Pension Drawdown Relief for Superannuation Funds

Due to the economic downturn and reduced superannuation account balances, the Treasurer, Wayne Swan, and the Minister for Superannuation and Corporate Law, Senator Nick Sherry, announced relief from minimum account-based pension draw down requirements.

"This will occur through a 50 per cent reduction in the minimum payment amount for 2008–09,’ Minister Sherry said.

This is a temporary relief. ‘The Government will continue to closely monitor market conditions and examine options for a longer term solution to this issue following the Australia’s Future Tax system Review,’ the Treasurer said.

For further assistance in this area you can contact David Maynard or Christian Tapia on (07) 3208 3888. Our supportive team has the GENUINE expertise and experience to attend to all your superannuation needs.

By David Maynard

HECS / HELP Benefit for Maths & Science Graduates

In the 2008 Budget, the Australian Government announced it's "education revolution" policy to encourage maths and science graduates to take up employment in rural and regional areas, Indigenous Australian communities and areas of high sociao-economic disadvantage.

Eligible applicants need to lodge an application for each income year they apply, and if successful, you could receive up to a maximum of $1,600 for the 2008–09 income year either as a:

• reduction in the amount of your compulsory HELP repayment shown on your income tax notice of assessment, resulting in a reduction to your accumulated HELP debt, or
• reduction in your accumulated HELP debt where:
• you do not have to make a compulsory HELP repayment because your repayment income is below the minimum repayment threshold
• a compulsory HELP repayment is not required because, due to low family income, you are entitled to a reduction of the Medicare levy or do not have to pay the levy, or
• you successfully applied to defer your compulsory HELP repayment for the year.

For information on how to eligibility and how to claim, visit the ATO site What is the HECS-HELP Benefit.

HECS / HELP Benefit for Early Childhood Education Teachers

In the 2008 Budget, the Australian Government announced it's "education revolution" policy to encourage maths and science graduates to take up employment in rural and regional areas, Indigenous Australian communities and areas of high sociao-economic disadvantage.

Eligible applicants need to lodge an application for each income year they apply, and if successful, you could receive up to a maximum of $1,600 for the 2008–09 income year either as a:

• reduction in the amount of your compulsory HELP repayment shown on your income tax notice of assessment, resulting in a reduction to your accumulated HELP debt, or
• reduction in your accumulated HELP debt where:
• you do not have to make a compulsory HELP repayment because your repayment income is below the minimum repayment threshold
• a compulsory HELP repayment is not required because, due to low family income, you are entitled to a reduction of the Medicare levy or do not have to pay the levy, or
• you successfully applied to defer your compulsory HELP repayment for the year.

For information on how to eligibility and how to claim, visit the ATO site What is the HECS-HELP Benefit.

NRAS - New Class of Investment Property

In previous posts we announced the launch by the Australian Government of the National Rental Affordability Scheme (NRAS) to stimulate the supply of up to 50,000 new affordable rental dwellings.

NRAS will help to create a new class of asset in the Australian investment property market – one that attracts significant support from the Australian Government in the form of the National Rental Incentive, with additional support from State and Territory governments.

The benefits for investors include:

• Government Subsidised Property Investment
• Secured Income Stream (10 Years)
• Cash Flow Positive Investment
• Maintained and Managed
• $80,000 Plus Tax Credits Over 10 Years

The government support of $8000 per year in this unique property investment equates to a tax deduction of almost $27000 per year for ten years. For middle to high income earners, the combination of other taxation and NRAS benefits represents a truly unique opportunity in invest in the property market. Other tax benefits NRAS benefits include:

• Normal negative gearing tax benefits apply;
• Rents and the NRAS incentive are indexed annually to the rental component of the CPI. Current rental indexation for target markets is running at between 6% and 12%;
• Rental valuations are subject to independent assessment in years 1, 4 and 7;
  
• Suitable stock can range from studio appartments to family housing.
  

Through our networks in the investment property market we are able to offer My Tax Zone clients direct access to properties registered with the NRAS. Our supportive team has the GENUINE expertise, accreditation and experience to guide you through the investment property maize.

