From Sydney Morning Herald 01/07/09
Reverse mortgages get a lot of attention because they are marketed by financial institutions and sold mostly by advisers on commissions. They are equity-release products where those aged over 60 take out a loan against the equity in their home. The loan is repaid when they sell the home to go into a retirement home, or repaid from the estate when they die. As no repayments are made on the loan, the interest capitalises.
The Australian Securities and Investments Commission has published a booklet on using equity in the home. According to its calculations, someone taking out a $50,000 loan at 60 could owe $232,000 in 15 years' time and more than $1 million in 30 years.
Despite all of the warnings about how quickly the debt can grow, there is no doubt reverse mortgages have a role to play. We have too much of our wealth in the family home and want to maintain our lifestyle in retirement. So it's inevitable reverse mortgages are going to be big business, particularly as commission-driven salespeople are pushing them..................................
Full Article :
http://www.smh.com.au/news/business/money/investment/a-better-pension-bet/2009/06/29/1246127475361.html
Friday, July 3, 2009
Thursday, July 2, 2009
Scammers pose as Australian Tax Office
from news.com.au (01/07/09)
CYBER criminals purporting to be the Australian Taxation Office are using an email scam to fleece consumers.
The fake ATO email, which promises a $250 bonus on top of a tax return, links the taxpayer to an online form that asks for personal details including ATM PIN, credit card details and tax file number. Instead of submitting the form online, the website asks for a printed version to be mailed to an address. Symantec Australia and New Zealand managing director Craig Scroggie said cyber criminals captured the details when the print button was pressed, allowing access to the accounts. "They are targeting a named brand and a trusted brand," he said. The ATO has warned that several similar email scams are in operation, and said people who receive the email should delete it immediately.
Meanwhile, tax cuts of $300-$1500 a year for millions of workers and higher benefits for low-income earners, carers and pensioners begin to flow from today. Pensioners, carers and disability support pensioners will also be able to earn more income and hold more assets without suffering penalty, though their income will not rise until September 1. Low-paid workers will now effectively be able to earn up to $15,000 a year tax-free, under a higher low-income tax offset
CYBER criminals purporting to be the Australian Taxation Office are using an email scam to fleece consumers.
The fake ATO email, which promises a $250 bonus on top of a tax return, links the taxpayer to an online form that asks for personal details including ATM PIN, credit card details and tax file number. Instead of submitting the form online, the website asks for a printed version to be mailed to an address. Symantec Australia and New Zealand managing director Craig Scroggie said cyber criminals captured the details when the print button was pressed, allowing access to the accounts. "They are targeting a named brand and a trusted brand," he said. The ATO has warned that several similar email scams are in operation, and said people who receive the email should delete it immediately.
Meanwhile, tax cuts of $300-$1500 a year for millions of workers and higher benefits for low-income earners, carers and pensioners begin to flow from today. Pensioners, carers and disability support pensioners will also be able to earn more income and hold more assets without suffering penalty, though their income will not rise until September 1. Low-paid workers will now effectively be able to earn up to $15,000 a year tax-free, under a higher low-income tax offset
Wednesday, July 1, 2009
How your life changes from today !
From news.com.au (01/07/2009)
YOU may not have won the $106 million lottery last night but from today you will still receive a (small) share of the Government's $3.4 billion tax cut jackpot.
The new financial year means that the 30 per cent income threshold is increased from $34,000 to $35,000 and the 40 per cent tax rate is reduced to 38 per cent.
An individual on $40,000 a year will get an extra $2.88 a week, while someone on $100,000 a year will get an extra $10.58 a week.
It's not much - even Division 7 in yesterday's lotto draw was worth $13.20 - but it is better than nothing.
The Government is also raising the low income offset from $1200 to $1350.
This means low-paid workers will now effectively be able to earn up to $15,000 a year tax-free.
More assistance for families
In a boost for families, Family Tax Benefit A will rise by $5.60 a fortnight for each child 12 and under and by $7.28 a fortnight for teens aged 13-15.
