than opting for a capital injection might also be an option,” he advised.

“Also, business owners who are looking to refinance to help fund their business’ cash flow might find this difficult because of falling house prices.

“When first setting up a business, money can be incredibly tight, but it’s important for business owners to take the time and speak to their accountant or adviser to get the most appropriate advice. Options do exist and it’s important to explore them or risk losing everything.”

Mr Devine’s comments come after property data firm CoreLogic suggested banks are only exacerbating the housing downturn by raiding home loan rates, meaning the current lull in most mainland capital cities will linger for longer.

Latest figures from the firm show that prices have fallen by 5.9 per cent in Sydney over the last 12 months, and by 2.5 per cent in both Melbourne and Perth. Melbourne has also overtaken Sydney as the city with the fastest falling home values, down by 3.8 per cent so far in 2018, compared with Sydney’s 2.7 per cent slump.

Hobart is currently the nation’s star performing market, posting double-digit price growth over the past year.

We believe that Accountants are central in advising people in making sound business decisions, if you would like to discuss this matter or any other matter please contact us on 03 9846 6542 or email

What it’s worth?

Value as a topic is fascinating and all of us need it, use it and perhaps earning a living measuring, selling or consuming it. So diverse and complication that I could not possibly write a complete nor accurate depiction of value pleasing everyone. It is a concept which helps defines us as a civilisation and has caused the break up of many others.

In the 17th Century, when financial markets as we know them today started to take shape, a French nobleman named Francois de La Rouchefoucauld wrote:-

“The greatest of all gifts is the power to estimate things at their true worth”

I have it written on a pink post-it note and it holds pride of place at my desk, in the world of accounting and financial planning this is not just an inspirational quote summarising my own perceived contribution to the world but is a sage warning.

As most finance people will tell you we tend to over and underestimate things quite regularly and we live in a world where it is increasingly getting harder. This is especially true since the global financial crisis and with advent of quantitative easing.

Typically, we attribute concepts such as usefulness and utility to value. From this we can get to markets of supply and demand and in a simplistic way the markets will determine the price.

Printer cemertary.jpg
The average life span of a average desktop is 3 to 5 years Source: CNET , 2008 ” What is the Average life of an Average Desktop computer?”

Then this happened.

I remember several years ago now, an auctioneer coaxing bidders to bid more with “Come’ on money is cheap!” and from one perspective this is correct and it appears we are now confessing that this “cheap money” was the primary reason for inflated assets. The problem this creates for the individual decision maker is “does the price reflect true supply and demand?”.


We shall find out in the coming years, however there are a few other ways to judge value which can be useful.

Firstly, value can be assessed by what direct and indirect benefits and costs occur, as our previous blog Thoughts on stopping you from a business failure  suggests, that means figuring out your cash flows and what your plan is.

Secondly, understand the time value of money and what that means to you. A dollar today is always worth more than a dollar tomorrow and by way of implication that may means judging value by what price you would receive if you need to have it sold by the end of the week.

Finally, pay attention to both sides of the argument and be informed when making a decision. Accountants and to a lesser extent financial planners can make a significant contribution in these decisions and assist you in navigating such decisions.

In today’s world being well informed and having a balanced judgement will assist in you in making the right for you.

General Advice Warning

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

Taxation, legal and other matters referred to on this website are of a general nature only and are based on the author’s interpretation of laws existing at the time and should not be relied upon in place of appropriate professional advice. Those laws may change from time to time.





Financial Planning

We believe that wealth that is an abundance of all good things.

Wealth creation through the financial planning process is your ability to obtain more freedom. From purchasing your first home, educating the kids to planning for retirement and beyond, we believe our financial planning advice can make a positive impact on you and your loved ones lives.

Through Townshend Prudential Pty Ltd we offer the following:

  • Financial goal setting and health check.
  • Strategy and implementation of financial plans.
  • Limited financial advice e.g. investment selection.
  • Self Managed Super Fund (SMSF) Establishment and administration.
  • Superannuation advice.
  • Centrelink payment advice.
  • Estate planning