How to Protect Your Intellectual Property.

Anything that you create from your own intellect that can be legally owned is your intellectual property (IP). In business, or as an individual with an invention, new process, or creative work that you can profit from in some way, you want to ensure that your IP is protected in order to prevent others from taking advantage of it, profiting from what you created, and infringing upon your rights. 

Your IP can hold a lot of value; for a business, it may be your most valuable asset! This is why many companies go to great lengths to secure their IP – and have a right to take any entity that tries to steal theirs to court.

National and international copyright laws exist in order to encourage innovation and to safeguard businesses, which require their IP to be protected in order to maintain a competitive edge. What exactly can be protected? How can you keep your IP safe in Australia and globally in order to stop other companies from taking advantage of your innovation, thus diluting its value to you, without your licence?


Types of IP
First, it’s important to understand what is protected and the different options that are available to you under intellectual property law.

Patents are used to protect a new process or an invention, safeguarding how something functions. New pharmaceutical medications and Post-it notes are examples protected by patents. The legal battle over who created the original Post-it notes is one of the more famous IP legal cases.

Trademarks are for the name of a brand or a logo, and can constitute any combination of numbers, letters, and shapes to identify the goods or services sold by one business over another. For example the Nike swoosh, or the brand name, Coles. You can also trademark a certain colour, sound, scent, or even how a product is packaged or branded.

A copyright is what is used for trade secrets, like a restaurant’s secret recipe. Creative works, like books, recorded music, film and television programs, and software programs can also be copyrighted.

Registered designs protect the visual appearance of a product. This differs from a patent, which protects the way something works, but not how it looks.

Less common, but essential for certain industries like the Australian wine industry –geographical indications are used to identify when a good has originated from a particular area.

Steps to Protecting Your IP
When you have identified your intellectual property, the first step is to ensure that it is kept confidential until it has been protected. Some companies choose to simply safeguard their intellectual property – which is what Coca-Cola has done with their ‘secret recipe.’ This also means that the trade secret is kept indefinitely – copyrights and patents only last for 20 years before the original creator is no longer the sole owner.

Next, register it with IP Australia. Before it is registered, other businesses or individuals can potentially steal your work and claim it as their own. If you haven’t registered your process, invention, or another piece of IP, then it may be difficult for you to prove that you are the legal owner in court.

Stay aware of any cases of infringement on your intellectual property. Infringement can take away from the owner’s market share, making it difficult for businesses to compete. For example, if a glass manufacturer has a patent for their glass making process; when a competitor uses the same process, then the two companies are producing an identical product. The company that spent millions developing the process now has lost its competitive edge.


How Much Does Registration Cost?
The costs will vary, depending on if you try to register on your own or hire a lawyer to help you. Also, the application fees for the different types of IP protection will vary. A copyright doesn’t have to be filed to go into effect. For example, once you write a story or record a song, it is technically your property. It is, however, helpful to have a work copyrighted if there is any concern over others stealing and using your work or trade secret.

Trademark can cost from $130 to $480 – per class of products or services, plus attorney fees, which may be around $1,000 for a straightforward application.

Patents, which are the most complicated in terms of registering, can cost between $5,000 and $8000, including attorney fees, plus annual maintenance fees.


What About International Protection?
Especially for smaller companies, it can be difficult to protect your IP outside of Australia. You will have to register in each country that you want protection in. Every country will have its own patent, copyright, and trademark laws, so make sure you are aware of what protection is offered once you register.

Trademarks can be filed through the Australian office, which then files with the other country.

Whether in Australia or abroad, registering your intellectual property as soon as you are ready is your best way to ensure that your IP is protected. An IP professional can help you fill out an application correctly and help you with any infringement issues.



(Feedsy Exclusive)
(Article source here)

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New financial year, new rules.

(July 1, 2017)

The start of the financial year is often the time we see new legislation take effect and this year is no exception.

Below we discuss changes that came into effect on 1 July 2017. The impact that these have on you will depend on your individual circumstances.

Please note: We have also included several other changes that were proposed to take effect from 1 July 2017; however, these changes are still only proposals and legislation needs to be passed to make them effective. Changes could be made or the proposals may be rejected.

Superannuation

Superannuation transfer balance cap
There is now a limit on how much superannuation you can transfer from accumulation phase to retirement pension phase. This is called the transfer balance cap.

The transfer balance cap limit is initially set at $1.6 million, however, it will indexed by CPI (rounded down to the nearest $100,000) – the indexation will only apply to the unused portion of your $1.6 million transfer balance cap.

