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Super for self-employed people

Thu, 13 Feb 2020 04:44:02 GMT

Super for self-employed people

February 12, 2020

Money and Life

(Financial Planning Association of Australia)

You don’t have to pay yourself super, but when you retire, you might be glad you did.

You can make regular or lump sum payments, can usually claim a tax deduction on contributions, and may be able to save tax.

Why pay yourself super

There are advantages to contributing to super:

You save for your retirement.

You can claim a tax deduction for super contributions.

Super contributions are taxed at 15%, so you may save tax depending on your situation.

Super investments usually get better returns than bank savings accounts, so your savings will grow faster.

Use our super calculator

Work out how much you can save for your retirement.

How to pay yourself super

If you already have a super fund, check that you can make contributions when you’re self employed. You’ll need to give your fund your tax file number (TFN) so they can accept contributions.

If you don’t have a fund, see choosing a super fund.

Transfer a regular amount or a lump sum

There are two ways to contribute, depending on how you pay yourself. If you receive:

A wage — set up a regular transfer into super from your before-tax income.

Income from business revenue — transfer a lump sum when you have enough cash flow.

Tax deductions for super contributions

You can claim a tax deduction for contributions you make from your pre-tax income (known as concessional contributions). You benefit because you reduce your taxable income.

To claim a tax deduction, you need to send a ‘Notice of intent to claim’ form to your super fund before the end of the financial year. Contact your fund to find out how much time you need to allow for processing.

See claiming deductions for personal super contributions on the Australian Taxation Office (ATO) website for detailed information.

Always confirm the details of any super contributions with your accountant or tax agent.

How much to contribute to super

As a guide, employers contribute at least 9.5% of an employee’s earnings to super.

There are limits to how much you can contribute each financial year:

up to $25,000 in concessional contributions (from your pre-tax income, for which you can claim a deduction), and

up to $100,000 in non-concessional contributions (from your after-tax income)

If you’re on a low income, you may be eligible for government super contributions, see super contributions.

Joint bank accounts, the benefits and the risks

Thu, 23 Jan 2020 00:08:37 GMT

Joint bank accounts, the benefits and the risks

January 22, 2020

Money Smart

(ASIC)

One account, two names

Opening a joint account with your partner is a huge commitment and one of the biggest decisions you will make in your relationship. Only do it if you completely trust them to responsibly access the money, in good times and in bad.

Here are some tips to work out whether a joint account is right for you.

Risks of joint accounts

It’s not a good idea to open a joint account with someone you have just met as you are giving them access to your money. Joint accounts are only suitable for people who trust each other deeply, like a family member or your long-term partner.

Case study: Costa’s girlfriend takes him for a ride

Young man who has had his money taken from a joint account by his partner

Costa works interstate a lot. He decided to open a joint account with his girlfriend, Jenny. The joint account meant he wouldn’t have to worry about paying his bills when he was away as she would arrange it for him.

A few weeks later, Costa checked his account to make sure his boss had paid him that week. He was shocked to find there was no money in the account. Costa tried to contact Jenny but she would not return his calls. He rang his bank and found she had withdrawn all his money. She could do this as it was a joint account that did not need his permission for withdrawals.

After this bad experience, Costa got a separate bank account and decided to set up direct debits for his bills. It would be a long time before he trusted anyone with his money again.

Be very wary of anyone pressuring you to open a joint account. People do have money troubles and may see you as a way to help solve their financial problems.

If you open a joint account which offers credit, and one account holder racks up a large amount of debt they can’t pay back, you both risk having a bad entry on your credit report. You are also legally responsible for paying off the debt.

Benefits of joint accounts

People often open a joint account because they pay fewer fees with one account than two. It can also make joint payments like mortgage, rent and other bills easier to manage.

Joint accounts work well for people who spend money in a similar way. Both people should agree how and when they will deposit and withdraw money, to meet the same goals.

If you are thinking about opening a joint account, ask yourself:

Do I trust the other person completely even if times get tough?

Do we communicate well about money matters?

Do we have similar goals for our money and similar spending habits?

What is our objective in opening a joint account? Is there a better way to achieve this objective?

A shared account for shared bills

One way to make things more convenient for you and your partner would be to keep your money in separate accounts but open one shared account for your shared bills. Discuss with your partner what bills you will pay with your shared account and how much you each will contribute.

Types of joint accounts

There are two types of joint accounts.

Both to sign

This type of account only allows transactions to be made when both parties sign. For example, if you don’t agree that your partner should spend money from the account on a new motorbike, they wouldn’t be able to access the money without your agreement. If you are worried about security, this may be a good option for you.

Either to sign

This account allows both parties to transact independently of each other. This is a less secure option because one person can withdraw and use the money without the approval or knowledge of the other.

Case study: Missy’s ex-husband empties their bank account

Unhappy woman who has had a joint account drained by her ex-husband

Missy was married for 5 years before she and her husband decided to separate. They had over $10,000 in a joint account that they used to pay bills and save for their children’s education. A couple of weeks after the separation, Missy’s card was declined in the supermarket. There was no money left in the account and she couldn’t pay for her groceries.

Missy rang her bank to complain only to find out that her husband had emptied the joint account. Their account allowed either to sign, so her husband hadn’t done anything illegal by emptying the account. Missy talked to a lawyer who told her she would have to fight to get her money back, which could take years.

Additional credit cards on your account

Your credit card provider may offer you the option of having additional cards for family members. These are not strictly joint accounts and the primary credit card holder is usually solely liable for the debt. For more information see secondary credit cards.

Closing a joint account

There is more to closing a joint account than just cutting up the card. Follow the steps below to close the joint account properly.

Both owners need to agree – Before you start closing a joint account, both owners need to agree that the account should be closed. Agreeing on this will help avoid any delays when it comes to arranging the closure. If you cannot agree, contact your bank to advise them of a dispute between the joint account holders. They may be able to freeze or put a temporary stop on your account until you are able to resolve this, or they may require both of you to authorise transactions on the account. Make sure you have another account to use for your pay and to pay bills.

Sort out direct debits and credits – Ask your bank for a 13-month list of any direct credits and direct debits for your joint account. Contact your employer and anyone else who regularly puts money into your account, including Centrelink, to tell them of your new account. Cancel all direct debits from your joint account and make alternative arrangements to pay these bills.

Zero balance – Pay off any overdrawn amount and work out with your former partner how you will divide the remaining account balance. Your balance must be zero before you can close the account.

Call your bank – Tell them you would like to close the account. They will need to verify both owners’ identities. Take note of the date and time you called, and the name of the customer service officer you spoke to.

Put it in writing – Follow up your call with a letter confirming you want to close the account. Include your joint account details, both signatures, and details of your phone call. Ask for written confirmation that the account has been closed. Keep a copy of your letter in case there are any issues later.

Confirmation – You should receive confirmation from your bank once the joint account has been closed. This could be a letter or a final statement. If it does not arrive, follow up with the bank.

Think very carefully before opening a joint account. Communicate openly with the other person to make sure you both have the same financial goals. Don’t be pressured into opening a joint account as you could lose your money.

More savings with less plastic

Wed, 22 Jan 2020 04:53:27 GMT

More savings with less plastic

Money and Life

(Financial Planning Association of Australia)

Proposed bag bans from supermarket giants Coles and Woolworths, together with the ABC’s popular War on Waste TV series have put the spotlight on the single-use plastics problem here in Australia. Find out how to swap disposable plastics for reusable alternatives and make it add up for your household budget.

Wherever you live and wherever you shop, chances are you’ve become aware of the perils of single-use plastics. And there’s no doubt that getting free, disposable plastics products – from shopping bags to straws – seems like the convenient, budget-friendly option. But ditching single-use plastics could end up being easier on your pocket, as well as the environment.

Here are five ways to make the transition away from single-use plastics. You might be surprised at the savings you’ll make by investing in a few items that make sustainable living more affordable.

Drink up

Think the cup you’re drinking takeaway coffee in is recyclable because it’s cardboard? Most takeaway cups are lined with a thin plastic film so they can’t be recycled along with other paper and cardboard waste. And that means our national caffeine habit is making a huge contribution to landfill – around one billion disposable cups a year according to a 2016 feature from ABC news.

Thanks to the first series of ABC’s War on Waste TV show, this issue has received a lot of publicity, which has sent reusable coffee cup sales through the roof. One of the most popular on the market is the Keep Cup, available in three sizes in glass and plastic. There are many alternative versions now available in major supermarkets and independent stores, so look for one to suit your budget and colour preference.

But where’s the dollar saving if you’re buying a cup instead of getting free disposable ones? Many vendors are now offering discounts on takeaway coffees if you bring your own cup. A handy interactive map from Responsible Cafes can help you find one of 4,400 cafes across Australia who will sell you coffee for less when you bring a cup with you. Get your daily brew from these baristas and you’re likely to recover the cost of your reusable cup in a matter of weeks.

Buy in bulk

While some food packaging can be recycled, much of it still ends up in landfill. Although it might seem like something that’s hard to avoid, the rise of bulk food shopping is increasing families budget savings on groceries, as well as reducing waste. Reusable jars, plastic containers and bags can all be suitable for buying and storing dry goods, such as pasta, rice and cereals as well as spices, oils, sauces and more. And there are now many household cleaning and laundry products available in bulk too.

Investing in as many airtight jars as you need can be a significant cost, but you can reuse old jars instead of buying them. It’s often the case that products from bulk stores are cheaper by weight and volume than the supermarket equivalent. So you should find your weekly shop costing you less than it did before.

Cool containers

Having some plastic in your home needn’t be a bad thing, especially if it’s built to last. Tupperware have been in the business of making durable plastic containers and household items since 1946. Their modern creations come at a high price, but there’s a retro chic appeal in old Tupperware tubs that have seen them flying off the shelves at op shops. So if you’re looking for something sustainable and stylish to keep food fresh, pay a visit to your local Salvos and St Vincent De Paul store and see what you find in the way of vintage Tupperware for your home.

Be bag smart

After Coles and Woolworths stopped handing out free plastic bags to customers in July 2018, Coles have changed their position again. They are now offering complementary plastic bags to customers again. While these bags are designed to be used more than once, they’re not as robust as reusable bags customers pay for. Woolworths on the other hand are charging their customers 15c for similar bags.

Wherever you choose to do your grocery shopping, reusable bags can definitely save you from contributing to plastic pollution. And if you shop at Woolies, then you’ll also be saving yourself 15c a pop on your plastic bag bill. Struggle to remember to bring bags with you every time? Many stores, including some IGA shops, have started offering Boomerang Bags to customers. You borrow one or more to carry your shopping home and return them next time.

Straws for days

Right up there with takeaway cups and disposable grocery bags, single use plastic straws are high on the list of public enemies for plastic pollution in our oceans. While the actual figure for plastic straw waste is uncertain, its fair to say most of us will have used and discarded them during our many visits to a pub, café, bar, restaurant or takeaway, as well as having them for our drinking comfort at home.

While straws made from paper are a compostable alternative, reusable straws are an even better option. Available in glass, stainless steel or bamboo, it could be a few years before you’ll save enough on your plastic straw bill to have made these a worthwhile purchase. But if it’s a case of a $10 outlay to save your household throwing away perhaps hundreds of straws, it’s a small price to pay to do your bit for limiting the plastics clogging up our landscape and oceans.

Spending more on more significant items like clothing, furniture and appliances can also be better for your budget in the long run. Find out more.

Keeping track & lost super

Mon, 13 Jan 2020 05:12:43 GMT

Keeping track & lost super

January 2, 2020

Money Smart

(ASIC)

Find your lost super and get back on track

Your super is your retirement savings, so it’s important to know what super accounts you have and how much is in them. Here we explain how to track down lost super, how to consolidate them and how to work out if you have enough super.

How to search for lost super

Have you kept track of all your super? If you’ve ever changed your name, address, job, or done casual or part-time work, you may have lost track of some of your super.

Smart tip

Look after your super because it needs to look after you in retirement.

You can check your super by registering for the Australian Taxation Office’s online services via myGov. This will allow you to:

see details of all your super accounts, including any you may have lost or forgotten about.

find ATO-held super, held on your behalf when your super fund, your employer or the government couldn’t find an account to deposit your super to.

consolidate your super into a single fund.

If you have recently opened a super account, it may take up to 6 months to appear on your MyGov account.

You can still consolidate your super by completing a balance transfer form for each super account you want to transfer from and mailing it to your new super fund. See consolidating super funds for more information.

Case study: Christian finds his lost super

Man On Computer

Christian had just started his first full-time job after finishing university. He had worked a few casual jobs while studying, but hadn’t thought much about his super. His new boss suggested he do a search to find any super he might have lost. Christian had already set up a MyGov account to do his tax return online but hadn’t realised he could use the account to track his super.

When he logged on to his MyGov account he could see that he already had two active super funds with a combined balance of $2,500. He was really surprised that he had accumulated this much super from two casual jobs.

When Christian looked into each super fund, he found he was paying fees on both and also had insurance premiums being deducted from each account. He decided to consolidate his super into one account and chose the fund with the better overall long-term investment returns and lower fees. He used the super consolidation tool on the MyGov website to combine them into one fund and then told his employer to pay his super into his chosen fund.

Christian’s retirement is a long way off but he knows that getting on top of his super now will put him much further ahead when he eventually retires

How to check your super statement

When you receive your annual super statement, review the information to ensure it’s still correct. See checking your super statement for the things to look for.

Find out if you have enough super

We explain how much is enough super but we also have a range of super calculators to help you crunch the numbers:

Superannuation calculator – check if your super is on track and how fees can affect your super balance.

Employer contributions calculator – find out how much super your employer should pay into your super account.

Super and pension age calculator – check when you can access your super and the Age Pension.

Retirement planner – work out how you can boost your retirement income by taking action.

If you want more money to spend in the future, you need to keep track of your super today. Finding lost super and bringing it all together will save money on fees and make your super easier to manage.

Consumer confidence up as outlook clears

Thu, 12 Dec 2019 04:30:30 GMT

Consumer confidence up as outlook clears

December 11, 2019

Michael Mehr

(Australian Associated Press)

Consumer confidence increased at the weekend, with an ANZ survey suggesting people are more optimistic about the Australian economy but less sure about the financial prospects for themselves and their families.

The ANZ-Roy Morgan Australian Consumer Confidence index rose 0.8 per cent from the previous week, with respondents’ positive views of the economy over the next 12 months gaining 3.9 per cent – rebuilding after the prior week’s 4.1 per cent slump to a four-year low – and sentiment about the next five years gaining 2.7 per cent.

The weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also registered a 1.6 per cent increase in people who felt they were better off now compared with a year ago.

But there was a 3.9 per cent drop regarding the prospects for their own financial situation during the next 12 months.

“It is encouraging to see a second week of positive momentum in consumer confidence,” ANZ economist David Plank said.

“Especially given the slew of negative news over the past week: weaker than expected GDP, soft retail sales, bushfires and the smoke haze in Sydney and much of New South Wales.”

The survey’s “time to buy a major household item” metric was up 1.9 per cent, according to the poll results released on Tuesday, adding onto the previous week’s jump of 5.3 per cent when shoppers had access to Black Friday and Cyber Monday discounts.

Super for employers

Thu, 12 Dec 2019 04:29:07 GMT

Super for employers

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Clean up rules on carbon trading: minister

Thu, 12 Dec 2019 04:26:44 GMT

This is a subtitle for your new post

December 11, 2019

Daniel McCulloch and Paul Osborne

(Australian Associated Press)

Australia has called for rules around global carbon markets to be finalised at the UN climate summit in Madrid and urged technological solutions to cut emissions.

Emissions Reduction Minister Angus Taylor told the summit on Tuesday Australia was committed to the Paris agreement and on track to meet and beat its target set for 2030.

But he also urged action on shoring up the legitimacy of the global carbon trading market, which some say is undermined by corruption.

“Here in Madrid, we need to finalise arrangements for Paris agreement carbon markets that give us confidence traded carbon units represent genuine emissions reductions,” Mr Taylor said.

As well, he used the speech to announce Australia would take part in a new initiative known as the Leadership Group for Industry Transition, aimed at cleaning up the world’s heaviest greenhouse gas emitting industries such as steel, cement, aluminium, aviation and shipping.

Mr Taylor said strong messages and targets alone would not address climate change, no matter how ambitious.

“The world needs action to reduce emissions and Australia believes technology will be a key driver of the global transition to lower emissions,” he said.

Australia’s focus was on working with industry, researchers and international partners on “priority technology” such as hydrogen.

A national hydrogen strategy was launched last month, outlining the benefits not only in terms of emissions, but the domestic economy and exports.

Last year $14.1 billion was invested in clean energy in Australia, with renewables now making up over 25 per cent of the national electricity market.

And Australia has the world’s highest uptake of residential solar panels, with one in five households now using them.

Earlier at the summit, Fijian clergyman and climate advocate James Bhagwan seized on an infamous image of Prime Minister Scott Morrison brandishing a lump of coal in parliament.

“As much as I love him as a Christian brother, each lump of coal represents a nail in our coffins and to our crosses,” Reverend Bhaghwan said.

Mr Taylor said Australia was providing an extra $500 million over five years from 2020 to help Pacific nations invest in clean energy and climate and disaster resilience.

And an Asia Pacific disaster risk reduction summit would be held in Brisbane in June.

Mr Morrison, who was in Sydney on Tuesday, said he respected the views of all members of the “Pacific family”.

“No government has done more to engage the Pacific than our government.”

Australia has pledged to reduce emissions by 26 per cent below 2005 levels by 2030 as part of the Paris agreement.

However government projections show more than half that target will be achieved through carryover credits from achieving goals of the Kyoto protocol.

Opposition Leader Anthony Albanese said the government was trying to “fiddle with the figures” to meet international climate commitments.

“Well, it’s no wonder the world is pushing back on that,” Mr Albanese told reporters in Queensland.

“The government’s position on climate change and energy is embarrassing.”

Mr Albanese said the government needed to reduce domestic carbon emissions and become more involved in global action to address climate change.

Christmas at home or away?

Thu, 12 Dec 2019 04:23:25 GMT

Christmas at home or away?

December 12, 2019

Money and Life

(Financial Planning Association of Australia)

Could it be better for your finances, and family, to hit the road or head to distant shores for Christmas? Find out how a festive overseas escape stacks up against a roadtrip for your celebrations.

With the cost of Christmas festivities rising from year to year, it can be a jolly expensive time of year. According to figures from Finder, our collective spend on Christmas in 2018 was more than $25 billion, with the average Australian forking out $1325. While roughly $1 billion of that total goes on decorations, a hefty chunk will be for gifts for our nearest and dearest. In our recent research into giving gifts in Australia, we calculated that, on average, we spend $93 on a significant Christmas gift.

This goes to show just how much money can end up being spent on the traditional way of celebrating the holidays – at home, opening gifts under a tree laden with tinsel, followed by an extravagant feast. What if all that money was put towards a holiday instead? For some families, the big gatherings over Christmas can also become stressful and tiring, with so much effort going into cleaning and catering for the big day. Or you may be in a situation where a family celebration means dividing your day up between meals and festivities in multiple locations, leaving everyone feeling sick of driving around and too much eating in-between.

If you’re coming around to the idea of getting away from it all this Christmas with a domestic or international escape here are a few things to keep in mind before you book:

Escaping in your own back yard

1. The traffic factor

The Christmas road trip may be something you already do in your family, either to escape to a well loved holiday destination or visit your own parents, siblings or in-laws. Because our festive season coincides with the longest holiday for schools, and many businesses too, roads can quickly reach capacity, leading to frustrating delays and many extra hours of travel.

This year, the NRMA anticipates peak traffic on the roads on 18 December when schools finish for the year, on 23 December and Boxing Day. The 4 and 5 January are also likely to be extra busy as many return home after the festive fun is over. If you can avoid these days, you could save yourself from getting stuck in holiday traffic. Just in case you do encounter delays on the roads, be sure to pack plenty of snacks and extra entertainment to make the time more bearable for hungry, impatient kids (and their parents!).

2. High rates for hotels and holiday homes

Holiday accommodation in Australia is always in high demand when school terms are over and this is even more the case in summertime. According to Finder, places to stay in our most popular holiday destinations can be at their most expensive around Christmas time. Their figures show that travelling to the Gold Coast, for example, can cost up to 63% more for the Christmas period, taking into account higher rates for hotels, flights and car rentals.

3. Last minute deals

If you can afford to be flexible about where and when you travel, a last minute deal could be the perfect way to get away on a budget for Christmas. In the week before 25 December, any remaining rooms are likely to be discounted to maximise occupancy. So if you’re prepared to be open to less popular destinations and even travel on Christmas day itself, you could snap up your holiday at a much more reasonable rate.

An international Christmas experience

1. The Christmas travel tax

Paying a premium for holidaying during the festive season can also be a problem if you venture overseas. Finder has run the numbers on this ‘Christmas travel tax’ and named Bali, Phuket and Goa as the destinations you’ll pay much more for if you choose them for your Christmas escape. Travelling to the UK, on the other hand, can be quite affordable. Flights are slightly more expensive – an 11% increase according to Finder, but this is offset by cheaper hotel rates.

As with domestic holidays, if you’re prepared to be flexible in where and when you travel, you can get away without being stung with seasonal price rises.

2. Steer clear of crowds

Just like the roads, airports can also become exceptionally busy for key travel dates around Christmas time. In 2018, Sydney airport saw its busiest day ever on Saturday 22 December, so you can expect a similar peak in airport crowds this year on and around Saturday 21 December. If you need to travel from any airport in Australia on these dates, make sure you arrive early for your flight and pre-book parking or transfers to avoid any unexpected delays in your journey.

