FROM THE PRESIDENT’S DESK

In last month’s issue of the NSWROA Times, I advised that I would keep you updated on some of the various issues the Association is dealing with on behalf of racehorse owners in New South Wales.

One subject in particular has arisen this past month that was of utmost importance – horse safety and security during music festivals.

You would all no doubt have heard about the recent incident at the Flemington stables of Mark Kavanagh when some twenty six horses were let out and chased around the stables and injured during a music festival.

Following this incident, the Association was advised by various members that at the last music festival conducted at Randwick, despite security, the stables of a prominent trainer had been broken into. Fortunately, no horses were injured.

As the “Future 10” Music Festival is to be conducted at Randwick on 6 March 2010, the Association has written to the Australian Jockey Club (AJC) seeking advice on what safety and security measures are to be implemented during the festival.

At the time of writing the Association had not as yet received a response from the AJC. You will be further advised once information comes to hand.

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2010 MEMBERSHIP RENEWALS

A reminder to members that 2010 membership renewal fees are now due.

2010 membership fees, inclusive of GST, have remained at the same rate as last year. We have in 2010 introduced a Country Membership Rate to assist our country friends to continue to participate in membership and also encourage new country patronage of the Association.

To those of our members who have already renewed your membership our thanks – your support of the Association is greatly appreciated.

AN EXTRAVAGANZA OF FUNCTIONS IN MARCH FOR NSWROA MEMBERS

The month of March will provide NSWROA members with an extravaganza of wonderful functions to attend.

The first function for the month will be a Night Racing Cocktail Function to celebrate the closing of the night racing season in Sydney which will be held on Thursday 4 March 2010 at Canterbury Park Racecourse.

Those members who attended the cocktail function for the opening of the night racing season in December will attest to what a great night out this is. For further function details click here or to book your place click here. Remember to book early to avoid disappointment.

The Enchanted Golden Slipper Hats and High is the second function in our calendar in March. The event is to take place on Sunday 21 March 2010 at the Sir Stamford at Circular Quay.

It’s your chance to view all the latest millinery trends as the Sydney Couture Milliners showcase their fabulous designs. There will be entertainment, a viewing of hats followed by a traditional high tea with a parade. You will also have the opportunity to talk to the milliners, purchase a new creation or arrange for a unique piece to be made for that special race day.

If you love your fashion - don’t miss this fabulous event.

A reminder that this event was sold out last year, so it would be wise to purchase your ticket early. Click here for further details.

The final function for the month will be something special and a little different.

Details are currently being finalised but I can tell you that it will be drinks and a cocktail style lunch to celebrate following the Golden Slipper Barrier Draw on Tuesday 30 March 2010.

Please note your diaries and watch this space for further details.

ADVANCE NOTICE - SYDNEY CUP DAY LUNCHEON

NSWROA will again be holding our annual Sydney Cup Day Luncheon at Royal Randwick. This year’s event will take place on 24 April 2010.

Details are currently being finalised but members should note this date in their diaries.

WINNERS ARE GRINNERS

A WINNER – there are no better words for an owner to hear!

As members are aware, as part of our membership renewal process, NSWROA requested members to forward the names of their racehorses in order for us to acknowledge their racing triumphs in our publications.

By popular demand, this feature has been “upgraded” for the 2009/2010 racing season. Accordingly, hereunder are the lucky NSWROA members who had winners in January 2010:

 
Owner Meeting Horse
G Altomonte Canterbury Longlea
M Angelos Wyong Bermuda Bankroll
D Balian Randwick The Mikado
W Benson Kembla Sob Sister
S Bourke Cessnock Surge Draw
Nowra Surge Draw
G Bunt Randwick Monton
A Cardy Randwick (2) How Much My Love (NZ)
Straight Edge (NZ)
Ms R Charlton Nowra Reigning Rhythm
A Collins Mudgee Dreamwinner
N Couper Wyong Prince of Prague
Ms S Coward Nowra Reigning Rhythm
J R Cribb Gosford Sir Nick
Wyong Sir Nick
Mrs B Cummings Randwick Dealer Principal
J Durbridge & Mrs L Durbridge Kembla Frisco's Conflict
I Eastaway Parkes Cleary's Creek
W Estephan Canberra Lebrechaun
Ms J Evatt Sapphire Coast Zassi
J Fleming Mudgee Sanglia
Parkes Eureka Joh
G Fraser Nowra Reigning Rhythm
Mrs K Fraser Nowra Reigning Rhythm
W Gibson Gunnedah Helvetia
Gooree Pastoral Co Caulfield Joku
Kembla Break of Dawn
Randwick (2) Power and Glory
Zutara
Rosehill Rabbuka
J Grady Nowra Reigning Rhythm
D Hall Broadmeadow Gold World
G Harvey Canberra Military Secret
Canterbury Miss Campbell
Gosford Rhodonite
Morphettville Zagreb
Randwick Come On Cugat
Rosehill Tagus
Wyong Sabino Creek
W Haylen Sapphire Coast Zassi
Ms J Henning Randwick The Mikado
B J Hudson & Mrs L Amitrano-Hudson Goulburn Onyegin
S Iskander Rosehill Oopsy Doopsy
Wyong Oopsy Doopsy
K Keady Wellington Diamond Dance
C Kemp Nowra Reigning Rhythm
Ms M Kemp Nowra Reigning Rhythm
J Keough Wagga (2) Gandalf The White
Laurel Oak Bloodstock Cessnock Surge Draw
Nowra (3) Mass Exodus
Reigning Rhythm
Surge Draw
R Lazarus Gilgandra Sutton Royale
R & M Lazarus Gilgandra Sutton Princess
Gunnedah Sutton Princess
R K Lees & L Hoyle Ballina Mainsail
P Little Nowra Reigning Rhythm
His Excellency Nasser Lootah Gosford Tops A Win
Tamworth Nada
Wyong Tops A Win
Mrs J S Mackay Wyong Lady Gazerra
L Macri Broadmeadow Untouchable Star
Ms J May Randwick Vinyasa
S McGowan Nowra Reigning Rhythm
A Menzies Sapphire Coast Just Opposite
J Middleton Queanbeyan Pray To God
L Mihalyka Cessnock Surge Draw
Nowra (3) Mass Exodus
Reigning Rhythm
Surge Draw
N Mitchell Taree Peppergaze
N Moraitis, AM Randwick Rainbow Styling (NZ)
Randwick Pins on Parade (NZ)
W & Mrs R Mula Canterbury Rock Classic
Randwick Griffon
Dato Tan Chin Nam Broadmeadow Suyama (NZ)
Randwick Griffon
M Naprta Nowra Reigning Rhythm
B O'Malley Wagga Onaclearday
Patinack Farm Racing Syndicate Broadmeadow Full Metal Jacket
  Rosehill Tagus
Ms A Phillips Nowra Mass Exodus
Ramsey Pastoral Co Cowra Dancing Gisele
C Reynolds Nowra Mass Exodus
P Richards Nowra Reigning Rhythm
Ms J Ritchie Randwick (2) Modonna (2)
Rosehill Trader
G Rogerson Wyong (2) Blameless (NZ)
Henriette (NZ)
Sheikh Mohammed Canterbury (3) Juveniles
Purdey
Reprobate
Caulfield Denman
Kembla (2) Lockers
St Clement Danes
Randwick (7) Brasileira
Clothing
Daytona Beach
Gergis
Keshi
Offhanded
Skilled
Rosehill (3) Killian
Pinwheel
Renaissance
D Skinner Wellington Racine Avenue
B Speering Nowra Reigning Rhythm
E Sperling Rosehill Elimbari
J Strachan Nowra Reigning Rhythm
O P Tait Canberra Sandberg
Goulburn Hood
Randwick Sandberg
J Tucker Nowra Reigning Rhythm
M Tudehope Nowra Mass Exodus
T W, Mrs D, JW & Miss H Wallace Cessnock Namaka
Muswellbrook Calendar Lass
Widden Stud Australia Muswellbrook Casino Gal
G & Mrs V Williams Canberra More Than Words
Nowra Reigning Rhythm
Rosehill One More Grand
J Wilson Nowra Mass Exodus
 

I advise that the bold type entries recorded black type wins in January.

