Exam Case study and answers.docx - CASE STUDY MR JOE...

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CASE STUDY: MR. JOE ITALIANO (15 marks) Joe is a 67-year-old FNQ family farm business owner. You have met Joe socially, but do not know him well. Through your social networks, you have heard he is frugal and that he and his son farm together. He informs you that he has worked with several agriculture professionals that have helped him with his farm business finances, but he has not reviewed his personal and business financial situations simultaneously. After spending some time learning about Joe, you discover that he and his wife, Vicki (65), have three children: Brett, Andy, and Ashley. Brett is married to Becky; they have two children of their own. Andy is married to Eileen and they have three children. Ashley is married to Cory and has a daughter. Brett, who is the oldest son, does in fact farm with Joe. Brett and Becky live in a house on the family farm and their children help on the farm by doing chores during the busy harvest and planting seasons. The other children took up professional careers having gone through University and are all independently well off in their current circumstances. You also learn that Joe’s wife Vicki does the bookkeeping for the business and that she would like to pass on the bookkeeping responsibilities. Joe’s income is reliant on the production of the farm and in the last decade the impact of climate change has seen a growing gap between the good seasons and poor, over the past 5 years Joe’s income has equated to around $150,000 before tax. More importantly, having been farming for over 40 years, the stock of assets and savings, significantly through his investment in a retail superannuation fund around $1.2 million, has been a focus for Joe to ensure his and Vicki’s

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