The transfer balance cap affects you if:

  • You are currently receiving a retirement phase income stream that is close to or in excess of the $1.6 million transfer balance cap.
  • You intend to commence a retirement phase income stream after 1 July 2017.

Please note: Transition to retirement income streams are not assessed against the $1.6 million transfer balance cap.

Contributions cap limits and non-concessional contribution bring-forward rule
The concessional contributions cap limit has been reduced to $25,000 p.a. regardless of your age (e.g. Superannuation Guarantee, salary sacrifice, employer and personal tax deductible contributions). Due to this, it may be worthwhile revisiting your existing salary sacrificing to superannuation arrangements and other individual tax-deductible concessional contributions, to ensure you stay within the new concessional contributions cap limit.

The non-concessional contributions cap limit has been reduced to $100,000 p.a. (where you contribute to super after tax). Furthermore, the bring-forward rules still apply but reflect the reduced limit.

However, a new restriction also now applies to non-concessional contributions, namely, if you have a total superannuation balance equal to or over $1.6 million at the end of 30 June in the previous financial year, you are no longer able to make further non-concessional contributions.

Transition to retirement (TTR) pensions
The earnings from assets supporting new and existing transition to retirement pensions are no longer subject to an earnings tax exemption. Asset earnings are now taxed up to 15%, the same as if the monies were still in accumulation stage.

Self-managed superannuation
In the Government’s recent Budget they proposed that a limited recourse borrowing arrangement will be included in your total superannuation balance and transfer balance cap:

  1. The outstanding balance of a limited recourse borrowing arrangement will count towards your annual total superannuation balance. The Government is still considering its approach regarding this proposal.
  2. The repayment of the principal and interest of a limited recourse borrowing arrangement from your accumulation account will be a credit in your transfer balance account. This proposal recently passed through Parliament.
    • Please note: This change applies in relation to a limited recourse borrowing arrangement that arises under a contract entered into on or after 1 July 2017. Furthermore, refinancing a pre-1 July 2017 limited recourse loan may also remain exempt from this change if certain criteria are met.

Superannuation anti-detriment payments
Superannuation anti-detriment payments are no longer available as part of a superannuation death benefit payment. However, superannuation funds are still able to make anti-detriment payments until 30 June 2019 for those members who passed away on or before 1 July 2017.

Tax deductions for personal superannuation contributions
The 10% maximum earnings as employee test for claiming tax deductions for personal superannuation contributions has been removed. This means, you may be eligible to claim a tax deduction for personal superannuation contributions if you are under 75 years old. For people aged 65 to 74 years, they are required to meet the work test (having worked at least 40 hours during a consecutive 30-day period during the relevant financial year).

Spouse contributions tax offset
If you didn’t qualify for the Spouse Contributions Tax Offset last financial year, you may qualify this financial year.

The income level for eligibility of the full $540 Spouse Contributions Tax Offset has been increased from $10,800 to $37,000. Also, the cut-out income level for a partial Spouse Contributions Tax Offset has increased from $13,800 to $40,000.

It is important to note that other restrictions also apply moving forward. For example, your spouse must not:

  • Exceed their non-concessional contributions cap in the relevant financial year.
  • Have a total superannuation balance equal to or exceeding $1.6 million immediately before the start of the financial year in which the contribution was made.

Low income superannuation tax offset 
The Low Income Super Contribution (LISC) has been replaced by the Low Income Superannuation Tax Offset (LISTO); however, the rules governing the new tax offset remain consistent with the old measure.

Under these rules, if you have an adjusted taxable income of up to $37,000, you can expect to receive a refund into your superannuation account by the Government. The refund is calculated at 15% of your total concessional superannuation contributions for a financial year, capped at $500.

Government co-contributions
Moving forward, further criteria also needs to be met to be eligible for the Government Co-Contribution. For example, you must not:

  • Exceed your non-concessional contributions cap in the relevant financial year.
  • Have a total superannuation balance equal to or greater than $1.6 million on 30 June of the year before the relevant financial year.

High income earners (Division 293)
The income threshold regarding the extra contributions tax for high income earners has been lowered from $300,000 to $250,000. This means that if your income and concessional contributions exceed the $250,000 income threshold, an additional 15% tax on concessional contributions will apply.

Age Pension eligibility age

Depending on your birth date, the Age Pension eligibility age has increased from 65 years to 65.5 years.

Please see the below table for a summary of how this may affect you.