Speaking of black type wins, another new feature in the Newsletter is the 2009/2010 NSWROA Member’s Black Type Honour Roll which will acknowledge the success of members in the black type arena. The Honour Roll, as at 31 January 2010 is as follows:

 

2009/2010 NSWROA Members Black Type Honour Roll
Current to 31 January 2009

Race Name Horse Owner
G1 STC Golden Rose Stakes Denman Sheikh Mohammed
G1 AJC George Main Stakes Road To Rock H Dyball
G1 MRC Toorak Handicap Allez Wonder Dato Tan Chin Nam
G1 MRC Caulfield Cup Viewed Dato Tan Chin Nam
G1 MVRC W S Cox Plate So You Think (NZ) Dato Tan Chin Nam
G1 VRC Crown Oaks Faint Perfume Dato Tan Chin Nam
G1 VRC Age Classic All Silent N & Mrs Y Begg
G2 STC Premiere Stakes D/H Mentality M Crismale
G2 STC Premiere Stakes D/H Kroner (NZ) Dato Tan Chin Nam
G2 AJC Warwick Stakes Trusting Patinack Farm Racing Syndicate
G2 STC Shannon Stakes Drumbeats Sheikh Mohammed
G2 MVRC Bill Stutt Stakes Carrara F M & Mrs S Tagg
G2 AJC Stan Fox Stakes Denman Sheikh Mohammed
G2 VRC Gilgai Stakes All Silent N & Mrs Y Begg
G2 MRC Caulfield Sprint First Command L Macri
G2 VRC Wakeful Stakes Faint Perfume Dato Tan Chin Nam
G2 VRC Matriarch Stakes Purple Sheikh Mohammed
G2 MRC Sandown Guineas Kidnapped Sheikh Mohammed
G2 AJC Villiers Stakes Palacio De Cristal G Harvey
G3 STC Run to the Rose Denman Sheikh Mohammed
G3 AJC Up and Coming Stakes Rarefied Sheikh Mohammed
G3 VRC Bobby Lewis Quality Swift Alliance Gooree Pastoral Company
G3 STC Research Stakes Hot Danish A E Curtis
G3 MRC Naturalism Stakes Red Lord Ms J Ritchie
G3 MRC Caulfield Guineas Prelude Demerit Sheikh Mohammed
G3 STC Gloaming Stakes So You Think (NZ) Dato Tan Chin Nam
G3 AJC Bill Ritchie Handicap McClintock G Harvey
G3 MRC Betfair Stakes McClintock G Harvey
G3 VRC Carbine Clube Stakes Kidnapped Sheikh Mohammed
LR AJC Toy Show Quality Moti (NZ) Gooree Pastoral Company
LR AJC Show County Quality Swift Alliance Gooree Pastoral Company
LR MVRC Mitchell McKenzie Stakes Carrara F M & Mrs S Tagg
LR MRC The Heath First Command L Macri
LR WRC Mona Lisa Stakes Moti (NZ) Gooree Pastoral Company
LR VRC Henry Bucks Plate Carrara F M & Mrs S Tagg
LR NJC Tibbie Stakes Moti (NZ) Gooree Pastoral Company
LR AJC Angst Stakes Illuminates G Harvey
LR AJC Breeders Plate Run For Wilson Patinack Farm Racing Syndicate
LR VRC Paris Lane Stakes Raheeb Patinack Farm Racing Syndicate
LR AJC Brian Crowley Stakes Love Conquers All N Moraitis, AM
LR AJC City Tattersalls Club Cup Bid Spotter G Rogerson & G Harvey
LR MRC Jayco Stakes Kidnapped Sheikh Mohammed
LR VRC TCL Electronics Stakes Trim Sheikh Mohammed
LR VRC Myer Spring Fashion Stakes Turf Express E Cojuangco
LR HRC Yalumba Wines Cup Beaded Sheikh Mohammed
LR MRC Snowhite Stakes Marquardt (NZ) Patinack Farm Racing Syndicate
LR MRC Triple M Stakes Secession Sheikh Mohammed
LR HRC Gosford Gold Cup Spinney Sheikh Mohammed
LR STC Festival Stakes Rabbuka Gooree Pastoral Company
LR BRC J F Meynink Stakes Jantzen F W & Mrs C Cook
LR BRC Bernborough Handicap Joku Gooree Pastoral Company
LR Tattersalls Club Cup Rainbow Styling (NZ) N Moraitis, AM
LR STC Frank Underwood Cup Rabbuka Gooree Pastoral Company
LR MRC Zeditave Stakes Denman Sheikh Mohammed
LR MRC Barton Stakes Joku Gooree Pastoral Company
LR SAJC Birthday Cup Zagreb G Harvey

What great results! Congratulations to all! Don’t forget to forward the names of your racehorses to the NSWROA office.

BOBS & BOBS EXTRA UPDATE

It always surprises me to look at some race fields and see there are some 2YOs and 3YOs that are BOBS eligible, but not BOBS nominated. In some cases I’m sure it’s because the BOBS message may have not reached everyone.

