More than five million Australians will earn more interest on their savings in banks, building societies and credit unions, under a government proposal to halve the tax paid on the interest they receive.
Instead of paying $160 in tax on $10,000 of savings in a bank account that earns 5 per cent interest, the Australian taxpayer will only have to pay $80 in tax on the interest earned in 2012-13.
Under the present system, all interest earned on savings is taxed. The interest is considered additional income, which is added to the taxpayer's annual earnings.
With the proposed changes, the taxpayer will be given a tax rebate of 50 per cent on the interest earned.
Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts
Thursday, July 14, 2011
Saturday, February 19, 2011
Financial wellbeing index Q3
The Financial Wellbeing Index measures people's financial wellbeing in relation to six focus areas. Here are the key findings in Quarter 3 (September – December 2010)
For assistance with budgeting, setting up a savings plan or financial planning for a secure future, speak to one of the financial planners at Intellichoice today.
- Aussie households have reported feeling less comfortable across the six focus areas of: credit card and mortgage debt, savings, investments, household income and the ability to pay bills.
- Aussies have shown determination to stay on top of their mortgages, with 49% of households with a mortgage making additional loan repayments.
- Credit card debt has increased substantially – up 24% from Q2 to Q3.
For assistance with budgeting, setting up a savings plan or financial planning for a secure future, speak to one of the financial planners at Intellichoice today.
Friday, February 4, 2011
Budget for Success
Keen to save more and make a big dent in your mortgage?
By budgeting better, you can reach your goals sooner. Here is a guide to get your New Year started in the right direction.
1. Record your expenses
Carry a notebook around with you for a month and write down everything that you spend money on and the amount. Don’t forget daily coffees, magazines, eating out, etc. Record it all.
This will show you how much you’re spending and may prompt you to realise how much you spend on non-essential items.
2. Calculate your income and expenses
Calculate how much income you make after tax every month and write this figure down. There are a number of good budgeting tools available on the internet to help you easily track your expenses. If you can’t find one, just use a notepad.
Divide your expenses into those that are essential (for example, groceries, bills and transport costs) and those that are non essential (for example takeaway food, entertainment and indulgent purchases) and calculate how much these cost you each month. For example, if your quarterly electricity bill is usually $450, you will need to divide this figure by three to get monthly cost of $150.
When this is done, subtract your expenses from your monthly income. This will show you whether you are spending beyond your means or whether you have some cash to spare.
3. Change your spending habits
To free up some cash to make extra repayments on your home loan or achieve or financial goals, you will need to scrutinise how much you are spending and work towards reducing this amount.
The non-essential expenses column is the first place to start cutting back, If you are spending a lot on takeaway food, start eating at home more often and pack your lunch to take to work.
If your petrol costs are high, consider taking public transport or walking if possible. Perhaps you could invest in a bicycle so you save money and gain a health benefit at the same time.
4. Stick to your budget
Once you have allocated a budget to each of your expenses, stick to it. If you have budgeted to spend $60 a month on eating out, make sure you don’t spend any more.
It will take discipline, but by following your budget you could cut thousands of dollars interest off your loan and pay your mortgage off much sooner.
Savings Tips
Here are some savings tips to help you on your way:
By budgeting better, you can reach your goals sooner. Here is a guide to get your New Year started in the right direction.
1. Record your expenses
Carry a notebook around with you for a month and write down everything that you spend money on and the amount. Don’t forget daily coffees, magazines, eating out, etc. Record it all.
This will show you how much you’re spending and may prompt you to realise how much you spend on non-essential items.
2. Calculate your income and expenses
Calculate how much income you make after tax every month and write this figure down. There are a number of good budgeting tools available on the internet to help you easily track your expenses. If you can’t find one, just use a notepad.
Divide your expenses into those that are essential (for example, groceries, bills and transport costs) and those that are non essential (for example takeaway food, entertainment and indulgent purchases) and calculate how much these cost you each month. For example, if your quarterly electricity bill is usually $450, you will need to divide this figure by three to get monthly cost of $150.
When this is done, subtract your expenses from your monthly income. This will show you whether you are spending beyond your means or whether you have some cash to spare.