3. Seasonal opening hours

So you’ve bagged your bargain holiday, made it to the airport in time and you’re all set to have a Christmas with a difference in a far-flung land. Your plan for enjoying some local hospitality in cafes and restaurants, not to mention shopping, might be ruined if everything is closed for the holidays! Some countries and cities will have a business as usual approach to their opening hours, but others may not, so it’s worth finding out what to expect in your chosen location. Even if everything is closed for a few days, you can still enjoy your time, as long as you pack accordingly and book a hotel with room service!

Report due on nuclear power industry

Thu, 12 Dec 2019 04:20:13 GMT

Report due on nuclear power industry

December 11, 2019

Paul Osborne

(Australian Associated Press)

A report looking into the potential for nuclear power in Australia is expected to be released later this week.

The parliamentary environment and energy committee was tasked by Energy Minister Angus Taylor in August to examine the potential for nuclear power.

Mr Taylor told the committee the moratorium on nuclear energy would remain, but he wanted some “sensible” advice on economic, environmental and safety implications.

The inquiry received evidence on the potential for micro-reactors – some as small as five megawatts – and even floating nuclear power stations which are being developed in Russia.

Former federal minister and now Queensland Resources Council boss Ian Macfarlane told the committee the existing ban on mining uranium was purely “ideological”, and ignored the fact it could be a $10 billion industry for the state.

He said nuclear power could lower emissions from the electricity sector without detracting from economic growth, however it needed national policy.

Environment groups said there were huge health, environmental and financial risks from a nuclear industry, which would also need massive taxpayer subsidies.

They warned suggestions of small modular reactors were a pipedream and the nuclear waste storage problem had not yet been solved.

Previous studies have identified at least 19 sites in Queensland, NSW, Victoria and South Australia which could be suitable for nuclear power plants, including Bundaberg, Port Stephens, South Gippsland and Port Adelaide.

It is understood the committee is aiming to table the report in parliament by the end of the week, but no formal release date has been set.

Commodore retirement to drive significant value

Thu, 12 Dec 2019 04:18:04 GMT

Commodore retirement to drive significant value

December 12, 2019

Carly Waters

(Australian Associated Press)

The first VB Commodore was launched in 1978.

There have 16 models over the past 42 years, the last being the ZB.

The Commodore was Australia’s best selling car for 15 straight years to 2010.

It won 16 Australian Touring Car (Super Car) championships and 26 Bathurst titles.

More than three million Commodores have been sold since its launch.

It was produced in Australia at the Elizabeth assembly plant in Adelaide until the end of local manufacturing in 2017.

This year Commodore sales have fallen by more than 37 per cent to just 5417 to the end of November.

Once a staple of the suburban driveway, Australia’s Holden Commodore is forecast to skyrocket in value following news the model will be retired.

The latest Commodores rolled off the Australian production line are expected to become the most valuable.

Cameron Pascoe from Dutton Garage Wholesale in Melbourne said the models “could be worth hundreds of thousands of dollars in 10 years time”.

The last run of the Australian-made car, the VF, has already shown gradual increases in price in recent years, he added.

“Particularly the Commodore HSVs, they have already started to go up.”

There’s potential for renewed interest in special model Commodores, such as the HSV and SSV, Christophe Boribon from specialist car insurer Shannons told AAP.

Limited edition Australian-made models are likely to peak the interest of car enthusiasts and collectors, he said.

A 2016 HSV Commodore is priced between $46,950 to $74,888 according to carsales.com.au

Last year a 1988 VL Commodore Walkinshaw sold at auction in NSW for $340,000.

Holden ceased vehicle production in Australia in 2017, a move Mr Pascoe said hurt sales of the Commodore, which were subsequently made overseas.

“The latest Commodores were virtually unsaleable,” Mr Pascoe said.

Mr Boribon described as “quite sad” the vehicle’s retirement.

Both experts agreed Holden had little choice but to discontinue production of the Commodore due to recent poor sales, and a lack of connection with the offshore-manufactured replacements.

“Australians are passionate about buying things that are made locally,” Mr Boribon said.

Phone safety ‘part of modern parenting’

Thu, 12 Dec 2019 03:53:42 GMT

Phone safety ‘part of modern parenting’

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Australia’s $4 billion aid budget reviewed

Thu, 12 Dec 2019 03:49:12 GMT

Australia’s $4 billion aid budget reviewed

December 11, 2019

Daniel McCulloch

(Australian Associated Press)

Most Australians want the Morrison government to focus its $4 billion foreign aid budget on the country’s poorest neighbours.

Australia’s aid budget is set for a major overhaul, with the government wanting a much sharper focus on economic infrastructure and connectivity.

Dennis Richardson, who has led the foreign affairs and defence departments, will lead the review.

Consecutive coalition governments have cut billions from aid spending since 2013, but the review is not expected to result in more funding.

Instead, it is expected to centre on building strategic and economic partnerships in the Indo-Pacific, against a backdrop of China’s irrepressible rise.

International Development Minister Alex Hawke said it would also consider leveraging private sector investment and opportunities for Pacific workers to fill shortages in Australian regions.

“The new policy will reflect the government’s increased emphasis on strategic and economic partnerships in the Indo-Pacific and our deepened commitment to our Pacific neighbours through the step-up,” Mr Hawke said.

The Department of Foreign Affairs measures aid spending against priorities including whether Australia’s national interest and influence is extended and the impact on growth and reduction in poverty.

This performance framework is also expected to be scrutinised in the review.

Public submissions will close on January 31.

Ahead of the review, the Australian Council for International Development (ACFID) commissioned a public poll on how the money should be spent.

Three in five of the 1042 people surveyed late last week said Australia’s aid should primarily serve the poorest people and those most in need.

One-third of respondents believed the spending should primarily serve Australia’s interests, while seven per cent did not know.

“Prioritising the poorest and most marginalised people should be the foundation stone of the Australian government’s assistance to our neighbours,” ACFID chief executive Marc Purcell said on Tuesday.

“Building peaceful and stable countries starts with improving the wellbeing of the poorest.”

ACFID, the peak body for non-government international development groups, wants the assistance targeted at the bottom 40 per cent of people by income in poor countries.

“By taking this approach, we can help build a more open, peaceful and stable region from the ground-up,” Mr Purcell said.

“This is the way to build long-term development impact and create a world in which our partners and Australia can thrive.”

What is capital gains tax?

Thu, 12 Dec 2019 03:47:50 GMT

What is capital gains tax?

December 12, 2019

Money and Life

(Financial Planning Association of Australia)

There are only two things certain in life – death and taxes – and let’s face it, nobody likes the idea of either!

And while paying tax is something that most of us just grin and bear, it’s one of those necessary inconveniences that help ensure we continue to enjoy the quality of life we often take for granted living in this great country.

But one tax that does look a little daunting and still sparks confusion amongst Aussies is the Capital Gains Tax (CGT). So, what is it?

What is Capital Gains Tax?

Introduced in Australia on 20 September 1985 by the Hawke/Keating Government, CGT is a tax incurred when you make a profit through selling any asset – such as shares, property, fixed income or cash – that has resulted in your wealth growing. This profit is called the ‘capital gain’ and will be added to your assessable income in your tax return for the year, based on your marginal tax rate.

How much do you pay in CGT?

If you buy and sell an asset within one year, you’re required to pay tax on the entire amount (100 per cent) of any gain you’ve made. However, if you sell that same asset after 12 months (for a profit), as an individual, you could receive a 50 per cent discount on any gain made.

Conversely, any capital loss resulting from selling an asset, can be deducted from any capital gains made from other sources of income, thereby reducing the amount of tax owing from your overall tax return.

What’s exempt from the CGT?

Assets that you are exempt from paying CGT include your ‘main residence’ – the family home – your car, or the sale of an asset acquired before CGT was introduced on 20 September 1985.

However, if you live on a property that’s larger than two hectares or the land is being used to rent or run a business, you cannot claim the CGT main residence exemption.

And if you are a foreign resident, you may no longer be entitled to claim the main residence exemption when selling your residential property in Australia. In the 2017–18 Budget, the Government announced that foreign residents will no longer be entitled to claim the main residence exemption when they sell property in Australia. This change is not yet law and lapsed with the 2019 election.

Legislation has been reintroduced to parliament in October 2019 and if passed, a foreign resident at the point of selling their home in Australia may not be entitled to claim the main residence exemption. To find out more, refer to the Australian Taxation Office (ATO) guide to foreign residents and main residence exemption.

Capital gains tax generally doesn’t apply when you inherit property, however, you may lose your full ‘main residence’ exemption from CGT if it includes a granny flat that’s earning rental income. As a result, you may be required to pay CGT on part of any capital gain made when you sell your family home.

Click here for a full list of CGT tax exemptions.

How to calculate your capital gain (or loss)

When trying to work out how much CGT you’ll pay when selling an asset, simply take the selling price and subtract its original cost and any associated expenses (like legal costs, stamp duty, and broker fees).

What you’re left with is your capital gain (or loss).

Assuming you’ve made a profit, and have held an asset for more than 12 months, you can apply the 50 per cent discount to establish your net capital gain.

As an individual, the rate of tax paid on capital gain is the same as your (marginal) income tax rate for that year. However, for self-managed super funds (SMSFs), the tax rate is 15 per cent and the capital gain discount is 33.3 per cent (instead of 50 per cent for individuals and nil for companies).

Another way to pay CGT

As an alternative to applying the 50% discount on CGT that is eligible on all assets owned for more than 12 months, you may choose to apply what’s called an indexation method provided you:

acquired an asset before 21 September 1999; and

have held it for at least 12 months.

To account for inflation on the cost base of your asset (up to September 1999), an indexation factor is worked out using the consumer price index (CPI), which is designed to measure the price of inflation for all Australian households.

It’s calculated by dividing the CPI at the time you sold your asset by the CPI at the time you bought the asset. You then add that number to your initial cost price to get your inflation-adjusted purchase price, and finally take away that amount from your sale price.

It’s also important to remember that if you’re an Aussie resident, CGT applies to your assets anywhere in the world, even that nice one-bedroom apartment in Paris, overlooking the Champs-Élysées.

Unsure of the CGT implications arising from locking-in the profit (or loss) on any assets you own? A CERTIFIED FINANCIAL PLANNER® professional can guide you through everything you need to know, by making it part of your overall plan for less money stress, and better financial wellbeing.

GDP growth tepid as shoppers bank tax cuts

Thu, 05 Dec 2019 00:50:19 GMT

GDP growth tepid as shoppers bank tax cuts

December 4, 2019

Alex Druce

(Australian Associated Press)

The economy expanded by an underwhelming 0.4 per cent in the September quarter as mining sector continued to fire but consumers apparently pocketed tax offsets instead of spending them.

The quarterly increase undershot market consensus of 0.5 per cent growth as domestic final demand remained subdued – contributing just 0.2 percentage points – while annual growth was a below trend 1.7 per cent despite improving on the previous quarter’s 10-year low.

BIS Oxford economist Dr Sarah Hunter said the chronic weakness in household spending was made very clear in Wednesday’s figures, with private consumption increasing by just 0.1 per cent.

Growth in household gross disposable income outpaced subdued household final consumption leading to a sharp 4.8 per cent rise in the household saving ratio.

“(There is) no sign yet that the increase in tax offsets and rate cuts are boosting household spending,” Dr Hunter said.

“Instead, households have chosen to save the additional disposable income from the higher tax offsets and lower mortgage interest payments.”

The Aussie dollar dipped from 68.49 US cents immediately after the data’s 1130 AEDT release, before plunging to 68.31 cents at 1210 AEDT following an escalation in US-Chinese trade relations.

Wednesday’s data comes after the Reserve Bank opted to keep the cash rate on hold at a record low 0.75 per cent despite weak consumer spending and stagnant wage growth continuing to keep a lid on business investment, jobs and inflation.

Economists suggested prior to the release of the data that a consensus growth result would mirror the RBA’s sentiment the economy had reached a “gentle turning point” after growth bottomed out during the previous quarter.

The economy had expanded by 0.5 per cent in the three months to June as annual growth slowed to a fresh post-GFC low of 1.4 per cent.

Dr Hunter added that household income growth would only soften as the impact of the higher tax offsets dropped out of the calculation, with annual growth likely to remain at a subdued two per cent for the next year.

“(With) consumers still cautious about the outlook, we’re unlikely to see a significant pick-up in consumer spending,” Dr Hunter said.

The nation’s mining sector help prop up the September quarter result as it grew by 0.7 per cent over the quarter on strong for demand iron ore, while coal production increased following maintenance in the previous quarter.

The mining industry grew 7.4 per cent through the year.

Government spending was up 0.9 per cent and was the main contributor to growth in domestic final demand, reflecting ongoing delivery of services in disability, health and aged care.

Net exports contributed 0.2 percentage points to growth this quarter.

China on Wednesday announced its opposition of a US House of Representatives’ bill that supports a tougher US response to what the bill describes as China’s crackdown on ethnic minorities in Xinjiang.

Aust tax rules complicate Islamic finance

Thu, 05 Dec 2019 00:49:10 GMT

Aust tax rules complicate Islamic finance

December 4, 2019

Derek Rose

(Australian Associated Press)

Australia could be a regional leader in Islamic finance but tax issues are holding the sector back domestically, advocates say.

The worldwide Islamic finance industry is estimated to be worth $US3.5 trillion ($A5.2 trillion) by 2024, according to a report launched on Thursday in Australia on the state of the global Islamic economy.

Because the Koran forbids charging interest, financial transactions in the Muslim world have to be structured differently, with assets typically transferred to the financier so they can receive profit instead.

That’s more difficult in Australia because stamp duty means such transactions are effectively double-taxed, said Andrew Johnston, the head of Islamic finance at law firm Sparke Helmore.

“That’s the biggest issue, having the same treatment under law, because otherwise it becomes unprofitable – if you’re someone pay stamp duty twice, Australians won’t pay that, and understandably, because it’s a lot of money,” Mr Johnston said.

“It makes the cost prohibitive.”

Mr Johnston credited National Australia Bank as being the only major bank to have a specific Islamic-focused financing team.

Talal Yassine, the managing director of the Australian superannuation and Islamic investment services firm Crescent Wealth, said that Australia needed to seize the opportunity of being so close to the world’s leading Islamic economy, Malaysia.

“Sydney should be the gateway to the Asia Pacific for Islamic finance. We are a Western country that can be a partner to Malaysia, be an entry point for the Americans and British and everybody else,” he said.

“We have a massive opportunity waiting to happen.”

He said Australia’s financial industry should follow the lead of the agricultural industry, which he said decades ago made the decision to dominate halal exports.

“Every farmer that runs sheep, meat, they are experts on Islamic halal, they know more about it than most people in the Middle East who eats it, because their businesses relies on it,” Mr Yassine said.

The report said that Australia exported $US5.3 billion ($A7.8 billion) worth of food and beverages to Islamic economy in 2018, with meat and live animals accounting for $US2.1 billion ($A3.1 billion) of that.

It said with 500,000 domestic Muslims and around 565,000 Muslim tourists, Australia ranks 17th in the US$2.2 trillion ($A3.3 billion) global Islamic economy.

Australian Muslims spent $US5.3 billion ($A7.8 billion) on the lifestyle sector in 2018, including $US1.94 billion ($A2.9 billion) on media and recreation and $US1.74 billion ($A2.6 billion) on food, the report said.

“You have a growing Muslim middle class whose needs need to be addressed by institutions like Crescent Wealth and (Islamic mortgage firm) MCCCA,” said Ibn Arabi El Goni, head of product with Dubai-based DinarStandard, which produced the report.

RBA predicts end to physical bank cards

Thu, 05 Dec 2019 00:47:53 GMT

RBA predicts end to physical bank cards

December 4, 2019

Derek Rose

(Australian Associated Press)

The Reserve Bank foresees bank cards going completely digital at some point and is pondering how it should react.

Cards “seem increasingly likely to be electronic payment credentials that are pushed out electronically to digital devices such as phones and wearables, as opposed to pieces of plastic that are mailed out in the post,” the RBA says in a new paper on retail payment regulations.

“The functionality offered by a card will no longer be largely fixed for the several years between issuance of physical cards, but will be able to be changed regularly reflecting innovation by schemes, issuers, mobile phone operators and others,” the RBA writes.

The central bank said it is concerned that future digital cards would only work with the international Visa and Mastercard debit functionality, rather than being dual-network cards that work with eftpos.

The RBA is trying to promote least-cost routing, where merchants are able to choose to route transactions via whichever of the two networks on the card costs them less to accept, to maintain competition between networks.

“For most merchants, payments via eftpos can be significantly cheaper for them to accept than payments via the international schemes,” the RBA writes.

The bank says that if digital single-network bank cards were to become more prominent, it might need to take more steps to encourage dual-network cards.

Some banks are not that committed to dual-network cards, with smaller issuers finding it costly to enable two different scheme networks on physical cards or in mobile wallets, the RBA says.

“Indeed, when issuers have introduced new functionality – such as enabling Apple Pay for cardholders – they have often done so first for an international scheme, with no firm plans for also enabling eftpos,” the RBA says.

The 36-page briefing paper asks stakeholders a number of questions about whether there’s any gaps in how it regulates the payment card sector.

In 2018/2019, Australians made 10 billion card payments for a total value of $678 billion, and accepting these payments cost Australian merchants $4.3 billion in fees, the RBA says.

The briefing also notes the rise in buy now, pay later services such as Afterpay, and asks whether policymakers should require these services to remove any no-surcharge rules they impose on merchants.

These services cost merchants around three to six per cent per transaction, and most buy now, pay later providers have rules forbidding them from passing on those costs to customers, the RBA says.

Business to come clean on unpaid super

Thu, 05 Dec 2019 00:44:41 GMT

Business to come clean on unpaid super

December 4, 2019

Colin Brinsden

(Australian Associated Press)

Businesses that have failed to pay their staff their full superannuation guarantee entitlement could have a once-off chance to make amends or face the full wrath of the Australian Taxation Office.

The House of Representatives passed legislation on Thursday that will allow an employer to voluntarily come forward to disclose super payments it has not payed its staff without being subject to penalties.

Employers will have until six months after the bill receives royal assent to comply.

“After the amnesty concludes the ATO will take a dim view of those employers that could have come forward but failed to do so,” Industry Minister Karen Andrews told parliament on Thursday.

“Those employers will be subjected to penalties equal to at least 100 per cent of their non-compliance.”

The legislation now goes to the Senate for approval.

Ms Andrews said the government had improved the integrity of the superannuation guarantee system with the introduction of real-time reporting that allows the ATO to detect non-compliance by employers.

The ATO has also been given greater enforcement powers to collect superannuation guarantee liabilities from “unscrupulous employers”.

However these measures did not address historical non-compliance to address this problem, which is why employers are now being given the opportunity to come forward and “wipe the slate clean”.

Industry superannuation funds and unions have railed against the laws.

The measure is expected to recover $160 million in unpaid retirement savings, with 7000 employers already coming forward and the same amount expected to own up once the bill passes.

Sleep underwater at the Great Barrier Reef

Thu, 05 Dec 2019 00:42:56 GMT

Sleep underwater at the Great Barrier Reef

December 4, 2019

Aine Fox

(Australian Associated Press)

Visitors to the Great Barrier Reef will be able to literally immerse themselves in the natural wonder overnight following the opening of Australia’s first underwater accommodation.

Newly-released pictures of Reefsuites on the reconstructed pontoon at Hardy Reef – which was badly damaged in 2017’s Cyclone Debbie – show aquarium-like partially glass-bottomed rooms with floor-to-ceiling glass windows.

Guests will be able to observe the reef and all its wildlife after dark when the two rooms open to the public from December 1.

Others who are happy to sleep under the stars, and opt for the slightly cheaper option, can go “glamping” in day beds on the top deck.

The company behind the innovative $10 million pontoon rebuild said it had environmental concerns at the top of its priority list – and has taken steps to minimise any damage to a reef already facing threats from climate change and coastal development.

“It’s a balance of allowing people to immerse themselves in this World Heritage-listed natural wonder without doing any damage,” Luke Walker, chief operating officer with experiential travel company Journey Beyond, told AAP.

“In everything we do the sustainability of the reef is part of the conversation, it’s a live topic on the table with any decision we make.”

The proper disposal of wastewater known as greywater in line with the law, use of china crockery instead of single-use plastic and the visitor levy which goes towards the care of the reef are some of the ways in which environmental concerns have been taken into account, Mr Walker said.

The floating pontoon, 39 nautical miles from Airlie Beach, is around 1000 square metres in size and weighs in at 260 tonnes.

Almost 4000 pieces of coral were sustainably removed and replanted onto the existing reef wall when the original pontoon mooring structure was removed in a week-long process the company described as the largest natural coral transplant ever to be achieved there.

Mr Walker said the aim with the new pontoon is to “enhance the attraction to the betterment of the reef” and to take the longstanding tourist hotspot to “another level” with something Australia has never seen before.

He said a marine biologist and a master reef guide form part of the staff, helping to educate guests about the reef, its history and its future and that Cruise Whitsundays had worked closely with the marine park authority during the rebuild.

The 14-month project itself was part-funded – to the tune of $2.75 million – by the Queensland government which has hailed it as an attraction that will draw thousands more visitors to the Whitsundays each year, bringing with it millions more in cash to local businesses.

+ Reefsuites are from $799 per person, while Reefsleep beds on the top deck are from $595 per person (sharing) or $795 for sole occupancy. Prices include a return cruise out to the reef, all meals and beverages and a selection of marine activities.

