Given all the recent discussion in the media abouth the Henry Review we thought it was important to share a summary of proposed changes that will impact on local businesses. Here it is;

1. Changes to Company Taxation

The company tax rate will reduce form its current level of 30% down to 28%, implemented sooner for ‘eligible small business companies’:

2. Changes to Small Business Write-Offs

From 1 July 2012, small business will be able to:
• Write off immediately assets valued at under $5,000 (currently the limit is up to $1,000)
• Write off other assets (i.e. those valued at over $5,000) in one deprecation pool at the rate of 30% (currently they may be allocated to 2 different depreciation pools). This will not apply to buildings.

3. Resource Super Profits Tax

The government’s progress on other elements of its tax reform agenda will be largely dependent on the revenue derived from the RSPT.

The RSPT will be introduced on 1st July 2012 at a rate of 40% on profits made from exploitation of non-renewable resources. It will replace the crude oil excise, and operate in parallel with State and Territory royalty regimes. Under the RSPT a refundable credit for royalties paid to State and Territory governments will be available. The refundable credit will eliminate investment distortions associated with the state royalty systems and ensure there is no ‘double taxation’ of resource profits.

The Government will consult extensively with stakeholders on the design of the RSPT.

Further information on the above changes and the Henry Tax Review can be found under the ‘Strong, Fairer, Simpler’ link contained on the Treasury website, www.treasury.gov.au or follow this link: http://www.futuretax.gov.au/pages/default.aspx

May 17th, 2010 | Leave a Comment »

With the holiday season in full swing, it’s easy to spend more than you realise – which could make it a very lean and difficult start to 2010 if haven’t already put some thought into saving and budgeting.

If you’re already concerned about mounting holiday season debts, there are some sound steps you can take to take control of your finances in preparation for the New Year.

Here are some things to remember when spending money over the New Year holiday period, to help you avoid the debt hangover – and some budgeting tips on how to help get out of it:
1. Your monthly credit card statement will outline the ‘outstanding balance’ and the ‘minimum payment’. You should aim to repay the outstanding balance by the due date whenever possible to avoid paying interest. If you can’t do this, try to pay more than the minimum payment to avoid paying excess interest.
2. Consider consolidating your debts by taking out a personal loan. If you have a large credit card debt for example, you could save a lot of money by paying off your credit card debt and paying back a personal loan at a lower interest rate;
3. Make a budget plan for 2010, be brutally honest with yourself and in detail outline all your outgoings and incomings. Try to set an amount aside each week – and stick to your budget;
4. It may sound obvious, but try to be intentional with your purchases and don’t buy more than you need – especially if you’re using credit.
5. With the money you set aside each week, check out term deposit offerings and put your money to work for you with a great interest rate.
You can access more financial advice through the Take Control series, which includes advice on budgeting & saving, buying a car, buying property, protecting your assets and wealth creation.

January 11th, 2010 | Leave a Comment »

NSW home buyers will benefit from new incentives, with 50% discounts off Stamp Duty. The discount could help you save up to  $11,245 and is applicible for;

- Newly built homes

- For investors buying newly built homes

- Empty nesters buying newly built homes

- Buying off the plan.

The Stamp Duty discount is capped for homes to the value of $600,000, and is has been extended until the 30 June 2010.

You can find out the full details about the NSW Governments Stamp Duty Discount here

December 29th, 2009 | Leave a Comment »

We previously mentioned that over 95% of votes cast by Companion members, voted in favour of the merger of Companion Credit Union and Community CPS Australia. Now we are happy to tell you about some exciting new products, available for our members from 1 January 2010.

New products include;
- Community Account: a transaction account specifically designed for not-for-profit groups such as community and sporting clubs, charities and schools.
- monEsaver Account: a high interest internet and telephone based account.
- Christmas Club Account: a savings account designed to help you save for your Christmas and holiday expenses. It has limited access options outside the festive season to encourage you to keep your money in the account.
- Term Deposits: you can now choose to invest your funds from 3 months up to 5 years
- Lifestyle Rewards: is a reward program for Term Deposit holders. All members will receive an Ambassador Card and Booklet in early January which details discounts at a variety of restaurants, hotels and services.
- Fixed Rate Home Loan: you can now choose to fix your home loan from 1 year up to 5 years
- Enviro Loan: rewards member for purchasing environmentally friendly products by offering a reduced interest rate
- MasterCard: members will be able to choose from a Low Rate and Rewards MasterCard
- Foreign Currency: if you are travelling we will be able to assist you through Travelex foreign exchange.

Members will receive information this week in their member newsletter and full information will be posted on our website in January.

December 7th, 2009 | Leave a Comment »

From today, 1 September 2009, Companion  members will be able to use National Australia Bank (NAB) ATMs without incurring a direct charge fee! 

Therefore, from Tuesday, member withdrawals at a NAB rediATM will not incur a direct charge but will be charged through the monthly fee run at $1.00 each. 

NAB and rediATM have joined forces to create one of Australia’s largest ATM networks.  This means that Companion members will have access to over 3,100 ATMs Australia wide direct charge free!  Approx 1,000 of those are in NSW!