Call David Maynard or David Fong on (07) 3208 388 or complete the above online enquiry form for more information.

Alternatively, you can register for our full FREE information kit ==> Taxation and Investment Properties Explained.

Additional information relating to tax variations ==> ITWV's and NRAS

By David Maynard
CEO My Tax Zone

Thank you for your Finance Enquiry

Thank you for your enquiry in relation to finance and your borrowing capacity.

My Tax Zone's lending service has access to a broad range of loan products from all the major banks and financial institutions in Australia.

Our supportive team has the GENUINE expertise, accreditation and experience in taxation, investment property services and finance to guide you through the enquiry and loan process.

Whether you are new to finance or experienced, My Tax Zones wants to see our clients prosper and grow.

We are committed to responding to your enquiries within one business day. We look forward to discussing your finance options with you.

P.S. Don't forget, My Tax Zone finance services offers a free service to our finance clients (eg. our fees are paid by the lending institution). Our lending agreement does not permit us to charge any fees directly to clients.

Kind regards

David Maynard
CEO My Tax Zone

Why would you need a Quantity Surveyor

Apart from the fact that we like to feel needed, here’s 7 quick reasons why:

1. You have an investment property and need a Depreciation Schedule in order to maximise your investment and pay less tax.
2. Your Finance Company needs a Feasibility Report to justify and secure finance for your project. They may also require draw down reports in order to make building stage payments to your Builder.
3. You need an Insurance Replacement Cost assessment on your property to eliminate the risk of being underinsured.
4. You have got plans for a Building project and need to know what the project is going to cost you, so you can make informed decisions on your project and have confidence that your builder's prices are fair and reasonable.
5. You need ‘Builders’ Quants’ or ‘Bills of Quantities’ for your building project.
6. You are in dispute with your Builder, Contractor or Sub-Contractors and need an expert Witness Report in order to determine the extent of the work already carried out, and the likely costs to actually complete the project.
7. You need Contractual advice regarding your contract and assistance in achieving an amicable agreement in any building dispute.

By guest writer
Tracey Lunniss
TSL Project Services Pty Ltd

Competition heating up for investment properties

Are you:

• New to Property?
• Single Property Owner?
• Seasioned Property Investor?

"Property buyers . . . on your mark, get set, go."

This was the headline on March 23, 2009 on news.com.au.

Housing has not been so affodable in Australia for some time. The combination of reduced house prices, rising rents, low interest rates and the First Home Owners grant is heating up competition between investors and first home owners.

The article goes on to say:

"But some potential buyers, both investors and owner occupiers, are still holding back because of uncertainty about the economy and job security.

This is only making prices and choices even better for those people with funds to buy. The window, however, could be about to shut.

According to economic forecaster BIS Shrapnel investors and first home buyers are now the two biggest competitive forces in the housing market.

Rising rents and low interest rates are creating perfect conditions for both groups, according to BIS Shrapnel senior economist Jason Anderson."

Indeed, our property sources inform us that sales, particularly at the lower end of the market, are steady, with many real estate agents in our area finding it difficult to source stock.

We recommend Investors who are serious about acquiring property to seek professional advice now.Whether you are new to property, a single property owner or seasoned investor, My Tax Zone can help build your property portfolio. For investors, locating suitable properties can be an overwhelming task. My Tax Zone's network can short list investment properties to suit your personal circumstances. Our supportive team has the GENUINE expertise, professionalism and experience to assist you to build your property portfolio. Simply complete the online enquiry form abovet and leave the rest to us.

You can benefit from submitting the online form as your enquiry will entitle you to a FREE review of your existing property portfolio or a FREE indicitive PIA (Property Investment Analysis) of properties proposed.

Contact David Maynard or David Fong on 07 3208 3888 or complete the online form in this post.