Reefsuite bookings can now be made via cruisewhitsundays.com/reefsuites or by calling 07 4846 7000.

Australia’s emissions dip as exports rise

Thu, 05 Dec 2019 00:41:19 GMT

Australia’s emissions dip as exports rise

December 4, 2019

Paul Osborne

(Australian Associated Press)

As Australia prepares for a UN climate summit in Spain, a new report shows annual greenhouse gas emissions have dipped slightly, mainly due to more renewable energy use and the impact of the drought.

The latest national greenhouse inventory estimates emissions totalled 532 megatonnes (Mt) in 2018/19, down 0.1 per cent on the previous year. This was also a reduction of 12.9 per cent from 2005.

Strong growth in emissions from stationary energy (3.6 per cent) and fugitive emissions (4.4 per cent) was offset by a combination of an ongoing reduction in emissions from electricity (1.2 per cent) and the impact of the drought on agriculture (5.9 per cent).

Stationary energy includes fuel combustion in the manufacturing, mining, residential and commercial sectors.

Fugitive emissions are produced during the production, processing, transport, storage, transmission and distribution of fossil fuels. This includes coal, crude oil and natural gas.

Meanwhile, the rapid expansion of LNG production accounted for much of the rise in the share of export-related emissions to 37.5 per cent, from 30.1 per cent, or 199 Mt.

At the same time, the value of Australian exports increased by 36.4 per cent since 2013/14, to $372 billion in 2018/19.

“Despite this upward pressure, emissions per capita and the emissions intensity of the economy continue to fall and are at their lowest levels in nearly three decades,” Emissions Reduction Minister Angus Taylor, who will head to Madrid in just over a week, said.

The government has a Paris Agreement target of reducing emissions by 26 to 28 per cent below 2005 levels by 2030.

It has also committed, in a report to the UN in June, to develop “an economy-wide long term emissions reduction strategy by the end of 2020”.

“Our commitment is achievable, balanced and responsible, and is part of coordinated global action to deliver a healthy environment for future generations while keeping our economy strong,” Mr Taylor said.

Meanwhile, the head of the United Nations’ Environment Program is expected to tell leaders at the summit a “decade has been wasted” in the fight to tackle climate change.

Unions want 12 per cent super rate now

Thu, 05 Dec 2019 00:25:20 GMT

Unions want 12 per cent super rate now

December 4, 2019

Finbar O’Mallon

(Australian Associated Press)

Women facing retirement would especially benefit from an immediate move to a 12 per cent superannuation guarantee rate, unions say.

They also want the current $450 minimum on when employers have to start paying superannuation removed to get super paid on every dollar earned.

The Australian Services Union, Australian Nursing and Midwifery Federation, and the Shop Distributive & Allied Employees Association say these changes would help lift women out of poverty.

The nurses union national secretary Lori-Anne Sharp said women were retiring with 40 per cent less super than men, even in female-dominated professions.

Ms Sharp told media in Canberra on Tuesday the changes were absolutely crucial and urgently needed.

“Women deserve to retire in comfort,” she said.

As an older worker, Ann Edmunds said she only got access to super halfway through her working life.

“I know a lot of women my age who are still working. We should all be retired but we can’t because of this superannuation freeze,” Ms Edmunds said.

“We’ve had to catch up.”

Services union national secretary Linda White said she believed the economy could afford the super rise.

“The reality is you pay it at the other end. The state has to pay for people who live in poverty,” Ms White said.

“Paying now is going to benefit the economy in the future.”

The unions also want the government to rule out making super optional.

The super rate is set to rise slowly to 12 per cent by 2025, with the rate to go to 10 per cent from July 2021.

It was frozen at 9.5 per cent in 2014 under the then-Abbott coalition government.

A home for all seasons: is spring the best time to sell?

Thu, 05 Dec 2019 00:23:57 GMT

A home for all seasons: is spring the best time to sell?

December 5, 2019

(Your LoanHub)

If you’re selling, there’s plenty to consider, including when to go to market. The popular view is that spring is the best time to sell, but is it the season for getting more interest and a better price?

Spoiler alert. The short answer is no. But not by much.

There are plenty of reasons it could be time to sell. After all, warmer weather has arrived, gardens are starting to bloom and more people – including potential buyers keen for a change of scenery – are out and about.

“If you can take advantage of the increased number of autumnal house hunters, you’ll be able to capture competition and considerably drive up bids.”

However, research shows that autumn is the time most purchases are made. More than a quarter of all property sales over the last 30 years took place in March, April and May – with March the clear winner.

What makes autumn the time to sell?

Just like spring, autumn benefits from pleasant weather that makes visiting open homes seem like a good way for many to spend their Saturday. As a result, you’re likely to get more potential buyers through the door.

The natural beauty of the season plays a part, too. If you live on a tree-lined street, having orange-hued leaves welcome potential buyers can get them in the right mood.

Thanks to New Year’s resolutions, the start of the year sees a huge number of people ready to finally make a big move and enter the market. By the time they’ve done their preparation, autumn has arrived.

If you can take advantage of the increased number of autumnal house hunters, you’ll be able to capture competition and potentially drive up bids.

Remember, putting your place on sale in the most popular season doesn’t come without risk. Your place could get lost in an overcrowded market. Presentation, pricing and negotiation strategies are also crucial. And, as always, a little expert advice can go a long way.

The next best thing? Selling in spring

If you’ve been planning to sell when the weather starts getting warm, don’t let autumn’s popularity put you off. Over the past 30 years, 26% of homes have sold in September, October and November, meaning spring runs a close second as the best season for sales.

This could be explained by the fact that spring is the season for new life and new starts. Gardens tend to look their best in spring, with flowers coming into bloom and trees returning to leafy green.

Days are getting longer, too. This means more hours to open house, and a greater chance the right person will walk through the front door and fall in love with the place.

So, what about winter?

Despite colder weather and more time spent indoors, 25% of annual property transactions still take place in winter, so it’s just a slightly less favourable time to sell.

Each seller’s situation is as unique as their home. Even though fewer people might be willing to brave the cold on their house hunts, winter could end up being the best time for you.

For example, perhaps the orientation of your home means winter sun creates an inviting glow in the lounge. Or, if you have a feature fireplace that impresses guests, showing it to prospective buyers in full flame could be what wins them over.

In summer, sales slow down

The hottest time of the year sees a significant cool-off in sales. Just 22% of the year’s transactions come during the summer, with January the least popular month of all.

Why? The busy Christmas season leaves little time for house hunting, thanks to packed social calendars, event planning, school holidays and relatives in town. With fewer people looking for their dream home, you’re less likely to find a dream buyer.

But there are always exceptions. It could be that your property’s winning features are best shown off when it’s hot. A beautiful balcony perfectly primed for warm summer evenings. That very inviting outdoor pool. Your enviable proximity to the beach.

Those who live for the sun are more likely to be convinced your property can give them the lifestyle they have always wanted if they can see it, rather than having to imagine it on a cold autumn day when they’re dressed in puffer jackets.

There’s always a season that suits

The data has spoken. The best bet for getting a good deal is to sell your home in autumn with spring a good second choice.

If you do decide on the less popular periods of winter and summer, just make sure your home is styled and presented in season – think candles and blankets in the winter, plants and flowers in the summer. They’re the kind of details that can make all the difference.

Annual economic growth ticks up slightly

Thu, 05 Dec 2019 00:22:42 GMT

Annual economic growth ticks up slightly

December 4, 2019

Colin Brinsden

(Australian Associated Press)

Annual economic growth has perked up slightly, backing Reserve Bank governor Philip Lowe’s view that Australia has reached a “gentle turning point”.

The latest national accounts released on Wednesday showed the economy expanded by 1.7 per cent in the year to September compared to a previously reported 1.4 per cent as of June.

“The economy has continued to grow, however the rate of growth remains well below the long run average,” Australian Bureau of Statistics chief economist Bruce Hockman said.

Quarterly growth was weaker than economists had expected at 0.4 per cent after an upwardly revised 0.6 per cent in the June quarter.

The central bank left the official cash rate at a record low 0.75 per cent at its monthly board meeting on Tuesday.

After the meeting, Dr Lowe said the economy appeared to have reached a “gentle turning point”, believing that growth will lift to around three per cent in 2021.

However, financial markets still believe there is a 50/50 change the Reserve Bank will be forced to cut the cash rate to 0.50 per cent in February after the board’s summer recess.

Three interest cuts and personal income tax reductions this year have failed to give the economy a major boost.

“The reduction to tax payable did not translate to a rise in discretionary spending, which led to a visible impact to household saving,” Mr Hockman said.

With household sector remaining subdued, the main contributions to growth in the quarter came from exports and government spending.

Current account surplus grows to $7.855b

Thu, 05 Dec 2019 00:21:18 GMT

Current account surplus grows to $7.855b

December 4, 2019

(Australian Associated Press)

Australia’s current account surplus widened to a larger than expected $7.855 billion in the September quarter despite a drought-related decline in export of rural goods.

Exports of rural goods fell by 3.0 per cent in both volume and value, with a 16 per cent fall in wool and sheepskin volumes and a 2.0 per cent fall in cereals volumes.

But a sharp increase in exports of non-monetary gold helped lift the balance from a revised $4.669 billion in the June quarter, which featured Australia’s first surplus since June 1975.

The Australian Bureau of Statistics said on Tuesday that net export volumes are expected to contribute an estimated 0.2 per cent to September quarter GDP growth.

Economists raised their estimates for Wednesday’s GDP growth data to between 0.5 and 0.6 per cent, but BIS Oxford Economics chief economist Sarah Hunter warned that import data confirmed the domestic economic environment remained challenging.

“Consumer goods, capital goods and services all fell, highlighting the weakness of spending momentum in the local economy,” Dr Hunter said.

“The fall back in the volume of capital goods is particularly worrying, as this suggests that business investment may disappoint over the near term.”

Dr Hunter said that fall back – allied with last week’s 0.2 per cent seasonally adjusted drop in capital expenditure for the quarter – highlights the drag on investment intentions amid stuttering business confidence.

The September quarter GDP figure will be released on Wednesday.

Import volumes of consumer goods fell by 1.0 per cent and capital goods fell 6.0 per cent, while services showed a net deficit of $350 million.

The Australian dollar was largely unmoved by the data’s release and was worth 68.19 US cents at 1224 AEDT.

Retirement income & tax

Thu, 28 Nov 2019 04:21:40 GMT

Retirement income & tax

November 28, 2019

MoneySmart

(ASIC)

Tax and retirement income streams

The amount of tax you will pay on your retirement income stream depends on the type of income stream, when you started it and what it was purchased with.

Here we explain how different retirement income streams are taxed and why it depends on whether they were bought with superannuation money.

How super income streams are taxed

How transition to retirement income streams are taxed

How income streams from defined benefit super funds are taxed

Different tax rules for non-super income streams and annuities

How super income streams are taxed

Super income streams are also known as pensions and annuities. They can be account-based pensions with no set time period or annuities that are fixed for a specific period of time.

Superannuation benefits are made up of two components, taxable and tax-free.

The taxable component is made up of:

Employer contributions

Salary sacrificed contributions

Personal contributions where a tax deduction was claimed

The tax-free component is made up of:

After tax contributions

Government co-contributions

For people aged 60 and over

Benefits from a taxed super fund (i.e. most super funds) are tax-free.

For people aged 55 to 59

No tax is payable on the tax-free component of your income payment. The taxable component of your income payment will be added to your taxable income. It will be taxed at your marginal tax rate, less a tax offset equal to 15% of the taxable portion of the payment.

Work out your marginal tax rate.

income tax calculator

Benefits paid to people aged under 55

It is rare for people under age 55 to be able to access their super. Usually your super can only be accessed if you become permanently disabled. In this case, you will be taxed as if you are aged 55-59.

If you are accessing your super for reasons such as hardship, the rules are slightly different. The tax-free component of your income payment will be tax free. The taxable component of your income payment will be added to your taxable income and taxed at your marginal tax rate.

Members of government super funds

Some government super funds don’t pay regular tax, and are known as ‘untaxed funds’. If you are a member of an untaxed fund, you may be taxed when you take out your benefit. Ask your super fund for details.

How transition to retirement income streams are taxed

A transition to retirement income stream is a pension bought with super money while you are still working. You must have reached your preservation age.

Find out your preservation age.

super and pension age calculator

You are restricted to withdrawing a maximum of 10% of the balance each financial year and you are not allowed to withdraw lump sums.

These restrictions do not affect the tax treatment of the money you take out. The tax is the same as ordinary retirement income streams purchased with super money, based on your age.

Tax on transition to retirement pensions

Investment returns on TTR pensions are taxed at up to 15%, just as they are in a super accumulation account. More information about changes to super contribution limits, tax concessions and the amount that can be held in a retirement phase account can be found on the Australian Tax Office (ATO) website.

How income streams from defined benefit super funds are taxed

Defined benefit income streams usually come from an employer super fund or a government employee super scheme.

Calculating the tax-free portion of a defined benefit income stream is very complex. However, before you are eligible for your benefit, your fund will send you a statement which will set out exactly how much is taxable and how much is tax free.

Different tax rules for non-super income streams and annuities

An annuity is an income stream purchased with money outside the super system. It will pay you a fixed income for a defined period of time, regardless of how the markets are performing.

Income from annuities, less a deductible amount, will be taxed at your marginal tax rate. The deductible amount represents the amount of your original capital that is being returned to you with each pension payment.

Tax on retirement income streams can be a complex area and we recommend you seek help from a tax professional or financial adviser. For most people, income streams bought with super money will be tax free from age 60.

Tax, record keeping, tips and a case study

Thu, 28 Nov 2019 04:20:11 GMT

Tax, record keeping, tips and a case study

November 28, 2019

MoneySmart

(ASIC)

Good record-keeping is essential for any business. It helps you manage your cash flow, keeps you organised, helps you meet your tax responsibilities and most of all, it lets you know how your business is going.

The four requirements from the ATO are that record-keeping must:

explain all transactions

be in writing

be in English

be kept for five years (although some records need to be kept longer)

If you’re unsure about the records you need to keep, the ATO has a Record keeping evaluation tool that can help you.

The ATO’s website has extensive information on what you can and can not claim, and when you can claim it. Talk to your accountant about what deductions you can claim from your business, as they will be best placed to provide you with specific advice for your situation.

A few tax tips to remember is that you:

can not claim deductions for private or domestic expenses, or any costs relating to entertainment or fines. There are specific options available for sole traders and how you can claim business expenses.

can claim operational expenses, such as wages, advertising, and stationery supplies, in the financial year that you incur them. The ATO has an extensive list of these items, including information specific to small businesses.

can claim on the depreciation of assets, including motor vehicles, machinery and equipment, furniture and capital assets such as buildings over a longer period of time. Check out the Simplified depreciation rules from the ATO for more information.

must keep copies of your bank and credit statements. If your bank provides these electronically, you can save them as a PDF for future reference.

can only claim a percentage of costs for an asset you use for both personal and business purposes, for example, an electronic device that you use for managing business email and banking, but also use it for personal social media or to read books in the evening.

Case study: Alex

Alex is a 22-year-old fully qualified hairdresser and beautician who has been running a salon from the front room of her home for the past eight months. She’s been struggling to make ends meet as she’s had to spend quite a lot of money on equipment and supplies to set up her salon, as well as advertising to get the word out there.

There hasn’t been much time for Alex to organise any of her paperwork in between answering the phone, fulfilling appointments, cleaning the salon and replenishing supplies. She only takes cash for the work she does and has been paying cash for her equipment and supplies, she has no electronic record of her transactions.

Alex struggles with paperwork but she does have an ABN. She hasn’t registered for GST as she doesn’t expect her income to be very high. When the ATO contacts her about lodging her first Instalment Activity Statement, she doesn’t know where to start. A friend puts her onto a local accountant for help.

Alex finds out that she should have been keeping a record of all her business income and keeping receipts for all her purchases so she can deduct them against her income. Otherwise, she has no way to show what her taxable income is so the ATO can work out how much tax she needs to pay.

Alex’s accountant shows her how to fill in a simple Excel spreadsheet at the end of every day, detailing her income and any business expenses. Alex also now knows she needs to get a receipt for all business purchases and keep them as proof that they are business expenses. She can use the spreadsheet to help her to complete her Instalment Activity Statement each quarter, and it tells her how profitable her business is.

Increase your home’s value with these 10 tips

Thu, 28 Nov 2019 04:18:53 GMT

Increase your home’s value with these 10 tips

November 28, 2019

(Your Loan Hub)

Taking care of basic maintenance tasks before you sell your home is a no-brainer, but a quick and not-too-costly renovation can add a lot of appeal for potential buyers, and may boost the final sale price.

1.Basics first

Fix those little faults that you no longer notice – leaky taps, rusty gutters, broken window catches. They can make a huge difference to a buyer’s perception of value.

2.Landscape the garden

A well-kept garden can create a low-maintenance feel before buyers even step inside.

3.Bring the outside in

Opening living areas to the garden can be as simple as adding big bi-fold doors that create an inviting sense of flexibility.

4.Take the inside out

The garden is a place to live: a barbecue area, deck, pergola or even a plunge pool all invite buyers to imagine their future lifestyle in your home.

5.Let the light in

Brightening dark areas boosts a home’s appeal; you can install skylights quite economically, and swap solid doors in dark areas for glass-panelled ones.

6.Put some colour on it

Fresh paint makes a home look ready to live in. Think carefully about colours, and maybe seek some interior design advice – although neutral colours present some people with a blank canvas, to others those spaces just seem bland.

7.A solid footing

New carpets make a home feel new. Again, think carefully about colour. A step further? Look under the carpet – those timber floors will be lovely when sanded and sealed.

8.Green it

Installing solar panels or a solar hot water system can add value for potential buyers, who will see future energy cost savings.

9.Bathroom fix

A brand-new bathroom can cost a lot. Instead, think of replacing shower curtains with clear glass screens and installing new taps, a water-saving cistern and even a new toilet seat. Replace small tiles with big ones, and don’t forget to clean/renew the grout.

10.Add storage

Buyers are looking for places to store their stuff – cupboards in the garage and in neutral spaces such as hallways are always welcome. A butler’s pantry in the kitchen is great, too.

Some simple and affordable renovation moves can make your home more desirable to buyers, potentially adding to the final sale price.

Trio of trade agreements pass parliament

Thu, 28 Nov 2019 04:17:08 GMT

Trio of trade agreements pass parliament

November 27, 2019

Matt Coughlan

(Australian Associated Press)

Australia’s parliament has ticked off free trade agreements with Indonesia, Hong Kong and Peru.

Trade Minister Simon Birmingham believes the deals will lead to better access to growing markets for Australian farmers and steelmakers.

The government has also noted exchange of services and businesses, with the deals expected to come into force in the first half of next year.

The trio of trade pacts had bipartisan support, with Labor backing the coalition to waive the deals through parliament on Tuesday.

Most crossbench senators including the Greens fiercely opposed the legislation because the deals contain investor state dispute settlement provisions.

These clauses allow multinational corporations to sue foreign governments if the firms believe domestic law changes have harmed their interests.

Despite condemnation from the union movement, Labor argues it secured safeguards on the provisions around health, safety, environmental and banking reforms.

Tasmanian independent Jacqui Lambie also slammed the opposition for backing the deals.

“For it to come from Labor, I tell you what, it’s a pathetic day for Australia,” she told parliament.

“These provisions shouldn’t exist at all. It just isn’t right. No one should be willing to let multinational corporations hold our government to ransom.”

Senator Birmingham said similar provisions had been in force with other countries for 30 years and Australia had never been successfully sued under them.

“The government believes these remain valid mechanism to help to facilitate the flow of investment across international borders where laws are inconsistent,” he told parliament.

“They are widely used internationally and widely respected by international law-making body.”

Greens senator Jordon Steele-John raised concerns there wasn’t adequate labour market testing in the Indonesia agreement.

The Electrical Trades Union has pulled funding from Labor over its support for the trade deals.

‘Rent-a-pool’ app launches in Australia

Thu, 28 Nov 2019 04:15:14 GMT

‘Rent-a-pool’ app launches in Australia

November 27, 2019

Hannah Higgins

(Australian Associated Press)

No pool? No worries.

That’s the message 22-year-old American entrepreneur Bunim Laskin is bringing to Australia this summer with the launch of his “rent-a-pool” app.

Swimply, an Airbnb-type arrangement for pools that connects owners of private pools with people looking for a swim spot, launched in Australia on Tuesday.

Mr Laksim – the eldest of 12 children – says the idea for Swimply came to him “out of necessity” on a hot summer day.

Through the app, users can rent nearby pools by the hour, while owners can benefit by off-setting expensive pool maintenance costs.

“Australians love the outdoors and with the country’s long summers we are excited to be able to democratise the pool experience so every Australian can enjoy affordable access to this summertime luxury,” Mr Laskin said in a statement.

Hosts on the app are able to choose the days and times their pool is available as well as the number of guests, whether children are allowed and whether you can bring your own food.

The app has so far expanded only into NSW, Queensland and Victoria.

NSW Better Regulation Minister Kevin Anderson says the share economy is estimated to contribute more than $500 million per year to the state’s economy “with more and more people getting on board every day”.

“It is important to know where you stand in terms of insurance when signing up as a host,” he told AAP in a statement on Tuesday.

“If your insurer doesn’t cover you for share economy activities then you should find a policy that does.”

Almost three million Australians live in houses with a swimming pool according to Roy Morgan research.

