Here is a quick snapshot of some of the changes: Harder tax time for families This year’s budget was not a typical election year budget instead of vote  pleasing tax cuts, the Government focused on bringing down a “financially responsible budget”, which may be hard on families. Spending increase for education and health There are two areas that will see a increase in spending which are : -  the Gonski Reforms to education at a cost of $9.8 billion over six years and; -  Disability Care Australia costing $14.9 billion over seven years. Both are part of the Government’s aims to build a better smarter and fairer nation. A Huge deficit – more broken promises Bringing in last year’s budget promise to return a surplus [...]

The government has announced recently about the possible changes to the superannuation system. Note, however, that these will have to go through the normal political process first before they finally become a law. Here’s a summary of the said reforms: Superannuation income streams The tax-free status of retirement phase earnings remains but the limit is now up to $100,000 for each member. Anything in excess of $100,000 will be taxed at a rate of 15%. For notional earnings in defined benefit schemes, the same treatment will be applied. Assets acquired after July 1, 2014 will be subjected to a capital gains tax. Meanwhile for those bought before July 1, 2014, special arrangements will apply. Tax treatment of withdrawals won’t be affected by these reforms. Contribution [...]

Did you know that tailored personal insurance super structuring can give you a greater choice and affordability of your life Insurance and Income Protection? If you have known about this before yet have doubts about the possible benefits, then now is the time you consider it seriously. In the past, you only had the choice of providing personal life insurance  products available inside super or establish a stand alone cover outside of super. Either of these drove up costs. You now have an option with Zurich Life Insurance to tailor a policy for your individual needs.   With this new option, creating an optimal mix of protection is a lot easier since you gain more flexibility to structure your  insurance both inside and outside super. [...]

Income protection offers you the financial assistance that you need in case you become incapable to work for a certain period of time due to sickness or accidental injuries. However, not all individuals are qualified to get coverage for this particular type of insurance. Insurance companies in Australia carefully consider your occupation and determine whether you meet the minimum working requirements or not. The minimum working hours for income protection varies from one company to another, but usually they range from 20-25 hours of work per week. To determine the number of hours you need to meet, the insurance provider will take into account your working weeks per year. Of course if you only work for one week per month or 8 hours per week, [...]

With the move of the legislative to preserve the best interest duties of financial advisers beginning July 1, 2013, it’s no longer enough for these advisers to recommend holding life insurance in super based on funding efficiency alone. However, according to Martin Breckon, the technical services manager at IOOF Holdings Ltd, some issues have to be considered and explored before this should be fully implemented. For one, taking life insurance cover in superannuation is convenient. The client no longer has to worry about due dates and paying premiums themselves because here, premiums are paid by regular contributions or by debiting them from the member’s super account. Plus, this offers group life options with auto-acceptance and more affordable premiums and a retail cover that provides customized [...]

 Self-Managed Superannuation Funds represent the fastest growing segment within Superannuation – the average SMSF now has $964,000 in assets. People are choosing SMSF for the following key reasons Having control over there Super Investments and their own retirement destiny Flexibility and investment choices Ability to purchase property and even borrow under some circumstances Able to have cash and direct shares in addition to Managed Funds and ETF’s SMSF can also own and pay for insurance on members Estate Planning – control rests with the surviving trustee, not the trustee of a major super fund SMSF tax returns can be completed in conjunction with personal and business returns to help minimise the excess contribution penalties New superannuation regulations require SMSF trustees to: regularly review the SMSF’s [...]

The Australian Prudential Regulation Authority reported significant losses in the industry. The fiscal year June 2012 was said to have suffered over $110 million in losses. This has prompted an increase in Comminsure income protection premiums and policies. However, the changes will not affect new business rates or policies that date back in 2003 and new business and in-force level premium rates will remain the same. The expected increases are as follow: Premiums for all lifetime benefits – 30% Pre-1997 legacy IP and Income Care benefit periods for aged 50-65 – 15% 1997-2003 income care policies for aged 49 and above – 7.5% All legacy income protection policies for professionals – 15% (regardless of benefit period A letter will be sent to affected clients informing [...]

Several insurance protection options are available. There is the Worker’s Compensation, Income Protection, Disability Income Insurance, Sickness & Accident Insurance, Accident & Illness Insurance and Injury & Illness Insurance. Each one is about cover in case of an illness, injury or death but means differently over the other.   What is Worker’s Compensation/Work Cover?   As a waged employee not working under an owned ABN, your employer has to have you covered under the Workers Compensation Insurance. It is an employer’s obligation to ensure that employees are protected in case of illnesses or job-related injuries.   Worker’s Compensation is a State Government body that mandates insurance for workers but unlike income protection, it covers medical and rehabilitation (if needed) expenses and an income generally up to $52,000 [...]

About 3% of income protection policies in for some changes save for new business rates, 2003-drafted policies and new business and in-force level premium rates. The changes are brought about by the Australian Prudential Regulation Authority report of over $110 million losses as of FY June 2012 and increased claims.   The effects will be felt by certain clients and those who are re-pricing on the following:   Lifetime benefits                         ____________________________                         30% Age 50-65 benefit periods (IP and Income Care written pre 1997)                            15%                                Income Care policies written between 1997-2003 for Age 49 +                                7.5% Legacy income protection for professional occupations       ____                              15%                         The effective date of the changes is on 18 May 2013 and starting 2 April, affected clients will receive information letter [...]

Recently, more men in Australia are being diagnosed with prostate cancer, said to be the primary cause of cancers. Reportedly, it was the reason for about 30% of tumours in 2006. This is likely the result of prostate specific antigen (PSA) testing in asymptomatic men. Normal and abnormal tissues produce PSA that increases with the growth of prostate in older men, in benign conditions like Benign Prostatic Hypertropy or in prostate cancer. There are pros and cons in PSA testing hence the controversy behind its purposes. Understanding them could help you understand the risks and the treatments involved in prostate cancer. In every 100 men with prostate cancer who undergo radical prostatectomy, 1 dies after the operation. A big percentage suffers from erectile dysfunctions while [...]