Australian personal finance news, tips and advices.
by AFB
In today’s complex financial landscape, many Australians find themselves eager to secure their financial future but are unsure where to begin.
The world of investing and trading can seem daunting, especially without proper guidance.
Enter Australian Investment Education (AIE), a company that has been bridging this knowledge gap for over two decades.
The Birth of AIE
Founded in 1999 by Andrew Baxter, AIE emerged from a vision to make financial education accessible to everyday Australians. ... (read more)
by AFB
The need for greater financial literacy among Australians is undeniable. Negotiating the financial landscape is an essential 21st Century life-skill, with everyone required to manage money effectively in order to achieve financial and lifestyle goals. The importance of financial literacy hasn’t gone unnoticed by governments either. Initiatives including the National Financial Literacy Strategy 2014-2017 and ASIC’s MoneySmart Teaching program are specifically designed to assist Australians overcome financial hurdles after completing their education.
International findings reveal that Australian students are actually performing reasonably well in financial literacy compared to their overseas counterparts. However, it’s also acknowledged that greater awareness of economic essentials is required if Australian graduates are to remain well placed. In the opinion of many economics and education experts, financial literacy should be positioned as a core subject alongside maths, English and science in our education curriculum. In fact, there are good reasons why financial literacy should be a tangible component of all core subjects.
Financial literacy is a smart move
The National Financial Literacy Strategy defines financial literacy as “the combination of financial knowledge, skills, attitudes and behaviours necessary to make sound financial decisions, based on personal circumstances, to improve well-being”. Making smart financial decisions builds a financial foundation that strengthens individuals, families and communities. The initiatives aimed at helping young people are admirable, while there is much that can be done to assist all Australians, regardless of age.
Some notable educators have moved with the times, providing highly-regarded certificate, diploma, graduate diploma and bachelor courses that are tailor-made to sync with associated education or employment choices. Upskilled is one such Registered Training Organisation (RTO) that spreads its reach beyond the school yard to connect with professionals, job seekers and recent graduates. Online learning strategies are increasingly popular, and RTO’s are now leading the way while government departments struggle to adjust to the new paradigm.
Financial literacy for future-proofing
The opportunity to learn anywhere at any time is a financial literacy pathway that meets the needs of modern Australians. The alternative of sticking to outdated course delivery methods is becoming extremely costly and unwieldy in the present economic climate. Challenges faced by traditional institutions include:
There is no doubt that national change requires united effort from governments, educators and individuals. Financial literacy is essential not only for accumulation of wealth, but also for future-proofing lifestyle choices and avoiding pitfalls that eat into savings. Regardless of occupation, our money requires management to maximise its potential.
It’s good to know there are education providers who have a future focus. More than ever, our economy is affected by international influences and technological advances that need to be understood. As noble and proud as Australian universities are, they are also extremely cumbersome and struggle to adapt quickly to the changing education landscape. The MoneySmart government initiative is an attempt to bridge the gap, requiring massive financial input and a huge amount of resources. Although the attempt is admirable, one wonders whether MoneySmart is actually the smartest use of money, or if greater financial input should be directed to the ever-expanding online education environment.
Financial literacy for all Australians ... (read more)
by AFB
When you’re running a small business, there’s so much to think about. Professional Indemnity Insurance may not be high on your priority list. But it should be.
From the moment you start providing advice or performing a service, you could be at risk from a negligence claim – and the consequences could be devastating. Between legal costs and the settlement, you could face a five- or even six-figure sum, not to mention the damage to your business and personal reputation.
Under Australian law, clients are entitled to rely on you as a qualified professional to:
If you fail in any of these obligations, clients can file a professional negligence claim against you, to recover any financial losses they’ve experienced as a result.
PI insurance covers the costs of your legal defence and any damages you have to pay, up to the limit of your cover.
1. If you or an employee make a mistake
You’re a qualified professional and you know what you’re doing. You only employ skilled people and you have complete faith in your team. So why should you bother with PI insurance?
But sometimes, mistakes happen – and even the most innocent error could result in major financial loss. What if you accidentally attach the wrong file to an email, sending commercially sensitive information about a client to one of their competitors?
Or if you advise a client based on information they’ve given you, which later turns out to be wrong? Many professionals, such as auditors, have a legal duty of care to check that the information they’re relying on is correct.
2. If a client believes you’ve made a mistake ... (read more)
by AFB
Although most people like to think of themselves as independent individuals, they are still reliant on immediate family during difficult times. Carer’s leave entitlements provide the opportunity to take leave from work while looking after immediate family or household members.
Immediate family members and household members include:
Carer’s leave comes under the same entitlement as sick leave. It is now called personal / carer’s leave. Full-time employees are entitled to 10 days carer’s leave each year. Part-time employees are entitled to a pro rata of 10 days leave per year according to the number of hours they work. Casual employees aren’t provided paid entitlements under the personal / carer’s leave agreement, although individual employers may have their own system in place in the event of illness or emergency.
Paid carer’s leave entitlements begin to accumulate from your first day of full-time or part-time work. Any leave balance remaining at the end of the year is carried over into the following year. This accumulation continues even when you are on paid annual leave.
