With that in mind, here are some things you may want to cover off with them (which you could also text to them using shorter bullet points, or screenshot and tag them on Insta, followed by #parentsknowbest).

1. Your bank account details and tax file number

Your kid will need to give their bank account details to their employer if they want to get paid, so this will no doubt be high on their list of things to do.

On top of that, they’ll need to provide their tax file number as well, because if they don’t, they may end up paying a lot more tax on the income they earn.

If your child needs a tax file number, they can contact the Australian Taxation Office (ATO) about applying for one.

2.   Whether you can choose your super fund

Super is money set aside during your kid’s working life to support them in retirement. It’s deposited into a fund, where it’s invested to potentially earn interest and grow over time.

Most employees can choose their own super fund but your kid will need to check with their employer or the ATO. If they can choose their fund, they’ll typically have a choice between their employer’s fund or a fund they select themselves.

There are things they’ll need to consider though, such as any fees they might pay, how the fund performs and their super investment preferences.

In addition, super funds generally offer a few types of insurance cover as well, which your kid can pay for using their super money, so it’s worth them looking into whether it’s something they want.

3.   What tax you’re going to pay on the income you earn

Your kid may not be pleased, but they’ll have to pay income tax on every dollar over $18,200 that they earn. And, on top of that, many taxpayers are also charged a Medicare levy of 2%.

The amount of tax they pay will depend on how much they earn. You might also want to point out that if they’re lucky enough to receive an annual bonus, they’ll also pay tax on this (yes, we know, life isn’t fair).

4.   What tax you can claim back when tax time rolls around

If your kid spends some of their own money on work-related expenses (work uniforms, safety equipment, or travel costs to attend training for instance), there is some good news. At the end of the financial year, they may be able to claim some of this money back when they do their tax return.

Remind them that they’ll need to have a record of these expenses, such as receipts, but in some instances if the total amount they’re claiming is $300 or less, they may not need receipts.

Meanwhile, if their expenses are for both work and personal use, they’ll only be able to claim a deduction for the work-related portion. Perhaps point your kid to the myDeductions tool in the ATO app to save records throughout the year, so they don’t have a bag full of receipts to go through.

Meanwhile, tell them if they’re lodging their own tax return, that they have until 31 October to lodge it each year, or maybe longer if they would prefer to use a tax agent.

5.   What’s in your contract and what you’re entitled to

An employment contract (which can be in writing or verbal) is an agreement between your kid and their employer which sets out the terms and conditions of their employment. It’s a good idea to know what’s in their contract should questions ever arise around what they’re actually entitled to.

Regardless of whether your kid signs something or not, their contract cannot provide for less than the legal minimum, set out in Australia’s National Employment Standards, which covers things such as

• Maximum weekly hours of work

• Requests for flexible working arrangements

• Parental leave and related entitlements

• Annual leave

• Personal/carer’s leave and compassionate leave

• Community service leave

• Long service leave

• Public holidays

• Notice of termination and redundancy pay.

While National Employment Standards apply to all employees covered by the national workplace relations system, only certain entitlements will apply to casual employees. For more information, check out the Australian Government Fair Work Ombudsman website.

6.   How to read your payslip so you’re across potential errors

Pay slips have to cover details of an employee’s pay for each pay period. Below is a list of what a pay slip typically includes:

• Your kid’s before-tax pay (also known as gross pay)

• Your kid’s after-tax or take-home pay (also known as net pay)

• What amount of money your kid has paid in tax

• The amount of super their employer has taken out of their pay and put into their super fund

• HELP/HECS debt repayments (if they have an education loan).

Meanwhile, mistakes can happen, so if anything doesn’t look right, tell them to chat to their employer and if your kid has raised an issue they’re not satisfied with, they can also contact the Fair Work Ombudsman.

7.   How much super is coming out of your pay and if it’s correct

If your kid is earning over $450 (before tax) a month, no less than 9.5% of their before-tax salary should generally be going into their super under the Superannuation Guarantee scheme.

If they’re under 18 and work a minimum of 30 hours per week, they may still be owed super. For this reason, it’s important that they check their payslip and if something doesn’t look right, that they speak to their boss or contact the ATO.

8.   How to budget and save so you can get what you want in life

Budgeting may be another point that makes your kid’s eyes glaze over but jotting down into three categories – what money is coming in, what cash is required for the mandatory stuff and what dough might be left over for their social life (or saving for their future), could really go a long way.

If they’re paying off debts, or on a more exciting note, want to buy a car or go on a holiday, getting a grip on their money habits early on could see them get a lot more out of life.

