High carb diet worse than high fat, study shows.

Health experts have controversially called for an overhaul of dietary guidelines after a large international study found a diet high in carbohydrate is associated with greater risk of premature death, not a diet high in fat.

A study of more than 135,000 people from 18 countries, published in the respected medical journal The Lancet, found diets high in carbohydrates were associated with a 28 per cent higher risk of death, compared to low carbohydrate diets.

Diets with a high total fat intake were associated with a 23 per cent lower risk of death, compared to low fat.

“Total fat and types of fat were not associated with cardiovascular disease, myocardial infarction, or cardiovascular disease mortality, whereas saturated fat had an inverse association with stroke. Global dietary guidelines should be reconsidered in light of these findings,” the authors concluded.

The current guidelines recommend that 50-65 per cent of a person’s daily calories come from carbohydrates, and less than 10 per cent from saturated fats.

The study found the average global diet consisted of at least 60 per cent carbohydrate.

In light of the findings, lead author Dr Mahshid Dehghan at McMaster University, Canada would like the carbohydrate recommendation reduced.

“The current focus on promoting low-fat diets ignores the fact that most people’s diets in low and middle income countries are very high in carbohydrates, which seem to be linked to worse health outcomes,” Dr Dehghan said.

“A certain amount of carbohydrate is necessary to meet energy demands during physical activity and so moderate intakes, of around 50-55 per cent of energy, are likely to be more appropriate than either very high or very low carbohydrate intakes,” he added.

The study conclusions have received a mixed reaction from Australian health experts.

Dr Alan Barclay is a consultant dietitian and nutritionist and a Research Associate at the University of Sydney, and says it is an observational study which only shows associations, not proven causes.

“The conclusions of the paper are overstated, a major overhaul of existing dietary guidelines is not warranted based on this additional evidence,” said Dr Barclay.

Professor Amanda Lee – a senior advisor at The Australian Prevention Partnership Centre – says a major limitation of the study is that it does not mention what foods the macronutrients came from.

The experienced nutritionist suggests that it’s carbohydrate from added sugars and refined grains that is “problematic” and said the findings may not translate in Australia.

“The upper levels of intakes of carbohydrate reported in the study are much higher and the lower intakes of fats are very much lower than consumed here,” Prof Lee explained.

However, Professor John Funder at the Hudson Institute of Medical Research says what the study shows is that fats – saturated, mono-unsaturated and polyunsaturated – are not the “no-no” most people have been brought up to believe.

“So go for dairy, olive oil and even the occasional wagyu beef burger, have lots of grains, fruit and vegetables, and lay off the sweet stuff – especially the empty calories in the 16 teaspoonfuls of trouble in sugar-sweetened soft drinks,” Prof Funder said.

 

Sarah Wiedersehn (Australian Associated Press); (Article source here)

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Things to think about before helping your kids buy a home.

House prices have risen hugely in Australia in recent years, especially on the Eastern seaboard. This has led to a lot of parents helping their children to afford their first homes. But this isn’t always as sensible and straightforward as it seems – there are a number of things parents should be thinking about before taking on such a big commitment.

How safe is it to be a guarantor?
Many parents now act as guarantors to enable their children to buy their first properties. This often reduces the cost of the child’s mortgage, as it is secured on their parents’ home as well as their own. This is why it’s a big risk to take. In the event of your child being made redundant or falling ill, they may find themselves unable to keep up with the repayments. The responsibility then falls on the guarantor – in extreme cases, the parents can lose their own home.

Acting as a guarantor on your child’s mortgage can also affect your own ability to borrow. If you need to take out a loan for something else, the additional risk of your child’s property may cause lenders to decide you won’t be able to repay another loan and turn down your application.


Is it a good idea to pay your child’s deposit?
Paying a deposit on your child’s property helps them with the initial outlay and then leaves them with sole responsibility for paying the mortgage. This is often seen as a more responsible option, particularly as it’s all legally documented – you have to sign a statutory declaration stating that your child is not expected to repay you for the cost of the deposit. Banks look upon it as a gift, and it can also be a good way of preparing your child for the financial responsibility of a mortgage, as they are likely to have to keep the money in their bank account for a period of time – usually three to six months, depending on their mortgage lender and policy. This is to demonstrate to the lender that they are capable of being sensible with their money, so they’re likely to be able to pay back a home loan.

However, it’s not without risk. For a start, if your child ends up getting divorced, the money you have invested in them could ultimately go to their ex-spouse. The other main problem is that many parents are over-generous in the properties they pay deposits on. This can cause future financial hardship for their children, who end up living in properties they can’t afford to run.


