This month has been a very crazy busy month again but I can definitely see light

at the end of the tunnel as far as loan approvals go - it's starting to get easier again thank goodness especially for property investors . We have managed to get a good handle on what the lenders will and won't approve now after the credit crunch and have formed some strong relationships with some of the major banks which is proving to be very valuable to us and our clients.

On a personal note we are now the proud owners of a "half pipe" skateboard ramp which is now in our backyard. Blake has been dreaming of this for about 18 months so has been saving madly for it all year. It just proves what we can achieve when truly set out to reach our goals (he has gone without treats, junk-food, DVD hire etc for months) - I'm very proud of his determination.

 The new FHOG details have been released and I have full information available for anyone interested in the grant. The commonwealth Bank have also released a handy booklet for clients buying a home - we have been given complimentary copies of this so let me know if you would like a copy.

Update from Staff

Jacqui

Work has been hectic as always, we have had a lot of referrals which is great and it's been a busy month working through them and helping existing clients with their current applications.  Socially, I had a very fun month with our friend Leigh's Hens party, then a week later her Wedding to Todd and then we joined them (and other friends) in Hamilton Island for holiday which was just brilliant, we are booking again for next year already.

Leanne

My spiel this month is not about me - instead I would like to take the opportunity to wish Anita a belated Boss's Day for October 16 on behalf of all the staff.

We are all very fortunate to have such an easy going fantastic boss who deserves some written acknowledgement for how wonderful she is.

With all the challenges thrown at her over the last few months she never changes with her positive attitude,  incredible work ethic, and friendship.

We all look forward to cracking a bottle of bubbly or two ..... to celebrate Anita .... more than just someone nice to work with ....  someone nice to know.

John

A lot has been happening.

Work has been very busy and Anita has been guiding me well. It is so good having a boss who is approachable and great to work with. I have built a very good working relationship with many new clients which is working well for us all.  Socially we qualified for the regional final of the Holden Scramble in Golf at Cypress Lakes. Unfortunately we just weren't good enough and finished down the field. Maybe next year! Not much else to report except that it s almost Cruise Time. I will be away for the beginning of November, taking a short cruise in the South Pacific with my Son and his girlfriend and 9 other friends. Pacific Dawn here we come...........  All in all have a great month and guess what ........It's nearly time the man in the Red Suit.

As you may already be aware, the Government has increased the First Home Buyers Grant to up to

$21,000.

If you are looking to buy an established home you may be eligible for the $7,000 boost benefit in

addition to the $7,000 grant, bringing the total benefit to $14,000.

If you are looking to buy a newly constructed home, or building a new home, you may be eligible for

the $14,000 boost benefit grant in addition to the $7,000 grant, bringing the total to $21,000.

Speak to an AFS member for more details

SMSFs, also referred to as do-it-yourself (DIY) funds are established and managed by individuals themselves. SMSFs can only have a small group of individual members (fewer than five people).

Anybody can run a SMSF, but because they often cost several thousand dollars each year, they are mostly suited to people with several hundred thousand dollars in superannuation. The general consensus is that due to the initial set up costs and on-going administrative costs you would need to have approximately $200,000 before setting up your own SMSF becomes economical.

Advantages to having your own SMSF are that it gives you greater control over your investment together with a wide choice of assets in which you can invest. It is important to remember however, that the sole purpose of superannuation is to fund your retirement so you cannot use the assets in your SMSF for your current employment. Running your own SMSF also requires you to have the appropriate skills and time to manage your own fund.

The Australian Tax Office (ATO) has the following general steps involved in setting up a self managed superannuation fund:

• Obtain a trust deed & appoint the trustees
• Elect to become a regulated fund, and
• Obtain a tax file number (TFN) and Australian business number (ABN)

Obtain a trust deed & appoint the trustees

The first thing you need to do is prepare a trust deed. This will require the assistance of a professional such as your accountant or solicitor. Unless your accountant or solicitor holds an Australian Financial Services Licence they will not be able to provide financial advice as to whether setting up a SMSF is the right decision for you. They will only be able to help you establish the SMSF.

The trust deed details the rules of the trust, including the nominated trustees, how they are appointed and the powers they hold to make contributions and pay benefits. You must make sure the trust deed is properly executed and dated.

All SMSFs must have trustees and in turn all members of the fund must be appointed beneficiaries. To be a trustee, you must be over 18 and have not been convicted of an offence involving dishonesty and cannot be an undischarged bankrupt. A corporation can not be permitted to act as a trustee where; a receiver, official manager or provisional liquidator has been appointed to the company or action has commenced to wind up the company.

The trustee is legally responsible for the actions of the SMSF. These responsibilities include the lodging of an annual tax return, member contributions statements and engaging an approved auditor to complete the annual audit.

Elect to become a regulated fund

Electing to become a fund regulated by the Superannuation Industry (Supervision) Act (SISA) allows the fund to receive concessional tax treatment. The trustees have 60 days to lodge the election with the Tax Office by way of an application form to register for the new tax system superannuation entity.

The decision to elect to be a regulated fund cannot be reversed without winding up the fund.

Obtaining a TFN and ABN

Once the application form to register a new tax system superannuation entity has been processed by the ATO, a Tax File Number and an Australian Business Number will be issued.

Once the above processes have been completed, the next step is the implementation of an investment strategy. Establishing an investment strategy involves formulating a plan that takes into account risk, return, diversification, liquidity, cash flow, asset allocation and the ability to discharge existing and prospective liabilities. Seeking the assistance of a licensed Financial Advisor may help you move in the right direction.

As the SMSF is its own separate legal entity it will require its own bank account in its own name. This will keep assets of the SMSF separate from your own personal assets.

The establishment of your own SMSF can be a fulfilling experience but you must remember that running your own self-managed super fund demands great responsibility. There are severe penalties if you fail to meet the requirements set out in the legislation, such as failing to meet the sole purpose test of saving for your retirement.