By David Maynard

Tax Variations & National Rental Affordability Scheme

For more information ==> NRAS - New Class of Property Investment

Under the new National Rental Affordability Scheme (NRAS) announced in March 2008, the Australian Government will provide $622.6 million over four years for the provision of 50,000 affordable rental properties across Australia for low and middle income earners.
The government's financial incentive will be delivered in two ways:

1. The Federal Government will provide an annual incentive to property investors of $6,000 per property for up to ten years, which can be claimed via a refundable tax offset.
2. State and Territory governments have agreed to provide annual support of at least $2,000 per annum per property for up to 10 years. The state and territory contribution may take the form of cash grants, concessions on stamp duty or other tax credits.

The scheme is a fantastic opportunity for both tenants and investors:

• For tenants, new housing will be available for low to middle income earners at 20% under the market rental rates;
• For investors, the tax credits attached equate to an annual tax deduction of nearly $27000 per year (based on a marginal tax rate of 30%. In addition, tax benefits associated with negative gearing are still available.

It is important to note that the refundable NRAS tax offsets can be obtained throughout the year using the Income Tax Withholding Variation (ITWV) application process. Using this process, investors do not have to wait to lodge their tax returns to receive their financial incentive.

For more information on our ITWV application service, click on this ITWV link.

For more information on taxation and the NRAS scheme, vitit the ATO NRAS site.

For information on finance and the NRAS scheme, contact Peter Earle, My Tax Zones mortgage finance manager. Peter is familiar with the NRAS Program and is able to assist with finance if required and can obtain the best rate and structure for any investment project. Our panel of lenders include all the major finance institutions and others.

By David Maynard

Home Loans now available from My Tax Zone

Being a My Tax Zone client means you've already experienced the benefits of our friendly, effecient and professional tax, accountancy and related services.

I am pleased to be able to tell you we are now able to offer even more!

Due to recent growth in our business, we are extending our service offering to include an extensive range of home loan and mortgage services.

Read more >

New ATO Benchmarks for Timber Floor installers

These new ATO benchmarks indicate an expected range of income for timber floor installers based on the labour and materials used. They apply to timber floor installers who work directly with household customers.

The ATO have developed the benchmarks with advice from the Australian Timber Flooring Association and trade participants.

You can use these benchmarks to:

• Compare your performance to the rest of the timber floor installation industry, and
• Check that your tax records accurately reflect your income

These benchmarks represent the industry norm. You should consider your own personal circumstances when using the benchmarks to assess your situation. For example, your income may differ from the benchmarks if you work part-time.

For more information download this FREE fact sheet ==> Timber Floor Installers

Franchise Code to Change Again

It appears that the franchise sector is in for another round of greater regulation. In December 2008, the Federal Parliamentary Joint Committee on Corporations and Financial Services (the committee) made 11 recommendations regarding the operation of Australia’s franchise sector and it’s Franchising Code of Conduct (the code). I can live with the vast majority of the proposed regulation changes and so will our clients if they become law later in the year.

It is the attitude of the Chairman of the committee which has smoke coming out of my ears. In publishing the recommendations the chairman of the committee, Mr Bernie Ripoll, is quoted as saying that 90% of problems that form the basis of a franchise dispute are the fault of the franchisor.

While the work done by the committee is valuable and it does only reflect a modest sample of the franchise industry. It is not a scientifically based survey when the committee calls for submissions and does no independent scientific research of its own. Naturally those with an axe to grind from either side of the argument make submissions to Government enquiries, along with industry bodies, big legal firms and the like. Based on what the committee heard the conclusion may have some validity, but based on a decade of independent University research the dispute rate remains consistently low at around 2%.

Our industry which has grown over the last 10 plus years through good times and bad in the economy at rates that make most of the rest of the economy look relatively poor. It has placed tens of thousands of Australian in their own successful business, employing hundreds of thousands of their fellow Australians. I accept the industry still has a few franchisors who appear to be in the industry for short term gains, not long terms growth with their franchise owners.

All I ask is for a little balance in the public reports on the franchise sector. The positives outweigh the negatives by a very long way.

By Grant Garraway CEO
http://www.thefranchiseshop.com.au/

Superannuation for Temporary Residents

Australia is a popular destination for many people who visit from overseas each year. In fact, for many young people, a working holiday in Australia is a right of passage. We are all very familiar with the backpackers who come and enjoy the sights and experiences that Australia has to offer. However, it is not just young people who visit Australia for extended periods. In many cases, mature aged people come to work in Australia on a temporary basis bringing vital skills and experience that can benefit the country.

