2014-15 Federal Budget – 4 Things Students and Young People Need to Know

Vocational Training Is A Winner

Vocational Training Is A Winner

 

The Treasurer has placed quite an emphasis on young people and education this year. Vocational training is the big winner.

1. The government will start viewing vocational training in a similar light to higher education. They will provide apprentices doing a four year training with Trade Support Loans of up to $20,000. Those studying for diplomas and sub-bachelor degree courses will also be eligible for government support.

2. From 2016, universities will be allowed to set their own tuition fees. However, if you are already studying, you are ‘grandfathered in’ until 2020.

3. Fees only become repayable when students are in the workforce and earning over $50,000 per year.

4. Newstart for those unemployed under the age of 25 will become Youth Allowance, while those jobless under the age of 30 face a six-month wait before they can claim benefits.

 

If you want to find out more about how the 2014/15 Budget will affect your financial future, phone Wealthwise on 08 9380 6333 to speak to one of our advisers or use our Contact Form.

For Federal Treasurer Joe Hockey’s full statement check out the government’s budget website.

 

 

 

Merry Christmas From The Wealthwise Team

The Wealthwise team would like to wish all our clients, friends and partners a Merry Christmas and a Prosperous 2014!

We’ll be closed from 5.00pm Friday 20th December and reopen on Monday 6th January, 2014 at 8.30 am.

 

5 Websites To Help Make Your Christmas Special

 

The Wealthwise team have chosen 5 website that we think will help to make your Christmas 2013 special.

1. First up, don’t forget to watch that Christmas classic, the Snowman. A beautiful story and haunting music combine to make it the ultimate feelgood kids movie. 

2. Perth is becoming world-famous for the Christmas decorations outside its private hours. Use this website to plan your tour.

http://www.kids-around-perth.com/christmas-lights.html

3. Music impresario Andre Rieu wowed Perth audiences last month. If you’re suffering from withdrawal symptoms you still have time to register for his Advent Calendar giveaway – concert tickets and music downloads are among the goodies.

http://christmas.andrerieu.com/2013/welcome.html

4. If you’re stuck for last minute festive recipe or activity ideas check out the Christmas ideas section of this popular Aussie site

http://www.kidspot.com.au/christmas/

5. And last, but definitely not least, add to your kids’ Christmas magic by joining NORAD in tracking Santa from the North Pole to Perth.

http://www.noradsanta.org/

Have a great Christmas!

Wealthwise Wins 3 Financial Industry Awards

 

Award-winning Wealthwise Team

Award-winning Wealthwise Team

In the last month, Wealthwise has received 3 prestigious financial planning industry awards.

The company received the Financial Wisdom Quality Recognition  and WA Practice of the Year awards while adviser Paul Turner won the Financial Planning Association’s WA Value of Advice Runner-up.

The Financial Planning Association of Australia (FPA) is the professional association for qualified financial planners in Australia while Financial Wisdom is a financial planning organisation that has built a reputation over the last 18 years for “considered thinking” in offering financial advice.

Because these two organisations have such high standing in Australia’s financial planning industry, Wealthwise see this as a notable achievement.

 “We’re very proud to receive this recognition from our peers in the financial planning industry,” says Jamie Luxton, principal of the Perth-based company. “There are a lot of companies out there doing great work for their clients, so for us to win 3 awards in one month is something very special. We are a very service-focused company and this demonstrates what a great job Wealthwise advisers and office staff are doing for our clients.”

The General Manager of Financial Wisdom, Mark Ballantyne, also congratulated Wealthwise on their achievement:

 “Wealthwise are an active contributor to the Financial Wisdom network and we are pleased that they have been recognised through a number of award. The Quality Recognition Award is voted by the team that audits the files and sets the Licensee Standards we all adhere to so this is high praise. This, on top of Paul Turner’s runner-up in the WA FPA awards and Wealthwise winning the WA State Practice of the Year for Financial Wisdom, rounds out a very successful year for Wealthwise.”

 

Budget 2013 – Throwing The Baby Out With The Bathwater?

2013-14 Budget

As predicted by the pundits, there were few surprises in Treasurer Wayne Swan’s 2013-14 Budget.

Going from a small surplus to a deficit of $18 billion in 2013-14 didn’t seem to raise many eyebrows given the ongoing revelations about the government’s over-optimistic estimates of revenue from the mining industry.

As for the nitty gritty of the budget, It seems to be more of a case of jam tomorrow and a bit of pain today.

The government is promising substantial investment in transport infrastructure  in Melbourne, Brisbane and Sydney (a total of $5.9 billion), $9.8 billion for schools from 2014-15,  a 10% increase in defense spending over 4 years, and $21.4 billion towards the construction of the National Broadband Network (again over a four year period).

However, what might hurt the government most in the forthcoming September 2013 General Election is the measures that will more immediately impact voters. Whatever the electorate might tell polling organisations, in the end, they usually vote with their wallets. Scrapping the cash payment to parents of newborns and capping family payments might not seem a big deal but hitting families is never a good idea in an election year. For those with older kids, higher education will also become more expensive because of $2.3 billion in cuts. Added to that is the 33% increase in the Medicare levy from 1.5% to 2.0%.

