Federal Government Economic Stimulus Package
The Government will be providing five one-off payments in March and April 2009 for low and middle income households and individuals as part of its $42 billion 'Nation Building and Jobs Plan'. The payments will not be taxable and will not be counted as income for social security purposes.
Tax Bonus for Working Australians
This bonus payment will be available to Australian resident taxpayers who paid tax in the 2007/08 financial year (after taking into account available tax offsets and credits). The payment is subject to an income threshold test which determines that:
- a $900 bonus will be paid to eligible taxpayers with a 2008 taxable income of up to $80,000;
- a $600 bonus will paid to eligible taxpayers with taxable incomes exceeding $80,000 and up to $90,000; and
- a $250 bonus will be paid to eligible taxpayers with incomes exceeding $90,000 up to and including $100,000.
Taxpayers will not need to apply for the payment; the ATO will automatically make the payment after determining eligibility. However, the tax bonus will only be paid to those who have their 2007/08 return lodged by 30 June 2009.
You can to contact the ATO online at:
https://expertsystems.ato.gov.au/scripts/net/NameAddressChangeUI/(S(rqo1lo45uviywe454zzdjuem))/ESBDetailsChange.aspx?PID=68
if your bank account or postal address has changed since you lodged your 2008 tax return, or you want this one-off payment to be deposited into a bank account not nominated in your return. Please note, if your tax agent manages payments and correspondence for you, the ATO may not have your personal bank account or postal address details.
Single Income Family Bonus
This one-off bonus payment of $900 is for families with children that have one main income earner (i.e. families who, on 3 February 2009, were eligible to receive Family Tax Benefit (FTB) Part B). The payments are to be made automatically by Centrelink from 11 March 2009.
Farmer's Hardship Bonus
The Government will provide a one-off payment of $950 to farmers and rural-dependent small business owners who, on 3 February 2009, are receiving certain income support and exceptional circumstances relief payments. The payments will be made in the fortnight commencing 24 March 2009.
Back to School Bonus
This payment of $950 is for families eligible for FTB Part A on 3 February 2009 for each eligible child of school age (aged 4 to 18 on 3 February 2009).
Training and Learning Bonus
This $950 payment consists of two categories, the first being for eligible students, and the second being an additional incentive for social security recipients to return to education and training.
For further information, please contact Faisal on 13000 IPLAN (1300 047 526)
First Home Owners Boost
If you are a first home buyer you may be eligible for additional support from the Australian Government through the First Home Owners Boost.
To be eligible for the Boost, you must enter into a contract to purchase an existing home, construct or purchase a new home or buy 'off the plan' between 14 October 2008 and 30 June 2009 inclusive, and:
- be at least 18 years of age
- be an Australian citizen or permanent resident
- not have previously received the First Home Owners Scheme grant or have a spouse (or de facto) who has previously received the grant
- generally not have previously owned and lived in a home, or have a spouse (or de facto) who has previously owned and lived in a home in Australia and
- live in the home for a continuous period of at least 6 months, commencing within 12 months after completion or settlement.
The First Home Owners Boost is $7,000 (existing home) or $14,000 (new home) and is in addition to the First Home Owners Scheme grant of $7,000. For more information refer to the website: http://www.facs.gov.au/internet/facsinternet.nsf/family/ess_fhob_info.htm
Note that first home buyers may also be eligible for other incentives such as the Queensland first home transfer duty (stamp duty) concession.
For further information or if you are contemplating purchasing your first home, please contact Ian on 13000 IPLAN (1300 047 526)
Your Question's Answered
I understand there is a new investment process called Separately Managed Accounts. What are they and how are they different? – Rohan, Toowoomba
Separately Managed Accounts, or SMA’s for short, have been around for about 10 years although they are fairly new to Australia, particularly in their current form. They are an investment structure that sits in between managed funds and direct share ownership.
In a SMA, the investor is the beneficial owner of the underlying shares, yet has the buying power and reporting capabilities of a managed fund. SMA’s have the following characteristics:
• low transaction cost due to pooling
• transparent structure, showing buys, sells, costs
• comprehensive reporting options
• access to research and model portfolio
• direct flow through of dividends
• reduced capital gains tax transactions
• ability to customise the portfolio by protecting a parcel of shares outside the model
In Australia, SMA’s are only able to invest in domestic shares, although index shares are available for domestic and international exposure.
Got a question you would like answered in our next edition?
Please email your questions to info@iplan.net.au, or why not phone one of our financial advisers directly on 13000 IPLAN (1300 047 526).
iPlan Financial Services Australia Pty Ltd ACN: 106 591 833 as trustee for the iPlan Australia Trust ABN: 58 928 175 252 is a Corporate Authorised Representative of iPlan Financial Services P/L ABN 70 122 979 140 AFS Licence No. 311824