Source: AMP News & Insights October 2018

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1. Stop all but essential spending on your credit card. Try and get by without your credit card and use cash wherever possible while you work on your plan. You could even set yourself a challenge not to spend any money for a week!
2. It sounds basic, but start by listing how many cards you have and what you’re paying for them in interest.
3. If you have more than one card, start chipping away at the low-hanging fruit. Consider paying the card with the highest interest rate off first or if the rates are similar, work on clearing the smallest debt.
4. If you can’t pay a card off in full, see if you can pay more than the minimum each month to reduce your balance more quickly and save on interest. It could be worth setting up a direct debit on your payday to pay a fixed amount.
5. Once you’ve paid off a card, close the account and work towards having a single card to help make your finances easier to manage.
6. If you feel that your interest rate is too high, you could consider transferring any remaining balance to a card with a lower interest rate or rolling the debt into an existing personal loan or mortgage, these tend to have lower interest and fees. Many providers offer great rates to consolidate, but make sure you pay the card off during any honeymoon period with the new provider so that you don’t start accruing interest. Check the fine print—what interest rate will you pay after any promotional period ends? You don’t want to just kick the can down the road.
7. If all else fails, don’t be afraid to ask for help from your credit provider. There may be a way you can work out a spending plan that takes into account your financial circumstances.

But how do you make sure you don’t fall into the same credit trap again? It’s all about developing more healthy financial habits.

• Reduce your credit card limit to take temptation off the table.
• Try not to use credit to pay for the basics like food, groceries and utility bills. See if there are any ways you could adjust your household budget or make savings elsewhere so you’re only using credit as a last resort.
• Avoid cash advances because they may attract higher interest rates.
• Be wary of store cards and any fees you’ll pay – they are just another form of credit card.
• Keep track of your spending.

Take advantage of credit card reforms

• You can cancel your card or lower your limit online for all new accounts.
• You won’t be charged any back-dated interest.
• And you’ll be assessed on your capacity to repay your debt when you ask for an increase.

Once the credit card’s sorted, it could be time to move on to any other debts you might have.

Source: AMP News and Insights, 18 December 2018

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Teaching opportunities will come and go as our children grow. If you’re a relaxed sort of money parent, then maybe you’re happy to freestyle and just take these chances as they come. But if you’re keen to create teaching moments by design, it can help to know what other people do and when are the best windows in your child’s development to introduce new financial concepts.

Make an early start

In 2018, 1000 Australian parents were surveyed about how they teach their kids about money for the Share the Dream report. Results show that half of parents are talking to their kids regularly about money and almost three-quarters of kids (72%) are getting pocket money, an important tool for teaching kids about saving and spending money. The age group most likely to be getting pocket money are 9-13 year olds (80%) and if you’re aged 4-8 years you’re less likely to receive any (65%).

But according to a Cambridge University research study from 2013, parents could be missing a trick if they’re waiting until kids turn nine to start pocket money. Their findings suggest that by the age of seven, kids have already acquired the mindsets that will direct their money habits in adulthood. Not only that, but they’re also capable of grasping the fundamentals of how money works at this age. They understand that money can be exchanged for goods and that you need to earn it first.

Dr David Whitebread, co-author of the study, encourages parents and educators to get on the front foot when it comes to helping kids learn good money habits early on. “The ‘habits of mind’ which influence the ways children approach complex problems and decisions, including financial ones, are largely determined in the first few years of life,” says Dr Whitebread. “Early experiences provided by parents, caregivers and teachers which support children in learning how to plan ahead, in being reflective in their thinking and in being able to regulate their emotions can make a huge difference in promoting beneficial financial behaviour.”

Make it holistic

As well as starting money lessons early, stats from the Share the Dream report also suggest that money talk from parents needs to be covering more ground. Many parents are definitely covering off the basics, with the majority of parents (52%) having talked with kids about spending and saving in the last six months. On the other hand, talking about cashless payments with kids is far less common. Only 19% of parents have spoken about online transactions in the same period, and the numbers discussing in-app purchases (13%) and Afterpay (5%) are smaller still.

The study also shows that there may be advantages to being more forthcoming about ‘invisible’ money transactions with our kids. Across all age groups 38% of parents are reporting that their kids have a preference for online purchases. For the teenagers in the 14-18 group, this figure rises to nearly half (47%). If kids are to be prepared for their online shopping experiences, it makes sense to be having these discussions as they begin to transact online.

Make it open and honest

Talking money with our kids can make us feel uncomfortable and this is a trend that was also revealed in the Share the Dream survey. 68% of parents sometimes feel reluctant to talk about money with their children and in the majority of cases (32%), it’s because they don’t want their kids to worry about it. And 19% of parents say they don’t feel good enough about their own financial situation to discuss it as a family.

While financial stresses can be very real to you, there may be a way for you to help your kids learn from your own ups and downs with money without causing them concern. In fact, the ‘Engager’ parent profile identified in our survey shows that having more family discussions about money can lead to their kids being more curious, confident and financially literate. Engagers are least reluctant to talk to their kids about money and it seems their honest approach is leading to more positive habits among their children, 56% of whom are likely to have a job, compared with the survey average of 44%.

