“Trust is the guts of what it’s really all about. If you only have half of the picture, you’re going to stuff it up. You have to know your client.”

With over 40 years of experience in the Financial Planning industry, David certainly has the tools to fix financial problems. David primarily describes his work as client-oriented, and makes a point of valuing the individuality of each client’s circumstances. He maintains a holistic approach to business, avoiding a framework method and favouring adaptive methods to individual cases.

His extensive qualifications in Financial Planning and Life Insurance provide him with the skills and experience to create wealth and peace of mind for these clients, an outcome that brings him great satisfaction.

 “Financial planning is about managing expectations and enabling people to be in control of their assets and their family’s financial safety, especially when the worst happens. This is what is important. The bottom line is delivering results, as promised.”

Family is of greatest importance to David. Together, David and his wife of 40 years, Marilyn have raised three children Grant, Ryan, and Angie and love being grandparents.

Ryan’s qualifications in both chartered accountancy and financial planning provide him with an exceptional skill set to drive Cotter Financial Services ahead in the areas of self-managed super funds, business succession planning and personal insurances.

His experience gives him insight into client issues and the broad range of solutions available to help clients achieve their goals. Specifically, his background in chartered accountancy means that he is experienced in individual tax considerations, as well as business financial statements and structures.

Ryan’s clients describe him as a compassionate person who strives to always deliver what he has promised. He enjoys the satisfaction derived from giving people peace of mind, through achieving their financial goals or providing them with financial support when they need it most. Ryan believes that trust is key to building client relationships and delivering outcomes.

Ryan’s lifelong passion outside of the workplace is music; he is a talented guitarist and songwriter. His bands have supported some iconic Australian artists, including Jimmy Barnes and The Screaming Jets, and have toured the east coast of Australia, with their songs being played on national radio.

In 2012 Ryan and his wife had their first child – Eddie – a much-loved addition to their family with another due later this year.

The government has announced a number of changes to the Commonwealth Seniors Health Card (CSHC). The CSHC allows self-funded retirees to gain access to medicines listed on the Pharmaceutical Benefits Scheme (PBS) at a concessional rate as well as other concessions. To be eligible, a person must have an Adjusted Taxable Income (ATI) of:

·         $50 000 (Singles)
·         $80 000(Couples, Combined)
·         $100 000 (Couples, Combined, or Couples separated by illness or respite care)

You may not have applied for a CSHC due to your non-qualification at this stage; however it could be your intention to do so in the future. You need to do this prior to the 1st of January 2015 to avoid the announced changes.

The proposed changes include;

1.       Annual indexation of income thresholds to       consumer price index from Sept. 2014

2.       Account based pensions (ABP) that are subject to deeming will be included in the CSHC income test from the 1st Jan 2015. Grandfathering applies to holders of the CSHC on the 1st Jan 2015 who have an ABP that commenced prior to that date.

3.       Holders of the CSHC will cease to receive the seniors supplement beyond June 2014.

The proposed changes, especially number two, will have a major effect on the future eligibility for this card. If you have an existing account based pension that has commenced, or you commence one before the 1st January 2015, then it will be excluded from the calculations of the income tests. Again, if it is your intention to apply for this card and you’ve not already commenced an ABP, then you need to do so prior to the 1st January 2015.

The second of these proposed changes in regards to account based pensions, needs to be treated carefully. If you in the future become  a CSHC holder and you change your account based pension provider in the future and therefore will have a new commencement date of your account based pension after the 1st January 2015, then that change will cause this asset to be now deemed and included in the incomes test. The grandfathering provision essentially ‘locks’ account based pension holders into their existing account based pension providers as any change after the 1st January to the provider will see the account based pension deemed for CSHC purposes.

Self-funded and future self-funded retirees need to note changes to the Commonwealth Seniors Health Card announced in the budget.

The government has announced a number of changes to the Commonwealth Seniors Health Card (CSHC). The CSHC allows self-funded retirees to gain access to medicines listed on the Pharmaceutical Benefits Scheme (PBS) at a concessional rate as well as other concessions. To be eligible, a person must have an Adjusted Taxable Income (ATI) of:

·         $50 000 (Singles)

·         $80 000(Couples, Combined)

·         $100 000 (Couples, Combined, or Couples separated by illness or respite care)

The proposed changes include;

1.       Annual indexation of income thresholds to consumer price index from September 2014.

2.       Account based pensions (ABP) that are subject to deeming will be included in the CSHC income test from the 1st Jan 2015. Grandfathering applies to holders of the CSHC on the 1st Jan 2015 who have an ABP that commenced prior to that date.

3.       Holders of the CSHC will cease to receive the seniors supplement beyond June 2014.

The second of these proposed changes in regards to account based pensions, needs to be treated carefully. If, as mentioned above, you have account based pension that has commenced or commences before the 1st January 2015, then it will be excluded from the calculations of the incomes test.  If you are a current CSHC holder and you change your account based pension provider in the future and therefore will have a new commencement date of your account based pension after the 1st January 2015, then that change will cause this asset to be now deemed and included in the incomes test. The grandfathering provision essentially ‘locks’ account based pension holders into their existing account based pension providers as any change after the 1st January to the provider will see the account based pension deemed for CSHC purposes.

With the introduction of the Temporary Budget Repair Levy, the top marginal rate for individual tax payers has increased by 2% to 47% (or 49% including Medicare levy) for 3 years commencing 1st July 2014. The increased top marginal tax rate will apply to taxable income earned in excess of $180 000 per annum.

It is also important to note that while the Temporary Budget Repair Levy applies to high income earners, it can also potentially apply to people with incomes below $180 000 where they; sell an asset and realise capital gains, or take a superannuation lump sum benefit consisting of a taxable component between the age of 55-59, as this amount will be included in the taxpayers taxable income and could push the taxpayer over the $180 000 threshold.

As the Temporary Budget Repair Levy applies to taxable income, strategies which reduce taxable income will result in a reduction of the amount of levy payable. This can be achieved either by reducing assessable income or increasing deductible expenditure.

One means of reducing assessable income is to salary sacrifice. This will provide greater tax savings for clients with earnings in excess of $180 000 per annum.  Sacrificing to benefits that attach Fringe Benefits Tax will not relieve the situation as the Fringe Benefits Tax has been increased by 2% also, and is being applied for the same period as the Repair Levy.  Salary sacrifice to superannuation does not attract Fringe Benefit Tax, and is one strategy that could be utilised. Any sacrifice to superannuation must come within the superannuation caps that apply. You must make sure that the compulsory Superannuation Guarantee (which will rise to 9.5% from the 1st July 2014) is included within this figure. The caps will apply from the 1st July 2014 – the general concessional contribution cap commencing on the 1st July 2014 will be $30 000. If you are aged 49 and over on the 30th June 2014, this will increase to $35 000.

A means of increasing deductible expenditure - but at the same time providing surety that your income in the event of disablement is maintained - is to consider income protection insurance for your personal income, and business expenses insurances for your business income.  Each of these look to replace income lost as a result of being unable to work due to accident or illness. The premiums are also a tax deduction, maximising your personal protection plan in a cost effective way.