On 18th December 2008, legislation was enacted that will have an impact on superannuation benefits held by Australia’s temporary residents. This legislation had been foreshadowed before the previous election; however, the format on the new laws is somewhat different to that originally proposed.

Temporary residents can still make contributions to an Australian superannuation fund during their residency and, those who are employed will, in many cases, be having contributions made on their behalf by their Australian employer under obligations imposed by the Superannuation
Guarantee system.

Many readers will be familiar with the notion that benefits within a superannuation fund are “preserved”. This simply means that they cannot be taken out of the superannuation system until a “condition of release” has been met. The most common condition of release is having retired on or after reaching preservation age (currently 55).

Some years ago, a person who permanently departed Australia could access their superannuation benefits. This was available not only to temporary residents, but also to permanent Australian residents who were leaving Australia on a permanent basis. In 2002, the laws relating to accessing superannuation benefits on permanent departure from Australia changed significantly.

Effective from 1st July 2002, the only people who could access their superannuation benefits upon permanently departing the country are those who met certain conditions. One such condition was that the person had to have held one of a number of classes of eligible temporary resident visa and that visa had expired or been cancelled. No longer could a permanent
resident access their superannuation if they were leaving Australia to live overseas.

Where a superannuation benefit is paid out to a temporary resident on their departure, it is referred to as a “Departing Australia Superannuation Payment” (DASP). A DASP is subject to its own special taxation rates which, incidentally will increase from 1st April 2009.Where the new amendments have a specific impact is in relation to benefits held in an Australian superannuation fund by someone who:

• Left Australia at least six months ago; and
• The person no longer holds a current temporary visa.

Where a former temporary resident falls into this category, any unclaimed superannuation amounts held in their Australian superannuation fund must be paid to the Australian Taxation Office (ATO) upon request. A former temporary resident (who held a prescribed class of eligible temporary resident visa) will still be able to claim their superannuation benefit in the future. They will claim the benefit from the superannuation fund where it is still holding the funds, or from the ATO, if the benefit has already been transferred.

There are a number of exemptions from these arrangements, including New Zealand residents, holders of permanent visas, and holders of retirement visas. Importantly, a permanent Australian resident who departs Australia is still not able to access their preserved superannuation benefits until they meet a condition of release.

(Source: Professional Investment Services)

Borrowing in a Self Managed Superannuation Fund

In recent months there has been a lot of media coverage about the ability of superannuation funds (including self-managed super funds) to borrow money to invest. This has created very high levels of enquiry by super fund members.

By way of background, many superannuation funds have historically invested in financial products known as instalment warrants. These products involve the payment of a deposit followed by the balance being paid at an agreed later date.

The very nature of an instalment warrant means the investor has entered an arrangement with the promoter of the instalment warrant that involves borrowing money.

Under superannuation legislation, superannuation funds are prohibited from borrowing money except is a number of very limited circumstances. In order to cater for borrowings associated with instalment warrants, a new “instalment warrant exemption” was introduced into superannuation law effective from 24th September 2007.

However, the wording of the legislation has resulted in a broader interpretation than was perhaps otherwise intended by the legislators. This has become particularly appealing to people who operate their own self-managed superannuation fund. As the law currently stands, a superannuation fund may now borrow money for the purposes of acquiring assets.

However the scope of the changes in the borrowing rules requires very strict adherence to a number of specific conditions.

In broad terms, the SMSF is able to borrow money to acquire an asset the fund is otherwise able to acquire, provided:

• The asset to which the borrowings apply are held on trust for the super fund,
• The super fund has a right to acquire the asset on payment of the final instalment,
• The lenders recourse is limited to the asset to which the borrowings apply, and not the other assets of the super fund.

Because of the complexity of the rules, advice from a suitably qualified financial planner or accountant experienced in self-managed super funds is essential. For more information contact Christian Tapia on 07 32083888. Christian is an authorised representative of Professional investment Service.