3. Change your spending habits
To free up some cash to make extra repayments on your home loan or achieve or financial goals, you will need to scrutinise how much you are spending and work towards reducing this amount.
The non-essential expenses column is the first place to start cutting back, If you are spending a lot on takeaway food, start eating at home more often and pack your lunch to take to work.
If your petrol costs are high, consider taking public transport or walking if possible. Perhaps you could invest in a bicycle so you save money and gain a health benefit at the same time.
4. Stick to your budget
Once you have allocated a budget to each of your expenses, stick to it. If you have budgeted to spend $60 a month on eating out, make sure you don’t spend any more.
It will take discipline, but by following your budget you could cut thousands of dollars interest off your loan and pay your mortgage off much sooner.
Savings Tips
Here are some savings tips to help you on your way:
- Have an easy access cash account for everyday needs with a debit card attached
- Save a fixed amount of money every pay in a separate account
- Save your pay rises, bonuses or special payments or tax refund
- Put your change into a savings jar at the end of each day
- Pay your mortgage fortnightly and pay an extra 5-10 per cent on your mortgage every month
- Budget a specific amount for leisure, mortgage repayments and personal expenses
- Make extra superannuation contributions from your pre-tax salary otherwise known as salary sacrificing.
Wednesday, December 8, 2010
Savers can save $330 by switching
Savings account holders can save up to $330 by switching to a better account. According to consumer group Choice, nearly 80% of Australians had not considered switching banks in the last two years.
Choice's Better Banking campaign director Richard Lloyd said "that's what the major banks rely on, they rely on lots of Australian consumers staying where they are and that's when you get hit by high fees, poor interest rates and unfair terms." What we're saying today is `consumers don't wait for the government's reform package ... if you take simple steps now you can give yourself an early Christmas present'.''
Mr Lloyd continued by saying that smaller banking sector players were usually those offering the best deals and consumers should not be nervous about moving to smaller finance institutions as they were regulated in the same way as banks. Federal Treasurer Wayne Swan said: "I'd encourage every Australian family to check out the range of products on offer and compare them to the big banks.''
Choice's Better Banking campaign director Richard Lloyd said "that's what the major banks rely on, they rely on lots of Australian consumers staying where they are and that's when you get hit by high fees, poor interest rates and unfair terms." What we're saying today is `consumers don't wait for the government's reform package ... if you take simple steps now you can give yourself an early Christmas present'.''
Mr Lloyd continued by saying that smaller banking sector players were usually those offering the best deals and consumers should not be nervous about moving to smaller finance institutions as they were regulated in the same way as banks. Federal Treasurer Wayne Swan said: "I'd encourage every Australian family to check out the range of products on offer and compare them to the big banks.''
Monday, November 1, 2010
Two thirds of Australian's don't have enough money
Almost two thirds of Australians think they do not have enough money. According to an online poll published in News Limited newspapers, approximately 61% of respondents said they were not happy with their finances. Approximatley 35% of survey respondents said they were happy with their financial situation, while 4% said they are not sure.
If you would like help saving or budgeting, speak to one of the financial planners at Intellichoice on 1300 55 10 45.
If you would like help saving or budgeting, speak to one of the financial planners at Intellichoice on 1300 55 10 45.
Wednesday, June 30, 2010
Get your finances in shape
Get your finances in shape. Use this simple checklist to assess how healthy your financial management is.
- Do you know how much money is going out and coming in?Use a budget planner to easily track your finances
- Do you have a financial plan for the next year, five years? A financial plan will help you reach your short, medium and long term goals
- Do you have enough funds for a rainy day? We recommend that you have equal to about three months in savings for those emergencies
- Pay extra on your home loan so you decrease the amount of interest you pay each month and it helps you pay off your home loan sooner
- Get the best available rate on savings. Do your research and find savings accounts with high interest rates. Make compound interest work for you
- Pay off your credit cards in full each month. You could also consider getting a debt consolidation loan to pay off all your high interest credit cards
Wednesday, June 9, 2010
$50,000 needed for an adequate lifestyle in retirement
A recent survey has found that almost 50% of respondents in Australia were confident they would have enough superannuation in retirement. Respondents to the survey also said they would need about $50,000 a year to maintain an adquate lifestyle in retirement. Almost three-quarters, including retirees, said they were in favour of the government's policy of increasing compulsory super from 9% to 12%.
