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How to modernise your kitchen on a budget.

A new kitchen doesn’t have to cost the earth. Check out these savvy ideas for an updated kitchen with an old-fashioned price tag.

If you want to modernise your kitchen but you’re concerned about the cost, don’t be dismayed. There are many ways to get a new kitchen without destroying your bank balance.

Downgrade to upgrade

Saving money doesn’t mean you have to compromise on everything in your new kitchen. Select a few fittings or features that you want to spend a little more on, then budget in other areas. For example, if you have your heart set on a granite benchtop, perhaps you could have a tiled splashback instead of a glass one. By choosing one or two standout features, you can still achieve the ‘wow factor’ you’re looking for.

Don’t move mountains

You can save on electrical and plumbing contractors by working within the design of your existing kitchen. Keep your sink, oven and gas hotplates in their current positions, to minimise structural and design costs.

Buy off the shelf

It can be expensive to get cabinets, shelves or tables custom-made. While this may be your only option when you’re working with an unusual space, it might still be possible to buy some fittings off the shelf.

Stores such as Ikea and specialist kitchen suppliers sell flat pack or modular cabinets that you can assemble yourself, which should cost less than hiring a professional installer. Also, think of creative alternatives – if your dream kitchen has an island bench, why not consider a small table or a unit on wheels instead, for a relaxed country feel.

Refresh rather than renovate

Before you gut your entire kitchen, consider whether you would be happy with just a few changes. Refreshing the cabinets with new handles and a lick of paint can change the look of a room entirely.

Other low-cost changes that can lift your kitchen include replacing the benchtop, installing new window blinds and modernising the light fittings. Laminate has also had a revival, with stylish colours and designs that may just transform your kitchen at minimal expense.

Net a bargain

The internet is a treasure trove of bargains, but it’s not just the large retail stores that offer special deals online. Many individuals and small businesses offer surplus stock or items they simply don’t need on sites like Gumtree and eBay. You’ll be amazed at what people will sell for a fraction of the original cost.

Recycle

Just because you want a new kitchen doesn’t mean you can’t salvage some of your current fittings. Perhaps your tapware has hipster retro charm, or you have hardwood boards hidden beneath your lino flooring. Look at your existing kitchen objectively before you start throwing anything out.

DIY

While you may not have the time or skill to DIY everything, you may be able to save some dollars by splitting the workload with your tradies. Paint the walls on the weekend or tile the splashback, and you’ll have the satisfaction of knowing you did it yourself.

Creating your dream kitchen without breaking your budget is certainly possible. Don’t be overwhelmed by the initial quotes, just look at where you can make little changes without compromising on your vision.

When planning your renovation, contact your mortgage broker to find out how they can help you get into your new kitchen.

 

 

Article source here.

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Child care benefit and rebate

Raising a family can be one of your toughest, but most rewarding experiences. The decision to return to work after a given period may be due to one or a culmination of many factors. For example:

  • The child reaches a certain age and you have more free time
  • The added income to the household to help reduce debt, accumulate wealth and plan for retirement.

When you do decide to return to work, you may need to consider your options for child care.

In recognition of the costs associated with child care, the Government provides eligible families with financial assistance payments, such as the Child Care Benefit and Child Care Rebate.

Please note: From July 2018, the Child Care Benefit and Child Care Rebate will be replaced with a single Child Care Subsidy. Under the new system, families with an adjusted taxable income equal to or lower than $65,710 could receive a subsidy of 85% of the actual fee charged, up to an hourly fee cap. The subsidy will taper down as a family’s adjusted taxable income increases, reducing to nil at $350,000.

Child Care Benefit

The Child Care Benefit helps with the costs for approved or registered child care. To be eligible for the Child Care Benefit, certain criteria apply. For example:

  • Your child needs be attending approved or registered child care
  • You need to ensure that your child meets the immunisation requirements
  • You must be the person responsible for paying the child care costs
  • You meet the residency requirements
  • You must meet the income test (for approved care only).

The payment options for the Child Care Benefit can be:

  • Fee reduction (approved care only). Paid directly to your chosen child care service provider to reduce the child care costs you pay throughout the year.
  • Lump payment. You pay the full child care costs throughout the year and then lodge a claim at the end of the financial year to receive a lump sum payment.

To claim the Child Care Benefit, you will need to apply online or in person through Centrelink.