Black Friday kicks off Christmas retail

Thu, 28 Nov 2019 04:13:41 GMT

Black Friday kicks off Christmas retail

November 27, 2019

Ulises Izquierdo

(Australian Associated Press)

Shopping frenzy is around the corner as Christmas holidays get closer, and Black Friday is expected to kick off an estimated increase in retail sales of almost $53 billion.

Black Friday is a popular sales day in the US, being the first Friday after Thanksgiving and signalling the start of Christmas shopping.

Australian market research company Roy Morgan and the Australian Retailers Association forecast an increase of 2.6 per cent on the $51.4 billion of retail expenditure registered in 2018.

The groups predict $7.6 billion of this total sales number during this year’s Christmas trading period will belong to the “other retailing” category.

This category includes online sales – a main player in Black Friday’s sales.

Google searches for Black Friday in Australia grew from 3 points to a total of 100 in the last month, Google Trends data shows.

“In 2018, Black Friday and Cyber Monday brought spending forward, as the week following the sales saw more products delivered than the first week of December, the usual online shopping peak,” Australian Retailers Association executive director Russell Zimmerman said.

“Many Australians are no longer waiting until Boxing Day for a bargain, many have written their lists early and jumped online in search of the perfect gift.”

The ARA and Roy Morgan predicted increase of “Other retailing” would mean a 3.7 per cent increase compared to last year’s festive season.

Deloitte’s Christmas Survey 2019 also reveals retailers expect to begin discounting earlier this year, partly due to the impact of Black Friday sales

This survey, however, is not as optimistic about this Christmas season’s total sales, showing that retailers are more pessimistic about this Christmas season than any other since 2013.

Retail trade figures released early in November found that retail spending rose just 0.2 per cent in September, softening from an already underwhelming 0.4 per cent rise in August, even as $22.4 billion in tax refunds flowed into households.

“It’s clearly been a tough year for many retailers,” said Deloitte retail group leader David White.

“So it’s probably no surprise many are also approaching this Christmas with a little less cheer, certainly compared to last year.”

The trend estimate released by the Australian Bureau of Statistics showed a retail trade turnover of 27 billion in September

This meant a 0.2 per cent rise in September that followed a rise of also 0.2 per cent in both July and August.

Preparing pets for a holiday

Thu, 28 Nov 2019 04:11:56 GMT

Preparing pets for a holiday

November 27, 2019

Are you getting ready for a long-awaited holiday? You probably have plenty of preparation and planning to do, especially if you have pets. Whether taking your pet with you or leaving it with a trusted caregiver, there is still much to take care of.

Travelling with your pet

If you are travelling by car, you should make sure that you have everything you need to make your pet comfortable. Some things you will want to keep close by include:

Your pet’s leash

Bags for waste/bathroom stops

Food

Water

A favourite toy

Your pet should be wearing a collar or harness with up-to-date tags on it. Having your pet microchipped is wise, also.

If you happen to be travelling with a cat, you may want to keep them in a carrier or crate. Cats typically won’t eat, drink, or use a litter box while on the road. They will probably wait until you reach your destination.When travelling by air, you will need to contact the airline ahead of time. Each airline has specific guidelines that must be followed, and forms that need to be filled out in advance.

Boarding for your pet

If you are planning to leave your pet in a boarding facility, start looking for the perfect place as early as possible. Visit the facility by yourself first, and then, when you find one you like, bring your pet for a visit if possible. This way your pet isn’t going to a completely unfamiliar place when you leave. You will also get a chance to see how the staff and your pet interact before the holiday begins.Things to look for include:

Friendly staff

Cleanliness

Living quarters with ample space for the pets

Outside areas for pets to play if the weather permits

Do the animals look happy?

Do animals have fresh water?

What policies are in place in case of an emergency?

In-home pet sitter

You may prefer having someone come to, or stay at, your home. If this is the case, you will want to interview potential pet sitters. Handle these interviews much like you would if you were hiring for a professional position.

Ask for references and check them

Watch the potential sitter interact with your pet

Ask how they would handle an emergency

Be clear about your expectations

Once you have chosen your pet sitter, be sure you provide them with a schedule to follow. Also, give them information on how to contact you and your veterinarian.

Whether your pet comes with you on your holiday or stays behind, you will want to be sure to take plenty of time to make appropriate arrangements. Your holidays will be much more enjoyable when you go into them with the peace of mind that comes from knowing your pet is having all its’ needs met and is safe.

Your pet will appreciate it too.

12 money tips for Christmas

Wed, 27 Nov 2019 23:10:18 GMT

12 money tips for Christmas

November 28, 2019

MoneySmart

(ASIC)

Save yourself this Christmas

If the festive season usually leaves you out of pocket and feeling like you spent more time and money battling the crowds than relaxing with friends and loved ones, why not simplify things this year?

Here are some quick and easy tips to help you enjoy the holiday season without breaking the bank.

1. Have a pre-Christmas cleanup

There’s still time to bag some extra cash to boost your festive finances. Spend a few hours clearing out anything you no longer need around the house, like clothes, books, jewellery, furniture, music, or sporting equipment. You could sell these items online, hold a garage sale, or find a local buy-swap-sell.

They say that one person’s trash is another’s treasure so, as well as pocketing a few extra dollars, you might just end up making someone else’s Christmas extra special.

2. Make a list and check it twice

Make lists of the things you need to buy and the food you need to prepare for the festive season. Having lists will help you plan your spending and keep you on track.

Presents – Make a list of who you’re buying for, what you want to get them, and how much money you’re prepared to spend on each person.

Entertainment supplies – List the food and drinks you’ll need, and how much you can spend. Buy in advance where possible to take advantage of specials, especially if items can be frozen or have a long shelf life.

Travel plans – Whether you’re flying or driving, there are ways to save on holiday travel costs. List all your costs like flights, accommodation, travel insurance, airport transfers and petrol. Shop around for deals as early as you can, to avoid paying a premium for last-minute bookings or peak season increases. If you’re going on a driving holiday, work out which day is cheapest to fill up on petrol, and do it the week before Christmas.

3. Track your spending

Keeping track of your festive spending is the best way to avoid going over your budget this Christmas.

Use an app, write it down, or keep track through your online banking.

4. Be cluey about Christmas credit

If you don’t have the cash to pay for your Christmas goodies up-front, you might be tempted to use your credit card, or use a buy now pay later service. Although these are convenient ways to get the things you need now, that convenience can cost you dearly if you find yourself still saddled with Christmas debt well into 2020.

Before you sign up to a buy now pay later service, make sure you understand what the terms and conditions are, how much your repayments will be, and when they are due.

5. Personalise your cards and wrapping

Most people throw away their Christmas cards once the festivities are over, which is just like throwing money in the bin.

This year, instead of spending your hard-earned cash on shop-bought cards that will only end up in the recycling bin, why not send your family and friends Christmas greetings they will want to keep? You could:

use a favourite photo to create a personalised photo card

if you have kids, give them some paper and get them to draw or paint pictures that you can use to create special cards

record a video message on your smartphone or iPad and email it to your family and friends

write a letter to your loved ones instead of sending a card. This is a great way to tell them how much they mean to you, or thank them for something special they might have done for you this year.

Rethink your wrapping by buying brown paper and string, or just use plain coloured paper to wrap your presents. Then you’ll avoid pricey Christmas wrapping and can use the excess during the year to wrap other gifts.

6. Be a scrooge online

If you’re Christmas shopping online, look for ways to save every cent you can. Before you start, do a web search for discount or coupon codes that you can use at the checkout. Look in the sales sections of retailers’ websites to see what’s on offer.

If you know what items you are looking for, search for them online instead of just going to one retailer’s website. You might find it much cheaper somewhere else.

Search online auction websites where you can ‘bid’ for items, including supplies you need for Christmas Day. Make sure you include any shipping costs when you are comparing prices. The cost of some items can blow out once you add shipping, meaning it might be better to simply go to a store to get the item. Or look for items or shopping days that have free shipping.

Things are often much cheaper online than in a store, but you do need to take extra precautions when shopping online.

7. Get social with Christmas shopping

If you follow your favourite brands and retailers on social media, you may be able to get exclusive discounts through these social channels. Their newsletters may also alert you to sales and deals.

There are also discount or deal apps that you can use to find bargains that you can use as Christmas gifts.

Before you buy any deal or discount, always check the terms and conditions to make sure you know what you are getting and make sure the website is legitimate. See the ACCC’s SCAMwatch website for tips on how to pick an online shopping scam.

8. Master the art of Christmas gift hacking

There’s a lot of pressure to spend up big on gifts at this time of year, but pricey presents aren’t necessarily the way to go. Here are some ways you can show you care, while keeping a lid on your spending:

Agree on a spending limit – Suggest to your loved ones that you set a limit on how much you will spend on gifts for each other to keep your budgets under control

Kids only – Talk to the other adults in your extended family about only buying presents for the kids this year, rather than for the adults

DIY vouchers – We often remember the things people do for us rather than the presents they give us. Consider giving redeemable vouchers for tasks like babysitting, massages, picnics, homemade dinners or even housework.

Savvy sales – Take advantage of sales throughout the year to nab some bargains and store them away for Christmas. But, even in December there are bargains to be had. You can also check out any clearance outlets near you, or sign up to their newsletters so that you’ll be in the know when they have a sale.

Compare offers – Some stores match or beat competitors’ deals, so compare their offers and take all the details with you when you go into the store. Don’t be afraid to ask for a discount – you might just get a Christmas miracle!

Second-hand bargains – Op shops, antique stores and second-hand bookshops can be a treasure trove for the thrifty Christmas shopper. If you’re prepared to spend the time looking through their stock, you can often find good quality items at a fraction of the price you’d pay at big name stores.

9. Shop like you’re Santa

Santa is always well-prepared and does his shopping on time, so why don’t you? If you are going to shop in-store, consider these rules-of-thumb to reduce Christmas shopping stress and limit the temptation to over spend:

Set a time limit on your shopping – Get in, get it done and get out so you aren’t tempted to spend more than you want to.

Shop at odd hours – Take advantage of extended trading hours and go when it’s less crowded so you can choose carefully without having to jostle for space.

Buy less expensive stuff first – If you buy larger and more costly items first you can lose perspective on what is a good price, so set your budget, buy small first, and then tackle the big stuff so you stick to your gift budget.

Pre-pay – If you buy online, check if there’s an option to pick up in-store. You’ll save on freight, skip any lines, and there will be less temptation to buy more.

Limit your shopping locations – Only go to shops that you need to visit so you don’t get distracted and impulse buy.

10. Give to those less fortunate

Spread the Christmas cheer by giving to those who are doing it tough. Consider donating to a charity on someone else’s behalf and give this to them as a gift. As well as money, many charities also accept household items, clothes and groceries at Christmas, or you could volunteer your time to help them out.

11. Lighten your load on Christmas Day

The costs of entertaining can skyrocket at this time of year. But, with some simple planning, both you and your wallet can enjoy the fruits of your labour. Here are some ways to lighten the Christmas load:

Share the catering – Even if you’re hosting Christmas Day lunch or dinner, there’s no need to shoulder all the work yourself. Ask others to bring nibblies, drinks, salads or desserts.

Buy only what you need – It can be easy to overestimate how much food you’ll need at Christmas, only to end up throwing some away or eating leftovers for days.

Switch supermarkets – Make a list of the groceries you need for Christmas, then take advantage of the competition between supermarkets by checking out the advertised specials and stocking up. Don’t buy everything at the same shop if you can get it cheaper elsewhere. You might even get better deals at your local butcher or fruit shop.

Use loyalty credits – If you belong to a supermarket loyalty scheme that builds up credit after you’ve spent a certain amount, check if you can use the credit to get a discount on your Christmas grocery shop.

Read our article on simple ways to save money for more tips on cutting costs at the supermarket.

12. Plan for next Christmas

Once this Christmas is done and dusted, start planning ahead for next year! Here are some ideas to make sure you are set up for next Christmas:

Start saving now – Open a high interest savings account in January and contribute a small amount to it every payday. Saving $20 per week will add up to over $1,000 in a year’s time. Use ASIC’s MoneySmart’s savings goals calculator to see how much you’ll need to save each pay to reach your Christmas savings goal.

Shop the sales – Shop for presents throughout the year, especially during sales. This will spread your costs and make them more manageable.

Layby – Pre-plan larger gifts and layby them a few months ahead so you can pay them off over time.

Top spots for Aussies in strife abroad – A snapshot

Fri, 22 Nov 2019 04:20:44 GMT

Top spots for Aussies in strife abroad – A snapshot

November 21, 2019

(Australian Associated Press)

TOP TRAVEL DESTINATIONS FOR AUSTRALIANS

1. New Zealand

2. Indonesia

3. US

WHERE AUSSIES REQUIRED CONSULAR ASSISTANCE

Total cases: 13,715

1. Thailand – 895 (down seven per cent)

2. US – 666 (down 11 per cent)

3. Philippines – 647 (up 10 per cent)

WHERE AUSSIES DIED:

Total deaths: 1695 (main causes illness or natural causes)

1. Thailand – 247 (up four per cent)

2. Philippines – 177 (up 16 per cent)

3. Indonesia – 104 (down 11 per cent)

WHERE AUSSIES GOT ARRESTED AND DETAINED

Total cases: 1572

1. US – 229 (down five per cent)

2. Thailand – 158 (up 30 per cent)

3. China – 123 (up nine per cent)

DRUG-RELATED ARRESTS

1. Thailand – 36 (up 125 per cent)

2. Japan – 22 (up 16 per cent)

3. China – 15 (down 21 per cent)

WHERE AUSSIES WERE LOCKED UP

1. China – 50 (no change)

2. US – 45 (no change)

3. Vietnam – 42 (up five per cent)

WHERE AUSSIES LOST TOUCH WITH LOVED ONES BACK HOME

Total cases: 364

1. Thailand – 41 (down 42 per cent)

2. US – 29 (down 12 per cent)

3. Indonesia – 23 (up four per cent)

WHERE AUSSIES NEEDED HELP FOR THEIR WELFARE

1. Philippines – 266 (up six per cent)

2. Thailand – 215 (down 24 per cent)

3. Indonesia – 174 (down 11 per cent)

(Source: Department of Foreign Affairs and Trade)

Many Australians want financial advice

Fri, 22 Nov 2019 04:19:36 GMT

Many Australians want financial advice

November 21, 2019

Money and Life

(Financial Planning Association of Australia)

A new ASIC report offers key insights into consumer perceptions of financial advice. Find out how to get off to the right start with your financial planning experience.

In an independent research study commissioned by ASIC, more than 2,000 Australians were asked about their beliefs and perceptions about financial advice as well as their experiences of receiving advice. The Financial advice: What consumers really think report, published in August 2019, shares findings from an online survey of 2,545 participants as well as group and one-on-one discussions. It presents a picture of a profession that Australians feel they need, but has some way to go in developing a sense of trust and value among consumers.

Many Australians want financial advice

According to the report, demand for financial advice among those surveyed is high. 41% said they planned to seek financial advice in the future. And nearly twice as many – 79% – acknowledged that ‘Financial Advisers have expertise in financial matters I do not have’. These figures clearly demonstrate a recognised need for informed and professional advice among those surveyed.

In the 2017 Live the Dream survey and research report, the Financial Planning Association found that more than half of Australians (54%) saw financial freedom and independence as vital in their ability to ‘live the dream.’ So it’s no wonder financial advice is on the to-do list of so many Australians.

Trust and perceived cost are barriers

But when it comes to actually seeking financial advice, a fair number never follow through on their intentions. The ASIC report found that 20% of respondents had thought about getting financial advice in the last 12 months, but hadn’t gone ahead.

So just what is standing in the way of Australians taking steps to get professional advice on their finances? Figures from the report suggest that affordability, trust, and value are three significant barriers stopping Australians from meeting with a financial planner. 35% consider financial advice to be too expensive, 18% do not see the value in seeing a financial planner and 19% don’t trust financial planners. For others it may simply be a case of not knowing where to start with the whole process of getting advice. In group discussions and interviews, people said they found it difficult to know how to find a financial planner and that they’re getting quality advice.

Finding the right financial planner

Based on the experiences of people interviewed and surveyed for the ASIC report, asking around for a referral is often a good method of approach for finding a trusted financial planner.

But what if you don’t know anyone who’s had experience with financial advice? Many people may not encounter someone in their circle of friends or family who has been advised by a financial planner. If you do find yourself narrowing down your options based on your own research, there are tips from the ASIC report to guide you. In ranking the attributes they considered most important in choosing a financial planner, the following four scored highest with survey participants:

– Level of experience

– Reputation

– They talk to me in a way I can understand

– They take the time to understand me and my goals

These findings tally with FPA research from 2017, which found the most common criteria for selecting a planner were trust, comfort, rapport, impartiality, tailored recommendations and reputation.

PM’s infrastructure boost by the numbers

Fri, 22 Nov 2019 04:18:19 GMT

PM’s infrastructure boost by the numbers

November 20, 2019

Daniel McCulloch

(Australian Associated Press)

SCOTT MORRISON’S INFRASTRUCTURE INVESTMENT BY THE NUMBERS

* $3.8 billion will be spent on national infrastructure projects over the next four years

* Almost half of the money – $1.8 billion – will be spent by the end of 2020

* The prime minister has announced deals with Queensland, Western Australia and South Australia to fast-track road and rail projects

* Every state and territory is expected to benefit, with more announcements due in coming days

MONEY BROUGHT FORWARD FOR QUEENSLAND PROJECTS

* $225.6 million for Bruce Highway upgrades

* $94.3 million for Pacific Motorway upgrades

* $118.5 million for other road projects in Townsville and Toowoomba

NEW FUNDING FOR QUEENSLAND PROJECTS

* $446.3 million over four years for road upgrades including exits on the M1 Interchange

* $157 million for the Gold Coast light rail

* $50 million from next year to relocate Loganlea Station

* $20 million from next year for the Port of Brisbane connection

* $10 million from next year for a business case on the Salisbury to Beaudesert rail line

MONEY BROUGHT FORWARD FOR WEST AUSTRALIAN PROJECTS

* $284 million for the Bunbury Outer Ring Road

* $160 million for Tonkin Highway Gap

* $157 million for the Karratha to Tom Price Corridor

* $83 million for the Albany Ring Road

* $41 million for the Newman to Katherine Corridor

* $41 million for Port Augusta to Perth Corridor

* $36 million for the Alice Springs to Halls Creek Corridor

* $16 million for the Fremantle Traffic Bridge

NEW FUNDING FOR WEST AUSTRALIAN PROJECTS

* $38 million for the Mitchell Freeway

* $64 million for Lakelands Station

* $11.5 million to upgrade two intersections on the Great Eastern Highway

* $7.5 million for an intersection upgrade at Morley Drive and Wanneroo Road

* $7 million for an intersection upgrade at Apple Street on the Great Northern Highway

* $2 million an upgrade of the Reid Highway

MONEY BROUGHT FORWARD FOR SOUTH AUSTRALIAN PROJECTS

* $100 million for a rural roads safety package

* $87 million for a road corridor between Port Augusta and Perth

* $75 million to duplicate the Victor Harbour Road

* $50 million for the Horrocks Highway

NEW FUNDING FOR SOUTH AUSTRALIAN PROJECTS

* $87.5 million for the Darlington Upgrade

* $16 million for Flinders Link

Cloudy outlook stifles consumer confidence

Fri, 22 Nov 2019 04:17:00 GMT

Cloudy outlook stifles consumer confidence

November 20, 2019

Michael Mehr

(Australian Associated Press)

Consumer confidence slipped during the weekend according to an ANZ survey that suggests inflation expectations are at a three-month low amid concerns about the outlook for the Australian economy.

The ANZ-Roy Morgan Australian Consumer Confidence index fell 1.1 per cent from the previous week, with respondents’ views of the economy over the next 12 months sliding 2.6 per cent and sentiment about conditions during the next five years dropping 4.9 per cent.

Perceptions about the economy over the forthcoming year were at the lowest levels since April 2017 and optimism about the five-year period sank to depths last recorded in October 2017.

The weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also registered a 0.3 per cent increase in people who said they felt better off now compared with a year ago.

People’s sense of optimism about the finances of themselves and their family during the next 12 months edged up 0.2 per cent.

The survey’s “time to buy a major household item” metric rose 0.4 per cent.

Respondents in the poll anticipated inflation would reach 3.8 per cent in two years, an expectation that is the lowest since the weekend of August 17-18, down from 4.1 per cent in the previous week.

The Reserve Bank of Australia has a target inflation rate of between 2.0 per cent and 3.0 per cent although the most recent calculation puts it at an annual rate of 1.7 per cent.

“Renewed weakness in the weekly reading of inflation expectations will be a concern for the RBA,” ANZ economist David Plank said.

Gender pay gap remains ‘disappointing’

Fri, 22 Nov 2019 04:15:38 GMT

Gender pay gap remains ‘disappointing’

November 21, 2019

Finbar O’Mallon

(Australian Associated Press)

New pay data for the private sector has been dubbed “disappointing” by the director of Australia’s gender equality watchdog.

Men in the private sector are still taking home more per year than their female workmates, according to figures from the Workplace Gender Equality Agency.

In its annual scorecard released on Tuesday, the agency says male full-time workers on average took home 20.8 per cent, or $25,000, more than women in 2018-19.

The figures are based on data provided to the agency by non-public sector employers with more than 100 staff and takes into account super, bonuses and other allowances.

Australian Bureau of Statistics data in August put the national pay gap for public and private sectors at 14 per cent based on annual salaries.