What about going into partnership with your child?
Some parents now choose to buy a property in partnership with their children, but like all partnerships, this can have its own problems. Your child may meet a partner who ends up moving into the property with them, at which point they’re likely to want to make changes and have more financial control over their home.

There’s also the risk of either the parents or child being tempted to draw equity from the property to pay for something they want, which can cause feuds within families and leave everybody’s financial security at risk.


Where’s the money coming from?
If you plan to help your child financially, you have to think carefully about where you’re going to get the money from. A lot of parents now are drawing money from their superannuation accounts to help their children buy property. If you go down this route, you need to take into account the fact that you’re likely to live longer than previous generations, and you may need the extra money to pay for your own care in old age.

Some parents are getting round this by having a “granny flat” arrangement, where they sign their property over to their child in return for the child agreeing to care for their parents when they’re old. However, this can cause problems where there is more than one child in the family – you want to be able to treat all your children equally, but you can only sign the property over to one of them.


Get the right advice
Ultimately, if you do intend to help your adult children get onto the property ladder, the right solution is something for you and your children to work out between you. As with all financial arrangements, it’s highly advisable to seek independent financial advice and make sure everything is documented legally, so there can be no disputes in the future.

It’s also worth remembering that not all support has to be financial – your child can benefit just as much from your help with saving tips and drawing up a financial plan to make sure they stay on top of their home loan repayments. This can also bring you closer to them, as sometimes it’s worth more than money just to know you have someone on your side to help you make those big decisions.

 
(Feedsy Exclusive);(Article source here)

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Running a small business? Here’s how to maximise your tax benefits.

For many small business owners, ensuring your tax obligations have been met can be a frantic time. The stress can be alleviated if you do a little planning – before you sit down with your accountant, it’s worth making sure you’ve got all the information in place that he or she will need in order to make sure your business meets its tax obligations. Here’s our guide for small business on maximising tax benefits.


What information do I need to provide? 

The Australian Tax Office (ATO) requires various information from small business owners. It’s important to know what all these documents are so you can have the relevant information ready for your accountant.

  • Profit and Loss Statement – this is a summary of your business’s income and expenditure for this financial year.
  • A summary of your debtors and creditors.
  • Records of any assets you’ve purchased or improvements you’ve made to existing assets – this will enable you to calculate depreciation expense claims and work out how much Capital Gains Tax you owe.
  • Conduct a stocktake – this is an ATO requirement. The value of stock that you record in your accounts by the end of June will be included in your profit figure, and will therefore affect the amount of tax that you have to pay. However, you are exempt from conducting a stocktake if you believe there is less than $5,000 difference from your stock value last year.
  • Lodge your yearly reports for PAYG, Fringe Benefits Tax, Goods and Services Tax, and the taxable benefits reporting system.
  • Lodge your income tax returns.
  • Make sure you meet the requirements of SuperStream, the data and payment standard that you have to use to make superannuation contributions for your employees. All your employees’ details and payments must be up-to-date.

Essential information to prepare
This process can be made much easier if you make sure your records are up-to-date in advance. Before you meet with your accountant, check that all the information in your Business Activity Statement (BAS) is current and correct, as well as completing your PAYG reconciliations. If you have a Self Managed Superannuation Fund (SMSF), you’ll also have to make sure all your earnings and tax obligations are worked out correctly.
Ensure that your invoices are all in good order, as this will make life easier for you and your accountant when putting your financial statements together.

As tax laws can change quite dramatically from year to year, it’s important to stay up-to-date with current legislation. Discuss any change with your accountant to find out how you can best make it work for you.


Potential areas for savings
In order to complete your profit and loss statement, you will need to chase any outstanding payments from your customers. However, it may not be possible for you to recover them all – if this is the case, you may be able to write them off as bad debts. This will enable you to claim a tax deduction.

It’s also important to work out whether it’s worth spending out at this time of year on items you need for your business, or making extra superannuation payments. This year in particular, it’s worth purchasing as much essential equipment as possible, due to the $20,000 instant asset write-off scheme being in place for another year. If any of the equipment you need to run your business requires an upgrade, now is the time to replace it. You will only be able to claim for $1,000 of assets next financial year.

Another way to reduce your taxable income for the coming year is to consider pre-paying for services up front, such as paying in advance for 12 months’ worth of rent or insurance. You’ll always need these services, so it’s a good idea to use them to reduce the amount of tax you have to pay.