Approved Care
Approved care is where a child care service provider has been given approval from the Government to pass on the Child Care Benefit to eligible families.

Examples of approved care may include long day care, family day care, in-home care and occasional care to name a few.

If you intend on using an approved child care, the Child Care Benefit can generally assist with:

  • Up to 24 hours per child per week for all eligible families, or
  • Up to 50 hours per child per week if, for example, you and your partner are working, looking for work, training or studying for at least 15 hours per week or 30 hours per fortnight. You may also be eligible if you meet an exception.

For the 2017-18 financial year, the approved care rate for a non-school aged child is $4.30 per child per hour, or $215.00 per week. Whereas, for school aged children, the applicable payment rate is 85% of the non-school aged approved care rate.

It’s important to note that you may receive a different approved care rate depending on your circumstances. For example, the rate payable will depend on your household income, number of children attending child care (and, their hours of attendance), the type of child care service and any special circumstances that may apply.

In terms of the Child Care Benefit income test for approved care, the maximum rate is payable if your family’s adjusted taxable income is less than $45,114 per annum. However, you won’t be entitled to any Child Care Benefit for approved care if your family’s adjusted taxable income is more than the following thresholds:

  • One child and a household income greater than $156,914.
  • Two children and a household income greater than $162,633.
  • Three children or more and a household income greater than $183,655 (plus $34,724 for each child after the third).

Registered Care
Registered care is where individuals are registered with Centrelink as registered care providers.

Examples of registered care may include preschools, kindergartens, outside school hours care services or child care provided by grandparents/relatives/friends/nannies to name a few.

If you intend using a registered child care, you can receive the Child Care Benefit up to 50 hours per child per week if, for example, you and your partner are working (or looking for work), training or studying in the week that child care services are provided. You may also be eligible if you meet an exception.

For the 2017-18 financial year, the registered care rate for a non-school aged child is $0.719 per child per hour, or $35.95 per child per week. Whereas, for school aged children, the applicable payment rate is 85% of the non-school aged registered care rate.

It’s important to note that you don’t need to meet an income test to qualify for the Child Care Benefit for registered child care.

Please note: Your Child Care Benefit may still be paid if you’re charged for child care when your child is absent on a day that they would have usually attended. The annual limit of approved care is 42 absences per child per financial year; however, other conditions apply for occasional care. There is no absence limit for registered care.

Child Care Rebate

The Child Care Rebate is an additional payment to the Child Care Benefit, that helps with the costs for approved child care. To be eligible for the Child Care Rebate, certain criteria needs to be met. For example:

  • You child needs to be attending approved child care
  • You claim and are eligible for the Child Care Benefit for approved child care, regardless of whether your income is over the income thresholds to receive a payment
  • You and your partner are working (or looking for work), training or studying in the week that child care services are provided (unless you meet an exception)
  • You need to ensure that your child meets the immunisation requirements
  • You must be the person responsible for paying the child care costs
  • You meet the residency requirements.

To claim the Child Care Rebate, you’ll need to first apply online or in person through Centrelink for the Child Care Benefit. During this process, you will automatically be assessed for the Child Care Rebate and payment will commence upon being deemed eligible.

The payment options for the Child Care Rebate can be:

  • Fee reduction. Paid directly to your chosen child care service provider to reduce the child care costs you pay throughout the year.
  • Paid to your nominated bank either fortnightly, quarterly or annually (if you opted for this option with your Child Care Benefit, then it will also apply to your Child Care Rebate).

For the 2017-18 financial year, the Child Care Rebate can assist with up to 50% of your out-of-pocket costs associated with child care, i.e. total child care fees less any Child Care Benefit payments and Jobs, Education and Training Child Care Fee Assistance received. This is capped at an annual limit of $7,613 per child.

It’s important to note that you don’t need to meet an income test to qualify for the Child Care Rebate.

Please note: Your Child Care Rebate may still be paid if you’re charged for child care when your child is absent on a day that they would have usually attended. The annual limit of approved care is 42 absences per child per financial year.

These Government financial assistance payments may help make the transition back to work easier for your household.

You may also find our article, ‘Parents returning to work’ useful, this runs through other things to consider when returning to work such as reviewing your personal insurances and your Will, as well as your superannuation.

Article source here.