The baby bonus will increase by $185 to $5185, while childcare benefits for one child using full-time care will increase by $6.50 a week to $180.
The maximum childcare rebate will rise by $278 to $7778 per child per annum.
The Government is also set to decrease superannuation benefits with the contribution cap halved - from $50,000 to $25,000 for those under 50 and from $100,000 to $50,000 for those older than 50.
Another change is that from today the Government will recognise people in same-sex de facto relationships as a couple for social security and family assistance purposes.
These couples will now be required to advise Centrelink of their relationship status and some customers may be shifted from the single to the partnered rate of payment.
Changes have also been made to employee share scheme concessions and the way Australian residents working overseas have to pay tax.
New workplace laws in place
The replacement for Work Choices, the Fair Work Act, becomes operational today, with unions preparing to lodge submissions for pay rises of between four and six per cent.
The Pharmaceutical Benefits Scheme will also see a number of new drugs approved for subsidy, including medication for HIV, malaria, chemotherapy side effects, and osteoporosis.
Bowel cancer patients will also get access to the highly expensive new treatment Avastin for just $33.90, or $5.30 if they are pensioners, The Daily Telegraph reports.
NSW residents to pay more for parking
In New South Wales, the parking space levy is set to increase from today.
In Sydney, North Sydney and Milsons Point the levy will increase from $950 to $2000 a year for each off-street, non-residential parking space.
The levy will rise from $470 to $710 a year in St Leonards, Chatswood, Parramatta and Bondi Junction.
Private car park owners have warned this will add to Sydney's already high parking costs.
It will be illegal to smoke with children under 16 in the car in NSW from today. The penalty for any drivers or passengers breaking this law will be a fine of $250.
In better news, the NSW Government will cut duty by 50 per cent for people buying newly built properties with a value not exceeding $600,000 from July 1.
Victorian first homebuyers get even more cash
From today, first homebuyers in Victoria are eligible for up to $36,500 in grants.
The Victorian Government will provide up to $22,500 for those buying new houses in regional areas and $18,000 for those buying in metropolitan areas. This is in addition to the $14,000 Federal grant.
But water will cost more, with the 50 per cent water concession increased from $189.70 to $216.60. Fees and fines will also become be indexed automatically at three per cent per annum.
Petrol to cost more for Queenslanders
In the Sunshine State, motorists will no longer have their beloved 8.354c-a-litre fuel subsidy.
Rates are also set to soar in south-east Queensland. They will jump 8.7 per cent in Redland, 5.4 per cent in Moreton Bay, 6.45 per cent in Brisbane, 7.5 per cent in the Sunshine Coast and 6.9 per cent in Logan.
Payroll Tax relief in Western Australia
An ongoing payroll tax exemption for wages paid to workers for parental leave and volunteer
emergency services work will commence from today in Western Australia.
A water shortage in Perth has prompted the WA State Government to impose a ban on sprinklers for two months from today.
In addition, its State Government will spend $100 million on a one-off tax rebate for small to medium businesses.
Stamp duty phased out in South Australia
In South Australia stamp duty will be eliminated for mortgages and rentals in a move set to cost its State Government $183 million over four years.
Rate changes in the nation's capital
Residents in the Australian Capital Territory will find their Fire and Emergency Services Levy has increased from $91.20 to $94.60.
In addition, the fixed charges on residential properties in the ACT will rise from $487 to $509 and the fixed charges on commercial properties will rise from $939 to $1040.
Stamp duty changes in the NT
From today all charities in the Northern Territory will be exempt from stamp duty, while non-motorised trailers that weigh no more than 4.5 tonnes will be exempt from motor vehicle registration stamp duty
YOU may not have won the $106 million lottery last night but from today you will still receive a (small) share of the Government's $3.4 billion tax cut jackpot.
The new financial year means that the 30 per cent income threshold is increased from $34,000 to $35,000 and the 40 per cent tax rate is reduced to 38 per cent.
An individual on $40,000 a year will get an extra $2.88 a week, while someone on $100,000 a year will get an extra $10.58 a week.
It's not much - even Division 7 in yesterday's lotto draw was worth $13.20 - but it is better than nothing.
The Government is also raising the low income offset from $1200 to $1350.
This means low-paid workers will now effectively be able to earn up to $15,000 a year tax-free.
More assistance for families
In a boost for families, Family Tax Benefit A will rise by $5.60 a fortnight for each child 12 and under and by $7.28 a fortnight for teens aged 13-15.
The baby bonus will increase by $185 to $5185, while childcare benefits for one child using full-time care will increase by $6.50 a week to $180.
The maximum childcare rebate will rise by $278 to $7778 per child per annum.
The Government is also set to decrease superannuation benefits with the contribution cap halved - from $50,000 to $25,000 for those under 50 and from $100,000 to $50,000 for those older than 50.
Another change is that from today the Government will recognise people in same-sex de facto relationships as a couple for social security and family assistance purposes.
These couples will now be required to advise Centrelink of their relationship status and some customers may be shifted from the single to the partnered rate of payment.
Changes have also been made to employee share scheme concessions and the way Australian residents working overseas have to pay tax.
New workplace laws in place
The replacement for Work Choices, the Fair Work Act, becomes operational today, with unions preparing to lodge submissions for pay rises of between four and six per cent.
The Pharmaceutical Benefits Scheme will also see a number of new drugs approved for subsidy, including medication for HIV, malaria, chemotherapy side effects, and osteoporosis.
Bowel cancer patients will also get access to the highly expensive new treatment Avastin for just $33.90, or $5.30 if they are pensioners, The Daily Telegraph reports.
NSW residents to pay more for parking
In New South Wales, the parking space levy is set to increase from today.
In Sydney, North Sydney and Milsons Point the levy will increase from $950 to $2000 a year for each off-street, non-residential parking space.
The levy will rise from $470 to $710 a year in St Leonards, Chatswood, Parramatta and Bondi Junction.
Private car park owners have warned this will add to Sydney's already high parking costs.
It will be illegal to smoke with children under 16 in the car in NSW from today. The penalty for any drivers or passengers breaking this law will be a fine of $250.
In better news, the NSW Government will cut duty by 50 per cent for people buying newly built properties with a value not exceeding $600,000 from July 1.
Victorian first homebuyers get even more cash
From today, first homebuyers in Victoria are eligible for up to $36,500 in grants.
The Victorian Government will provide up to $22,500 for those buying new houses in regional areas and $18,000 for those buying in metropolitan areas. This is in addition to the $14,000 Federal grant.
But water will cost more, with the 50 per cent water concession increased from $189.70 to $216.60. Fees and fines will also become be indexed automatically at three per cent per annum.
Petrol to cost more for Queenslanders
In the Sunshine State, motorists will no longer have their beloved 8.354c-a-litre fuel subsidy.
Rates are also set to soar in south-east Queensland. They will jump 8.7 per cent in Redland, 5.4 per cent in Moreton Bay, 6.45 per cent in Brisbane, 7.5 per cent in the Sunshine Coast and 6.9 per cent in Logan.
Payroll Tax relief in Western Australia
An ongoing payroll tax exemption for wages paid to workers for parental leave and volunteer
emergency services work will commence from today in Western Australia.
A water shortage in Perth has prompted the WA State Government to impose a ban on sprinklers for two months from today.
In addition, its State Government will spend $100 million on a one-off tax rebate for small to medium businesses.
Stamp duty phased out in South Australia
In South Australia stamp duty will be eliminated for mortgages and rentals in a move set to cost its State Government $183 million over four years.
Rate changes in the nation's capital
Residents in the Australian Capital Territory will find their Fire and Emergency Services Levy has increased from $91.20 to $94.60.
In addition, the fixed charges on residential properties in the ACT will rise from $487 to $509 and the fixed charges on commercial properties will rise from $939 to $1040.
Stamp duty changes in the NT
From today all charities in the Northern Territory will be exempt from stamp duty, while non-motorised trailers that weigh no more than 4.5 tonnes will be exempt from motor vehicle registration stamp duty
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