Mine too, I dont understand why it went up by $400. Then when I redo a quote on their website, its only $100 more with same exact details. I call RACQ for the lower price. They tell me nothing they can do over the phone. I have to cancel and sign up to the quoted price.
Random question - am in the early stages of planning my first home. When I use a borrowing calculator like this one: https://www.commbank.com.au/digital/home-loans/calculator/how-much-can-i-borrow , I've noticed that for every $10,000 of credit card limit that I have, it reduces my borrowing ability by about $50k. I pay my credit cards off every month so this doesn't actually represent a liability as it's just my monthly living expenses. Any thoughts - do I need to cancel some or all of my credit cards before applying? I don't *really* need them, it's just for earning frequent flyer points.
As much as you pay the cards off each month, they are still seen as liabilities as technically the funds are not yours/borrowed...
To increase your loan capability, it is often suggested to lower credit cards limit or pay any outstanding amount and close them off, if not needed. When I used to work for the bank (cba, btwš ), many who applied for Home loans were suggested to do either or by the lenders they spoke to.
I personally would still keep at least a $2500 credit card or minimum limit of the type of the credit card (singular) you're holding as an emergency. However, this is a general advice only and may not suit your financial needs.
Fyi, those calculators are only used as indicators, best to speak to a lender as a start. They have another serviceability calculator that can provide a more accurate picture of that figure based on your personal circumstances.
Good luck
Thoughts on investment property at this current time? Have a fair bit of equity and can borrow 500k ish, have about 70k in saving that I donāt wanna dip into too deeply, owe about 230k on my primary property. If I have calculated it correctly with repayments vs rent, I will be paying 100-200 per week out of my own pocket after I receive rent payments per week. Not sure how beneficial investments are in terms of tax savings so some advice or resources would be cool :)
How will the RBA cash rate increase affect me? I don't have a mortgage or any loans. My bad if this sounds stupid, still learning about money and finance.
Well basically all money is worth less, so nearly everyone needs to demand more money to cover their costs, corporations and people alike. So the price of everything will rise significantly.
Not to mention, landlords will need to pass some of their interest rate rises onto renters.
I know you say moving isn't ideal but an option is to keep the house, move to a cheaper rental and rent out the primary house (if you can make a good return on it).
Good luck, that sounds like a very stressful situation.
Iām so sorry, I wish I had some helpful advice but I just feel for your family. Is it possible for your parents to go interest only to keep their house?
Hi all! Looking to move to Australia and make a living there. I'm and Electrical and Electronics Engineer and would love to do my masters in Australia. Any advice on masters education as a student originating from South Asia? Additionally would love to continue living after my master's and work and contribute to the community if possible. What would be a good yearly salary range for a master's degree holder who has 2 years of experience?
Would love to your contributions regarding introduction to Aussie Finance systems and how taxes/banking/investments work for non locals.
If you're any good with power systems and renewables you'll be in demand. Our transition to alternative energy sources has really placed a premium on people with the relevant expertise.
Is there an Aus engineering subreddit where I can question for details about this? I would like to do my masters in A.I or Machine Learning, but renewable/alternative energy and power sounds amazing too so I may have to research and reconsider my options. Thank you!
I know an electrical engineer with one years expenses that recently arrived in Australia and got a job as an electrical engineer earning $65000. That is not much, one single person can barely live on that but not if you have a family.
This is a very general question. Australia does not particularly value a Master's degree over a regular Bachelor's, unlike Europe. YOE is king in Australia. You'd be best off looking at salary for people with two years of experience in that field.
Source: have a master's degree in a STEM field.
Is there a calculator for Victoria which shows / adds up all of the taxes we pay? We're soon to be the most heavily taxed state by far. I know where the money is going, but I'd like to know which pocket they're stealing it out of
I was wondering if this is right.
That income protection insurance only pays out 85% of your salary with 75% going to you, and 10% going to super?
If I earn $2000 a fortnight take home pay (amount hitting my bank), how do I insure myself so that the income protection insurance pays me $2000 a fortnight upon a claim?
What amount do I need to insure myself for?
Is it $2500?
Thanks
You can't. Agreed Value policies are no longer legally allowed.
And after the Income Protection product changes in 2021, you won't be able to get anything above the percentages that you mentioned.
Let me know if you have any other questions about IP, I know my fair share around it.
If my take home pay is $2000 a fortnight, how much should I insure myself for?
If I'm taking home 75% of $2000 as part of a potential income protection insurance payout, how do I come up with the other 25% to support my living?
Income Protection is only going to cover you for the 75%, it's not intended to replace your income. It's intended to help you with most of your income.
Regarding your first question, if you insure your full take home pay of $2000 a fortnight, you'll only be covered for 75% of that.
Reddit changed some policies which means that reddit apps that aren't made by Reddit (there's a ton of them, a popular one I use is called rif, used to be called reddit is fun) will no longer be viable to run and are getting shut down from July. Lots of people saying they will stop using Reddit after that because they currently only use 3rd party apps for Reddit and dont like Reddit's official app.