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Personal insurances: Completing a pre-assessment

In terms of the personal insurance process, prior to the recommendation of advice and subsequent formal insurance application, a great deal of time is spent conducting research into insurers (and their offerings).

As it stands, numerous insurers operate in the personal insurance space. Whilst the insurer offerings can often be quite similar to one another in terms of form and function (e.g. types, levels, features and structures available), there can frequently be differences in how insurers assess an individual’s formal insurance application. The reason that these differences can arise are mainly due to the specific underwriting guidelines that each insurer has in comparison to one another.

For example, one insurer may assess a particular individual’s circumstances (e.g. occupational duties, pastimes, current health and medical history – including family history) as a medium to high risk. Whereas, another insurer may assess these same circumstances as a low to medium risk. The potential outcomes regarding an assessment of an individual’s formal insurance application can be that the former may apply revised terms (e.g. a loading, exclusion or decline on cover), whilst the latter may accept at standard rates.

Despite the above example, it’s important to note that this may not always be the case. In some instances, insurers may view a particular individual’s circumstances in a similar way or with only a slight deviation. For example:

  • Similar way e.g. each insurer may either apply revised terms or accept at standard rates.
  • Slight deviation e.g. one insurer may apply a 25% loading, whilst another may apply a 50% loading.

These differences and/or similarities with regards to insurers are important to consider when it comes to recommending which insurer (and their offering) may be appropriate for you and managing expectations around potential outcomes of a formal insurance application. Consequently, an important step in the personal insurance process can often be the completion of a pre-assessment.

 

Pre-assessments

A pre-assessment is an informal way of finding out how insurers may view your formal application. It involves answering various questions on a form and then sending this information onto multiple insurers for their assessment; however, it does not require you to undergo medical examinations, such as blood tests or blood pressure readings.

As you may have already guessed, completing a pre-assessment can be of particular relevance to individuals with potentially hazardous occupational duties or pastimes, a pre-existing medical condition, or family history of a medical condition.

The questions asked on a pre-assessment form are not as in-depth as those found in a formal insurance application; however, there are often some similarities. For example, here are some of the common questions asked on a pre-assessment form:

General

  • What is your age and gender?
  • Do you intend on traveling overseas within the next 12 months and if so, what is the destination and length of the trip?

Occupation and pastimes

  • What is your occupation, as well as the time spent in that current role, hours worked per week and percentage of time spent doing manual labour?
  • Do you perform any hazardous occupational duties (e.g. working at heights)?
  • Do you intend on changing your occupation in the next 12 months?
  • Do you participate in any pastimes/pursuits/sports and if so, how often and at what level?

Health

  • What is your alcohol consumption per week?
  • Do you take any medications?
  • Do you have any pre-existing medical conditions?
  • Do you intend to seek any medical advice, test, investigation or treatment (including surgery) in the near future?
  • Do you have a family history of any particular medical conditions?

Although this list of questions may appear confronting, it’s important to note that pre-assessments are anonymous where possible and are completed with sensitivity and understanding with regards to the personal and sensitive information that you disclose.

Once a pre-assessment form is completed and you have provided authorisation for the information to be passed on, it is then sent to the underwriting teams of multiple insurers. With this information, they then make an assessment based on your individual circumstances. Whilst the results obtained from a pre-assessment are not a guarantee of the terms that will be offered by insurers upon the completion of a formal application, they can provide a strong indication of the potential outcomes.

 

Moving forward

The completion of a pre-assessment can be an important part of the personal insurance process. It aids in the in-depth comparison of multiple insurers, which in turn helps with:

  • Making informed decisions regarding which insurer (and their offering) may be appropriate for you.
  • And, managing expectations around potential outcomes (i.e. revised terms or standard rates) of a formal insurance application.

 

If you would like to know more about what is involved in a pre-assessment, please contact us for further information.

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New year, new career, new you. Employment hotspots for 2018.

Many employees returning from summer holidays may be pondering a career change in the face of sluggish average wage growth.

So what industries are predicted to be most in demand?

National recruitment company Hays predicts data security and technology, human resources, social assistance, aged care and construction will be among the job hot spots in 2018.

Tim James, Hays managing director for Victoria, Tasmania and ACT, says data security and IT jobs will boom as technology continues its rapid growth.

“Numerous industries are spending a significant amount of money and investing in improving their products and their services and efficiency,” he said.

