The education tax refund has been instigated by the Australian Government to assist with the growing costs of educating primary and secondary school children. It allows parents, carers and independent students to claim money back on a multitude of items such as:

• Laptops
• Educational software
• Textbooks and stationery
• Some uniform items

In some instances you may get 50% of your money back if you have kept all your reciepts.

How much can I claim?

The refund is capped at $409 for primary school students and $818 for high school students based on a 50% refund for expenses up to $1636.

Am I eligible?

Conditions apply for the Education Tax Refund. The main criteria is you received Family Tax Benefit Part A. The government have put up a dedicated website to help people determine their eligibility

Shocking rebate facts…

Recent research by the Herald Sun details that more than $300 million in refunds is going unclaimed yearly. Treasury analysis shows 600,000 eligible students failed to claim – that figure represents one in four children eligible are not receiving the refund. Are you one of these people?!?

Further Reading:

“ A simple example of how the ETR Works” – Education Tax Refund Website.

“Family Tax Benefit Part A” – Centrelink.gov.au

By Amy Flett – Client Services Officer

Raelene is recognised as one of Australia’s greatest track and field athletes, winning Seven Commonwealth Gold and three Olympic Silver medals. Raelene was unlucky to miss out on the ultimate accolade – Olympic Gold.

Raelene was just beaten for Gold at the Munich Olympics in 1972 by East German Renate Stecher, a woman later caught up in the drug controversy surrounding all East German athletes. At the 1976 Montreal Olympics, Raelene was disqualified for 2 false starts.  Later film footage show that she had not jumped the gun on the first start.  Despite injury and disappointment, Raelene kept running. In 1982 she finished her athletic career in a high with a gold medal at the Brisbane Commonwealth Games before a packed home crowd.

Since completing her illustrious  track and field career Raelene has overcome many other challenges. In 1996 she was diagnosed with breast cancer and then a few years later with ovarian cancer. Raelene will be joining us to talk about her sporting career as well as fights with breast and ovarian cancer.

Click here to reserve your seat to this special event

The Income Solutions team would like to wish you a Merry Christmas and happy New Year.

Our offices will be closed from Friday the 23rd of December until Monday the 9th of January 2012.

All the best,

Since the financial crisis in 2008 US companies have been storing massive cash reserves. This comes down to fear that by investing their cash they are not going to get their desired return on their investment.
“Corporations in the US are probably in the best shape they have ever been in”, according to Byron Wein of Blackstone Advisory Partners. If only the corporations put their cash to work they would be able to create more jobs without putting the government in more debt, thus improving their economic position.

The only way the US is going to recover is if the people and companies regain confidence in their own country. Currently, the US is only operating at about three quarters of their capacity.

Australians during the last few years have managed to get a hold on their debt situation. Borrowings have stalled significantly. This is then reflected in the household savings rate. On average Australians are currently saving 10% of their disposable income, this is a dramatic increase from recent years.

Australian non-financial sector companies have also significantly reduced their debt. The debt to shareholders ratio of Australian ex-financials currently sits at just over 20%, whereas World ex-financials have a debt to shareholders ratio of 40%. Australian ex-financials are leveraged at half the rate of that from the rest of the world. This is not saying the 40% leverage rate is bad for the World ex-financials but shows the incredible strong positions Australian ex-financials are in.

There will continue to be volatility in the market but when confidence increases across business and the populous this will create new growth and opportunities.

The message for investors is to hang in there.

Reference Source: Australian Financial Review – Tuesday 8th November 2011, pg65

By Elise Ryan Para-planner

The competition had many entries and the lucky winner was David Fursland. He won an iPad2 and collected it last week.

In the coming weeks we are going to launch another Facebook competition so stay tuned to our website and Facebook page.

Most of us look forward to this long retirement; a period in our lives that is finally all about us. Work commitments have finished and children have flown the nest. Things that may have been put off due to a lack of time are now doable – but how can we ensure there is enough money to fund these dreams? The short answer is planning, but to plan successfully some key questions need to be asked:

- At what age do we want to retire?
- What type of lifestyle do we want in retirement?
- Where is the money going to come from (super, investments, or the Age Pension)?
- What major lump sum expenses are we likely to incur (travel, car upgrade, house renovations etc)?
- How much income is needed to do the things we want to do?
- How long do we need the income to last?

Increased life expectancy means that superannuation and investments play a vital role as the ability to rely on the Age Pension to fund the lifestyle that you want is simply not possible.

It is never too soon to start thinking about the important questions. The earlier that you begin to plan the more enjoyable the journey towards retirement can be and the more fulfilling retirement itself will be.