Questions to ask your accountant
It’s important to make sure you’re getting the best deals from your service providers. Have a look at how much your business is spending on banking, broadband provision, and insurance, and check if savings could be made in any of these areas by switching to another provider.

This is also a good time to have a look at the overall financial health of your business with your accountant. Looking at the figures for this financial year will enable you to see which areas of your business have grown and where improvements need to be made. This way you will be able to make accurate financial projections and budget more efficiently for the year ahead so you can set realistic goals for where you want your business to be in 12 months’ time.

 

If you have any more questions, feel free to drop us a message or give us a call and we’ll be very much happy to assist.

(Feedsy Exclusive); (Article source here)

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Why is it worth paying extra for life insurance?

There are a huge variety of life insurance products on the market. Some seem to cost a lot more than others. Do the cheaper options really provide value for money?

The types of life insurance cover
Life insurance is there to provide an income for you or your family if you were to become seriously ill, be injured in an accident or die unexpectedly. In order to choose the right policy, it’s important to look at your individual circumstances and decide what type of cover you need.

There are four different types of cover that are all classed as life insurance. It’s possible that you might even need more one of these:

  1. Life cover: This pays out a fixed amount of money when you die to the people you have named as your beneficiaries.
  2. Total and Permanent Disability cover (TPD): This type of cover pays out a lump sum to you to help with your general living costs and rehabilitation if you become totally and permanently disabled. Many life cover policies also include TPD.
  3. Trauma cover: Also known as critical illness cover or recovery insurance, this helps with your living costs if you are seriously injured or diagnosed with a specified, life-changing illness such as cancer or a stroke.
  4. Income protection: This provides you with the income you will lose if you are unable to work as a result of illness or injury.


What you should look for in life insurance cover
As everyone’s circumstances are different, you need to look for a policy that meets your individual needs. Firstly, the policy needs to be affordable, as you may not be covered if you default on any of your premiums.

However, that doesn’t mean the cheapest options are always a sensible choice. You need to make sure the policy will pay out enough money for your dependants to survive on if your income was no longer there. Take into account all your expenditure such as your home loan, household bills and your children’s education – do your dependants have enough in savings and investments to cover these costs? Your life insurance policy should be able to make up the shortfall.

Don’t forget, you may already have life insurance cover through your super fund. Before you purchase a policy, you should check if you have this cover and if it meets your needs.
If you do intend to purchase a life insurance policy, it’s important to shop around and compare what different providers are offering to make sure you’re getting the best deal.


The pros and cons of cheap life insurance policies
Cheap policies are often known as “term insurance.” It is possible to get a good deal this way – many low-cost policies do offer large payouts. However, it’s important to be aware of the conditions attached.

Term policies are flexible as you can choose when you want cover – you’re only covered for the amount of time you keep paying your premiums. If you stop paying, however, and then want to resume your cover at a later date, it’s likely to be more expensive as your increased age will make you more likely to make a claim. This is linked to another disadvantage of term policies – they have time limits. When your policy runs out, you may find yourself having to pay a lot more to get a new policy.

In addition, term insurance policies do not give refunds – if you outlive the term of your policy without making a claim, or if you change your mind and want to cancel your policy, you won’t get back any of the money you’ve paid in.
You should also be aware of cheap joint policies – these often do not offer the same amount of cover for both partners. One of you could be left without insurance if the worst were to happen.


Do you need different cover depending on your life stage?
Your life insurance needs will change throughout your life, so it’s important to have a policy that’s appropriate for your age and personal circumstances. A cheaper policy can make sense if you’re young and single, as you have no dependents. As you get older, however, you’re likely to have more financial obligations. A partner and children might well have to be factored in, as will commitments such as a home loan, so you’ll need a higher level of cover.

However, later in life, you may be able to revert to a less expensive policy, as your children will have left home and your mortgage will be paid off. In this case, your level of expenditure is lower. This means you and/or your partner would need less income in the event of you not being able to work.

Please remember, however, that life insurance policies get more expensive the older you are when you apply. Statistically, you’re more likely to run into health problems as you age, which means you are more likely to make a claim.


Should you regularly review your cover?
As your personal circumstances change, your insurance needs will too. This is why it’s essential to review your cover regularly to check it will provide you with the level of protection you need. This is particularly important during major life changes such as having a baby, taking out a home loan or changing your employment status, for example, if you decide to start your own business.

Life insurance is there to help you meet the challenges and experiences of life without having too much financial worry. This is why it’s vital to get it right and to seek advice.

 

(Feedsy Exclusive);(Article source here)

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