So enjoy the increased access and if you are looking for your nearest rediATM check www.rediatm.com.au

September 1st, 2009 | Leave a Comment »

It has been interesting to read recently about “The Big 4” placing quotas on brokers who want to be able to sell their products.

A good example is that recently one of “The Big 4” wrote to nearly 8,000 brokers, telling them that the had to write at least 4 applications and have at least 3 approved in a six month period to maintain their rights to sell their loans. If they do not comply with this, the broker will have to pay a fee of $500 to re-gain accreditation.

It makes you think, what if you were talking to that broker and looking for the best deal. If that broker had not met his “quota” that month, would you not be steered to a loan for this provider as opposed to another loan that may suit you better?

It seems to me, that if these brokers are acting for a bank that has a minimum quota, that they are effectively just an agent for that bank…not the impartial advisor that they may advertise…

With the introduction of the National Consumer Credit Bill soon and these actions from the large retail banks, I believe the “Broker” industry will have some very challenging times.

The founding principles of the Credit Union movement are based around us being a Trusted Advisor to our members. We do not have “Third Party Quotas” and our staff are not paid by commission. The aim is to ensure we provide you with the best product we can and exceptional service always.

Paul
Lending Manager

July 22nd, 2009 | Leave a Comment »

A new Rural Workforce Strategy will provide $134M over 4 years to attract doctors and other medical practitioners to areas of need. I hope this benefits some of our local areas such as Muswellbrook, Cessnock and other areas of the Hunter Valley that have a Doctors shortage.

Just recently I sat for 5 hours in a hospital waiting room with my wife who had broken her leg, I hope the increase of practitioners helps decrease the waiting times in emergency departments for those in need of help. Do you know of any local areas that could benefit from an increase in doctors?

For anyone with private health insurance this info is for you. The Private Health Insurance initiative, previously in place to encourage participation has been cut back;
- Singles earning up to $75,000 (couples up to $150,000) remains unchanged with a rebate of 20% and a surcharge of 1%
- Singles earning between $75,000 and $90,000 (couples $150,000-$180,000) will receive a reduced rebate of 10%, and the surcharge will be increased to 1.25%
- Singles earning more than $120,000 (couples more than $240,000) will receive no rebate and the surcharge increases to 1.5%

In times of need such as this global recession, private health care should still be encouraged by the federal government. As people look to cut back costs in their home, insurance is something that people may consider suspending until the economy and job market is back on track. My advice is think long and hard before you go down this track.

When it comes to your health it is extremely important you have access to medical procedures as and when you need them, and insurance will help make this possible and more affordable to you if you ever need it. Don’t let the changes to private health insurance discourage you, make

May 27th, 2009 | Leave a Comment »

The Federal Budget has allowed for a Pension increase of $32.49 per week for singles and $10.14 per week combined for couples on the full rate, this is good news to many locals. But the big question is will $10 a week make a big difference to you?

Other big news for older Australians is future retirees will have to work longer before they can receive the pension. There will be an increase in the aged pension from starting from 2017, to 67 in 2023.

Changes to the Age Pension age

So for those of you that were counting down the years to when you hitch that caravan to the back of the 4wd and travel around Australia, you may have to hold off for a little while yet, as mentioned previously this gives you more time to save for retirement but do you really want to be working until you are 67 years of age? Again, it’s a good time to be seeking some assistance in reviewing your retirement plans, and we’d be more than happy to help where we can.

May 26th, 2009 | Leave a Comment »

Some good news! The First Home Owners Grant (FHOG) has been extended for an additional 6 months. From the 1st of October the Boost will halve to $10,500 for established homes and $14,000 for new homes, including the $7,000 First Home Owners Grant.

The FHOG seems to be working as planned by the government in boosting the economy.

Just the other day I saw a 79 year old grandmother was a recipient of the FHOG so lets not forget its open to anyone that has not owned a home before. Over the last 3 months over 44,000 properties have been purchased by first home owners nationally, which is the best result in Australia in over 17 years. So in this respect the grant seems to be working and fuelling the economy.

At Companion we have seen a surge in local first home owners and are happy to say we have helped them into their first home. If you want to know more about the FHOG send me a comment here or call us for a more private chat.

May 25th, 2009 | Leave a Comment »

Some bad news here with regard to the matching of super contributions for workers earning less than $60,342. The governments matching will be reduced from $1.50 for every dollar invested in super to $1 for the next 3 years. It’s been promised this is a temporary measure until 2014 but will still impact on low income earners that are putting away savings for their retirement.

The super contribution cap by salary sacrifice will be reduced from $100,000 to $50,000 for the next 3 years, and further reduced to $25,000 in 2013. For those that had planned on retiring in the next few years and were eagerly putting away your pay, this could impact you and you should investigate other options available.

I suppose one of the small ‘benefits’ of the super changes is that the retirement age to be eligible for the pension is also increasing to 67 years of age, which will mean we have more time to save for our retirement.

With these changes to Super it’s definitely worth while talking to a financial planner, or seeking some specialist advice. If you wanted to do either contact us for a chat and we can help.

Ray

May 22nd, 2009 | Leave a Comment »