Tuesday 25 June 2013

The child care rebate in Australia

The child care rebate in Australia

 

The Australian government provides two forms of financial assistance to families to help cover the costs of approved child care ... the 'Child Care Benefit' and the 'Child Care Rebate'.  While eligibility requirements for the Child Care Benefit are based upon your family income, the Child Care Rebate is not income tested and is available to most people who have children in child care or being looked after by a registered carer. 

The Child Care Rebate covers 50% of out-of-pocket expenses for child care up to a maximum amount per child per year (the limit for the financial year 2011-12 is $7,500).  

In order to be eligible for the Child Care Rebate, you will need to meet the eligibility criteria of the Child Care Benefit, including using an approved or registered child care.  Approved child care can include long day care, outside school-hours care, vacation care, in home care and occasional care.  It is important the child care you select is approved otherwise you will not receive the Child Care Rebate and you will have to meet the full cost of care. 

The child care service provider you are considering should be able to tell you whether they are approved or not, or you can always check online via mychild.gov.au.  

Make sure you check out Sally Tyrie's Q&A on the child care rebate in Australia for further details on eligibility and how to claim.

Money Smart not Money Short

Saturday 22 June 2013

All about shares

All about shares


In terms of an investment, shares are a unit of ownership in a company which entitles the shareholder to a portion of the profits distributed by the company.

Business owners generally own the shares in their business, but for the majority of non-business people, the opportunity to own shares is either directly in your own name, or indirectly via your superannuation fund, and these usually invest heavily in the shares of different companies.

You can also invest in managed funds, exchange traded funds, or listed investment companies.  Investing in this way pools your resources with other investors and allows you to potentially invest in many listed shares, however, there are additional costs to consider with these options such as investment management fees.

Shares are generally longer term investments as their value can fluctuate both up and down. If you are prepared to invest for the long term, and accept some risk and volatility, then shares can be excellent investments.

In terms of which shares to buy, you should do your homework, or alternatively speak to your financial adviser.  There can be other benefits of owning shares and where to hold them, such as to reduce the amount of tax you pay on the profits.  A financial adviser would be able to help you in this sort of situation.

Make sure you check out Sally Tyrie's Q&A on All about shares to find out more.
Money Smart not Money Short

 

Friday 14 June 2013

7 habits of a super saver

7 habits of a super saver

With it becoming increasingly the norm to spend on credit cards, more and more people are living beyond their means and piling up the debt.  It is a problem particularly associated with the developed world and the culture we live in today.  So how to buck the trend and save, not spend?

    1. Save regularly ... and save at the beginning of the month, not from what's left at the end 
    2. Monitor your discretionary spending ... look at where you can make cuts to your budget
    3. Be pro-active when it comes to managing your money ... look for the best interest rate on   
        your savings and minimise the tax you pay on this
    4. Clear debts first ... start with the highest interest rate debt
    5. Keep track of your loose change ... start saving your coins, you'll be amazed at how much 
        you can build up
    6. Set savings' goals ... it will help keep you motivated and stay on track
    7. Become a bargain hunter ... always expect to pay less

Make sure you check out Sally Tyrie's 7 habits of a super saver to find out more.

Money Smart not Money Short