AMP Capital chief economist Shane Oliver says he expects the Australian dollar ($A) to weaken further – making unhedged offshore investments more attractive — as interest rates continue to rise in the US. However solid commodity prices should put a floor under falls.
https://www.tdls.com.au/wp-content/uploads/2016/10/tls-logo-1.png 0 0 The Webmaster https://www.tdls.com.au/wp-content/uploads/2016/10/tls-logo-1.png The Webmaster2018-08-29 06:08:182018-08-29 06:08:51Is the Australian dollar headed for more downside?
– Select a super fund from the time when you were employed so that you can use it for your self-employed contributions.
– Next you must make a contribution to your super fund within the limit of $25,000pa.
– You must make all your contributions for the year by June 30 if you wish to claim a deduction.
– Fill out a notice of intent form from your super fund. There is also one available online from the ATO website. This form lets the tax office know you intend to claim a tax deduction for your personal contributions.
– Your fund must acknowledge its receipt of the notice before you lodge your tax return for the relevant year. Then you can claim a deduction in your tax return for the contributions you made. Keep the correspondence from the super fund as proof for the tax office.
– If you change your mind about how much you want to claim as a deduction, you can vary the amount, provided you are still within the time limits specified for lodgement of the notice of intent. You must lodge a second notice specifying the higher or lower amount you wish to claim.
Most self-employed people can claim a full deduction for contributions they make to their super until the age of 75. You may also be eligible for the federal government's super co-contribution payment. This helps low- to middle-income earners save for their retirement. If you're eligible and you make personal super contributions, the government will put in up to a maximum of $500 depending on your annual income.
Money is the most common reason for staying at home.
Twenty-five year old Nivea Lally makes a two-hour, 43 kilometre commute from Sydney's Kellyville to Pyrmont every day. It's the price she's willing to pay to live at home rent-free in a bid to save up for her future.
She's not alone; more than one-fifth of Australians aged between 25 and 29 still live at home with their parents, according to new research by comparison website finder.com.au.
That figure doubles for younger Australians, aged 20 to 24.
The survey of more than 2000 people — across the country and age groups — found the average age children should start paying board is at 19.
"It seems to be the sweet spot nationally. That's the age kids go to uni, start their first part-time job and generate income and become young adults," said Graham Cooke, Finder insights manager.
But not everyone agrees on charging their children board. One in five Australians believe their kids should live with them rent-free regardless of their age or financial situation.
Ms Lally said her parents want to take care of her until she gets on her feet, financially speaking, because "rent money is dead money".
Money is the most common reason for a multigenerational household, according to UNSW City Futures Researcher Dr Edgar Liu, who wrote a study into this in 2012.
And with 25 per cent of Sydney's population in this situation, the city has always taken out the top spot across Australia for the highest rate of this phenomenon.
"Many families are also actively choosing this living arrangement to better provide care for young children and the elderly (the second most common reason)," said Dr Liu.
Dr Liu's research found a mother who had a deposit, but unstable income, and her daughter at university with steady employment, who could service a mortgage, who bought a house together. In other cases, parents put their children's board aside as a home deposit for the kids.
Leo Patterson Ross, advocacy and research officer at Tenants Union of NSW, said Sydney's high cost of housing, for buying and renting, left children living at home longer than usual too.
While it makes sense for families who could afford to help their children save money, Mr Ross worries it exacerbates housing affordability and the likelihood of property ownership for those less well off.
"It raises the questions about the families who can't afford to waive rent," he said.
Mr Cooke said while children and parents don't see eye to eye on when to start paying board, one thing is for certain: children don't become financially independent earlier than their parents.
"Financial circumstances are not as healthy as those in the boomer generation because property prices and rents are so high at the moment. That's forcing people to stay living with parents," he said.
This article was originally published by Domain on 27 April 2018. It represents the views of the author only and does not necessarily reflect the views of Tailored Lifetime Solutions.
The US economy – Is a recession imminent?
If you are worried about a recession and a major bear market, the US economy is the key to watch.
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