David Maynard, senior accountant for My Tax Zone will guide you through the taxation aspects of self managed super funds.

Source: Professional Investment Services

Affected by Redundancy?

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At My Tax Zone we work with clients who are affected with redundancy. In addition to providing advice on taxation and redundancy, we can also help you to:

• Manage your redundancy payment in the most tax effective way
• Develop strategies to manage cash flow needs while out of work
• Consider options for managing your superannuation
• Obtain Government income support while looking for a new job

Read more >

Business Success

Business success doesn’t happen by chance, it requires planning, purpose, determination and personal balance.

1) Learn to delegate – It’s very easy to try and do everything ourselves and then wonder why you are so tired and frazzled by the end of the day. Let someone else do some of the tasks for a change. Delegation is the key to a healthy business and a healthy, happy you.

2) Promote your business – if you want to attract new clients. You have to make promotion a priority. Too often the task of promoting a business or practice slips to the bottom of the to-do list.

3) Set aside a certain number of hours each week to devote to promotional activities.

4) The importance of a plan – is vital if you want a healthy and growing business. The planning process allows you to take stock, set goals and implement activities that will generate business income and introduce efficient business practices and systems.

5) Set aside time each week to review your plans and if necessary adjust your activities accordingly. This will help to avoid costly mistakes and to stay on track. You will feel more focused and relaxed.

6) Setting realistic goals – is an important habit that will lead to success. Unrealistic dreams and goals that are so far out of reach only lead to frustration.

7) Learn something new – it doesn’t have to relate directly to your business but learning something new will add to your skills and add a new dimension of interest to your life.

8) The power of networking – is acknowledged as being important to raising the image and profile of your business. There’s nothing like talking to other business people for sparking ideas, refining old ones, and making contacts.

9) Give to your community – there are a number organisations that make a difference in your community. Select an organisation and contribute what you can – be a mentor, volunteer, or financially support the groups in your community that try to make the place you live a better place.

10) Make time for you - to recharge your batteries. All work and no play is a recipe for disaster. If you don’t find the time to invest in your personal well being, who will?

11) Replace it or get a new one – if there is a piece of equipment in your office that’s not working properly or outdated and inefficient. Stop putting off those purchases (including the employment of additional staff) that will lighten the load and make your life easier.

12) If it’s broken, don’t fix it – if a technique, system or business relationship just isn’t working for you, don’t invest a lot of energy into trying to make it work. Move on.

If you require any further information or assistance, please contact David Maynard. David and his team whave the GENUINE expertise and experience to guide you through the hoops and hurdles.

(source Professional Investment Services)

Self Managed Super Funds Explained

Self Managed Super Funds (often referred to as DIY super funds) have been a very popular alternative for people wishing to have more control over their superannuation arrangements.

A SMSF is a superannuation fund that has less than five members and is often used as a superannuation structure for family members.

SMSF’s are popular because they may provide investors with one or more of the following advantages:

1. Members have control over the day-to-day management of their fund,

2. The ability to transfer certain assets such as listed shares and business real property, currently held outside super, into a SMSF,

3. Access to investments not generally available through other types of superannuation funds,

4. The opportunity to access a variety of superannuation income stream options in retirement,

5. The ability to structure estate planning strategies ensuring that superannuation benefits are passed to the next generation in a timely and tax effective manner.

The distinguishing feature of a SMSF requires that each member must be a trustee of the fund (or a director, where the trustee is a company).

However, being a trustee and member of a SMSF carries responsibilities that need to be appreciated before taking on this role. If you are considering establishing a SMSF, your financial planner can be an excellent source of information on the role and responsibilities of becoming a trustee of a SMSF.

If you require any further information or assistance, please contact David Maynard or Christian Tapia, on 07 3208 3888. David is senior accountant for My Tax Zone and Christian is an Authorised Representative of Professional Investment Services and they and their team will be able to provide you with taxation structure and financial planning advice to suit your present needs and future goals.

(source Professional Investment Services)

Deductions Q & A - Credit Card Slips as Receipt

Q. Is a credit card slip acceptable as a receipt?

A. Yes, provided it gives full details of the supplier and date of purchase. Taxpayers can make a notation on the receipt indicating the type of goods that were purchased. Many taxpayers use the internet to purchase or pay for their work related expenses. The ATO will accept Bpay or email receipts provided they contain the necessary information: date, supplier, nature of the goods and the amount.

Deductions Q & A - Work Wear

Q. My employer expects me to wear specific clothing for work? What would I be able to claim?

A. Compulsory uniforms are generally deductible provided they identify you as an employee of that organisation. A requirement to simply wear specific colours is not enough to make the clothing deductible. Corporate wardrobes are also deductible if certain conditions are met. The uniform design must be registered with AusIndustry. You may also claim maintenance costs (laundry, dry cleaning and repairs) for tax deductible clothing.

First Home Buyers

The initial decision to purchase a home can be both exciting and extremely daunting. Receiving guidance can make it easier; by steering you through the home buying process, as well as assistance with government programs like the First Home Owners' Grant Scheme.

The steps for most first home buyers include Plan, Apply, Choose, Make an offer and Settle.

• Plan:
  Choose a style of home you are looking for
  Go to a professional and work out how much you can borrow
  Save for a deposit (usually around 10% of the property price is required as a deposit)
  Consider – does the price range of homes you are looking for match your borrowing capacity?


• Apply:
  Apply for a pre approval of your loan
  Talk to your mortgage professional about the costs of buying a home
  Select a solicitor or conveyancer
  Narrow your choice to a suburb or area


• Choose:
  · Search for properties – internet, newspapers, real estate agents
  · Inspect many homes to ensure you have a good knowledge of what the property you want is actually worth
  · Select your home


• Make:
  Make an offer on the home, ensure it is subject to finance approval and your satisfaction with the building and pest inspection
  Order a building and pest inspection
  Contact your mortgage professional and let them know you have found a house, they will arrange along with your lender for a valuer to value the property
  If the building/pest inspection or valuation do not come in to what you expected, remove your offer or change your offer accordingly.
  If your final offer is accepted arrange for payment of your deposit (either cash or deposit bond).


• Settle:
  Your solicitor/conveyancer will perform a final search on your property and its title, remember to ask your solicitor to check for any road works, other construction – including developments that may affect your home in the future.
  Settlement will occur on a date agreed by all parties, the seller, lender and buyer, this is usually six weeks after the offer is made but can be amended if all parties agree.
  Organise and confirm your loan repayments Arrange for home insurance to begin on the day your settlement is to take place Relax and enjoy your new property!

If you want to know how much you can borrow, our supportive team has the GENUINE expertise, accreditation and experience to assist you with both home loans, car and business finance requirements.

Call Peter Earle today on (07) 3208 3888 or complete the above online enquiry form - we're ready to listen and give you the best possible advice on true rates, loan structure and service.

(source Professional Investment Services)

Warning: Tax Refund Email Scam

The Tax Office is warning people about another email scam being circulated that claims to offer a refund from the Tax Office.

The email asks people to update personal and credit card details in order to receive a tax refund.

It is similar to previous scams and uses the Tax Office logo and words ‘Get Refunds On Your Visa Or Master Card’ in the subject line.

There may also be more variations to this subject heading.

The email asks people to click on a link which redirects them to a bogus website that looks similar to the Tax Office website and asks for credit card and personal details.

Tax Commissioner Michael D’Ascenzo said people should always be wary of any unsolicited emails claiming to be from the Tax Office, particularly when they ask for credit card details.

“The Tax Office does not send people emails asking them to provide credit card details.

“Anyone who receives such an email should delete it immediately.

“As an extra precaution we recommend you type internet addresses directly into your internet browser rather than clicking on hyperlinks embedded in emails,” Mr D’Ascenzo said.

If people have entered their credit card information on the website, they should report it to their credit card provider as soon as possible.

(source ATO)

Deductions Q & A - Personal Grooming

Q. I am expected to maintain a well groomed appearance. Can I claim these expenses?

A. Expenditure on personal Grooming and haircuts are generally not deductible. There are exceptions for taxpayers involved in the performing arts fields.