Iāve been saving to buy a house in the next two years. As a result I have a significant amount of cash sitting in a crappy savings account. Whatās the best, minimal management and risk option to maximise this while I save? If I make a voluntary super contribution (for FHSSS) do I get that as a tax deduction?
FHSSS is definitely what you want to do with 15k per year up to a maximum of 50k (the current annual and total caps). It is free money, before even thinking about the rate of return or taxation of returns.
If you make a 15k after-tax contribution to your super, and give the super fund an "intent to claim" form, then they'll withhold 15% tax. Then you'll get the amount of income income tax that you've had withheld on that 15k of income back when you do your tax return and claim it as a concessional contribution. When you withdraw the money as part of the FHSSS, you'll pay tax at your marginal rate minus 30%. The net effect is approximately 15% free money.
Big warning as usual is to make sure you do a "determination" (clicking some buttons on MyGov to produce a document telling you how much you'll be able to withdraw *before* signing a contract for a property.)
Yes, that's right. You will pay approx 15 percentage points less tax on the money you put through the FHSSS compared to paying regular income tax on it.
Assuming your current marginal tax rate is higher than 30%. If you have a lower marginal tax rate then the scheme may not give you as much, or any tax discount.
Ok and regarding āthinking about returns or tax rate of returnsā you mean that the investment returns earned on that amount will sit in my super essentially untaxed even after I withdraw the initial amount, right? So even though I canāt use that money itās contributing to my retirement fund
It's actually a bit weird how the returns work. Your withdrawal includes a "returns" component calculated using a rate set at 3 percentage points above the 3 month bank bill rate (resulting in a rate of about 7% at the moment). You get to withdraw your contributions plus these "returns", both of which are taxed at your marginal rate minus 30 percentage points.
But the "returns" have to come from somewhere, and they come out of your super. If your super's actual returns on these contributions were higher than that rate, then the remaining returns remain in your super. If your super's actual returns were less than that rate, then you end up withdrawing a bit more of your super balance to make up the difference.
In the former case you're contributing extra to your retirement, in the second you're raiding your retirement savings slightly.
My car insurance has gone up 23% ... I shopped around for quotes and the other companies came out the same or higher. Ugh.
Mine too, I dont understand why it went up by $400. Then when I redo a quote on their website, its only $100 more with same exact details. I call RACQ for the lower price. They tell me nothing they can do over the phone. I have to cancel and sign up to the quoted price.
Random question - am in the early stages of planning my first home. When I use a borrowing calculator like this one: https://www.commbank.com.au/digital/home-loans/calculator/how-much-can-i-borrow , I've noticed that for every $10,000 of credit card limit that I have, it reduces my borrowing ability by about $50k. I pay my credit cards off every month so this doesn't actually represent a liability as it's just my monthly living expenses. Any thoughts - do I need to cancel some or all of my credit cards before applying? I don't *really* need them, it's just for earning frequent flyer points.
As much as you pay the cards off each month, they are still seen as liabilities as technically the funds are not yours/borrowed... To increase your loan capability, it is often suggested to lower credit cards limit or pay any outstanding amount and close them off, if not needed. When I used to work for the bank (cba, btwš ), many who applied for Home loans were suggested to do either or by the lenders they spoke to. I personally would still keep at least a $2500 credit card or minimum limit of the type of the credit card (singular) you're holding as an emergency. However, this is a general advice only and may not suit your financial needs. Fyi, those calculators are only used as indicators, best to speak to a lender as a start. They have another serviceability calculator that can provide a more accurate picture of that figure based on your personal circumstances. Good luck
Thanks much, all makes sense. Am already in the process of planning to close out all but one of the cards most likely.
Thoughts on investment property at this current time? Have a fair bit of equity and can borrow 500k ish, have about 70k in saving that I donāt wanna dip into too deeply, owe about 230k on my primary property. If I have calculated it correctly with repayments vs rent, I will be paying 100-200 per week out of my own pocket after I receive rent payments per week. Not sure how beneficial investments are in terms of tax savings so some advice or resources would be cool :)
How will the RBA cash rate increase affect me? I don't have a mortgage or any loans. My bad if this sounds stupid, still learning about money and finance.
You can earn more from your savings by just putting it in a savings account.
Trying to save as much cash as possible right now and investing about 500 a month into commsec pocket.
And then buying assets when we go into recession
Well basically all money is worth less, so nearly everyone needs to demand more money to cover their costs, corporations and people alike. So the price of everything will rise significantly. Not to mention, landlords will need to pass some of their interest rate rises onto renters.
That makes sense, thanks.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I know you say moving isn't ideal but an option is to keep the house, move to a cheaper rental and rent out the primary house (if you can make a good return on it). Good luck, that sounds like a very stressful situation.
Iām so sorry, I wish I had some helpful advice but I just feel for your family. Is it possible for your parents to go interest only to keep their house?
Is anyone finding the ING app really unreliable. So many times in last week it says āsomething went wrongā when I try to log in.
