Tax breaks on interest income introduced in the May Federal Budget will hopefully encourage more Australians to save. But it’s worth remembering that other investments also deliver welcome tax savings. From 1 July 2011, assuming it’s enacted, we’ll have even more of an incentive to start a personal savings plan. Instead of interest income being fully taxable, the first $1,000 of interest earned on deposit accounts will attract a 50% tax discount. This is a plus for savers, because without the tax break, a high income earner for example, could lose up to almost half any interest income to the tax man. Put differently, the tax concession on interest is like earning a higher return on your savings. 

Read More >>>

Credit cards are found in almost every wallet these days, and it’s easy to put big ticket purchases, like a new appliance or a holiday, on the plastic. But personal loans can often be a far cheaper option. Convenience could be a key factor behind the use of credit cards to fund large purchases. Personal loans take time to organise, and because this can be inconveniencing, it does provide valuable breathing space to think about whether you really want or can afford an item – and you may decide you can’t afford or don’t want it, and thereby save your money. Chances are, a personal loan could also offer decent savings – on interest rates. Credit card interest rates have been creeping up over recent months and many now charge close to 20%. By comparison, you can expect to pay anywhere between 11% and about 13% with a personal loan.

Read More >>>

Australians are an entrepreneurial lot. In a recent survey by recruitment group Kelly Services, one in five described themselves as ‘self-employed’, and of the rest, approximately half expressed a desire to work more independently. Clearly, running our own show holds real appeal but long-term success in small business calls for good management. Working for yourself isn’t always as risky as people believe, especially if you’ve done your homework and have a clear plan for success. The challenge for time-poor entrepreneurs often lies in managing the day to day administration of  the business. And it’s at tax time that self-employed workers often get caught out.

Read More >>>