I am very pleased to advise that in an effort to get the BOBS message out there, and in particular to the country owners and trainers, this month I will be spending time at a race meeting at Scone and at the Dubbo Yearling Sale to distribute material and spread the word.

Kembla Grange trainer Michael Tubman is a perfect example of why BOBS is so valuable. As we all know he was almost broke when he bought Chance Bye at the Inglis Classic Sale in 2009. This January he signed for 5 yearlings, funded by the $32,000 each that he and his racing partner had in their accounts from Double-Up vouchers after the filly’s two BOBS bonuses. That’s 5 horses going into training, 5 breeders happy to have their yearlings sold – and all funded by Racing NSW through BOBS!

In January alone there were 106 bonuses won, valued at $807,500 in cash terms. This was a record for January in both the number of bonuses and their value. In the first 6 months of the 2009-10 racing season BOBS bonuses have come to $3,155,000, more than $270,000 than at the same time last year.

Sheikh Mohammed is the season’s leading owner with 29 BOBS bonuses valued at $305,000. Commands is a clear leader in Stallion Activity: his progeny have won 24 bonuses with a cash value of $181,250.

For further information please contact:
John Gatfield,
BOBS Executive Officer,
Racing NSW,
(02) 9551-7574,
jgatfield@racingnsw.com.au

RESULTS OF EARLY BIRD MEMBERSHIP RENEWAL COMPETITION

The 2010 Early Bird Membership Renewal Competition, was drawn on Monday 8 February 2010 by NSWROA Life Member, Mr Noel Bracks.

The winners were:
1st Prize – W & Mrs E Benson
2nd Prize – W & Mrs R Mula
3rd Prize – I & Mrs C Patrick

Our congratulations to all prize winners.

BUSINESS PLANS – KEEP THE ATO HAPPY!

Our good friend and Racing’s Night of Champions supporter, Paul Carrazzo of Carrazzo Consulting, has provided his views on the abovementioned issue.

It’s hardly any secret that it’s not easy for a person to have a business of racing and/or breeding approved by the ATO.

This has not been made any easier when you consider that from 1 July 2009 (yes, now!) high income earners (those with an adjusted taxable income greater than $250,000) will not be able to claim their losses immediately unless they can prove to the ATO that their activity has long term “viability”. I have commented ad nauseum about this new requirement since this new rule was announced in the 2009 Budget.

N.B. The “viability” request must be in an “approved form” and when I have the final ATO details be assured that I will let you know.

Regardless of whether you are a high income earner trying to meet the new budget requirement or just trying to demonstrate that your activity meets the ATO business tests, there is one constant that simply can’t be ignored – claiming a business status is far easier when you have prepared a current horse Business Plan.

From my constant dealings with the ATO, it’s obvious that the ATO has never been more serious about business plans, so it’s about time I provided a quick summary as to how to prepare a plan that can hopefully help you survive an ATO audit and, importantly, get your horse losses approved.

ATO Business Plan guidelines
For the record, the ATO recommends the following as minimum disclosures in any business plan:
• a description of the business;
• the markets to which the taxpayer proposes to sell and realistic
• estimates of quantity and volume of sales;
• income expected from the activity;
• the research that has been conducted by the taxpayer;
• information about the property on which the taxpayer proposes to conduct the business;
• information about expected expenses and capital outlays; and
• information about how the taxpayer proposes to pay for the expenses and capital outlays.

What is a business plan?
A Business Plan describes the future destination of a business and how it plans to get there. Business Planning is a three part process, detailing:
• Where your business is now;
• Where do you want it to be in the future; and
• How will it get there?

THE PARTS OF THE PLAN
Though there is no standard format for a Business Plan, though as a minimum it should include the following, which I will now individually comment upon.

1. Executive summary
The key areas of the executive summary should convey are:
• Are the operators capable?
• Do they have sufficient experience?
• Is there a market for the product or service?
• Are your financial projections realistic?

2. “SWOT” analysis
Simply speaking, this is an acronym for “strengths”, “weaknesses”, “opportunities” and “threats”.

In analysing the strengths and weaknesses of your business, consider:
• Marketing strategies
• Experts used in the business
• Racing knowledge of the operators
• Is the demand for your product increasing or decreasing?
• Quality and commercial appeal of your stock
• Adequacy of future funding
• Quality of record keeping

The relevant issues to consider when reviewing opportunities and threats include:
• Competitors
• Political environment, e.g. any tax changes proposed?
• Economic times and state of the industry
• State of the market - where is the leisure dollar being spent at the moment?
• Customers - do you know their profiles?
• Current state of equine viruses

3. Description of the business
Explain what the business does and how it does it.

How is your business set up so it can carry out its intended functions?