Age Pension Eligibility Age
Date of Commencement Eligibility Age Those Affected
– 65 years Born prior to July 1952
From 1 July 2017 65.5 years 1 July 1952 – 31 December 1953
From 1 July 2019 66 years 1 January 1954 – 30 June 1955
From 1 July 2021 66.5 years 1 July 1955 – 31 December 1956
From 1 July 2023 67 years On or after 1 January 1957

Financial assistance payments to eligible families

The Government’s Single Income Family Supplement to eligible households is no longer available to new applicants; however, if you were eligible on 30 June 2017 (and, continue to remain eligible) then you will continue to receive the Single Income Family Supplement.

Furthermore, the existing Family Tax Benefit payment rates will now remain unchanged at their current levels for the next two years; indexation will resume from 1 July 2019.

Prospective first home buyer

First Home Super Saver Scheme
Under the Government’s newly proposed First Home Super Saver Scheme, prospective first home buyers, may withdraw their voluntary contributions to superannuation to purchase their first home. From 1 July 2018 it is proposed that the amount available for withdrawal will be up to $15,000 of voluntary contributions per financial year since 1 July 2017 ($30,000 in total) plus deemed earnings, less tax on concessional (pre-tax) contributions and deemed earnings. Contributions under this scheme must be made within existing superannuation contribution caps. First home savers may wish to delay making additional contributions for the purpose of building a home deposit, as the measure is not yet legislated.

Stamp duty 
The NSW and VIC Government recently made announcements regarding stamp duty, which took effect on 1 July 2017. For example:

  • In New South Wales, first home buyers are now exempt from stamp duty on existing and new homes worth up to $650,000. In addition, existing and new homes between $650,000 and $800,000 also attract stamp duty discounts. Stamp duty charged on lenders’ mortgage insurance has also been waived.
  • In Victoria, first home buyers are to be exempt from stamp duty on existing and new homes with a ‘dutiable value’ (e.g. the price you pay minus any deductions) of $600,000 or less. In addition, existing and new homes with a dutiable value between $600,001 and $750,000 also attract stamp duty discounts.

Domestic investors

Tax deductions and residential property investors
If you are a residential property investor, the following measures have been proposed however not legislated:

  • You are no longer able to claim a tax deduction for travel expenses incurred whilst personally inspecting, maintaining or collecting rent for your residential rental property. However, property management fees paid to third parties (e.g. real estate agents) will remain tax deductible.
  • The Government has limited depreciation deductions on plant and equipment to outlays incurred by the current owner of a residential real estate property. However, grandfathering arrangements may apply to existing residential real estate properties as at 9 May 2017.

Moving forward

We suggest that you take the time to review these changes and consider how they may relate to you both now and in future.

If you are unsure about how these changes may affect you then please contact us.

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Top Five Places in Australia to Buy Your First Home

Home prices in Australia have been rising for years now, with many homebuyers being priced out of the market in places like Sydney and Melbourne where the average home price is $852,000 and $641,200 respectively. If demand continues to exceed supply as the populations of Aussie urban hotspots swell, experts predict that property will be virtually unaffordable in the future. If the next two decades see the same remarkable increases of the last 20 years, by 2037 it will cost $6 million to enter the market in both Sydney and Melbourne.

While this growth can only last for so long, with buyers having to pay 8, 10, and 12 times their annual income for a home, in some cities at least, demand is still dwarfing supply. This means the bubble isn’t going to burst tomorrow. This is partially due to the Australian real estate market’s unique characteristics – the persistent low interest rates, interest from international investors, and restrictions on development in some areas.

When it does burst, property values will drop, possibly dramatically in the cities with highly inflated prices. This could spell trouble for you if you want to sell your home before the market rises again, as you may not be able to get the price you purchased it for.

What if you want to buy a home right now? Where are the best places in Australia to purchase a first home? Where can you find that perfect balance of current affordability, a great quality of life and ample job opportunities – and feel secure that you aren’t paying a hyperinflated price for your home?


Perth
In Western Australia, the economy has been growing at a much slower rate than New South Wales, Queensland, and Victoria. This has pushed housing and rental rates down, making Perth one of the most affordable cities in Australia. While some suburbs, such as Peppermint Grove, experienced fast growth in 2016, for the most part 2017 is expected to provide plenty of opportunities for buyers.

Perth is also an excellent place to call home – it was rated as the 21st best city to live in the world in terms of quality of life, safety, and health and environmental standards. The area is known for its beautiful beaches, award-winning wine regions, and ultra low rates of crime and homelessness. The capital of WA and a bustling city of two million, there are plenty of job opportunities in education, healthcare, retail, and the service sector to accommodate the large population.