In WGEA’s scorecard, it found in Australia’s most female-dominated industry, healthcare and social assistance, work to close the pay gap was actually going backwards.

In 2015-16, there was a 14.7 per cent pay gap between men and women in that industry, which has since risen to 15.9 per cent.

Director Libby Lyons said employers could not become complacent in addressing gender equality.

“I’d have to say overall I’m disappointed this year … I think it would be fair to say that it’s modest improvement at best,” she told AAP.

Ms Lyons pointed to the pay gap as well as the lack of female chief executives or board members.

She said the number of female board members, which stood at 26.8 per cent in 2018-19, had been stagnant about the 24 per cent to 26 per cent mark for the past six years.

Ms Lyons said upping the number of women in companies, as well as increasing their pay packets, would boost the national economy and business profits.

“It is the smart thing to do,” she said.

Ms Lyons said the recent news that Macquarie boss Shemara Wikramanayake was Australia’s highest-paid chief executive was the “exception rather than the rule”.

She said in previous years the agency had witnessed dramatic jumps in the pay gap but these had since slowed.

Ms Lyons said she was heartened by the growing number of employers having a strategy around domestic violence and offering more related leave.

While more than 75 per cent of the employers that provided data to the agency had a gender equality strategy, only 32.2 per cent had introduce gender equality KPIs.

Women’s Minister Marise Payne said the WGEA’s latest scorecard showed there was still work to do but there was positive improvement in some areas.

“The government is working with business to increase women’s leadership in the private sector, which is the largest employer of Australian women,” she said.

She pointed to the pay gap being 17.2 per cent in 2013.

Swine Fever puts a premium on Aussie meat

Fri, 22 Nov 2019 04:14:32 GMT

Swine Fever puts a premium on Aussie meat

November 20, 2019

Alex Druce

(Australian Associated Press)

Global meat production will continue to fall as African Swine Fever decimates the world’s protein market, meaning Australian farmers could fetch even heftier prices for animals they’ve held onto during the drought.

The latest outlook from agri-focused lender Rabobank says Australia stands to benefit from limited global protein supplies over the next year, as the contagious viral Swine Fever strain leaves a hole in pork production “that cannot be met”.

The Global Animal Protein Outlook 2020 says China’s pork production losses will exceed the growth in all other regions combined, pulling down overall meat market growth, further stoking uncertainty around trade disputes, and weighing on the rise of alternative meats such as beef and poultry.

African Swine Fever kills about 80 per cent of the pigs it infects and during 2019 has spread throughout south-east Asia and some European countries.

It has never occurred in Australia.

Rabobank senior animal proteins analyst Angus Gidley-Baird said this meant global demand will not only keep local beef and sheepmeat prices strong, but set them up to spike even further if it eventually rains.

Australia’s sheep and cattle herds are at 20-year lows after many offloaded stock to avoid the cost of keeping them alive during the ongoing drought.

Mr Gidley-Baird says while seasonal conditions remain dry, prices are less likely to experience any large downside, as there is “simply not the volume of stock in the market to drive any big crash in prices”.

He said while strong beef and sheepmeat prices have been a “godsend” during the drought, the inability for many producers to fully capitalise on the higher prices has been frustrating.

“In this environment of really strong global demand, we have seen, for example, US beef import prices hit record levels at over $8/kg for lean trimmings, but there is simply not the product to send over to take advantage of these high prices,” Mr Gidley-Baird said.

New code for home devices to stop hackers

Fri, 22 Nov 2019 04:12:59 GMT

New code for home devices to stop hackers

November 20, 2019

Benita Kolovos

(Australian Associated Press)

Internet-connected devices including smart TVs, watches and speakers will soon be subject to an industry code to protect against cyber attacks.

Home Affairs Minister Peter Dutton is concerned about poor security features in many such devices and wants companies to make sure their systems are resilient to outages and software updates are secure.

At an industry summit in Melbourne on Tuesday, Mr Dutton said there will be more than 64 billion internet-connected devices globally by 2025, outnumbering humans eight to one.

“While this connectivity brings convenience to people in their personal and professional lives, many devices lack basic in-built security features,” he said.

Mr Dutton announced a draft code of practice for public consultation, which will run until March next year.

Consisting of 13 principles, the voluntary code of practice brings Australia into line with other countries such as Britain, which has also developed an industry code to help protect consumers from cyber-attacks and data breaches.

In his speech, Mr Dutton said more needed to be done to ensure the online realm was “safer and more trustworthy, without censoring the free exchange of ideas so intrinsic to our way of life”.

“It is a landscape shaped by tensions between the benefits and threats of connectivity, between data privacy and access and between the fair use and abuse of technologies,” he said.

Threats include attacks lone hackers, organised crime groups and foreign governments.

“The threat from foreign interference is at an unacceptably high level,” Mr Dutton told the industry summit.

“We won’t tolerate cyber attacks in your sectors, the theft of your intellectual property or interference which impedes your ability to do business on an even playing field.

“So please rest assured much work is going on behind the scenes to address this threat.”

He also said defeating the scourge of child sexual abuse material online remains a key priority.

The Australian Federal Police received almost 18,000 reports about online child exploitation material in 2018, an 84 per cent increase on the previous year.

Digital privacy an ACCC top priority

nadia@spherewealth.com.au — Fri, 22 Nov 2019 04:11:29 GMT

Digital Privacy an ACCC top priority

November 20, 2019

(Australian Associated Press)

How digital platforms such as Google and Facebook treat consumer data is a top priority of the competition watchdog, says chairman Rod Sims.

Mr Sims told the Consumer Policy Research Conference in Melbourne on Tuesday that the Australian Competition and Consumer Commission that Facebook and Google had access to an unparalleled amount of private and public data.

“Few consumers are fully informed of, nor can they effectively control, how their data is collected, used and shared by digital platforms,” Mr Sims said.

“Nor do they fully appreciate the extent to which their actions online are monitored and recorded for different purposes including targeted advertising.”

The vague, lengthy and complex data policies of these platforms contribute to a disconnect between how consumers think their data is treated and how it is actually treated, Mr Sims said.

And when digital platforms are acquired, consumers rights over their data can be weakened further, Mr Sims said.

When Facebook bought WhatsApp in 2014, the social media giant said it couldn’t match Facebook and Whatsapp user accounts – but two years later it started doing so, he said.

Mr Sims said he was concerned Google’s proposed acquisition of Fitbit would erode Fitbit’s robust privacy settings.

“While both Fitbit and Google have indicated that Fitbit users health and wellbeing data will not be used for Google Ads … it is a stretch to believe that commitment will still be in place five years from now,” Mr Sims said.

Even customer loyalty schemes such as frequent flyer and supermarket loyalty programs have been misuses, Mr Sims said.

The ACCC filed suit against Google last month for allegedly misleading consumers about how it keeps location data, and against HealthEngine in August for allegedly manipulating patient reviews of health practices.

Mr Sims said the government’s response to the ACCC’s Digital Platform Inquiry it released in July was coming by year end, but there had already been some signs of progress by the two platforms.

Faceook is partnering with news organisations, including in Australia, to fund and feature news content, while Google has changed its algorithm to prioritise original journalism, Mr Sims said.

“Concerted pressure produces change, and that change also emphasises the need to maintain the pressure.”

Insurance through super

nadia@spherewealth.com.au — Thu, 21 Nov 2019 04:08:56 GMT

Insurance through super

November 21, 2019

MoneySmart

(ASIC)

Super cover

Most super funds offer life insurance for their members. If you’re reviewing your life insurance, check what cover you have through your super fund so you can compare it with other options.

Here we explain what types of life insurance you can get through your super and the pros and cons of this type of insurance.

What types of life insurance are offered by super funds?

Why get life insurance through your super?

How to check the insurance you have through super

Claiming on insurance through super

What types of life insurance are offered by super funds?

Super funds typically have three types of insurance for members:

Death cover (also known as life insurance) – is part of the benefit your beneficiaries receive when you die, either as a lump sum or as an income stream.

Total and permanent disability (TPD) cover – pays you a benefit if you become seriously disabled and are unlikely to ever work again.

Income protection (IP) cover – pays you an income stream for a specified period if you can’t work due to temporary disability or illness.

Your employer’s default super fund will generally provide you with death and TPD cover. This basic cover may be available without health checks. You can usually increase, decrease, or cancel your default insurance cover.

Your super fund’s website will have a product disclosure statement (PDS) which explains the insurer they use and details of the cover available.

Like other insurance policies, you will pay insurance premiums. If your insurance is through your super fund, the premiums are deducted from your super account balance.

Cancellation of insurance on inactive and low balance accounts

Super funds will cancel insurance on:

inactive accounts that haven’t received contributions for at least 16 months

accounts with balances less than $6,000 from 1 April 2020.

Your fund will contact you if your insurance is about to end.

If you want to keep the insurance, you must tell your super fund or make a contribution to that account. You may want to keep your insurance if you don’t have any through another fund or insurer and you have a particular need for it (e.g. you have children or other dependants or work in a dangerous job).

Insurance for people under 25

From 1 April 2020, insurance will not be provided if you’re a new super fund member aged under 25 unless you:

write to your fund to request insurance through your super

work in a dangerous job – your super fund will give you the option to cancel this cover if you don’t want it.

Why get life insurance through your super?

There are benefits in getting your life insurance through super:

It’s often cheaper because super funds purchase insurance policies in bulk

You can get the cover you need for you and your family, even if money is tight

It’s easy to manage because premiums are automatically deducted

Some funds automatically accept you for cover without requiring a health check

You can usually choose the amount you want to be covered for

However, you also need to be aware that:

Limited cover – The types of insurance, and level of cover, may be limited. Cover is not tailored to your circumstances and exclusions may apply. If you want more insurance, you can apply to increase your cover and a medical may be required. If you want a different type of cover, you may need to get this outside super. Check the PDS carefully.

Not portable – If you change super funds; have an extended absence from your employer; your employer’s super contributions stop or your account balance drops below a certain amount, your cover may cease and you could end up with no insurance. Always read the information sent to you by your super fund as they may be alerting you to changes to your cover.

Slower to pay – There can be delays in receiving benefits as the insurer pays the benefit to the fund first, who then distributes it to you or your beneficiaries.

Who gets paid – If you do not make a binding beneficiary nomination, or your fund does not offer binding nominations, the super trustee will decide who gets your benefits when you die, although your nomination will be taken into consideration.

Ends at around age 65 – Life insurance coverage through super ends when you reach a certain age (usually 65 or 70). Policies outside of super may cover you for longer.

Reduces super balance – The cost of insurance premiums are deducted from your super balance, reducing the money available for your retirement.

Multiple super accounts – If you have more than one super account, you may be paying premiums on multiple insurance policies. This could reduce your retirement money, especially where you can only claim on one policy. Find out if you are able to claim on more than one policy, and consider which policy you might cancel. Even if you can claim on more than one policy, consider whether you need more than one policy or whether you can get enought insurance through one fund.

Premiums may increase when you change jobs – Even if you stay with the same super fund when you leave your employer, you may be moved to the personal division of that fund which could increase your premiums for the same cover. Some funds default members as smokers or blue-collar workers when they move between divisions of funds, which could significantly increase premiums, and further reduce your retirement money. Check your annual statement to see how you have been classified, and contact your fund if you think the incorrect classification has been given to you.

You may opt for some cover through your super fund, and some cover directly from a life insurer, depending on the cost and the type of cover you need.

Check your life insurance cover before changing super funds

Before switching or consolidating super funds, make sure you can get the death, TPD or income protection cover you want, in your chosen fund. Be particularly careful if you have a pre-existing medical condition or are aged 60 or over, as you may not be able to get insurance again without health checks. Seek financial advice if you are unsure.

How to check the insurance you have through super

To find out what life insurance you have with your super, either call your super fund, check your annual super statement or access your super account online to check:

what type of insurance cover you have

how much cover you have, and

how much you are paying for the cover.

You should also find out how your super fund is calculating your insurance premiums. For example, if your super fund has classified you as a smoker or blue collar worker, and these risk characteristics aren’t relevant to you, you could be paying more for your insurance than you need to.

You may need to call your super fund to check how you’ve been classified as your annual statement may not provide this detail.

What if you have no insurance through super?

If you discover that you have no insurance through your super fund, and you think you should have cover, call your super fund to find out why and discuss your options.

Claiming on insurance through super

There are some important things you need to know if you’re making an insurance claim through super.

Making a claim

To make a claim for insurance through your super fund you will typically need to submit a claim form. If you die, your estate or dependants should contact the super fund to find out how to claim death benefits.

Most super funds provide claim forms on their websites or you can call them and ask them to send you one.

When you make your claim, you may be asked to provide documentation that proves your condition, including medical reports. There may be waiting periods in some cases.

Some funds will allocate you a claims officer to be your point of contact if you have any questions during the claims process.

Unhappy with your super fund’s claims process?

If you’re unhappy with the claims process or unhappy because your claim is not accepted, complain to the super fund using its formal complaints process. Your super fund’s website should have details about how to complain. If not call and ask about the process, or look in the product disclosure statement.

If you’re not satisfied with the outcome, take your complaint to the Australian Financial Complaints Authority (AFCA). AFCA will generally not consider the matter unless you have used the superannuation fund’s internal complaint process first.

AFCA replaced the Superannuation Complaints Tribunal (SCT) on 1 November 2018. Complaints lodged with the SCT before this date will still be dealt with by the SCT.

You do not need a lawyer to complain to your fund or to AFCA. Of course, you may find it helpful to use a lawyer or other professional adviser if you think the benefits outweigh the fees.

Industry Code of Practice

An Insurance in Superannuation Voluntary Code of Practice started on 1 July 2018 to improve the consumer experience of insurance in superannuation. If your fund’s trustee agrees to comply with the Code, you should get better disclosure and claim and complaints handling. Your fund trustee should notify you if it is complying with the Code. You can check this on your fund’s website.

To decide if insurance through super is right for you, work out how much cover you need, whether your super fund will offer you this cover, and compare the costs and conditions with other insurance providers.

Income protection

Thu, 31 Oct 2019 01:49:21 GMT

Income Protection

October 31, 2019

Money Smart

(ASIC)

An income safety net

Income protection insurance, also known as salary continuance, can help you manage your expenses if you are unable to work for a certain amount of time if you are sick or injured.

When purchasing income protection, consider what other types of life insurance you need as well, such as life cover and total and permanent disability cover.

Do you need income protection?

Choosing an income protection policy

Things you need to tell your insurer

Making a claim on your income protection policy

Do you need income protection?

Income protection insurance replaces the income lost through your inability to work due to injury or sickness. It is especially suitable for self-employed people, small business owners or professionals whose business relies heavily on their ability to work.

Choosing an income protection policy

Each income protection policy has its own definition of disability and range of benefits. Income protection usually offers cover for up to 75% of your gross wages for a maximum time period (e.g. 2 years or to age 60).

Income protection policies may be stepped or level, so make sure you understand what sort of policy you are getting.

mature male factory working in hardhat with clipboard

Case study: Bob cuts his premium

Bob wanted additional income protection insurance so he paid more money through his super fund to get the maximum cover. After realising he had 10 weeks of annual and sick leave up his sleeve, he opted for a 3-month waiting period to reduce his premium. If he ever needs to make a claim, he can cover the first 3 months with his saved leave payments.

Smart tip

Income protection premiums (outside super) are generally tax deductible.

You will need to pick a waiting period when you select your level of cover. This is the period of time (often 30 to 90 days) before you can make a claim.

Take into account your leave balances (e.g. annual, sick and long service leave) and access to emergency cash when choosing your time period.

Many super funds offer income protection. To see what cover is available:

contact your super fund by phone or through their website

check your member statement

read your product disclosure statement (PDS).

Compare how long it takes different insurers to pay an income protection claim and the percentage of claims they pay out.

life insurance claims comparison tool

Redundancy insurance

Some insurers offer redundancy insurance as optional cover on income protection policies. Redundancy insurance can provide short-term financial assistance if you lose your job.

To be eligible for redundancy insurance, you need to meet the insurer’s definition of ‘involuntary unemployment’ which can mean for example, if you are:

an employee and you have been ‘let go’ from a job that has been paying you a salary, wage or commission.

self-employed and your business has stopped trading because you haven’t been able to meet the business’ financial commitments.

on a fixed term contract (e.g. 12 months or more) and the contract ended before a date you previously agreed on, and not by your own choice.

Before you take out redundancy insurance, consider the following:

Likelihood of redundancy – How likely is it and could you find another job quickly?

No claim period – how long do you have to wait before you can claim?

Waiting period – how long must you be out of work before you will receive any benefits?

Payment limits – how much will you receive, and will it be enough?

Expiry age – most policies expire when you reach a certain age, e.g. 65.

You may also be eligible to receive a redundancy payment, which may reduce the need for separate insurance. Visit the Fair Work Ombudsman’s website for information on redundancy pay and entitlements.

Before you take out redundancy insurance, check the PDS to find out what exclusions apply.

Things you need to tell your insurer

You need to tell your insurer anything that could affect their decision to insure you when you apply for, renew or change an income protection or life insurance policy. You also need to tell the life insurer about things that have happened between the time you apply and when the insurance cover starts.

Some insurance companies need you to give them details of your medical history. If you don’t have this information, you can get it from your doctor. The insurer may refuse your claim if you don’t give them this information, and this could affect any income protection or life insurance you apply for in the future.

Making a claim on your income protection policy

If you need to make a claim on your income protection policy, you will have to provide evidence of your illness or injury. Ask your insurer exactly what they need from you so your claim gets processed as quickly as possible.

The income protection payments you receive from a successful claim will be for the period you are unable to work, in line with the policy.

Income protection gives you a steady source of cash in case you get injured or sick and cannot work. This means you can focus on getting better and not on how you’re going to pay the bills.

Wills & powers of attorney

Thu, 24 Oct 2019 05:32:43 GMT

Wills & powers of attorney

MoneySmart

(ASIC)

Preparing for your family’s future

No-one wants to think about death, but it’s important to decide what will happen to your assets when you die. Find out how you can give instructions to your family about your legal and medical preferences should you fall ill or lose the capacity to make those decisions yourself.

Estate plans

Wills

Testamentary trusts

Powers of attorney

Your legal and financial housekeeping

Estate plans

An estate plan includes your will as well as any other directions on how you want your assets distributed after your death. It includes documents that govern how you will be cared for, medically and financially, if you become unable to make your own decisions in the future.

You must be over 18 and mentally competent when you draw up the legal agreements that form your estate plan. Key documents might include:

Will

Superannuation death nominations (see Getting your super)

Testamentary trust

Powers of attorney

Power of guardianship

Anticipatory direction.

If you have made a binding nomination in your super or insurance policies, the beneficiaries named in those policies will override anyone mentioned in your will. If you have a family trust, the trust continues and its assets will also be distributed according to the trust deed, no matter what is written in your will.

Ask a legal professional to check your estate plan. A good estate plan should minimise the tax paid by your heirs, and help avoid any family squabbles.

Wills

A will takes effect when you die. It can cover things like how your assets will be shared, who will look after your children if they are still young, what trusts you want established, how much money you’d like donated to charities and even instructions about your funeral.

Your will can be written and updated by private trustees and solicitors, who usually charge a fee. Some Public Trustees will not charge to prepare or update your will if you nominate them to be the executor of your will. Other Public Trustees may only exempt you from charges if you are a pensioner or aged over 60. Check with the Public Trustee in your state or territory.

Smart tip

It’s estimated that nearly half of all Australians die without a will, or ‘intestate’. Don’t let this happen to you. Make a will today.

ACT – Public Trustee and Guardian for the ACT

NSW – NSW Trustee and Guardian

Northern Territory – Office of the Public Trustee

Queensland – The Public Trustee of Queensland

South Australia – Public Trustee South Australia

Tasmania – Public Trustee Tasmania

Victoria – State Trustees Victoria

Western Australia – Public Trustee Western Australia

You can buy will kits online but it’s a good idea to ask a solicitor to review your will to make sure everything is in order. If a will isn’t signed and witnessed properly, it will be invalid.

Keep your will valid and up to date as your legal rights change – specifically, if you marry, divorce or separate; have children or grandchildren; if your spouse or beneficiaries die; or if you have a significant change in financial circumstances.

If you die intestate or your will is invalid, an administrator appointed by the court pays your bills and taxes from your assets, then distributes the remainder, based on a pre-determined formula, which may not be how you intended your assets to be distributed.

If you die intestate and don’t have any living relatives, your estate is paid to the state government.

Testamentary trusts

A testamentary trust is a trust set out in your will that only takes effect when you die. Testamentary trusts are usually set up to protect assets.

Here are some reasons why you would create a testamentary trust:

The beneficiaries are minors (under 18 – 21 years old)

The beneficiaries have diminished mental capacity

You do not trust the beneficiaries to use their inheritance wisely

You do not want family assets split as part of a divorce settlement

You do not want family assets to become part of bankruptcy proceedings.

A trust will be administered by a trustee who is usually appointed in the will.

A trustee must look after the assets for the benefit of the beneficiaries until the trust expires.

The expiry date of a trust will be a specific date such as when a minor child reaches a certain age or a beneficiary achieves a certain goal or milestone (e.g. getting married or earning a specific qualification).

Powers of attorney

Appointing someone as your power of attorney gives them the legal authority to look after your affairs on your behalf.

Powers of attorney depend on which state or territory you are in: they can refer to just financial powers, or they might include broader guardianship powers. You will need to check with your local Public Trustee.