Areas that should be specifically included in this part of the plan would be:
• How did your business start up?
• Your overall business set up, i.e. what is the legal structure of your business?

4. Ownership & management
Who owns the business and in what proportions?

Who manages the business and how do they manage it?

In this area you should also explain your level of ownership in the business, who is involved in running the business, and provide details of the experience and success of all of the operators. What can each contribute?

5. Organisation
This section involves you completing a diagram of your hierarchical structure of management levels within the business.

6. Property, Plant & Bloodstock
This area should involve discussion as to what the plant and property needs for your business are now and in the future.

This area should also refer to the current bloodstock of the business and what its favourable characteristics are. For instance, discuss intended mating policy for the broodmares in the next few years. What is the culling policy of the business? What do you look for when selecting racing and/or breeding stock?

7. Financial
You should discuss areas such as:
• What is your financial structure?
• What is the dependency of debt?
• What financial controls do you have?

This area should talk about the extent of your accounting and record keeping.

I suggest at this point in time you put together a cash budget, as a minimum, for your first three years of operations (though five years would be preferable for a “start-up” business).

A budget is, in terms of proving to the ATO that you are conducting a business, the most important part of your business plan as it must evidence a viable long-term operation. If it doesn’t the ATO could take the view that the business will never be profitable and thus consider your activities as a hobby and adjust prior year losses claimed.

8. Operations, products & services
You need to explain the operations of the business in terms that the ATO can understand. Note – there are very few people in the ATO who understand the horse business, thus the more detail, the better.

Significant points you should think about are as follows:
• What are the operations of your business?
• What is the product that your business brings to the marketplace, e.g. racing stock, weanlings, yearlings, agistment, etc.
• What will be your policy in relation to what age you sell your stock at? Will all colts be sold?

9. Marketing
You should enter into discussion as to how you intend to go about reaching your market and getting a market acceptance.

Will your progeny be nominated for the breeders incentive schemes available (e.g. VOBIS, BOBS, QRIS etc)?

Do you monitor the market? Are you a member of any industry associations? Do you have access to current industry figures?

10. Vision
You should clearly state, in very broad terms, what the vision of your horse business is.

Simply, this is a statement stating what you want your business to look like, say, within five years.

11. Business statement / mission
The business statement will define the direction and scope of your business and what product you will offer to the market to achieve your goals.

In any consideration of a business statement you should determine what your Sustainable Competitive Advantage (SCA) is, i.e. something your business does which gives value to the purchaser/consumer and which you do (or can do) better than other breeders in the market place.

12. Action plans
A business plan gives you a secure grasp of the details of your business activities. Once you have sorted out your ideas and data and written your details up in your business plan, you are then able to establish “action plans”.

For every weakness you identified in your “SWOT” analysis, or any other part of the plan, a plan should be formulated to correct it.

13. Annexures
The annexure section gives you an opportunity to attach to your plan documentation to be included. Common annexure to a business plan include:
• Charts of organisational structure.
• Relevant personnel resumes, indicating your experience and expertise in this business.
• Documents or information relating to market analysis and market research.
• Cash flow budget.

You are welcome to contact me if you wish me to clarify or expand upon any of the matters raised in this article.

PAUL CARRAZZO CPA
CARRAZZO CONSULTING CPAs

22 BLACKWOOD ST, NORTH MELBOURNE VIC 3051
TEL: (03) 9329 7044
FAX: (03) 9329 8355
MOB: (0417) 549 347
E-mail: paul.carrazzo@carrazzo.com.au
Web Site: www.carrazzo.com.au

DISCLAIMER - Any reader intending to apply the information in this article to practical circumstances should independently verify their interpretation and the information’s applicability to their particular circumstances with an accountant specialising in this area.

CONTACT DETAILS FOR MEMBERS

Have you recently moved, changed your postal address or obtained an email address?

If so, it would be greatly appreciated if you could contact the office in order for our records to be updated.

Yours in Racing
Ray McDowell, President
11 February 2010

 

NSW Racehorse Owners Association • GPO Box 1506, SYDNEY NSW 2001
Ph: 9299 4299 • Fax: 9299 3212 • E: nswroa1@ozemail.com.au • W: www.nswroa.com.au