If your employment is for 38 hours a week or more, you are working full-time and are entitled to the full 10 days carer’s leave per year. If you are employed for 19 hours per week (exactly half the full-time amount) you will be entitled to 5 days carer’s leave per year.
Carer’s leave is provided for situations where personal care of close family or household members is required. It is not an alternative method of taking a casual break from work. Therefore, medical certificates and leave notice will need to be provided to your employer.
Emergencies are unexpected occurrences, and carers can’t always plan ahead, but you will need to notify your employer as soon as possible, even if leave has already begun due to an emergency situation. You should also specify how long you expect to be away from work, and you may be required to provide evidence to your employer in order to be paid for your leave. Medical certificates and statutory declarations are the most common types of evidence.
While caring for your relative or household member you will be paid at your employee base rate according to the hours you usually work. Your entitlement doesn’t include overtime pay.
The carer’s leave base rate doesn’t include:
by AFB
Paid Parental Leave is available for the primary carer (usually the birth mother) of a child. You will need to meet Australian residence requirements, and earn less than $150,000 during the year prior to the date of the child’s birth. If you are employed, you will need to be on leave or not working for the duration of your Paid Parental Leave. You will also need to satisfy the work test requirements.
You are eligible for Paid Parental Leave if your work is one of the following:
You may also be eligible if you have several employers, are employed in a family business, have changed jobs or were working overseas.
It’s recommended that persons considering Paid Parental Leave discuss the situation with their employer around three months before commencing the leave. Circumstances vary, and you may wish to begin Paid Parental Leave on the birth date, date of adoption, or at a later date. Your employer will need time to prepare for any changes in the workplace including employment of temporary staff, and will need to register their business for the scheme. More information can be found at Paid Parental Leave scheme for employers.
You will need to supply your employer’s Australian Business Number (ABN) plus contact details in order to avoid any delays in processing your Parental Leave claim. Paid Parental Leave claims can be lodged up to 52 weeks after birth or adoption, however, if you want to receive the full 18 weeks Parental Leave payments your claim must be lodged within 34 weeks of your child’s birth or adoption. You can lodge the paid parental claim online.
Some people want to take Paid Parental Leave as soon as their child is born. Others have alternative care arrangements initially and prefer to defer their payment until a later date. If you choose a start date for Paid Parental Leave that is within 34 weeks of your child birth or adoption you can receive the full 18 weeks worth of payments. If you lodge your claim after the 34 week period the duration of payments will be reduced.
For example, if you lodge your claim after 35 weeks you are entitled to 17 weeks Parental Leave payments, and at 36 weeks you are entitled to 16 weeks of payments.
Parental Leave Pay can be reduced for a number of reasons including:
In order for your claim to be processed you will need to provide information:
by AFB
There is a common conception that bullying is something that only goes on in the school yard. Unfortunately, the tactic of domination by fear, intimidation or physical abuse often carries on into adult years, and is increasingly found in the workplace. Regardless of where the blame rests, bullying in all its ugliness is unacceptable, and perpetrators are accountable for their actions. There are Australian laws in place to deter bullying and compensate victims.
In 2011, The Work Health and Safety Act raised awareness of workplace bullying. The aim of the legislation is to avoid the escalation of bullying into a compensation or discrimination claim. Although the intention is noble, the incidence of workplace bullying is still on the rise. The system has failed in many cases to protect workers and their families suffering as a result of illness or injury. Managers and team leaders are accountable, and often struggle to reign in workplace bullies. In fact, evidence shows that in many cases, those in positions of power are themselves the workplace bully.
Modern workplaces can be pressure-filled environments requiring a high level of productivity for amassing a maximum profit. It’s true that not all employees are equal and some may perform better than others, but this should not be an excuse for bullying less efficient workers under the guise of encouragement to meet productivity targets.
Psychological and physical trauma as a result of workplace bullying can have a significant and lasting affect. It can manifest in health issues, reduced work productivity, and difficulties amongst family, loved ones and the broader community. As of 2010, the Productivity Commission Report stated that workplace bullying costs the nation up to $36 billion annually.
Compensation claims for mental stress alone have risen by well over 50 percent in the past decade. Psychological claims are most commonly attributed to work pressure, with a quarter of those claims caused by a combination of harassment and bullying. Rehabilitation services are stretched in dealing with mental illness caused by workplace bullying, and the difficulties are compounded by aggression from employers as a result of claims being processed.
A survey of injured workers, including those who had been bullied, highlights a number of obstacles toward recovery. Below are some of the causes of stress in employees seeking compensation.
The stress involved with rehabilitation often leads to an escalation of the problems. Compensation should always be undertaken with the guidance of a highly qualified legal team, such as Firths Compensation Lawyers, who empathise with victims of bullying and provide positive steps on the pathway toward better health.
At present in Australia, there are loosely connected mechanisms that assist in compensating bullying victims. Improved anti discrimination laws would go a long way toward clarifying the situation, but in the meantime, Firths Compensation Lawyers can give the best advice moving forward with your claim. Present avenues include: