by Jodie | Jul 11, 2012 | Advisers, Australian Economy, Economy, Finances, General, Insurance & Protection
Most of us who are parents, know that bumps and bruises are just all part of being a kid and growing up. Sadly however, many Aussie kids suffer from medical conditions and accidents that are far more serious.
I personally have a niece with heart problems and an autistic nephew, so know all too well how health concerns can affect a family both financially and emotionally.
What many don’t know is that there is an insurance solution that can be tailored into the family’s protection package that can cover some of the major concerns your children could face.
Children’s trauma insurance offers coverage for a wide range of illnesses (including meningitis, cancers, blood disorders, loss of sight, major organ and bone diseases) and some serious accidents and death.
Many insurers now offer Child Trauma Insurance. It is usually an optional extra to an adult’s life or trauma cover and typically covers children aged between ages 2 and 15. Coverage is typically for a lower amount, and the premiums are much lower than adult trauma insurance too (as an example, from $1 p/month per $10k of cover.)
When a child is seriously ill or injured, parents often take on the role of carer. This can reduce family’s income at a time when additional money is required for the medical care of the child. Child trauma insurance may just buy you some additional time, ease some of the financial burden and takes the future into account.
If you’d like to know more about how this cover can assist your family, please don’t hesitate to give our Advisers a call on 07 5593 6895 – or drop us an email and we’ll be in touch.
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by Jodie | Jul 11, 2012 | Advisers, Australian Economy, Business, Economy, Finances, General, Insurance & Protection, Superannuation
Wealth Planning Partners are pleased to announce that Russell Sheasby has joined our team of Gold Coast based Financial Advisers.
Russell emigrated from South Africa 10 years ago and has been both self employed in small business and employed in management roles of various national companies since that time.
Having had daily contact with clients, contractors and SME’s and first hand experience with building business, Russell will make a great addition to the team.
Russell is looking forward to tailoring plans that will individually suit our clients and will help to assist in achieving your wealth creation goals and protection needs.
Please visit Russell’s LinkedIn profile for more information:
http://au.linkedin.com/in/russellsheasby
by Jodie | Jun 21, 2012 | Business, Economy, Finances, Superannuation, Taxation
Superannuation payments are set to rise for employers phasing up from 9 to 12% over the coming years. Employers are expected to be paying the full 12% by 2020.
Basically, this measure is designed by the Government to increase the future retirement savings and incomes of Australian workers through a gradual increase in the superannuation guarantee.
Most of us realise that the Government can’t afford to fund pensions forever, and we all need to take a more active role in saving for our retirement. And most of us understand that employers are the ones who will be funding the bulk, if not all of the increase.
The Government has released the following Fact Sheet with detailed explanations: http://www.deewr.gov.au/Department/Documents/Files/6_Fact_Sheet_SG%20_rate_increase.pdf
It all seems fairly straight forward to myself, my employees and most of the employers and clients I speak with. Even the DJ’s at 2GB seem to have a pretty good handle on how it’ll work.
Not so for the Labor member for the seat of Canberra – Gai Brodtmann it would appear.
In this interview, she attempts to explain who’s going to pay for the 3% increase in the Superannuation levy. Presumably this is an interview she has prepared for and a law she has quite possibly, voted on.
The political ‘spin’ is perfect (if repetitive) but it appears, she hasn’t a clue about what it means or how it all works.
Unfortunately, as amusing as the following interview is, it’s also serious. Our Politicians are the lawmakers – and one would hope they have some idea of what they’re doing.
http://www.2gb.com/index2.php?option=com_newsmanager&task=view&id=12080&task=view&id=12080
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by Jodie | May 9, 2012 | Business, Debt Management, Economy, Finances, General, Investments, Self Managed Superannuation Funds, Superannuation, Taxation
The 2012 Federal Budget only contained few surprises as many of the measures had already been legislated or pre-announced.
The main winners were lower income earners, families and the elderly.
Federal Budget 2012 summary
The key new announcements include:
- tax may increase on certain employment termination payments
- the reduction in the company tax rate isn’t going ahead
- the increase in the concessional contribution cap for people aged 50 or over with less than $500,000 in super will be postponed until 1 July 2014
- the tax payable on concessional super contributions by people earning $300,000 pa or more will increase from 15% to 30%, and
- a ‘SchoolKids Bonus’ of $820 a year for each child at high school and $410 for every child in primary school will automatically be paid to parents who are eligible for Family Tax Benefit Part A, replacing the Education Tax Refund.
The Government has also confirmed that:
- people earning under $80,000 pa will receive modest tax cuts
- the minimum income payments for a superannuation pension/income stream won’t increase until 1 July 2013, and
- funding will go ahead for the landmark changes to Australia’s Aged Care System announced recently.
For further information – read here 2012 Federal Budget Summary
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by Jodie | May 9, 2012 | Economy, Finances, Superannuation, Taxation
Well, it could have been much worse for super. But it wasn’t so bad after all.
There were a couple of measures which will reduce the ability to contribute to super in a cost effective manner, however the 15% tax rate on investment income and 10% capital gains tax was maintained; the exemption for funds paying pensions (and for 60 year old+ superannuants) was not touched.
As always, there are to be some changes. The 2 main ones are:
Deferral of $50,000 For People With Less Than $500,000 in Super Contributions
We already knew from 1 July 2012, the Government was going to reduce concessional contributions to $25,000 p/a for many people. The exception was to be those who were both over 50 years of age and had less than $500,000 in total superannuation balances.
The Government has now decided to defer this by a further 2 years. So for the next 2 years, everyone will be limited to $25,000 p/a. For the 2014/15 financial year, the original plan (i.e. $50,000/+50yrs/<$500,000) will recommence.
Probable Increase in Concessional Contribution Caps From 2014/15
The Budget papers say that “In 2014-15, the general cap is likely to increase to $30,000 through indexation, and the higher cap would then commence at $55,000.”
“Likely”? Normally Budgets are documents which commit to the addition, removal, increase or decrease in things as a matter of fact. It is unusual that the word “likely” is used in the budget delivery making us a little unsure how to interpret this new “maybe” style of commitment. A word-search of the papers can find no other measure which is similarly described.
And Now For the Bad News…
For people with income over $300k p/a the 15% contributions tax will no longer apply as of 1 July 2012. Instead, the rate will go to 30%
Considering that people in that category are going to be limited to $25,000 p.a. of concessional contributions in any event, someone making the maximum deduction contribution would be looking at an extra $3,750 of tax. It is unlikely that the extra impost will stop them from contributing.
For accountants and administrators, the main point of concern is about how they intend to administer and collect this extra amount. Anyone who survived the Howard Government’s introduction of the superannuation surcharge will remember what a debacle the reporting and assessment process was.
Given that they are intending to bring it into effect from 1 July 2012, we won’t be left wondering for long!
And That’s a Wrap!
There were a couple of re-announcements of existing measures including the increase in the super guarantee and the upcoming requirement for SMSF auditors to obtain registration. However, there was nothing else new to add.
Most of us who are parents, know that bumps and bruises are just all part of being a kid and growing up. Sadly however, many Aussie kids suffer from medical conditions and accidents that are far more serious.