The different types of power of attorney are:

General power of attorney is where you appoint someone to make financial and legal decisions for you, usually for a specified period of time, for example if you’re overseas and unable to manage your legal affairs at home. This person’s appointment becomes invalid if you lose the capacity to make decisions for yourself.

Enduring power of attorney is where you appoint a person to make financial and legal decisions for you if you lose the capacity to make your own decisions.

Medical power of attorney can make only medical decisions on your behalf if you become unable to do so yourself.

You can prepare a few other documents to help your legal appointees and family as you grow older, including an:

enduring power of guardianship that gives a person the right to choose where you live and make decisions about your medical care and other lifestyle choices, if you lose the capacity to make your own decisions.

anticipatory direction records your wishes about medical treatment in the future, in case you become unable to express those wishes yourself.

advance healthcare directive (or living will) documents how you would like your body to be dealt with if you lose the capacity to make those decisions yourself.

The documents you choose to draw up will depend on your situation, and the responsibilities you’re happy to entrust to others. Get legal advice if you are not sure.

Choosing your powers of attorney

Nominate people that you know are trustworthy, financially responsible, and likely to be around when you need them.

Your legal and financial housekeeping

Once your paperwork is in order, it will help your executor and family if you list the legal documents you have and where they are kept.

Here is a list of key documents to keep:

Birth certificate

Marriage certificate

Will

Enduring power of attorney

Advance healthcare directive (also called a living will)

Life insurance policies

House deeds

Home and contents insurance

Deeds and insurance policies for any other real estate you own

Bank account details

Superannuation papers

Investment documents (securities, share certificates, bonds)

Medicare card

Medical insurance details

Pensioner concession card

Any pre-paid funeral arrangements.

The NSW Government’s Planning Ahead tools website gives more detailed information on advance care directives, wills, power of attorney and enduring guardianship.

A good will and estate plan can help make sure your wishes are carried out after you die, or if you are no longer able to make your own decisions.

Make your money last in retirement

Wed, 16 Oct 2019 23:11:20 GMT

Make your money last in retirement

October 17, 2019

MoneySmart

(ASIC)

There are ways to stretch your retirement income to make your money last as long as possible.

Consider getting financial advice

Depending on your circumstances, you may want to seek financial advice to maximise your retirement income. For instance, if you have a substantial amount of super and want to invest some of it, a finance expert can help with investment options and tax advice.

Diversify your investments

With many retirees living beyond the age of 90, it’s a good idea to invest at least some of your money in assets that will grow over time, like shares and property. This will help ensure your capital will grow in value to keep pace with inflation and your income needs. Spread your investments to avoid financial heartache in the future.

Manage your spending

A simple way to make your money last longer is to watch your spending. Use the budget planner to see how you currently spend your money and see where you can cut back to save for special items.

Take advantage of your entitlements

Even if you don’t get the Age Pension, you may be eligible for other benefits, such as travel concessions, cheaper medicines and reduced council and water rates. The Seniors Card will also give you discounts on travel and some retail services. See our webpage on Over 55s – your money.

Also see the Department of Human Service’s Commonwealth Seniors Health Card webpage for more information.

Work part-time

Part-time work is a good option to ease into semi-retirement before fully retiring, or a way to keep extra income coming in. Here are some benefits of working part-time:

Conserve your super balance – as you will be earning an income, you won’t need to draw as much from your super and can continue to contribute to the balance.

Earn an income before the Age Pension – if you are not yet eligible for the Age Pension, working part-time allows you to semi-retire but still have some income.

Tax incentives – if you are aged 55 or over you may be able to take advantage of a transition to retirement strategy, which allows you to supplement your pay by drawing down from your super after you have reached preservation age. You pay no tax on your super income from age 60 and your employer will continue to top up your super.

Government incentives – earning extra income will potentially reduce your Age Pension; however, the Government has incentives to encourage people to work past the pension age. See Centrelink’s work bonus scheme for more information.

Economy slows, interest rate cuts flagged

Thu, 26 Sep 2019 06:52:29 GMT

Economy slows, interest rate cuts flagged

Not even the Reserve Bank can explain why the Australian economy is slowing down, but Labor believes the coalition government is sitting on its hands at the worst possible time.

Jobs vacancies dropped for the eighth month in a row, as Reserve Bank Governor Philip Lowe flagged another potential interest cut rate next week to a record low of 0.75 per cent.

“Part of the slowing in the Australian economy remains unexplained,” Dr Lowe said on Tuesday night.

“We are seeking to understand what is going on here. It is possible that it is just measurement noise, but we can’t yet rule out something more structural.”

Labor finance spokeswoman Katy Gallagher says the government needs to ramp up spending to lift the flagging economy.

“There is a role for the government to play. It can’t just sit on its hands and pretend that they need to do nothing further,” she told reporters in Canberra on Wednesday.

But Trade Minister Simon Birmingham stuck to the government’s lines about global uncertainty and the coalition’s personal income tax cuts and trade deals being enough.

“We can’t control circumstances like Brexit, the US-China trade wars, or domestic issues in the US political environment,” he told reporters in South Australia.

“What we can do is try to provide Australia businesses with maximum opportunities to sell their goods and services to the world and to build as much resilience as possible in the Australian economy.”

But everyone from economists, businesses, unions, Labor, and the Reserve Bank wants the federal government to raise Newstart to inject money into the retail economy, and bring forward infrastructure spending.

“We’re saying that there are concerns, that concerns are not just being raised by the Reserve Bank, they are being raised by other economists,” Senator Gallagher said.

“The OECD has revised back Australia’s growth. It’s not just the Labor party saying this and we think there is a role for the government to step up and actually make some decisions.”

Dr Lowe hinted at further rate cuts to be announced at the RBA board meeting next week.

“The board is prepared to ease monetary policy further if needed to support sustainable growth in the economy, make further progress towards full employment, and achieve the inflation target over time,” he said.

It comes as the number of jobs advertised online dipped 0.1 per cent in August, the eighth month in a row in which a fall was recorded by the federal government’s Internet Vacancy Index.

The numbers indicated a drop of 200 ads from the previous month and a six per cent slide in listings in the past year.

What is an ETF?

Thu, 26 Sep 2019 06:50:58 GMT

What is an ETF?

Like the idea of effortlessly investing in a lot of listed companies at low cost, with a minimum investment outlay, and the potential to achieve good returns? If this sounds like you, then it could be worth exploring the benefits of buying what are called ETFs (Exchange Trade Funds).

While ETFs are by nature complex investment products, think of them as simply a basket of securities such as listed companies (aka stocks). In very simple terms, when you buy an ETF, you’re actually buying a microscopic version of a particular market index.

Let’s explain how that works. If you invest $500 in an ETF that’s linked to a certain stock market index, let’s say for example, the S&P ASX 200, that means your $500 is split up to closely reflect the largest 200 companies on the ASX.

How much of your $500 is invested in each stock depends on its actual weighting on the S&P ASX 200 Index.

For example, if the big miner BHP Billiton accounts for 10 percent of the S&P ASX 200 Index by market capitalisation (ie how much its listed stock are worth), then 10 percent of your $500 will be invested in this stock, and so on according to the weighting of the other 199 stocks on this index.

What are the benefits and risks of investing in ETFs?

For starters, there’s a lot of variety to choose from when investing in an ETF. You can buy an ETF that tracks a basket of stocks on either a local or overseas stock market. Alternatively, you can even buy an ETF that instead of tracking the performance of a stock market index, tracks either currency exchange rates or the price of a single commodity, like gold or silver.

Secondly, by tracking a market index, your investment is exposed to much greater diversification than buying just one stock. ETFs typically cost you less in fees because their operating expenses are usually considerably lower than other investment products.

The other beauty of buying ETFs is that the (stock) price changes throughout the day (aka in real-time) and you can decide to buy and/or sell your ETFs at any time without entry or exit fees (while the stock market is open).

Another benefit of buying ETFs is you can do so with a minimum up-front investment. As an investor in ETFs, you’ll also receive valuable tax breaks under the capital gains tax (CGT) discount rules. Then there are indirect advantages including franking credits that flow through to you directly via regular distributions.

Despite the benefits of buying ETFs, it’s important to remember that they are designed to track a stock market index (or asset class), and if that stock market index falls in value, the price of your ETF would fall by the same amount.

Similarly, if you decide to buy an ETF that tracks an international stock market index, you need to find out how the entity operating the ETF manages their exposure to overseas currencies, and how your investment is protected if those currencies weaken against the Australian dollar.

How can you invest in ETFs?

ETFs are listed entities, and as such can be bought or sold just like any other listed company anytime during the stock exchange’s trading hours. You can buy as many or as few ETFs as you want. But remember, broker fees will apply and the smaller the parcel of ETFs, the higher the proportion of overall costs the fee will be.

You can buy ETFs by contacting your stockbroker or financial planner, or by trading through an online broker.

Need further help understanding the risks and benefits associated with buying ETFs for your situation? A CERTIFIED FINANCIAL PLANNER® professional can guide you through everything you need to know, by making it part of your overall plan for less money stress, and better financial wellbeing.

Trade war delaying investments: treasurer

Thu, 26 Sep 2019 06:49:17 GMT

Trade war delaying investments: treasurer

The trade war between Australia’s two most important trading partners is sapping investment confidence and delaying investment decisions, Treasurer Josh Frydenberg says.

The United States and China have been raising tariffs on each other for a year, forcing uncertainty into global markets and affecting Australian businesses.

“There’s no doubt it’s affecting investment confidence already. Capital flows, investment decisions are being deferred,” Mr Frydenberg told the ABC on Monday.

“The growth in trade volumes has slowed quite significantly.”

Mr Frydenberg said for Australia – where one in five jobs relate to trade – it was important to push the case for the rules-based trading system.

He also said Australia would push ahead with new trade deals with Indonesia, the European Union and others to get more than 90 per cent of Australian exports covered by trade agreements.

The United States is Australia’s largest investor, while China is its largest trading partner.

“In the event of trade tensions between China and the US, it’s not just the protagonists who are hurt, it’s all the bystanders as well,” he said.

“Australia’s really caught in the middle.”

Prime Minister Scott Morrison, who is in the US, has struck a deal with President Donald Trump on the export of rare earths, which mainly come from China.

“This is an area where the United States and Australia can work closely together,” Mr Frydenberg said.

“The reason is we want supply chains to be strengthened, we want supply chains to be reliable and we want them to be secure.

“Particularly when the rare earths that you’re talking about are so vital to commerce and technology.”

Working holiday-makers head to the regions

Thu, 26 Sep 2019 06:47:49 GMT

Working holiday-makers head to the regions

The number of working holiday-makers has soared by 20 per cent in the past year, with 43,000 young people scattered across regional centres.

The federal government expects this number to continue rising as it pursues reciprocal visa agreements with 13 countries, on top of the 44 deals already in place.

“We know there are jobs in regional Australia that aren’t being filled by Australian workers, and we are giving regional businesses the immigration settings to help them fill those roles,” Immigration Minister David Coleman said on Wednesday.

The countries engaged in talks with the government on reciprocal working holiday-maker visa arrangements include: Andorra, Brazil, Croatia, Fiji, India, Latvia, Lithuania, Mexico, Monaco, Mongolia, Philippines, Solomon Islands and Switzerland.

Changes to the program were introduced last November to help farmers in regional and rural areas seeking workers.

The changes included lifting annual caps on the visas, expanding the number of regional areas covered and allowing 12 months of work with the same agricultural employer (up from six months).

From July this year, working holiday-maker visa holders who complete six months of regional work in their second year will be eligible to stay in Australia for an additional year.

In November the government will introduce two new regional visas requiring applicants to live and work in a regional area for three years before being eligible to apply for permanent residency.

There will be 23,000 places dedicated to these regional visas.

A number of tailored migration agreements have also been put in place to address skills shortages in Orana (NSW), Warrnambool (Victoria), Kalgoorlie (WA), Cairns (Queensland), the Northern Territory and South Australia.

The program has not been without its critics.

Labor argues the deregulated working holiday-maker scheme undermines other labour mobility programs.

Unions have called for the “second year” rule to be scrapped, the number of visas to be capped and a crackdown on advertising targeting backpackers.

Visa holders have posted stories on social media, brought together under the hashtag #88daysaslave, raising concerns about exploitation and harassment.

Some have reported having worked for as little as $1 an hour to fulfil their required 88 days.

Farm groups and Nationals MPs have been arguing for an agriculture-specific visa.

Trump and Morrison double up on China

Thu, 26 Sep 2019 06:45:53 GMT

Trump and Morrison double up on China

Donald Trump has echoed Scott Morrison’s language on China’s status, saying the world’s second-largest economy should not be allowed to call itself a developing country.

The US president also told the United Nations the future belonged to patriots, not globalists.

He called for drastic change at the World Trade Organisation, saying the theory that including China would force the Asian giant to stick by the rules had been tested and proven wrong.

“The second-largest economy in the world should not be permitted to declare itself a developing country in order to game the system at others’ expense,” Mr Trump told the UN General Assembly overnight.

“For years, these abuses were tolerated, ignored or even encouraged.

“Globalism exerted a religious pull over past leaders, causing them to ignore their own national interest.”

Mr Morrison used a speech in Chicago on Monday to argue China should be treated as a newly-developed economy in trade and environment policy, a point he has articulated publicly for at least six weeks.

He told reporters after Mr Trump’s speech that he and the American leader “often come to similar conclusions, but we come from a different perspective”.

Anyone arguing China’s economy hadn’t matured only needed to look at its levels of economic investment beyond its borders, such as in the Pacific Islands, and its military expansion.

“They’re not the actions of a developing country; they’re the actions of the second-largest economy in the world.”

Labor has criticised the characterisation, with Opposition Leader Anthony Albanese saying China’s economy was “quite clearly still developing”.

He also cautioned the prime minister against confusing America’s national interests with Australia’s.

This sentiment was echoed by a high-level delegation at the Chinese embassy in Canberra.

Renmin University professor Wang Yiwei told reporters: “The timing and place where Morrison said it, maybe it is not Morrison’s view, it is President Trump’s view.”

But Mr Morrison rejected “the binary narrative that keeps being thrust towards me” that Australia had to choose between the US and China.

Foreign Minister Marise Payne met her Chinese counterpart Wang Yi on the sidelines of the UN on Tuesday for discussions she characterised as very positive.

It’s the second time in two months the ministers have met.

UN Secretary-General Antonio Guterres issued a stern warning against a “great fracture” with the world split in two between the US and China, with competing sets of trade and financial rules, internet and artificial intelligence capacities, and zero-sum geopolitical and military strategies.

“There is a new risk looming on the horizon that may not yet be large, but it is real,” he told the UN gathering.

“We must do everything possible to avert the great fracture and maintain a universal system.”

Mr Morrison says he is far more optimistic about the future.

“It’s just the economy moving through a new phase, and the international community adjusting to that,” he told reporters.

“I’m not fatalistic about these things. And it’s important, I think, for Australia to not to be because our experience always proves that we have no need to be.”

Barra a million-dollar draw for NT anglers

Thu, 26 Sep 2019 06:45:52 GMT

Barra a million-dollar draw for NT anglers

Australia’s richest fishing competition will offer anglers in the Northern Territory six chances to catch a $1 million fish this year.

Six barramundi offering the top prize have been tagged and released around the Territory, with more than 100 tagged fish also offering cash rewards.

Now in its fifth season, the competition provides a boost to NT tourism by attracting anglers.

As well as the six million-dollar fish, another 100 tagged barramundi are worth $10,000 each if caught.

A further 20 tagged barramundi have been released, whose catchers will share a $5000 prize with one of three charities.

Tourism Minister Lauren Moss said the million-dollar fish competition had helped secure the Territory’s place among the world’s most renowned fishing destinations.

“The secret is well and truly out on the Territory being an unrivalled fishing destination,” she said.

Petrol prices set to rise over holidays

Thu, 26 Sep 2019 06:41:20 GMT

Petrol prices set to rise over holidays

Anyone hitting the road these school holidays had better fill up quick, with petrol prices already at a four-month high expected to rise again this weekend.

National average petrol prices reached 147.4 cents a litre last week, but wholesale prices climbed 4.6 cents last week too.

NRMA’s Peter Khoury said this meant retail prices could go up as soon as Friday.

He said even before the attacks on two Saudi Arabian oil processing plants earlier this month, petrol prices were set to rise.

Mr Khoury blamed that on the United States’ escalating trade war with China, a weak Australian dollar and oil-producing nations cutting production to increase prices.

Melburnians, who have already started their holidays, copped the highest rise last week, with a jump of 15.2 cents a litre to 147.9 cents a litre.

To make it worse, the end of a retail discount period saw prices climb further to 164 cents a litre on Monday.

While Hobart saw the lowest rise in prices, at 0.1 cents a litre, they paid the highest average of any capital city last week, at 151.5 cents a litre.

Brisbane saw the biggest drop in petrol prices for all the capital cities last week, falling by 13.7 cents a litre, with drivers paying 139.4 cents a litre on Monday.

The national average retail diesel price also rose, climbing 0.6 cents to 147.4 cents a litre last week.

Australian dreamers look to the moon

Thu, 26 Sep 2019 06:39:34 GMT

Australian dreamers look to the moon

A whole new generation of Australian children will soon dream of flying to the moon and dancing among the stars.

As part of the prime minister’s visit to Washington DC this week, Scott Morrison signed a deal for the Australian Space Agency to co-operate on NASA’s Artemis mission.

In other words, Australia is helping the bid to return to the moon by 2024 and then on to Mars.

“We can’t wait to be part of the next stellar chapter, so beam us up,” Mr Morrison said.

Australian astronaut Andy Thomas says there’s now a pathway for the dreams of Australians looking to the stars to be realised.

“In the past (Australian scientists and engineers) have been really frustrated because they have wanted to participate in these programs, so they’re excited by it. And the young kids are excited by it,” he told reporters.

His advice to those seeking to become astronauts was to start thinking about it early and focus their studies on science, engineering or medicine, and pursue a higher degree like a doctorate to win essential post-graduate research capability.

But above all, he said it was best not to be too specialist in just a very narrow field.

“You might be very good at it, you might even win a Nobel Prize at it, but you’ve got to be able to do different things in the space business. You’ve got to be a generalist,” he said.

“So a proven track record of being able to take on different challenges outside your normal comfort zone and to do them well would serve you very well if you want to become an astronaut.”

The Australian contribution to Artemis, kickstarted with $150 million from the government, attracted a lot of attention.

Astronaut Alvin Drew says every time another country joins the lunar bid, it gets closer to reality.

“We’ve advanced technology and science and what we’re doing with exploration to the point that no one nation can do it by themselves any more,” he told reporters.

“A hundred years ago, individual scientists … could launch rockets. By the time we got to the 60s it took corporations to get those rockets into space.

“Each time we take another step it takes a grander coalition to make those things happen and so to have nations such as Australia and our global partners on the international space station joining on with us to get out there means it actually puts things within reach.”

He says working with the Russians on the International Space Station has taught him the importance of diverse viewpoints and putting different mindsets to work on the same problems.

“If you’ve seen Australia from space, I’m not sure it’s really from this planet, it doesn’t look like any other place on the world I’ve seen, especially the outback, it just looks alien,” he said.

“You’re going to bring a very different set of ideas and solutions and brilliant minds to this problem and inevitably that’s going to get us all through some critical hurdle.”

However, Thomas was more cautious about the overall venture and whether it was feasible in the president’s timeframe.

“I think having pressure on the schedule is a good thing in the sense that it motivates people but it’s also a bad thing in the sense that we know from past history that can lead to accidents because things get swept under the rug,” he said.

There were still many issues to be resolved, including what the consequences are for humans being exposed to the high radiation of deep space, and how to make sustainable life support systems that could keep astronauts alive for the two-and-a-half years a mission to Mars would last.

“You’ve got to have a life support system that will keep a crew alive for two-plus years – that is a daunting engineering challenge, it really is.

“We’re not there yet.”

NASA’s deputy administrator James Morhard said there were excellent reasons to dream of going to the moon and Mars.

“Because we look to build a better life for our children and our grandchildren, to possibly find solutions for Earth’s challenges, to choose to improve the human condition.

“We choose to find other human habitats and search for other life,” he said.

UK wants Aust free trade deal after Brexit

Fri, 20 Sep 2019 00:26:25 GMT

UK wants Aust free trade deal after Brexit

If Brexit ever happens, the United Kingdom expects to get a free trade deal done with Australia within months.

The deal is expected to open the door to Australian agricultural products, which have faced barriers to the UK market for decades due to European Union tariffs.

UK International Trade Secretary Liz Truss met with Australian Trade Minister Simon Birmingham in Canberra on Wednesday to prepare for the deal.

“We’re confident that these negotiations won’t drag on at all,” Senator Birmingham told reporters.

When asked about a time frame, Ms Truss replied: “I would definitely say months rather than years.”

The UK is committed to leaving the EU through Brexit on October 31, although there are significant problems getting out of the customs union.

Ms Truss said once the UK gets out of the EU it will chase trade deals with Australia, New Zealand, Japan and the US, as well as potentially joining the Trans-Pacific Partnership.

“This is the first time in 45 years that the UK has an independent trade policy,” she told reporters.

“One of the issues we have faced is increased regulatory harmonisation driven by the European Union which has prevented us from being able to strike these deals and be able to work with other partners around the world.”

Senator Birmingham said a deal with the UK would open up options for Australian farmers.

“It is no secret that as part of the EU market, access in terms of agricultural products has been limited,” he said.

“We stand absolutely ready to work with the UK as soon as they are ready to do so, as quickly as they are able to do so to pursue a free trade agreement.”