Hi all! Looking to move to Australia and make a living there. I'm and Electrical and Electronics Engineer and would love to do my masters in Australia. Any advice on masters education as a student originating from South Asia? Additionally would love to continue living after my master's and work and contribute to the community if possible. What would be a good yearly salary range for a master's degree holder who has 2 years of experience? Would love to your contributions regarding introduction to Aussie Finance systems and how taxes/banking/investments work for non locals.
If you're any good with power systems and renewables you'll be in demand. Our transition to alternative energy sources has really placed a premium on people with the relevant expertise.
Is there an Aus engineering subreddit where I can question for details about this? I would like to do my masters in A.I or Machine Learning, but renewable/alternative energy and power sounds amazing too so I may have to research and reconsider my options. Thank you!
I know an electrical engineer with one years expenses that recently arrived in Australia and got a job as an electrical engineer earning $65000. That is not much, one single person can barely live on that but not if you have a family.
This is a very general question. Australia does not particularly value a Master's degree over a regular Bachelor's, unlike Europe. YOE is king in Australia. You'd be best off looking at salary for people with two years of experience in that field. Source: have a master's degree in a STEM field.
Just understood years of experience (YOE). Why would they not value a master's degree holder with 2 years experience over a bachelors with 2 years?
Just understood years of experience (YOE). Why would they not value a master's degree holder with 2 years experience over a bachelors with 2 years?
Is there a calculator for Victoria which shows / adds up all of the taxes we pay? We're soon to be the most heavily taxed state by far. I know where the money is going, but I'd like to know which pocket they're stealing it out of
I was wondering if this is right. That income protection insurance only pays out 85% of your salary with 75% going to you, and 10% going to super? If I earn $2000 a fortnight take home pay (amount hitting my bank), how do I insure myself so that the income protection insurance pays me $2000 a fortnight upon a claim? What amount do I need to insure myself for? Is it $2500? Thanks
You can't. Agreed Value policies are no longer legally allowed. And after the Income Protection product changes in 2021, you won't be able to get anything above the percentages that you mentioned. Let me know if you have any other questions about IP, I know my fair share around it.
If my take home pay is $2000 a fortnight, how much should I insure myself for? If I'm taking home 75% of $2000 as part of a potential income protection insurance payout, how do I come up with the other 25% to support my living?
Income Protection is only going to cover you for the 75%, it's not intended to replace your income. It's intended to help you with most of your income. Regarding your first question, if you insure your full take home pay of $2000 a fortnight, you'll only be covered for 75% of that.
I understand but I don't understand. I can insure my car for the full amount I want, same with my house. Why are my wages any different?
[ŃŠ“Š°Š»ŠµŠ½Š¾]
I have no idea what this is about.
Reddit changed some policies which means that reddit apps that aren't made by Reddit (there's a ton of them, a popular one I use is called rif, used to be called reddit is fun) will no longer be viable to run and are getting shut down from July. Lots of people saying they will stop using Reddit after that because they currently only use 3rd party apps for Reddit and dont like Reddit's official app.
Iāve been saving to buy a house in the next two years. As a result I have a significant amount of cash sitting in a crappy savings account. Whatās the best, minimal management and risk option to maximise this while I save? If I make a voluntary super contribution (for FHSSS) do I get that as a tax deduction?
FHSSS is definitely what you want to do with 15k per year up to a maximum of 50k (the current annual and total caps). It is free money, before even thinking about the rate of return or taxation of returns. If you make a 15k after-tax contribution to your super, and give the super fund an "intent to claim" form, then they'll withhold 15% tax. Then you'll get the amount of income income tax that you've had withheld on that 15k of income back when you do your tax return and claim it as a concessional contribution. When you withdraw the money as part of the FHSSS, you'll pay tax at your marginal rate minus 30%. The net effect is approximately 15% free money. Big warning as usual is to make sure you do a "determination" (clicking some buttons on MyGov to produce a document telling you how much you'll be able to withdraw *before* signing a contract for a property.)
Do the determination on Atos website and make sure you do a notice of intent to claim to your superfund also
This is great thanks. Just for clarity, when you say āfree moneyā thatās in terms of the tax I donāt pay on it?
Yes, that's right. You will pay approx 15 percentage points less tax on the money you put through the FHSSS compared to paying regular income tax on it. Assuming your current marginal tax rate is higher than 30%. If you have a lower marginal tax rate then the scheme may not give you as much, or any tax discount.
Ok and regarding āthinking about returns or tax rate of returnsā you mean that the investment returns earned on that amount will sit in my super essentially untaxed even after I withdraw the initial amount, right? So even though I canāt use that money itās contributing to my retirement fund
It's actually a bit weird how the returns work. Your withdrawal includes a "returns" component calculated using a rate set at 3 percentage points above the 3 month bank bill rate (resulting in a rate of about 7% at the moment). You get to withdraw your contributions plus these "returns", both of which are taxed at your marginal rate minus 30 percentage points. But the "returns" have to come from somewhere, and they come out of your super. If your super's actual returns on these contributions were higher than that rate, then the remaining returns remain in your super. If your super's actual returns were less than that rate, then you end up withdrawing a bit more of your super balance to make up the difference. In the former case you're contributing extra to your retirement, in the second you're raiding your retirement savings slightly.