Saving for a House Deposit

Saving for your first home can appear daunting, considering that most new borrowers need to save approximately 10% of the home valued in order to get into their first home. So for every $100,000 the property is worth you will need to save $10,000.

On an average property price of $300,000 this means you need to save approximately $30,000.

Consider the following methods:

• Open a high interest savings account and have a portion of your salary automatically transferred into this account each month


• Work out what your mortgage repayments would be worth and ensure you save the difference between what you pay in rent/board now – and what you will need to pay. For instance a loan of approximately $300,000 would cost around $2,000 in repayments per month. If you are currently paying say $250 per week in rent, you should also be saving $250 per week towards your home. (When you buy your property you will not have the extra funds anyway – start saving now and you will not feel the impact as much when you come to move)


• Do a budget and stick to it, yes it’s true, until you know where you spend your money you are likely not to know how to save it. Cut back on the coffee you buy in the morning, or bring lunch from home – purchase one less magazine, or item at the supermarket and you can easily save an extra $30-$50 per week.

If you want to know how much you can borrow, our supportive team has the GENUINE expertise, accreditation and experience to assist you with both home loans, car and business finance requirements.

Call Peter Earle today on (07) 3208 3888 or complete the above online enquiry form - we're ready to listen and give you the best possible advice on true rates, loan structure and service.

David Maynard
Source: Australian Loan Company

Redundancy and Insurance

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Many Australians have insurance cover provided by their employer under a “group insurance” or superannuation arrangement. Terminating employment, either voluntarily or as a result of redundancy can have serious implications in relation the insurance cover provided by an employer or through existing superannuation arrangement.

Insurance cover may take a number of forms:

Death – this is a basic type insurance cover that provides for the payment of a benefit, the sum insured, in the

Read more >

Would You like The Government to Add to Your Super

Some years ago the Government introduced an arrangement whereby they would add to individual’s superannuation savings.

With the financial year drawing to a close it is timely to revisit this initiative.

The Government will contribute up to $1.50 for each $1.00 of contributions a person makes to a superannuation fund.

If you can answer “yes” to each of the following questions, you may be eligible to receive a contribution to your superannuation fund from the Government:

· Are you under 71 years of age?
· Is your assessable income (plus reportable fringe benefits) for the current financial year less than $58,980?
· Is at least 10% of your assessable income derived from employment or self employment.
· Have you, or can you make a personal non concession (non deductible) contribution to a superannuation fund by 30 June?
· Will you be lodging a tax return for the current financial year?
· You have not held a temporary resident visa at any time during the current financial year.

If you can answer “yes” to each of these questions, you may qualify for a co-contribution of up to $1.50 for each $1.00 you contribute, subject to a maximum co-contribution of $1,500.

If your assessable income exceeds $28,980, then the amount of co-contribution progressively reduces and phases out altogether once assessable income reaches $58,980.

To qualify for a co-contribution in the current financial year, you will need to ensure that you make a personal non-concessional superannuation contribution to your superannuation fund before the end of June.

If you require any further information or assistance, please contact Christian , on 07 32083 888. Christian is an Authorised Representative of Professional Investment Services and he and his team will be able to provide you with financial planning advice to suit your present needs and future goals

See our link ==> Super Co-contributions Calculator

By David Maynard

(source Professiona Investment Services)

Deductions Q & A - Claiming Child care costs

Q. I have had to pay for child care during the year. Is this claimable on my tax return?

A. These expenses are not claimable as a tax deduction. Eligible taxpayers may be able to claim the 50% Child Care Tax Rebate.

FREE fact sheet ==> Child Care Tax Rebate

FREE fact sheet ==> Child Care Benefit

Deductions Q & A - Claiming telephone costs

Q. I need to have a telephone for making and receiving business calls and would like to know what I can claim?

A. Installation costs are not deductible. However, part of the rental costs are deductible where a taxpayer is required to make calls from home. Call costs would be deductible and a log of calls must be kept. Mobile phones are claimed in the same way.