Friday, April 16, 2010
New tax break for savers
The federal government is considering a new savings scheme that will encourage more people to put money away for years into high interest rate bank accounts. The idea is believed to come from the Henry Tax Review, which is yet to be released by the government.
The new savings scheme could offer significant tax breaks for savers - similar to a superannuation’s tax break which gives super investors a low tax rate of just 15%. Some taxpayers now pay 50% tax on the interest earned on their savings.
The new savings scheme could offer significant tax breaks for savers - similar to a superannuation’s tax break which gives super investors a low tax rate of just 15%. Some taxpayers now pay 50% tax on the interest earned on their savings.
Wednesday, April 14, 2010
Deposit rates still at record highs
Savers can still benefit from historically high term deposit and savings account rates.
Term deposit rates in Australia are now over 7% at some banks and credit unions.
Term deposit rates in Australia are now over 7% at some banks and credit unions.
Monday, March 1, 2010
Money saving tips for the kitchen
1. When in doubt, make soup. Make a big batch of your favourite veggie soup, then do something different to it each time you serve it - blend some curry spices, add tomatoes, throw in some lentils, add bacon bits, serve with grilled garlic bread. (They were all different options, but you could do them all at once if you were really hungry).
2. Self-preservation - There is growing interest in home preserving, baking, curing, brewing, sausage making etc.
3. Listen to your grandmother - Turn off taps when you're done, save string, re-use bags and bottles, put lids on your saucepans (saves 20% energy and speeds everything up), and cut out waste. Think twice before you toss anything out. Greeks cook beetroot greens and toss in olive oil, Turks stew broad beans pods and serve with yogurt and dill, Chinese dry mandarin peel and add to stews for fragrance and flavour.
4. Grow Your Own - Funny how we're turning back to growing our own fruit and veg. Even if it's just a pot or two of herbs you can keep on the windowsill of a flat, you will suddenly feel completely self-sufficient.
5. Eat with the seasons - Because it's in season, it's more abundant, because it's more abundant it should be cheaper. Even if it isn't, it's better value because it's fresher and tastier. It also means the producers haven't had to find new ways of preserving shelf life and storage.
6. Send the food processors broke - Not the ones you plug in and whiz, but the middleman who buy fresh unprocessed foods and do things to them, offering them to you with extra flavours you don't want or need. Instead, buy the fresh, unprocessed food yourself and keep your own 'processing' to a minimum, e.g. buy whole fish and whole chicken rather than fillets and pieces - you'll get better quality, and learn how to fillet and joint like a chef. Whole lettuces last longer than bags of mixed leaves, and unwashed is cheaper than washed. Don't buy ready-made vinaigrette, breadcrumbs, pre-chopped vegetables and pre-grated cheese. It's money down the drain, when you can do it yourself and save.
7. Love your leftovers - Throwing food out is throwing money out. If you do have leftovers, take it for lunch the next day.
8. Steak. Get over it - A plateful of vegies and pulses with a little bit of red meat is a lot cheaper than a plate of meat with a little veg and a lentil. Striking a better balance is better for your pocket and for your overall health. Make fish, chicken and meat go further by adding beans, lentils, chickpeas and rice. Turn your meal - planning around so that the most expensive ingredient is the 'flavouring' rather than the main event.
9. Use eggs and cheese for protein, nuts and seeds for fibre and crunch, and yogurt and avocado for richness. And return to something as beautiful as a great steak-and-red-wine dinner to the special status it deserves... crave it, look forward to it, and enjoy the hell out of it. Just not every second day.
10. Cook your own 'take-away' - Love pizzas? Learn to make your own, or use pita breads as the bases, and get some help from the kids with doing the toppings so everyone has their own. Are you a burger person? Try cooking salmon burgers, chicken burgers, or normal burgers with a bit less meat and more of your other fillings, such as beetroot, avocado, tomato, cheese and lettuce. Craving Greek/Lebanese? Cover the table with little dishes of dips, breads, raw vegetables, herbed rice, and skewers of home-made lamb or tuna souvlaki.
