Case Studies - Winner Partnership

Tax Minimisation & Asset Building
Retire Comfortably
Wholistic Advice

We have a proven track record in helping small/ medium size business people make more money and manage their money better.

Take a look at some of the strategies Winner Partnership has used to help their clients live a rich and fulfilling life. Talk to us about how we can help you get the most out of what you've got.
(Please note: the stories below are actual, however all names have been changed to protect the identity of Winner Partnership clients)

Tax Minimisation & Asset Building
The challenge:
How can I reduce the tax I pay, and use the money to build my assets?

The solution:
At the age of 39 years old, Amanda Peterson had already achieved some significant financial goals. As a management executive earning over $150,000 p.a., she had secured a mortgage to purchase her dream home (and was on the way to paying it off). She also had invested over $100,000 in her superannuation fund, and had a small share portfolio valued at $10,000. Amanda's current net worth was $500,000.

Her goal was twofold. First she wanted to reduce her tax burden (she was paying 48.5% in the dollar). Then she wanted to significantly build her assets so that she would be able to retire rich, within 15 years.

After calculating what her "magic number" was - this is the amount of money you must have accumulated to be able to afford to retire - Winner Partnership informed her she would need to accumulate $2 million in assets over the next 15 years. That was quiet a goal, and the sooner she started the better. This challenge was going to require some innovative thinking, and a willingness to do things differently.

The first step was for Amanda to sit down with Winner Partnership team to come up with a financial plan. They suggested she focus on paying her own mortgage as soon as possible. At the same time, she could use the equity built up in her own home to purchase at least two investment properties. By negative gearing, she would reduce her tax burden while at the same time build her assets.

In a further effort to reduce the tax paid, they recommended she salary package and increase her superannuation contribution to the maximum limit for her age (that way, she would only pay maximum tax of 30% rather than 48.5%).

Any surplus cash would be saved directly into a managed share fund. Being time poor, she could take advantage of the many and varied investments that are managed by experts.

The results, after just two years, were very impressive. The value of Amanda's assets increased from $500,000 to $1.1 million, due to a combination of reducing tax, increase in market value, contributing more to superannuation and budgeting discipline. She was well on her way to meeting - and executing - her goal to accumulate $2 million in assets.

Step-by-step, the results after two years:

Amanda had paid off her own home (now valued at $800,000).
She was now contributing 50% more into her superannuation fund annually, and saving 18.5% tax on those extra contributions.
She had purchased two investment properties using the equity of her home as a deposit. The combined value of the properties had already increased by $200,000.
A balanced managed fund portfolio was established, with automatic monthly deductions from Amanda's salary. The fund invests in various Australian and international shares to ensure diversification and reduce risk.
She saved $15,000 per year in personal tax, through negative gearing.

Retire Comfortably
The challenge:
How can I comfortably retire within 5 years?

The solution:
Yvonne Baker ran a profitable secretarial services business. She came to us at the age of 52, with a desire to be financially retired within the next five years. Her goal was to accumulate additional assets quickly and reduce her tax burden, so that her retirement would be very comfortable.

After assessing her current situation, goals and investor personality Winner Partnership team recommended she utilize the benefits of a self managed superannuation funds and diversified property investments to achieve her goals.

The first step was to rollover Yvonne's superannuation fund to a self managed model, which granted her the freedom to manage her own retirement funds (talk to us about how we can do this for you too).

Then, using those funds, Yvonne purchased a commercial property premises to be rented back to her business. This saved her money, as the super fund was only required to pay a maximum of 15% tax on the rental income rather than the 48.5% that would have been owed if Yvonne had personally owned it. At the same time she benefited from the capital growth of the asset.

Dividends due from her company were then used to completely pay off her own home mortgage. With the significant equity then available, Yvonne purchased another two investment properties. The double benefits were a tax saving, as the properties were negatively geared, and rapid capital growth (within three years the value of the properties increased by $300,000).

As a final touch, Yvonne accepted our recommendation that she pump the maximum annual contribution allowable into her superannuation fund over the next five years (in this case that was $82,000 per year). Yvonne's goal of retirement within five years is now easily achievable. She will be well financed to enjoy her years of freedom in style.

Step-by-Step, the results over three years:

She used funds from her self-managed superannuation fund to purchase business premises, which the business then rented from the fund. The increase in market value of the property has been almost $100,000.
Her own home was fully paid off.
She had purchased two investment properties using the equity in her home as deposit. The combined value of the properties had already increased by over $300,000.
She saved $20,000 per year in personal tax, through negative gearing.
She is contributing the maximum limit of $82,000 per year into her superannuation fund. This reduces her tax burden while rapidly building her assets.

Wholistic Advice
The challenge:
Help! I'm a sole trader and I need financial, tax and business advice.

The solution:
Sole trader John Giuliani, 32, came to us in need of assistance. His computer software sales business had grown rapidly in the past three years - from a home office set-up, to a small enterprise employing five people - and he felt out of his depth with regards to the business, tax and financial decisions he knew he should make.

John was paying 48.5% of his income in tax, he didn't have a superannuation fund and he was striking difficulties securing an overdraft with his bank for cash flow emergencies. His forte was selling. So he came to us looking for more than just an accountant - he wanted a business partner.

The first thing we recommended for John was that he should secure his assets in a family trust. As a sole trader it was important that he secure at least family home, so that his family would be protected in the event of business failure. We also explained the many tax and employee benefits of switching from sole trader to trading company. John immediately reduced his tax payable to 30%, and was able to claim personal superannuation contribution. He was also now eligible for workers compensation cover in the event of injury at work. John' business occasionally encountered cash flow difficulty. His bank, despite impressive business growth and profitability of his enterprise, had refused him an overdraft of a mere $50,000. We helped him self-finance this amount, by lending it to the family trust, which in turn lent it to the company.

It was important for John and his wife to tax-effectively build up assets for their future. We recommended they pump as much money as they could afford into a superannuation fund. Within a couple of years they were able to roll over their entire super from various funds into one self-managed family super fund. This gave them the control to decide where they wanted to invest these funds for long-term growth.

They were also able to purchase an investment property using the significant equity in their own home. This property was negatively geared for tax savings, and was purchased securely by a unit trust that The Winner Partnership established for John.

After just two years with Winner Partnership, John's business and financial situation was dramatically different. He had ensured his family assets were safe, increased his asset base and structured his business in a smarter, sounder way. He continues to grow with us.

Step-by-step, the results over two years:

We assisted John to secure his assets in a family trust, which would not be jeopardized in the event of business failure.
John used the equity in his own home to provide an overdraft type service to the business. He did this in a secure manner, by lending it to the trust, which in turn lent it to the company.
John changed his business from a sole trader to a trading company. He was able to reduce his tax from 48.5% to 30%. He was now covered for workers compensation in the event of an injury at work.
John used the equity in his family home to purchase an investment property, which was negatively geared to offer tax benefits.
After two years of rapidly accumulating superannuation contributions for himself and his wife, John was able to roll this amount over into a self-managed fund. We advised to invest in various investments such as car park spaces, a share portfolio and storage units.
John increased his personal superannuation contributions, which the company could claim in full.
John was now in the driver's seat of his business. He had full understanding of the best ways to maximize his profit, secure his future and grow the business