The UK is Australia’s eighth-largest two-way trade partner. Ms Truss also flagged potential changes to visas between the two countries.

“Australians want to come and live and work in Britain and Brits want to come and live and work in Australia,” she said.

“It’s certainly something we’ll be looking at as part of our negotiations.”

Senator Birmingham said free trade deals sealed over the past six years had lifted exports, created jobs, and buoyed Australia’s economy during uncertain times.

With less than seven weeks until Britain is due to leave the EU, UK Prime Minister Boris Johnson has yet to reach an agreement with Brussels on how to manage the separation between the world’s fifth-largest economy and its biggest trading partner.

He is hoping a Brexit deal can be clinched at an EU summit on October 17-18, but in any case has promised to take the nation out of the bloc on October 31, deal or no deal.

Space a priority ahead of Morrison US trip

Fri, 20 Sep 2019 00:10:32 GMT

Space a priority ahead of Morrison US trip

The development of the Australian Space Agency is the key issue South Australian Premier Steven Marshall hopes will reach President Donald Trump at a meeting between the Australian and US leaders.

The premier and Prime Minister Scott Morrison met in Canberra on Wednesday ahead of Mr Morrison’s departure later this week.

Mr Marshall said he would brief Mr Morrison on the smart satellite cooperative research centre currently being set-up in Adelaide.

“This is a massive, massive growth sector,” he told reporters in Canberra.

“We already have massive interest from US firms.

“We’ve got three or four new start-ups already based in Adelaide focused on accelerating our interest in this important area.”

The $245 million research centre aims to expand Australia’s space industry to $12 billion and create an extra 20,000 jobs by 2030.

The premier said he would also meet with Defence Minister Linda Reynolds with a view to ensure Collins class submarine maintenance stays in South Australia.

“South Australia has been the home of the Collins class since its inception, and we’ve done a great job,” he said.

“I plan to put forward a very compelling offer to make sure that the full cycle docking work continues in South Australia for a very long period of time.”

A decision is expected to be made in the coming months on whether 700 shipyard jobs will stay in South Australia or shift to Western Australia.

Mr Marshall said he was confident his state had the capability to support the work.

“Defence SA, the state government have worked together to develop a comprehensive skills workforce development plan for South Australia,” he said.

“We’ve already committed big dollars to making sure we have the workforce necessary to not only build but sustain a massive maritime opportunity for this country.”

Airlines, airports battle over fees, laws

Fri, 20 Sep 2019 00:08:49 GMT

Airlines, airports battle over fees, laws

Airlines want airports to drop passenger fees and the federal government to impose more regulation.

But airports say the airlines are acting in their own self-interest rather than the interests of passengers.

Qantas chief executive Alan Joyce and Virgin boss Paul Scurrah will appear at the National Press Club in Canberra on Wednesday to argue for changes to airport passenger fees.

“Fees and charges from monopoly airports are excessive and damaging the economy. And airports continue to reap super profits because there is no real threat of intervention to moderate their behaviour,” Mr Joyce will say.

“Australian airports are literally the only game in town. Their business model is based on it.

“We can’t just up-stumps and fly to the next airport 15 minutes down the road.”

But Australian Airports Association chief executive Caroline Wilkie says airlines want to entrench their own position and make it harder for other airlines to compete.

“In the last year alone, Qantas made more profit than the four major Australian airports combined,” she said.

“Qantas and Virgin want to squeeze competition out of the market to entrench the domestic duopoly and they know that’s exactly what will happen if they turn the screws on airport investment.”

Former Australian Consumer and Competition Commission boss Graeme Samuel is lobbying for the airlines, and he says changes are needed to stop monopoly behaviour.

One of the changes airlines are arguing for is a new arbitration regime, which would allow disputes with airports to escalate faster.

The AAA says this will put investment on hold, making it harder for new airlines to enter the market and challenge the major players.

“Where is the case for additional regulation when the existing dispute mechanisms are hardly ever used,” Melbourne Airport boss Lyell Strambi said.

“It would give the whip hand to incumbent airlines, allowing them to delay investment and reduce competition.”

But Mr Joyce says the airports shouldn’t be afraid of an independent umpire.

“You would think that where monopoly exists, there would be a straightforward dispute resolution system as a safeguard,” he says.

A Productivity Commission draft report in May said a change to the arbitration regime “would need to balance the interests of an airline and airport and would not consider the broader public interest”.

“We think it would profoundly change the way in which contracts are negotiated between airports and airlines, disrupt investment and harm the community,” the commission’s report said.

Treasurer Josh Frydenberg is expected to release the Productivity Commission report and the government’s response later this year.

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What happens after the auction is passed in?

Fri, 20 Sep 2019 00:07:38 GMT

What happens after the auction is passed in?

The hammer falls, the auction has ended, the bidding’s all done… and the property is passed in to you, the highest bidder. You’re standing out the front of what could be your dream home, surrounded by curious neighbours, nosy passers-by and who knows how many other serious buyers. So what now?

What happens next?

With the property passed in, as the highest bidder you have the exclusive first right to negotiate with the seller. Only when you walk away can the agent start negotiations with someone else – so remember that you’re in the box seat.

At this point the agent will invite you to come inside and negotiate – don’t go! Once you’re inside, you’re in the seller’s territory and this may put you at a psychological disadvantage. Make the agent go back and forth between you and the seller to keep the power in your hands.

By staying outside, you can also keep an eye on what’s going on, so you’ll know if there really are any other potential buyers hovering. Remember that time is on your side – the agent may have another auction to get to, and the seller has invested money and emotion in the auction. They want to see a result.

A negotiating strategy

If you’ve done your research and checked recent sale prices of similar properties in the neighbourhood, you’ll have a rough idea of what the house is worth. This, along with the price the property was passed in at, should give you some idea of what the seller is hoping to get, not just the price range so often quoted by the agent.

You may also have done a little due diligence on the seller – if you know why they’re selling, you might get a sense of how urgent the sale is. Has there been a divorce that means assets have to be divided? Is the property a deceased estate, with the heirs anxious to cash in? Has the seller already bought another property?

Finding the right price

You know how much you can afford and how much you’re prepared to pay, and you now have some idea of what the owner wants. Somewhere in there is the price you’ll be able to buy the house for.

It’s not a bad idea to ask the agent how much the seller really wants if they haven’t disclosed the reserve. Stick to your guns here – tell the agent that you’ve already made an offer with your passed-in bid, and it’s now up to the seller to come to the table.

When negotiating, avoid telling the agent your walk-away price; they’ll try to get as close as possible. Keep it vague. Keep your emotions in check, too – real estate agents can smell emotional investment in a property at 20 paces.

And stay a little bit flexible – spending slightly more than you planned probably won’t seem like such a big deal in four or five years’ time if it helps you secure the home you really want.

Budget report set to show balanced books

Fri, 20 Sep 2019 00:06:04 GMT

Budget report set to show balanced books

Australians will find out if the federal books are already in the black when the final budget outcome for the past financial year is released on Thursday.

Treasurer Josh Frydenberg has promised an improved 2018/19 budget result – better than the $4.2 billion deficit he predicted in this year’s budget in April.

Economists expect that to mean the books will at least be in balance, if not already in a modest surplus.

“The reality is that tomorrow when we release the final budget outcome it will show an improvement on what was forecast not only in the 2018/19 budget, but also what was forecast in April this year,” Mr Frydenberg told parliament on Wednesday.

That means the predicted surplus of $7.1 billion in 2019/20 will also be higher.

But Labor questions how much the government can take credit for the result, given high iron ore prices, the lower Australian dollar, and an underspend in the National Disability Insurance Scheme.

“How much of the improvement in the budget position last year came from a spike in the iron ore price and the low dollar, which have absolutely nothing to do with actions of the government?” shadow treasurer Jim Chalmers asked in Question Time.

“Let me remind the house that when Labor was last in office, that iron ore prices were over $180. Over $180 a tonne. More than double what they are today,” Mr Frydenberg said.

“And you know what? They still couldn’t deliver a surplus.”

Australia has not had a surplus since the 2007/08 budget, which came back $19.7 billion in the black.

Tax cuts buoy confidence, but risks remain

Fri, 20 Sep 2019 00:04:31 GMT

Tax cuts buoy confidence, but risks remain

Tax refunds are flushing through the economy and consumer spending intentions are rising but Josh Frydenberg warns global tensions pose real risks.

The treasurer warned businesses on Tuesday evening about the impact of the United States and China’s trade war, and the conflict with Iran, on Australia’s economy.

“Now in times of global economic and political uncertainty, it is more critical than ever to provide stability and certainty in our economic settings and not get drawn into overreacting,” Mr Frydenberg said in a speech to a business lobby event on Tuesday.

The Reserve Bank of Australia also revealed in its board meeting minutes it kept the official cash rate at one per cent because of concerns about low wage growth and international tensions.

The RBA said the decision was based in part on the unemployment rate, which has stayed at 5.2 per cent for several months.

“At the same time, wages growth had remained low and there were few indications that wage pressures were building,” the RBA said.

“Members judged that it was reasonable to expect that an extended period of low interest rates would be required in Australia to make sustained progress towards full employment.”

The Australian Bureau of Statistics revealed residential property prices fell 0.7 per cent in the June quarter, taking the total value of Australia’s 10.3 million residential dwellings down $17.6 billion to $6.6 trillion.

“The falls in Melbourne were driven by detached dwellings, while attached dwellings drove the fall in Sydney,” ABS chief economist Bruce Hockman said.

There was some positive news from the Commonwealth Bank Household Spending Intentions research, which showed a significant lift in consumer positivity is under way.

“Spending intentions are improving in Australia, with a combination of income tax refunds and a stronger housing market leading the charge,” CBA chief economist Michael Blythe said.

“Significantly, the home-buying spending intentions series has moved back into positive territory and this should help drive a further improvement in retail spending intentions in the months ahead.”

But the ANZ-Roy Morgan weekly Australian Consumer Confidence index paints a different picture.

It recorded a 4.8 per cent slide in people’s expectations for their finances over the next 12 months.

“While households feel okay about their current financial situation, they are clearly quite worried about the outlook, for both their own finances and the economy,” ANZ economist Felicity Emmett said.

Mr Blythe said the tax refunds flowing into CBA accounts were about 40 per cent above “normal” levels.

“The boost to household spending power is larger and coming through sooner than originally expected,” Mr Blythe said.

“The better news is that this tax refund money seems set to flow through to consumer spending.”

NBN makes pitch for affordable broadband

Thu, 19 Sep 2019 22:44:13 GMT

NBN makes pitch for affordable broadband

The federal government is hoping a new $60 per month NBN package will entice about half-a-million budget-conscious households to sign up to the network.

NBN Co will offer internet retailers a new low-cost bundle from October 1, which Communications Minister Paul Fletcher said retailers could sell to customers for $60 per month.

However, a company spokesman said retailers would not be required to sell the new bundle at that price, saying it was up to retailers.

Mr Fletcher on Tuesday said it was a matter for retailers when their customers would be able to access the new package.

These packages would have download speeds of up to 12 megabytes per second, with unlimited monthly data use.

The NBN Co spokesman said there were factors outside the company’s control, like the type of NBN infrastructure the customer had access to, which may affect maximum speeds.

The entry-level package would fall under the company’s definition of “basic evening speed”, with only “very basic internet usage” suitable under the connection during peak times.

A spokesman said this could still theoretically be suitable for video streaming.

Plans for the new low-cost bundle were laid out in a pricing consultation paper released on Tuesday by NBN Co, the government-owned company that runs the network.

It included lower prices for other high-speed connections it would offer retailers.

The paper also ruled out segregating types of video traffic flows.

Critics previously dubbed this a “Netflix tax”, saying it could see different prices for internet traffic used for video streaming.

The company said it had considered lowering the price of video streams.

Mr Fletcher said it was estimated about 500,000 households that had access to NBN infrastructure weren’t signing on because of “value for money” concerns.

“I think we’ve got a good chance of getting some of those people to come across to the NBN,” Mr Fletcher said.

He said it was unlikely faster mobile data speeds, like the upcoming roll out of 5G, would present a threat to the NBN.

The company’s chief customer officer Brad Whitcomb said the lower cost bundle supported the NBN’s priority of pursuing a stronger take up.

Morrison to get red carpet treatment in US

Thu, 19 Sep 2019 22:41:35 GMT

Morrison to get red carpet treatment in US

Donald Trump will pull out all the stops to give Scott Morrison the kind of brassy, pageant-filled welcome only the United States can give.

The US president will host the prime minister in Washington DC this week for formal meetings and an official state dinner – just the second Mr Trump has thrown in his nearly three years in office.

There will be no less than three official welcomes within his first 24 hours in the American capital, complete with red carpet on the airport tarmac.

The full state dinner in the grounds of the White House is expected to be an “intimate” affair with about 100 guests.

Australians invited include billionaire businessman Anthony Pratt, astronaut Andy Thomas and champion driver Will Power.

Mr Morrison will also lunch with Vice-President Mike Pence and Secretary of State Mike Pompeo, and have a briefing with Defense Secretary Mark Esper and top intelligence officials.

Australia sees the all-out high-profile arrangements as a recognition of the solidity of the partnership between the two countries.

“The events that will be held there are a recognition of the relationship between Australia and the United States,” Mr Morrison told his coalition colleagues in Canberra on Tuesday.

“We meet our side of the relationship in our contribution to the alliance and we are there as equals and as partners.”

Such formal invitations are a rarity for Australian leaders and foreign relations expert Emma Shortis says it’s telling that one has come now.

“Australian PMs tend to get invited to these swanky events when US presidents want to demonstrate to the world – and perhaps themselves – that they have a least one uncomplicated friend who will stand by them, no matter what,” the RMIT research fellow said.

“This weekend, Morrison is sure to play that role well.”

Australia believes it is an ally to the US that pulls its weight – something Mr Trump has accused other countries of not doing – and a model economic partner that imports more from the US than it exports.

These twin strands of the strategic and economic partnerships will underpin the wide-ranging discussions.

Mr Morrison hopes to keep the US focused on the Indo-Pacific, seeing the very presence of the global giant in the region as an anchor for security and stability.

It’s anticipated he will announce stronger mechanisms to engage with the US in the Indo-Pacific, along with a new partnership on space exploration around technology and critical minerals.

Labor wants Mr Morrison to remind the president that Australian jobs are at risk from the escalating trade tensions between the US and China.

Australia’s foray into the space industry is a subplot of the trip, with Mr Morrison set to visit the NASA headquarters and Mr Pratt’s new billion-dollar paper factory in Wapakoneta, Ohio, the hometown of Neil Armstrong.

Mr Morrison will also meet business people at a number of events, including a reception in New York that Rupert Murdoch is expected to attend, a keynote speech to the Chicago Council on Global Affairs, and a visit to the Bunker Labs program that helps veterans develop business ideas.

At the United Nations, he will deliver Australia’s national statement and attend events relating to terrorist and extremist violence and ocean protection.

He will attend a reception for Pacific Island leaders hosted by Fiji’s Frank Bainimarama – who has just visited Canberra – one for Commonwealth nations hosted by British prime minister Boris Johnson, and Mr Trump’s UN leaders’ event.

At the end of his travels, Mr Morrison will indulge his idolisation of former US president Theodore Roosevelt with a quick visit to his home, Sagamore Hill.

Steps to buying a home

Fri, 06 Sep 2019 09:50:14 GMT

Money and Life
(Financial Planning Association of Australia)

Ready to take the plunge and buy your first home? Make sure you know exactly what to expect from the home buying process with our simple step-by-step guide, covering everything from making an offer to moving in.

Making an offer – private treaty

In Australia, properties are offered for sale either through an auction or private treaty arrangement. The process for buying your home will be different, depending on which sales method is being used.

When you make an offer on a property that’s for sale by private treaty, the owner – or the real estate agent acting on their behalf – will let you know if the offer has been accepted. There are a couple of advantages with this type of sale. You can make your offer conditional on the outcome of inspection reports or certain repairs being carried out to the property before settlement. Plus, most private treaty contracts will include a cooling-off period, allowing you time to arrange inspections and ensure you’re 100% certain this is the property you want to buy. The length of the standard cooling-off period varies between different states and territories.

Having an offer accepted on a private treaty sale doesn’t guarantee you’ve got the property. Until you pay the deposit and exchange contracts, you run the risk of being ‘gazumped’. This is when the vendor accepts a better offer from another buyer after they’ve said yes to your offer. This is perfectly legal if no contracts have been signed and no money has exchanged hands.

Buying at auction

Going to an auction is quite a different experience to negotiating a private treaty sale. You need to do all your homework and research in advance, as your decision to bid and buy the property is binding on the day of the auction. There is no cooling-off period and you’ll be expected to sign contracts and pay the deposit immediately.

This is why you’ll need to arrange inspections and carefully review the reports before going to auction. You should also have your conveyancer look at the contract and inspection reports and request any changes to the contract prior to auction. If you’d like a longer settlement period, for example, you need to arrange this before the auction.

Finances

Whether you’re buying at an auction or through private treaty, you’ll need to have funds available to pay the deposit on signature of the contract. You should also make sure you have pre-approval for a mortgage up to the amount needed to pay the final sale price, plus all other costs associated with the transaction.

Deposits and contracts

10% of the sale price is the usual amount you’ll be paying as a deposit when you exchange contracts and commit to buying your first home. So when you attend an auction or meet with a real estate agent after making a successful offer, bring your cheque book and make sure you have the funds in your account to pay this amount.

Having a conveyancer check the contract before you sign is very important, particularly if you’re buying at auction and won’t benefit from a cooling-off period. Your conveyancer should be familiar with all the terms of the contract before you sign, so they can alert you to anything that might be a deal-breaker.

Inspection reports

Having your prospective home inspected for any sign or risk of pest damage or for building defects isn’t a mandatory part of the buying process. But becoming a home owner is probably the biggest financial commitment you’ll ever make, so it makes sense to be as certain as you can be that you’re not about to buy a property that will need expensive repairs in future.

If inspections do reveal some type of problem, you may choose to use this information to negotiate a lower price with the vendor or decide on a lower bidding limit when you go to auction. Your conveyancer can help you look for any issues in the report that may be significant and give you grounds for a reduction in price.

Valuation

Your mortgage provider will arrange a valuation of your property as they process your home loan application. This is to ensure the lender isn’t loaning you more for the property than it’s actually worth.

Settlement

The settlement period is the time between contract exchange and transferring ownership of an existing property. There are recommended settlement periods for different states, but generally speaking, vendors and buyers can negotiate a settlement to suit their circumstances. For example, a longer settlement period may be requested by a vendor who hasn’t yet found their next home to buy.

During this time, your mortgage provider and conveyancer will work with you to prepare all the paperwork and the balance of the purchase price to complete the sale. On the day of settlement there isn’t actually much you’ll need to do as your conveyancer and mortgage provider will finalise the legal and financial details of the transaction.

At settlement you’ll become the legal owner of the property. Even if you’re not planning to move in straight away, it’s worth arranging a visit to ensure that everything is as it should be with the condition of property and any fixtures and fittings included in the contract. And you should also arrange building insurance to cover your property starting from the settlement date.

Financial Planning, what is it?

Fri, 06 Sep 2019 09:48:07 GMT

Money and Life
(Financial Planning Association of Australia)

Regardless of your age, life stage or wage, a financial planner can work with you to reach your financial and life goals, whether short-term or long-term. This article offers an introduction to what financial planning is, how it works, and how it can benefit you.

What is financial planning?

Financial planning is about developing strategies to help you manage your financial affairs and meet your life goals – and the first step is to make sure you have access to the right advice.

If you could achieve your financial goals by simply putting money away in the bank, you wouldn’t need a financial plan. Unfortunately, life is a little more complex – it’s hard to understand the intricacies of investment, taxation and ever-changing rules and regulations, so you need professional help.

Yet many of us resist seeking advice, as if our financial future weren’t just as important as our health or our children’s education. We often decide to manage our financial affairs ourselves, or leave it to a family member or friend, which is a bit like asking your butcher for advice on vegetables.

Many people make the mistake of thinking that financial advice is just for the wealthy. However, financial advice can help people at all levels of financial health by providing strategies for improving and growing your wealth. It can assist you with making plans for things as simple as a holiday, to something as complex as buying a property, or retiring comfortably.

Why should I use a financial planner?

FPA research1 has found that Australians who consult a financial planner feel happier, more positive about their financial wellbeing, and more optimistic about the future than those who don’t.

That’s because a financial planner will help you stay on track of both your short-term goals longer-term goals. The sooner you start planning, the sooner you can build the life you want, and live with better peace of mind.

Financial planning is a specialist profession and you should make sure that you’re getting advice from a professional financial planner who is properly licensed and qualified.

A financial planner has the technical expertise to develop the right strategy for you. They will know the latest legislative changes and ensure you feel financially informed and confident about your future.

When will I need financial advice?

Most people seek advice from a financial planner when they hit major life milestones. This will depend on your life stages. These include:

Young to mid-life: Those aged 20-39 who are establishing and building careers, launching a business or perhaps starting a family. You may be looking at getting married or buying your first home.

Mid-life: Those aged between 40-49, this is your consolidation stage – where you aspire to achieve a comfortable lifestyle and are thinking about managing your long-term future. You may be looking at investments, inheritance, tax management and healthcare.

Pre-retirement: With 20 or more years of retirement ahead of you, your priorities will depend on how well you’ve prepared. Your main concerns may be debt elimination, protecting your assets, helping your children, wills and trusts.

Retirement: Generally from 65-years and onwards, this is the time to indulge in hobbies or travel, enjoy your family and prepare for transferring your wealth. You may be thinking of aged care planning, gifting to your family and estate planning.