Darwin
Darwin, like Perth, has experienced something of a slowdown in response to the flattening mining industry. This means that, right now, the housing prices are at a low, making this a great city to invest in. While the capital of the Northern Territory is far from other major cities, it is close to Australia’s Southeast Asian neighbours, which is why Darwin is a wonderfully multicultural city. You’ve got lovely beaches, plenty of sunshine, low unemployment, and outdoor activities abound. The downsides are, however, high food prices and Darwin isn’t as rich in the arts as cities like Melbourne and Sydney.

Hobart
One of the best places to buy a first home in Australia isn’t on the mainland at all, but on Tasmania. Hobart, traditionally has had a weaker economy than other cities, but recently the city has been growing. Also, excellent first-home buyer grants have boosted industries like construction and tourism, fuelling the economy and helping to keep prices dramatically lower than other cities.

Hobart is a top pick in terms of affordability and if you want a property where your home value is likely to go up, not down. It’s also an ideal spot for a safe, laid-back way of life and for raising a family. The city boasts good schools and plenty of outdoor and cultural activities.

Liverpool
Not far from Sydney’s CBD, Liverpool is a suburb where you can buy a home for an affordable price, while also being close to great amenities, employment, and transportation. Many real estate experts recommend opting for the inner-city suburbs around Sydney if you are interested in capital growth and access to everything that Sydney provides. Liverpool, as well as Casula, Blacktown and St Marys are all good picks.

Mawson Lakes
Outside of Adelaide in South Australia, you will find this gem. Prices are rising, but new homebuyers can still find some excellent deals. The area is known for being safe, clean, and offers a relaxing atmosphere, although a limited nightlife. Close to Adelaide, job prospects are strong, with many people professionals and students living in the area.

With fast-rising housing prices, it can be a challenge deciding where exactly to purchase your first home in Australia. Still, there are so many excellent opportunities, from the Northwest Territory to Tasmania. You may not be able to buy in Sydney, but that doesn’t mean you can’t get a great deal just outside of the city, or venture to the growing, thriving other corners the country – where you’ll enjoy beautiful beaches and outdoor activities, and escape the high prices and the crowds!

 
(Feedsy Exclusive)
(Article source here)

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5 things small business owners can do to prepare for retirement

FIVE THINGS SMALL BUSINESS OWNERS CAN DO TO PREPARE FOR RETIREMENT

1. Start paying yourself superannuation each year and make regular top up concessional contributions if possible.

2. Consider investing in property or shares so you can access your money if you need it, rather it being locked away in super.

3. Regularly review your investments, and seek advice on whether self-managed super is the best option.

4. The calculator on The Association of Superannuation Funds of Australia website can give you a general idea about how much you will need to achieve the lifestyle you want in retirement.

5. Ensure you work ON your business rather than IN your business, so you can build your brand and client base for when it comes time to sell.

Planning for retirement is often back of mind for small business owners focused on keeping their ship afloat.

You’re not alone if you decide to plough excess money back into your business, especially in its infancy, and thinking you will get a retirement plan together one day soon.

The reality is, one day can roll around sooner than you think.


A recent survey of the owners of around 300 small and medium businesses found more than 40 per cent don’t have a plan to fund their retirement.

Less than half were confident they could afford the lifestyle they want in retirement, according to the research conducted last September by Empirica Research for accounting firm Bentleys.

Financial planner Steve Greatrex, from Wealth On Track, says failing to put money into superannuation is the biggest mistake small business owners make, particularly when getting their venture off the ground.

“In many cases they just don’t think of it and if they do they just don’t have the money,” he says.

“It becomes like a bad habit, it’s like you stop going to the gym and then you never go back again.”

Mr Greatrex says it’s a good idea for business owners to pay themselves 9.5 per cent superannuation, just as they are obliged to by law for any employees.

Like regular workers, small business owners can also make regular top up concessional superannuation contributions.

Concessional superannuation contributions are capped at $30,000 for under-50s, which will be cut to $25,000 from July 1, 2017. The cap is a little higher for over 50s at $35,000 but this will also be slashed to $25,000. The maximum tax rate on superannuation is 15 per cent.

Complete Commerce director Brett Wood says he often recommends small business owners invest in assets in their own name, like shares or investment property, rather than tying up that cash in superannuation when they are starting out.

He says it’s important to regularly check in on your investments as your own personal and broader economic circumstances change to ensure you are on track to reach your goals.

“People tend to get a plan, be happy with a plan and then forget to monitor it as they go,” Mr Wood says.

He says small business owners need to build systems and have people in place so they can eventually work on, rather than in, their business.

“If you actually step back from it while they do the core work and you are just sourcing business … then that gives you a chance to sell,” Mr Wood says.

“It doesn’t always work but that’s is always the plan.”

 
(Source: Melissa Jenkins, Australian Associated Press)
(Article source here)

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