By Associate Financial Planner Gareth Daniels

1. Increasing the repayment frequency
2. Increasing your repayment amount
3. Crediting your entire salary into a 100% offset account
4. Paying the majority of your living expenses with a credit card (provided the credit card is repaid within the interest-free period).

The case study below illustrates how you can reduce your home loan faster by adopting the above features.

To see how you can reduce your debt quicker and open up your opportunities, feel free to contact us.

Case study courtesy of: MLC – Smart strategies for using debt 2010

By Certified Financial Planner Jessica Hall

To the casual observer, the newspaper headline is what they will read and remember, but the truth is much more positive.

The capital value of shares will go up and down, but in the long term due to human endeavours, initiative and our need to consume, the market will continue to grow.

in•vest•ment – investing of money or capital in order to secure profitable returns, especially interest or income. An investment is the key to long-term success.

If you listen to these headlines, and buy and sell as a result, you are no longer an investor but playing a speculative game. It is within the article hidden below the headlines that contain the facts that can be easily forgotten. Facts including total dividends paid this past financial year (2010/2011) rose by 9.1% to $18.4 billion. This is an incredible result, and one that outlines why we should be owning these companies, not letting the fear of a headline hold us back from determining our own financial future.

By David Ramsay

3. Don’t be afraid of market fluctuations
Many people get swept up in media hype when there are periods of volatility and fluctuations in the financial markets. Without some financial know-how, it can be easy to believe that the world is about to end! Indeed, some people are so afraid of normal market volatility that they avoid investing in the share market. Over the long-term, the share market can offer one of the most powerful tools for creating wealth for the future, if you can hang in there and weather the volatility storms.
4. Develop a financial plan
Trying to achieve financial goals without a financial plan is like trying to find a street in a foreign city without a map. The chances that you’ll find your way are very slim! A financial plan can help you to navigate your finances through the short, medium and long-term. They can help you map your wealth future with a financial plan while being your trusted guide along the way.

5. Protect your most valuable asset – YOU!
You and your ability to earn an income are the most valuable assets you and your family have. You should ensure that you have enough life insurance, TPD, Critical Illness and income protection to look after you and your family should the worst happen, or if you should be unable to work due to illness or injury. Don’t leave your family vulnerable; make sure you’re protected with adequate insurance!
6. See an Income Solutions financial adviser
Unlike most other financial advisers, Income Solutions financial advisers are fee for service and don’t charge commissions. You can always be confident that we’re acting in your best interests when formulating your financial plan, specific to your own needs and goals.
Book your first complimentary appointment with one of our financial planners today.

By Shylesh Sriranjan

Following from my previous blog, once you have decided there is merit in seeking professional advice, consider some key points when selecting your adviser:

1 – Qualifications: What study has your adviser undertaken to ensure that they have sufficient knowledge to be advising you in the areas that they claim to be able to help you? An Advanced Diploma in Financial Planning (ADFS) should be a minimum. Also look for the Certified Financial Planner mark (CFP) the top qualification in the profession and the hardest mark to maintain. These advisers are considered the cream of the profession.

2 – Experience: Having the certificate is important, but how much real world experience does the adviser have? Either the adviser or the collective experience within in the firm should be substantial enough for you to have confidence in the advice and its relevance to your situation.

3 – Reputation: Utilise media, web based and traditional as well as word of mouth and personal referrals to build a picture of the adviser and their business.

4 – Detail: How much effort does the adviser put in to finding out about you? The best advice is tailored to your situation and helping you achieve your goals. It should be about strategy not simply product. The best advisers should have an engagement process that provides ample opportunity to build a relationship and really understand what it is you want to achieve. The more details gathered at the start of the process the more appropriate the advice that is ultimately recommended.

5 – Availability: It’s your money and your future. Is your adviser readily available for you to ask questions and to talk things through? Do they approach you for a regular review or do you feel like you are chasing them for appointments? If you currently have an adviser, when the crisis hit were they on the front foot, working through any problems with you or did they simply go missing? Do they provide enough opportunity for you to get the information that you want from them or the education that you feel you need.

You are an expert in your field, give serious consideration to engaging an expert in the field of financial planning, it unlikely to be enough to rely on friends, relatives or information on the internet. Any fees paid to an adviser should come back to you many times over as the adviser helps you lead the lifestyle that you want.

Don’t be afraid to interview your potential adviser, you are employing them after all. Consider their level of qualifications and experience and, where possible, try and speak to existing clients. The most appropriate adviser for you is unlikely to be one that simply tells you what you want to hear; they should provide you with the opportunity and the tools to develop a level of understanding that means you are making informed decisions relating to your finances and how best to achieve your goals.

By Gareth Daniels