While it’s important to have professional financial advice to help you through these events, you don’t need to wait in order to benefit from establishing a relationship with a professional planner.

As Dante De Gori, CERTIFIED FINANCIAL PLANNER® professional and CEO of the FPA, explains: “It’s all about helping you set your goals and devising a plan to give you the confidence that your financial future is secure. A professional financial planner can give you the peace of mind and security that comes with being prepared for the future.”

How do I identify my financial goals?

People often turn to a financial planner to help simplify their finances and set financial milestones to help them achieve their life goals. These goals can include paying off a student loan, a mortgage and short-term debts, such as credit cards, through to saving for a holiday, investment or retirement.

A financial planner can help you with budgeting, cash flow management, a savings plan, superannuation, tax planning, home loan repayments, debt management and reduction, insurance, investments and also planning for retirement.

Your financial planner has a responsibility to provide the best possible financial advice for your situation. Ask him or her “how will you help me to reach my goals?”

Your financial planner’s responsibilities are to make clear recommendations, outline the risks involved and communicate any possible strengths or weaknesses in the plan. Remember that your financial planner cannot predict the market or ensure investments are always favourable.

What does a financial plan include?

Every individual or household is unique and requires a unique financial plan. A good financial planner will review your lifestyle and create a financial plan specifically suited to you. The financial plan will include financial strategies that will meet your goals. Once you’re satisfied and agree to the suggestions of the financial planner the financial plan will be put into action.

How to survive a home renovation with a baby on the way

nadia@spherewealth.com.au — Thu, 22 Aug 2019 01:16:24 GMT

How to survive a home renovation with a baby on the way

Renovating while expecting: canny timing or a serious case of total insanity? Understand the pros and cons and then decide if is this the right move for you.

It’s all in the timing

Your timeline is crucial – both of them. What’s the deadline for delivery of your reno and what’s your other delivery date?

Before you choose your reno dates, take into account what you’ll need to work around. For instance, it’s easier to live without a kitchen in summer – think salads, barbecues and picnics – but you may need to be more flexible as tradies often take summer holidays.

Also consider the climate where you live. Renovating through the rainy months is hard enough, especially if you’re in the southern states or a tropical wet season, but being pregnant during winter in a house with no heating could push you to breaking point.

Don’t try to do everything at once. Think about which tasks can wait until you have the time and energy for them. For some mothers-to-be, especially those who have been working full time, the last few weeks of pregnancy (which might be the first few weeks of maternity leave) could present a good window of time to choose lighting, door handles, tiles and so on.

Now or never?

You might be keen to have everything perfect before the big day, but it’s important to take a wider view. Work doesn’t have to stop when the baby arrives. Living in the state of mild (or major) chaos that renovating imposes is probably still easier with a brand new bub than with a curious, mobile toddler.

Instead of rushing things, you could plan to get the job finished before the baby is six months old. Just think about the work in a logical order. For a big reno, it might be wise to tackle the kitchen first – it’s the biggest and messiest job, and probably easier to manage while you’re still pregnant, or when bub is sleeping lots (hopefully!) and not yet on solids.

Plan for downtime

Renovations can be hectic, even more so if they’re happening while your family is growing. It’s important to plan for some downtime, so you’re not on the go 24/7. Here are some tips that may assist:

be organised – make a list of everything you want to source, supply or choose yourself (whether it’s for the house or the little one!), and create a realistic schedule for when you can do it;

preserve one livable area in your home where you can retreat, relax and escape from dust, mess and builders; and

have a bolthole for when it gets too messy, too loud or simply too much. Parents, friends, whoever – arrange a haven you can run to. It can be a sanity (and relationship) saver.

Of course, if you can hand your renovation over and rent elsewhere while the work is happening, that’s much easier. Just ensure you have a super-organised builder with their own tradespeople, so you’re not left juggling plumbers and sparkies from afar.

Keep safe

If you’re staying at home for the duration, or going the DIY route, take care that you don’t do anything to put your baby at risk. Here are some things to consider:

be wary of prolonged exposure to paint fumes, and be sure to avoid lead-based paint;

avoid thinners, varnishes, lacquer and any kind of spraying

mould can be dangerous to foetal development – if you come across any, leave the area and call an expert.

How will you cope?

Some families live through a baby/reno combo without any issues, others would never recommend it. Ultimately, it comes down to how you’ll cope with the situation. How do you deal with stress? What’s your tolerance for chaos, mess and having strange loud people in your personal space?

While pregnancy and a new baby are certainly exciting, it’s rarely plain sailing, so some resilience will certainly come in handy.

For expecting parents with a renovation project, lots can come down to attitude and focus. If you can endure short-term discomfort by focusing on longer-term gain, you’ll come out the other side with a fantastic new pad and a gorgeous baby. Then your new life can really begin.

Kakadu tourism lifeline for NT mining town

Wed, 21 Aug 2019 02:09:52 GMT

Greg Roberts
(Australian Associated Press)

Residents in the struggling Northern Territory mining town of Jabiru have been told their community will be saved and turned into a tourist town by during a visit by federal Environment Minister Sussan Ley.

The minister visited the town on Wednesday to sign a deal committing to the previously announced $216.2 million in funding over 10 years, with the NT Government kicking in another $135.5 million to improve infrastructure in the town and world heritage-listed Kakadu National Park.

Jabiru is about three hours’ drive from Darwin and has a population of barely 1000 but it used to be about 3000 when the nearby Ranger Uranium Mine was at its peak.

Ranger’s owners Energy Resources of Australia stopped mining more than six years ago and have been processing uranium stockpiles since, but that is due to finish by 2021.

Between the mine’s closure and falling tourist numbers at the neglected Commonwealth-operated Kakadu, the town would be in danger of dying.

However Kakadu is regarded as an iconic eco-tourist and Aboriginal cultural destination that should be commanding far more visitors, and this means Jabiru must survive.

International visitors in particular are down, plunging from almost 150,000 per year in the late 1980s to only 30,000 now. Total visitors to the park are down from almost 300,000 a year to about 185,000.

“What I can envisage is international tourists coming here for an experience that they’ve heard about but until now has been a bit challenging to achieve,” Ms Ley told reporters.

“We want them to come here and to the Territory, a place unlike any other in the world.”

Work has already begun to ensure “the biggest and quickest possible turnaround” for the region, she said, with $151 million of the Commonwealth’s $216 million to be spent in the next four years.

Qantas Domestic CEO Andrew David welcomed the news, saying it would “drive visitation, both domestic and international”.

The traditional owners, the Mirrar people, signed the memorandum of understanding on Wednesday.

The Gundjeihmi Aboriginal Corporation, representing the Mirrar, commissioned the independent Jabiru Business Case report that claimed in the first year of new attractions and development projects, Kakadu visitation numbers will increase by nearly 100,000.

“That’s what we need in this town, Jabiru changing into tourism with lots of tourists from overseas that can experience our culture and visit our country,” said 19-year-old Mirrar clan member Simon Mudjandi.

Works include a visitor centre and Aboriginal cultural centres, road upgrades to boost year-round accessibility, better mobile phone coverage and new Jabiru infrastructure to serve nearby communities such as a power station, health clinic and education precinct.

ERA is facing a massive rehabilitation of the mine site that is due to be completed by 2026.

Its major shareholder Rio Tinto has agreed to fund the $800 million cost that ERA can’t afford but insists on it issuing new shares to raise the money, diluting existing shareholders’ wealth.

How you invest ethically

Wed, 21 Aug 2019 02:09:37 GMT

Money and Life
(Financial Planning Association of Australia)

Believe it or not, you can grow your retirement nest egg and do good at the same time, especially with the help of a good financial adviser.

A website recently launched by the Responsible Investment Association of Australasia (RIAA) reveals the wide choice of ethical and socially responsible investment options available in Australia and New Zealand.

Many of these options are offered by well-known and experienced investment managers, but their approaches to responsible investing can vary widely.

Some just avoid investments in areas such as tobacco or fossil fuel companies. Others skew their investments towards companies and themes that will have positive impacts on the environment – for example, renewable energy, green property or recycling and waste management. Some do both.

Still others use their share ownership to engage with the companies they invest in and to try and get them to improve their practices for the greater benefit.

Various research studies have shown that ethical investments can outperform other mainstream managed funds and their benchmark indexes.

As Paul Garner, CEO and founder of Novo Wealth, observes: “It’s a myth that by investing according to your values, you have to sacrifice performance. That’s no longer the case.”

There are many reasons for this.

For example, ethical companies often thrive because they target industries of the future, that solve problems and result in the more efficient use of the earth’s resources, says Garner, an Adelaide-based financial planner.

In addition, a focus on environmental, social and governance (ESG) issues can suggest that these companies are managing risks, including those such as climate change and human rights issues, more carefully. By doing this, they are creating more sustainable companies and are eliminating possible threats to their earnings or reputation.

That said, Garner notes that not all ethical investment managers are the same. Their fees and charges can vary widely, and their different approaches to investing can also lead to large differences in their returns.

For example, cutting out some investments, such as mining and fossil fuels, could cause an investment portfolio to underperform the market and over time accumulate less for someone to retire on.

This poorer performance can be especially true in the Australian market which is skewed towards mining and resource companies.

But that’s exactly where a good financial planner can make all the difference, says Garner.

His starting point when working with a client is to clearly define and understand his or her values – be that a concern for animal cruelty or the environment, or a desire to support more sustainable energy via windfarms or solar power.

Then, he examines if these values can be aligned with existing products and investment options already available in the market.

“There are a range of pre-packaged options available,” says Garner. “But if there isn’t a match to be made with what’s available, I will then design or customise something for my clients. And that’s where the real skill comes in.

“We are not only customising it to fit your ethical values, but we also have to ensure it will perform for you over the long-term.”

So, depending on the person’s needs, Garner, who specialises in helping clients invest ethically, could put together a portfolio of direct local and international shares or managed funds.

“It usually depends on how they want to go. It could also mean setting up a self-managed super fund (SMSF),” he says.

Garner cautions that many of the pre-packaged options available on the market charge high administration and management fees.

“A good financial planner can help tailor your investments to your specific requirements at lower fees, compared to some of the investments options available,” he says.

Added to this, he says there can be “different shades of green” and a planner who is knowledgeable in this area can help guide you through this maze. “That planner has to understand the minutia and must spend a lot of time talking to fund managers to understand what each does.”

Garner adds that a qualified planner will also provide you with a wholistic planning service, which may include broader assistance in areas such as wealth protection, estate planning and finding further ways to meet your goals.

Job market slack keeps lid on wages

Wed, 21 Aug 2019 02:09:27 GMT

Alex Druce
(Australian Associated Press)

Year-on-year wages growth has remained flat at 2.3 per cent for another quarter, firming up the Reserve Bank’s view that job market slack continues to limit upward pressure on people’s pay packets.

Wages growth for the year to June 30 remained stagnant despite total hourly rates of pay, excluding bonuses, beating expectations with a 0.6 per cent rise during the quarter.

The quarterly increase was fuelled by a 0.8 per cent rise in public sector wages, namely in the healthcare and social assistance industry, where a number of large increases were recorded in Victoria under a plan to ensure wage parity with other states.

Private sector wages rose by just 0.5 per cent during the June quarter, according to Wednesday’s seasonally adjusted figures from the Australian Bureau of Statistics.

Year-on-year wage price index growth, while in line with predictions for June, has remained in a range of 2.3 per cent to 2.4 per cent since the September quarter of 2018 – well below RBA governor Philip Lowe’s target of “three point something”.

Economists said it was clear that spare labour market capacity had limited growth and that would continue.

“The outlook for wages growth is still fairly negative,” AMP Capital senior economist Diana Mousina said.

“Labour market underutilisation … is still high, productivity growth is low, unemployment expectations are high – which limits power for asking for wages rises – and broader issues like globalisation and technology are displacing jobs.”

Wage stagnation was a key reason the RBA delivered dual interest rate cuts in June and July to a record low 1.0 per cent, in a bid to free up spending and create more competition for jobs.

Ms Mousina said Westpac’s consumer confidence survey for August – also released on Wednesday – was further evidence the RBA’s cash rate reductions had yet to flow through to the economy.

Consumer confidence rose 3.6 per cent in August, bringing the index back to neutral after a 4.7 per cent fall the previous month.

BIS Oxford Economics’ Sarah Hunter said Wednesday’s wages data firmed up expectations the cash rate would be cut to a record low 0.75 per cent by the end of the year, and possibly cut again in early 2020.

July jobs figures on Thursday could also increase the pressure to bring forward further cuts, with economists expecting a slight uptick in unemployment to 5.3 per cent.

Callam Pickering, APAC economist at jobs site Indeed, said the underutilisation rate needed to ease towards 12 per cent from its current level of 13.5 per cent before RBA’s target wage growth could be achieved.

“That won’t happen overnight nor is it likely within the next year,” Mr Pickering said.

In original terms, annual wages growth to the June quarter 2019 by industry ranged from 1.7 per cent for wholesale trade to 3.3 per cent for healthcare and social assistance.

Electricity, gas and waste wages rose by 2.8 per cent over the year but growth was low in mining wages (up 2.2 per cent), retail wages (up 1.9 per cent) and information and media wages (up 1.8 per cent).

The 3.3 per cent annual growth in healthcare and social assistance wages was the strongest in six years.

Western Australia recorded the lowest annual wage growth of 1.6 per cent while Victoria recorded the highest of 2.9 per cent.

The Australian dollar edged lower after the figures were released, dropping from 68.03 US cents to 67.88 US cents by 1150 AEST.

Weaker than expected retail and industrial data out of China weighed the dollar down even further.

I began learning long ago that those who are happiest are those who do the most for others

Wed, 21 Aug 2019 02:09:15 GMT

I began learning long ago that those who are happiest are those who do the most for others - Booker T. Washington

Consumer confidence dips on unease: ANZ

Wed, 21 Aug 2019 02:09:00 GMT

Michael Mehr
(Australian Associated Press)

Consumer confidence retreated slightly at the weekend amid apparent unease at the state of the Australian economy, an ANZ survey suggests.

The ANZ-Roy Morgan Australian Consumer Confidence index dropped 0.3 per cent from the previous week, with respondents’ perception of the economy, including the outlook for the next 12 months, falling 4.3 per cent and sentiment about conditions during the next five years dipping 0.3 per cent.

But the weekly measure of consumer mood, which is based on about 1,000 face-to-face interviews conducted on Saturdays and Sundays, also recorded a 2.6 per cent rise in how people felt about their financial condition compared with a year ago and a 2.4 per cent increase regarding their finances over the next 12 months.

“The impact of tax cuts appears to be showing up in the financial conditions subindices, with more people saying they are better off financially,” ANZ economist David Plank said.

He added that recent falls on the Australian share market may have had a negative influence on sentiment.

The survey’s “time to buy a major household item” metric fell 2.6 per cent after a decline of the same amount in the prior week.

Pacific region develops long-term vision

Wed, 21 Aug 2019 02:08:47 GMT

Rebecca Gredley
(Australian Associated Press)

Pacific islands are working towards establishing a unified voice, with plans to create a long-term strategy for the vast region amid tensions about geopolitical competition.

Pacific Islands Forum secretary-general Meg Taylor says the region’s leaders will look at creating a 2050 Blue Pacific strategy for discussion at next year’s meeting in Vanuatu.

It will look at the institutions, systems and partnerships the area wants in order to strengthen Pacific regionalism.

“Do we want to realise an ocean continent? Are we content to let others divide us?” Ms Taylor told other leaders in Tuvalu on Wednesday.

“Will we accept a future in which we are, as somebody recently described us, nothing but a vast emptiness of Pacific waters?”

While the region’s security in the face of climate change is the focus of the forum, the tug-of-war of external influences is an issue also on the boil.

Ms Taylor says the region has to unite.

“Where climate change threatens our survival, multilateralism is being challenged, and geopolitical competition in our region seeks to divide us,” she said.

There are concerns over China’s increasing presence in the region, with delegates present in Tuvalu as dialogue partners.

But a handful of Pacific nations are allies with Taiwan rather than China, and the US has attempted to hold off the Asian giant’s spread.

It will no doubt be raised as an issue if Prime Minister Scott Morrison holds talks with the US delegation while in Tuvalu to attend the forum.

Tax rebates failing to boost retailers

Wed, 21 Aug 2019 02:08:35 GMT

Derek Rose
(Australian Associated Press)

Post-election tax rebates and a second cut to the cash rate failed to boost business confidence in July, a closely-watched survey of business shows.

The National Australia Bank’s index of business conditions, a monthly survey of about 400 companies, was broadly unchanged from June and remained significantly below average.

Business confidence rose by two points to +4 index points, while business conditions fell by two points to +2.

“Broadly the picture from the business survey is unchanged from last month – the key message being that the business sector has lost significant momentum since early 2018 and that forward looking indicators do not point to an improvement in the near term,” the NAB report said.

Weakness in the retail sector, already at recessionary levels, declined further in the month, with retail sales volumes at its lowest rate since the 1990s recession.

“A worrying result, given we expected some boost to the industry following the post-election tax cuts,” NAB said.

The weakness in the retail sector appears to be broad-based, and most pronounced in the car sector, followed by food and household goods.

Construction and wholesale industries also experienced sharp declines in the month, while mining, transport and utilities and finance did better.

Business conditions fell in all states except Western Australia, which saw a spike.

Overall it appears that the lift in business confidence following the federal election in May has faded.

“It appears that both the cut to interest rates and boosts to tax rebates is yet to feed into the business sector and that the weakness in Q2 has persisted into Q3,” the report said.

Bishop calls for 50% women in fed parly

Mon, 19 Aug 2019 10:43:18 GMT

Former deputy Liberal leader Julie Bishop says women need to take up 50 per cent of federal parliamentary seats before the toxic misogyny she witnessed during her 20-year political career ends.

Ms Bishop, who retired from politics at the 2018 election, told Andrew Denton on Seven’s Interview program on Tuesday night that with more women representatives, bad behaviour and misogyny would be called out.

She described as “grotesque in its brutality” and “pathetic” the sexualisation of Australia’s first female prime minister, Julia Gillard, during a 2013 Liberal Nationals party fundraising dinner in Queensland.

The former WA representative blamed her male colleagues for creating a culture that allowed a “Kentucky Fried” quail dish to be likened to the Labor leader as having “small breasts, huge thighs and a big red box”, The Daily Telegraph reports on Wednesday.

“We have to remember that in recent times, parliament was all male. And so you had a whole bunch of men in Canberra and they set the rules, they set the customs, the precedence and the environment. It was all men,” Ms Bishop said.

“There was very much that culture around politics, even though (Australians) were world-leading as the first to simultaneously grant women the right to vote and the right to stand for parliament … but that kind of behaviour’s just pathetic,” she said.

Ms Bishop said only with a greater number of female representatives would such misogyny and bad behaviour be called out.

“There must be a critical mass of women, and 50 per cent sounds like a good idea,” she said.

“So I would think that the more women that are in politics, the more they would say that behaviour is unacceptable. So I think the numbers really do matter in this instance.”

Fast growth poses infrastructure challenge

Mon, 19 Aug 2019 10:18:58 GMT

Australia needs to commit to spending $200 billion every five years on a range of infrastructure projects if it wants to keep up with the pace of population growth, the nation’s infrastructure advisor has warned.

But Prime Minister Scott Morrison says the federal government has already ramped up infrastructure spending, with its focus on getting projects already in the pipeline up and running.

Infrastructure Australia has warned a new wave of investment is needed to ensure roads and public transport, schools, water, electricity and health services support people’s quality of life and economic productivity.

The most visible example of the impact of poor infrastructure is the increasingly congested roads and crowded public transport in our biggest cities, the 2019 Australian Infrastructure Audit has found.

At the moment, this congestion costs the economy $19 billion a year, but if no more is spent on upgrades, that will double to nearly $40 billion by 2031.

Less visible, but just as frustrating, are hospitals and schools that are ageing or reaching capacity, overcrowded parks and city green spaces, ageing water pipes, and the quality of services like the NBN.

As well as the new investment needed, Infrastructure Australia has warned of a mounting maintenance backlog, much of which is unquantified.

“The infrastructure program must do more than plug the immediate funding gap,” Infrastructure Australia chief executive Romily Madew told reporters.

“It needs to deliver long-term changes to the way we plan, fund and deliver infrastructure.”

Mr Morrison stressed the report’s findings pre-date the 2019/20 budget, in which the government announced $23 billion worth of infrastructure projects, 160 of which were focused on busting congestion.

The government has committed $100 billion to infrastructure over the next 10 years.

“What the report calls for is obviously continued and upgraded investment in infrastructure. The government is doing that,” the prime minister told reporters in Sydney on Tuesday.

“The money is there to get on with it, and that’s exactly what we’re seeking to do in cooperation and in partnership with the states.”

Infrastructure Minister Alan Tudge said the report also shows the need for the Victorian government to build the East West Link, for which the federal government has offered up to $4 billion.

But Labor leader Anthony Albanese accused the coalition of ripping the “guts” out of infrastructure funding in 2014.

“The government comes out with some big figures on infrastructure. But when you look at the detail, the investment simply isn’t there.”

He said the government must bring infrastructure funding forward, backing calls from the central bank and economists.

Infrastructure Australia said planning problems have occurred because population projections have traditionally been based on past growth areas.

Actual growth has been faster and in different areas than anticipated.

Ms Madew said the dominance of the urban fringe has ended, but infrastructure in the outer suburbs of Australia’s cities still needs major investment.