The so-called ‘double taxation’ of earnings of more than $100,000 of superannuation pensions will, while only applying to a small number of retirees, be another stick for the Opposition to beat the government.

Taking candy from the mouths of babes and pensioners?  Not an auspicious start to an election campaign.

 

RBA Cuts Interest Rates to Historic Low

Yesterday, the RBA cut interest rates to an historic low of 2.75%

                                                                                                                                                                                                                                                      Governor Glenn Stevens, in the RBA statement explaining the Reserve Bank’s thinking, seemed to be generally

RBA Cuts Interest Rates to 2.75%

RBA Cuts Interest Rates to 2.75%

 upbeat about the Australian economy but again was worried about the high Australian dollar.

As we commented on a previous interest rate cut, when you have the best economy in the world, it’s surprising that the experts are surprised by a strong currency.

Anyway, in the words of Mr Stevens

“The Board has previously noted that the inflation outlook would afford scope to ease further, should that be necessary to support demand. At today’s meeting the Board decided to use some of that scope. It judged that a further decline in the cash rate was appropriate to encourage sustainable growth in the economy, consistent with achieving the inflation target.”

No doubt Reserve Bank will be surprised again in 6 months’ time at the robustness of the Aussie. Maybe they can just copy and paste this from the current press release.

“The exchange rate, on the other hand, has been little changed at a historically high level . . . “

Practitioner Merges With Wealthwise

http://zphq.com/wwtest/wp-content/uploads/2013/02/dale-jamie1.jpg

Practitioner’s Dale Hughes and Wealthwise Principal Jamie Luxton

This month Practitioner has merged with Wealthwise. The transition for clients will be seamless as company founder Dale Hughes will continue to work within Wealthwise.

Dale sees this merger as a great opportunity for Practitioner clients:

“Wealthwise is a multi-award winning company with specialists in many areas of financial planning such as Self-managed Super Funds, superannuation, retirement planning, wealth creation, risk insurance and aged care.

Having access to this wide range of expertise will bring enormous benefits to our clients.”

Wealthwise Principal Jamie Luxton agrees.

“We will continue to give the kind of high quality personal service Practitioner clients are accustomed to. Since 1986 we have built our reputation on our pro-active client-focused philosophy – ‘the Wealthwise Way’ – and we look forward to working with the Practitioner family.”

RBA Cuts Interest Rates to 3-Year Low

Rates Down to 3%The Reserve Bank of Australia today cut interest rates to 3.00% – a level not seen since 2009.

In the RBA press release, Governor Glenn Stevens expressed concerns about growth in the USA, Europe and China (although new figures today show hopes of a sustained Chinese recovery in the manufacturing sector).

The impression you get from the RBA’s statement is that they are surprised that all their recent rate cuts have not succeeded in weakening the Aussie dollar, thereby helping exporters. Their conclusion sounds a bit more hopeful than scientific

“While the full effects of earlier measures are yet to be observed, the Board judged at today’s meeting that a further easing in the stance of monetary policy was appropriate now. This will help to foster sustainable growth in demand and inflation outcomes consistent with the target over time.”

When you consider Australia is the only developed nation not to suffer from a recession, has low unemployment, massive natural resources and a projected net debt of 7.2 % in 2011/12 ( Australian Government Financial Position ) ,  is it really surprising that our dollar is more attractive than its anaemic American cousin?

 

You can read Governor Stevens’ statement in full at the RBA website.

 

 

Wealthwise Client Newsletter – 29th June 2012

 

The Wealthwise weekly newsletter is just a small part of the ongoing service that Wealthwise offers its clients.

 

If you would like to discuss your financial future with one of our advisers call us on (08) 9380 6333 or send us a message using our Contact Us page and we will get back to you.

 

In This Week’s Client Newsletter:

Feature article:

“Superannuation has its limits” – new Concessional Contribution caps

 

Overseas:

Spain and Cyprus asking for bailouts.

Positive housing data from the US

Japan doubles consumption tax.

Gold takes a battering while oil prices stay low.

 

 

Australia:

Household wealth rises

Aussie dollar yo-yo’s.

Pundits predict RBA will hold interest rates at 3.50%

 

Plus all the usual news roundups on the WA Housing Market, Fuel prices,
Celebrity Birthdays and Sports.

 

 

Last Chance to Make Super Contributions Before End of Financial Year

To ensure your individual contributions are receipted in this financial year, we strongly recommend that all electronic super contributions are lodged before Wednesday, 27 June to allow for receipt and processing for end of financial year cut-off – which will be Friday, 29 June.

Payments are finalised when contributions are received into your Fund’s bank account, and NOT when the transfer is made. Cheque payments should also be made as soon as possible to allow for postal time and processing.

Please contact your adviser if you have any questions or call us on (08) 9380 6333.