Source: Money and Life. 30^th August 2018

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But if you’re a woman earning an income, it’s never too late to play catch up. Looking at your super and taking action now could make a difference over time to how much savings you have in super for retirement.

Get to know your super better – it’s your money
Superannuation, or ‘super’, is money set aside while you are working so that when you stop working it will provide you with an income in retirement. If you are an employee, your employer should be making super contributions to a superannuation fund on your behalf. These payments, known as super guarantee or concessional (before-tax) contributions,will be equivalent to 9.5 per cent of your salary or wages.

If you are self-employed, you will need to pay yourself super to provide for your retirement. You can make regular contributions or make lump sums less frequently, to suit your cash flow. To get to know your super better, start by checking your balance regularly, along with the insurance and investment options you have to make sure they are the best fit for your circumstances.

The Australian Taxation Office (ATO) recommends that you check your employer is paying the correct amount of super on your behalf. If you are unsure how much your employer should be paying you can use the ATO’s Estimate my super tool. If your employer is not paying the correct amount you can report this to the ATO online.

Many super funds arrange life and disability cover for their members, for a fee. Having insurance can provide a good sense of security for you and your family. It’s important that you know what cover you have as you might have similar cover under another type of policy. This might mean you are paying for the same cover twice, however you will not be able to claim twice.

Consolidate your super and save on fees
It’s a good idea to make sure all your super is in the same place. If you’ve changed jobs, different employers might have made your super guarantee payments to different funds over the years. This means you could have ‘lost super’ in accounts you’ve forgotten about. If your super is in multiple funds, you also have to pay separate administration fees to each fund, which eats into your retirement savings.

Contribute more and watch your super savings grow

Want to see your super grow faster? You can make payments into your super fund account in addition to the Super Guarantee 9.5 per cent that your employer pays on your behalf. This could really boost your super over time, and can help you make up for periods when you are not working. Even small amounts could make a difference.

The different types of additional contributions that can be made to your super fund are:

• Concessional (before-tax) super contributions – these are super contributions you make before you pay tax on them.
• Non-concessional (after-tax) super contributions – these are super contributions you make from sources that have already been taxed.

Be aware that the Federal Government applies monetary caps to these contributions to limit the tax concessions associated with making super contributions. Some types of contributions if made in excess of these caps are subject to tax rates of up to 49 per cent.

Don’t forget your TFN, otherwise you may pay more tax
To confirm if your super fund has your tax file number (TFN), take a look at your super statement. If your TFN is not listed, contact your fund and give it to them.

The benefits of providing your fund with your TFN are:

• Your fund will pay less tax on employer contributions (and pass the savings on to you)
• Concessional contributions are generally only taxed at 15 per cent, which means you could lower your taxable income
• You are less likely to lose track of a super account
• You will not miss out on government super payments – for example, the government co-contribution if applicable
• You will be able to make personal (after-tax) contributions to the fund.

Source: Colonial First State, 20 December 2018

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The On-Farm Emergency Water Infrastructure Rebate scheme can be applied to new purchases and installation of pipes, water storages and water pumps, de-silting dams, and associated power supplies such as generators.

Farmers will be eligible to apply through the NSW government for the rebates which will also cover eligible work undertaken since 1 July 2018.

Click below for further information and forms;
https://www.dpi.nsw.gov.au/climate-and-emergencies/droughthub/drought-assistance

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The three major elements of the $500 million Emergency Drought Relief Package are:
– $190 million for Drought Transport Subsidies.
– $110 million to either cut or reduce certain Government Fees & Charges.
– $150 million for the Farm Innovation Fund Infrastructure Program.

The package also includes funding for:
– Counselling and mental health.
– Services in regional communities including transporting water and drought related road upgrades and repairs.
– Animal welfare and stock disposal.

If you would like any assistance with the application of an assistance package please contact Luka Group on 0268832200 or to find out more please follow the link below:

https://www.dpi.nsw.gov.au/climate-and-emergencies/droughthub/emergency-drought-relief-package

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Get your tickets today – http://www.diga.tech/ 

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Please see below a link for more information on eligibility and applying for the loan:

https://www.raa.nsw.gov.au/assistance/drought-transport-fund

For any assistance in completing the application please do not hesitate to contact our office on 02 68832200.

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In this article, Xero looks at the top three challenges and opportunities facing the farming industry.

https://www.xero.com/small-business-insights/challenges-opportunities-facing-farming-industry/

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Luka Group is proud to announce that Katarina McAuliffe (Audit Senior) has successfully completed the Graduate Diploma of Chartered Accounting and has been admitted to membership of Chartered Accountants Australia and New Zealand.

Chartered Accountants develop broader skills in communication, ethics and business areas as well as technical based competencies.

The CA designation is internationally recognised and indicates a high standard of ethical, professional and technical expertise.

Well done Katarina!

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