11. Freeze - It's a fabulous feeling knowing you have tubs of chicken stock, pumpkin soup, chicken curry, Bolognese sauce, good bread, etc in the freezer. Frozen bananas make a great instant ice-cream - just soften and whiz.
12. Buy ten get one free - Beware of the supermarket bonus offers, which often tempt you into buying two for one of something you didn't really want in the first place.
For more savings tips, speak to one of our financial advisors at 1300 55 10 45 or visit www.intellichoice.com.au for more details.
2. Self-preservation - There is growing interest in home preserving, baking, curing, brewing, sausage making etc.
3. Listen to your grandmother - Turn off taps when you're done, save string, re-use bags and bottles, put lids on your saucepans (saves 20% energy and speeds everything up), and cut out waste. Think twice before you toss anything out. Greeks cook beetroot greens and toss in olive oil, Turks stew broad beans pods and serve with yogurt and dill, Chinese dry mandarin peel and add to stews for fragrance and flavour.
4. Grow Your Own - Funny how we're turning back to growing our own fruit and veg. Even if it's just a pot or two of herbs you can keep on the windowsill of a flat, you will suddenly feel completely self-sufficient.
5. Eat with the seasons - Because it's in season, it's more abundant, because it's more abundant it should be cheaper. Even if it isn't, it's better value because it's fresher and tastier. It also means the producers haven't had to find new ways of preserving shelf life and storage.
6. Send the food processors broke - Not the ones you plug in and whiz, but the middleman who buy fresh unprocessed foods and do things to them, offering them to you with extra flavours you don't want or need. Instead, buy the fresh, unprocessed food yourself and keep your own 'processing' to a minimum, e.g. buy whole fish and whole chicken rather than fillets and pieces - you'll get better quality, and learn how to fillet and joint like a chef. Whole lettuces last longer than bags of mixed leaves, and unwashed is cheaper than washed. Don't buy ready-made vinaigrette, breadcrumbs, pre-chopped vegetables and pre-grated cheese. It's money down the drain, when you can do it yourself and save.
7. Love your leftovers - Throwing food out is throwing money out. If you do have leftovers, take it for lunch the next day.
8. Steak. Get over it - A plateful of vegies and pulses with a little bit of red meat is a lot cheaper than a plate of meat with a little veg and a lentil. Striking a better balance is better for your pocket and for your overall health. Make fish, chicken and meat go further by adding beans, lentils, chickpeas and rice. Turn your meal - planning around so that the most expensive ingredient is the 'flavouring' rather than the main event.
9. Use eggs and cheese for protein, nuts and seeds for fibre and crunch, and yogurt and avocado for richness. And return to something as beautiful as a great steak-and-red-wine dinner to the special status it deserves... crave it, look forward to it, and enjoy the hell out of it. Just not every second day.
10. Cook your own 'take-away' - Love pizzas? Learn to make your own, or use pita breads as the bases, and get some help from the kids with doing the toppings so everyone has their own. Are you a burger person? Try cooking salmon burgers, chicken burgers, or normal burgers with a bit less meat and more of your other fillings, such as beetroot, avocado, tomato, cheese and lettuce. Craving Greek/Lebanese? Cover the table with little dishes of dips, breads, raw vegetables, herbed rice, and skewers of home-made lamb or tuna souvlaki.
11. Freeze - It's a fabulous feeling knowing you have tubs of chicken stock, pumpkin soup, chicken curry, Bolognese sauce, good bread, etc in the freezer. Frozen bananas make a great instant ice-cream - just soften and whiz.
12. Buy ten get one free - Beware of the supermarket bonus offers, which often tempt you into buying two for one of something you didn't really want in the first place.
For more savings tips, speak to one of our financial advisors at 1300 55 10 45 or visit www.intellichoice.com.au for more details.
Monday, February 1, 2010
Aussies plan to boost savings this year
More than three quarters of Australians who participated in an online poll by News Ltd newspapers plan to increase their savings in 2010. Approximately 76% of respondents said they would build their savings this year, while 35% said they would not be adding to their savings in 2010.
If you are planning on adding to your savings in 2010, speak to one of the financial planners at Intellichoice on 1300 55 10 45 for tips and strategies.
If you are planning on adding to your savings in 2010, speak to one of the financial planners at Intellichoice on 1300 55 10 45 for tips and strategies.
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