Scammers and your Economic Stimulus Payment
SCAMwatch is an Australian Government website and they are warning consumers to be on the lookout for bogus phone calls, emails and other scams relating to the Federal Government's economic stimulus package.
SCAMwatch has received reports of scammers sending bogus emails or calling to seek personal information such as the person's name, date of birth, address and bank details. Scammers pose as government officials (such as the ATO and Centrelink) and inform the recipient that an application form must be completed to receive the bonus payments when this is not the case. The ATO, Centrelink, banks and financial institutions will never send emails requesting verification of personal details.
For further information visit the SCANwatch website at:
http://www.scamwatch.gov.au/content/index.phtml/itemId/757362
Superannuation Co-Contribution
Here is a suggestion to spend your Stimulus Payment on. Make a personal superannuation contribution to your super fund and receive a further boost from the Government. For every $1 of personal super contribution, you may receive a $1.50 co-contribution. Refer to the table below for Income and Entitlement limits.
You will be eligible for the co-contribution if:
- you make a personal super contribution by 30 June into a complying super fund or retirement savings account
- your total income is less than $60,342 (this is indexed annually to reflect changes in average wages)
- 10% or more of your total income is from eligible employment, running a business or a combination of both
- you are less than 71 years old at the end of the year of income
- you do not hold an eligible temporary resident visa at any time during the year, and
- you lodge your income tax return.
Income and Entitlement Limits from 1 July 2008
| Lower income threshold | Higher income threshold | Entitlement for every $1 of personal super contributions | Maximum Entitlement |
|---|---|---|---|
$30,342 |
$60,342 |
$1.50 for every $1, up to a maximum co-contribution of $1,500 a year |
Maximum amount is $1,500, reducing by 5c for every dollar you earn over $30,342 up to $60,342 |
Your total income is equal to your assessable income plus your reportable fringe benefits. Your total income may be different to your taxable income.
If you are self-employed, your total income is calculated by adding your assessable income and reportable fringe benefits minus business income deductions. This means that if you are self-employed and have a high turnover you may still receive a co-contribution.
If you would like to discuss any matter relating to Superannuation Co-contributions, please contact us on 13000 IPLAN (1300 047 526)
Are you adequately Insured?
The concepts or risk, security and volatility have been greatly discussed and challenged over the past year or so as the global financial crisis unfolded. One area that has come into sharper focus is that of insurance.
Most of us wouldn’t hesitate to insure our house or car. In fact 77% of homeowners have their house insured and 84% of motor vehicle owners have insurance.
But when it comes to insuring ourselves personally, to protect against events causing injury, illness, trauma, disability and death, only 49% of the population is adequately insured.
Misplaced Optimism
Why are we under-insured to such a large extent? Australians generally adopt a “she’ll be right” approach. In a survey of 11 countries, we are ranked no higher than 10th in various categories of perceived risk (serious illness, serious car accident, work accident, serious financial problems). Between 80% and 89% of respondents felt it was unlikely, in the next 20 years, they would face any of the risks listed above (ING Australia 2008).
Cost
81% say life insurance is too expensive, yet 61% over-estimate the cost.
Life insurance cover of $500,000 for a 40 year old non-smoker is about $8 a week.
Comparatively, a home valued at $500,000 would cost about $15 a week to insure.
The average motor vehicle comprehensive premium is about $21 a week (Insurance Council of Australia February 2009).
Trust
44% have concerns about the insurance company paying out if they die.
In 2007, the life insurance industry paid out $3.6 billion in claims (non-super business). That represents 81c for every $1 of premium.
Complexity
41% say life insurance is too complicated and 25% don’t know where to start.
This is where professional advisers can greatly assist. Using comprehensive software that compares products, features, exclusions and premium costs, a short-list of suitable products is identified and rated. This will then form the basis of a report recommending an appropriate solution that meets the needs, objectives and budget of the person seeking cover.
Some Insurance Statistics
- 38% of adult males and 50% of adult females have no death cover (TNS research for IFSA 2005)
- Out of 2.5 million Australian families with dependent children, the level of death cover on average is only 20% of the needed cover (TNS research for IFSA 2005)
- 51% of Australians are under-insured for life cover by $100,000 or more (AIST and IFF research 2008)
- 77% of Australians will be diagnosed with a serious illness in their working lives (Professional Planner magazine April 2009)
- 50,000 heart attacks in Australia ever year (Health Foundation, Australian Facts, 2004: Heart, Strokes and Vascular diseases)
- 33% of men and 25% of women will suffer from cancer in their lifetime - 50% of those will live longer than 5 years after diagnosis (Cancer Council)
- More than 42,000 people are expected to die from cancer in 2009
- Over 1,600 people die on Australian roads every year, most age of 26-59 years (Australian Government, Road Deaths Australia 2007)
If you would like to discuss any matter relating to your personal insurance needs, please contact us on 13000 IPLAN (1300 047 526)