Sectors such as finance and banking, mining and professional services are investing in new technologies, with expertise required in cyber security and innovation.

“That is definitely a big area that we are seeing skill shortages in,” Mr James said.

As companies introduce new innovations in technology, jobs for human resources professionals will increase to ensure the changes are properly integrated into organisations.

“With all change … it’s really important that it gets embedded into the organisation, so there definitely is a big emphasis on HR professionals being able to support any change,” Mr James said.

As the National Disability Insurance Scheme continues to be rolled out across Australia, jobs in the sector will grow to provide support to an estimated 475,000 people with a disability.

There is also growing demand for aged care employees as baby boomers age, including clerical jobs, personal care attendants, registered nurses and facility managers.

Psychology is another area tipped for healthy jobs growth as people become more attuned to looking after their mental health.

Mr James said large public infrastructure projects such as multi-billion dollar metro rail tunnel projects in Melbourne and Sydney will boost the construction sector over the next eight to ten years.

The most recent federal Department of Employment industry projections pinpoint health and social assistance as being the main area of job creation in the labour market since the 1990s, and that trend is expected to continue.

Health and social assistance, professional scientific and technical services, construction and education and training are forecast to provide more than 60 per cent of total jobs growth between 2017 and 2022.

Employment in health and social assistance is forecast to rise by more than 250,500 jobs, or 16.1 per cent, while jobs in professional, scientific and technical services are tipped to increase by 126,400, or 12.5 per cent.

The computer system design and related services sector is projected to swell by 54,200, or by almost one quarter, after having grown by nearly 84 per cent over the past decade.

Construction industry jobs are predicted to grow by 120,700, or 10.9 per cent, while employment in education and training is expected to increase by 116,200, or 12 per cent.

There are expected to be fewer jobs in manufacturing; electricity, gas water and waste services; and agriculture, forestry and fishing.

 

 

Article source here.

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Finding a home loan when you’re self-employed.

There are many perks to working for yourself, but when it comes to applying for a home loan, it seems being your own boss sends up a red flag to banks and other lenders. Why? A salaried employee has a regular, steady income and is less likely to experience the cash flow volatility of a small business owner, contractor, entrepreneur, tradesperson or freelancer.

Yet by being proactive and accessing specialist advice, self-employed applicants can also enjoy a successful and hassle-free road to securing a home loan. Try these top tips for starters.


1. Seek expert advice

Trying to navigate the home loan landscape solo may not produce the outcome you desire. There are many experts who can help self-employed people access a home loan, and a mortgage broker is a good first port of call. They will be able to provide you with an up-to-date overview of which lenders on their panel are most comfortable lending to the self-employed, and also explain what sorts of loan products are available. They can also provide valuable advice around the sort of documentation you will need to have ready before you submit your application.


2. Get your affairs in order

Many lenders will lend to self-employed borrowers who provide their full business financials. This generally includes your personal and business tax returns for the past two years. If you have these documents on hand – and they reveal a fairly consistent income – applying for a loan should be relatively straightforward.

However, the hectic schedule that comes with running your own business means many self-employed borrowers’ tax returns are not up to date. If you have time on your side, consider working with your accountant to lodge your outstanding returns. If you’re in a hurry, you may wish to explore the option of applying for a low doc loan.


3. Consider a low doc loan

Low doc loans are offered by a wide range of lenders and, as the name suggests, require less documentation than traditional loans. Many low doc loans only require 12 months of business activity statements instead of full financials, for example. A downside of some low doc loans is that they may only be available at a lower loan to property value ratio (LVR), which means you may need a larger deposit.


4. Do your homework

Checking your credit history is a good step for anyone applying for a home loan. If you’re self-employed, it’s definitely worth taking the time to make sure your credit history doesn’t include any defaults or errors – these can hold up your loan application if they are not rectified in advance.

Taking the time to work out exactly how much you’d like to borrow is also a good idea. That way, you can hit the ground running when you meet with lenders or your mortgage broker.


5. Think outside the square

It may be possible to apply for a home loan using a Certificate of Income Declaration – a document that verifies your income and is signed by your accountant. It’s wise to consult a mortgage broker before applying for a loan in this way, as he or she can advise which lenders will accept an income declaration. It should be noted, however, that applying for a loan using such a document may mean that the required LVR (the portion of the property value you can borrow) may be lower, so you may need a larger deposit.

While it’s a little more complicated for self-employed borrowers, getting a home loan can be easier than you’d imagined with a mortgage broker in your corner. Speak to your broker to find out how a broker could help you secure a home loan.

Source: PLAN Australia: Your Loan Hub

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New Year resolutions: Strengthening willpower

As the clock strikes midnight to mark New Year’s Day, this is the time that we often begin to reflect on what we have achieved over the course of the last 12 months. Part of this reflection can also make us focus our attention on specific aspects of our life we may feel that we have neglected up until this point.

As such, roughly 41%* of us find ourselves devising a New Year resolutions list often with the aim of restoring a sense of balance in our life – this can entail a shifting of our priorities through the redistribution of time, effort and sometimes money.

 

According to TwitterAU, here were the most tweeted New Year resolutions in 2017 by Australians:

 

TwitterAU

Top 10 New Year Resolutions in 2017

(Australia)
Ranking Resolution
1 Read more
2 Diet
3 Exercise
4 Learn something new
5 Be nicer
6 Get a new job
7 Volunteer/donate to charity
8 Get a boyfriend/girlfriend
9 Relax more
10 Quit smoking

 

Other common New Year resolutions tend to focus on enjoying life to the fullest, getting organised, reducing debt and spending less to save more.

Unfortunately, if you read our article, “Does a New Year Resolution set you up to fail?”, you will find that 25% of us ‘throw in the towel’ within the first week of making our resolutions. This percentage steadily increases with the passage of time (i.e. 29% in two weeks, 36% in one month and 54% in six months) – and, when all things are said and done, 88% of New Year resolutions fail. This may help to explain why our resolutions tend to be the same year after year.

As such, when establishing or reviewing your existing New Year resolutions list, it’s important to:

  • Carefully consider your goals; are they realistic in their obtainment and do they hold specific relevance and meaning to you? By considering this first, you may find that you start off on the right foot and subsequently increase your chance of adhering to the path that you set for yourself in the achievement of your goals. This can be referred to as the contemplation stage.
  • Put in place an appropriate plan (e.g. how are you going to get to where you want to be, such as the steps required and an appropriate support network) and then start making your goals a reality. A plan gives you a sense of direction and an appropriate network of people can provide you with support along the way, and with that, you are able to move from thinking about doing something to actually doing it. This can be referred to as the action stage.
  • Periodically review your progress. Keeping track of how you are progressing towards your goals will not only give you an indication of what you have achieved to-date, but also allow you to gain a greater understanding of your current position in relation to your goals – this can often be done after important milestones have been reached. This can be referred to as the review stage.
  • In a similar vein to above, proactively reaffirm your goals in the face of setbacks. Life often has a habit of getting in the way of our best intentions. In these situations, it’s important to appropriately address any setbacks that may occur, reach out to your support network, make any adjustments where required, and then refocus your attention to the goals at hand. This can be referred to as the reaffirm stage.
  • Lastly, once you have reached your goals, it’s important to maintain, and in some instances build upon, what you have achieved. After all the hard work, it can sometimes be easy to fall back into old habits, which may see you ending up right back at square one. Like the milestones that lead to your goals, think of the completion of your goals as another stepping-stone to something else. This can be referred to as the completion stage.

In addition, to the list of resolutions that you may have already set, give thought to any areas of your personal finances that may also require some attention. Here are a few personal finance-related resolutions you may wish to consider:

  • Talk to your partner about your existing financial situation, as well as the goals and objectives you would like to work towards now and into the future.
  • Familiarise yourself with your Money Personality and increase your financial literacy with the resources on our Financial Knowledge Centre.
  • Organise your finance-related paperwork in a filing system and actively engage with any statements you may receive e.g. investment and superannuation statements.
  • Establish an emergency buffer.
  • Make sure you have a suitable Plan B in place to insure against unexpected events that may occur in the future e.g. general and personal insurances.

Focusing on areas that need attention and making the required changes in your life can sometimes be difficult, especially when things have become engrained in your daily habits; however, the results can be truly amazing when you look back at where you started and what you needed to do to achieve the goals that you set for yourself.

When it comes to areas of your personal finances, remember that you do not have to tackle these on your own. If you need help, please do not hesitate to book a time to have a chat with us.

 

 

Article source here.

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