Welcome to the Summerhill Group’s Winter newsletter — a combined publication for both Summerhill Financial Services and Summerhill Financial Management.

Government budgets can be rather dry affairs, but we have a few interesting observations from the most recent one. One positive for small business is the investment allowance, designed as an extra incentive. We also look at how the investment allowance applies to cars.

On the personal level, we’ve included articles on changes to Family Tax Benefits, salary packaging (including salary sacrifice), and the new individual tax rates for FY2009-10.

Also part of the budget were announcements on changes to the first home-owner schemes; we look at which payments are increasing and which have been scrapped.

With most analysts believing home-loan rates have nearly bottomed, we have included a piece on what to consider if you’re thinking about fixing your mortgage rate.

The continuing global financial climate makes sticking with your investment strategy challenging; so following on from the investor-behaviour article in our last issue, this time we have included a piece that shows how staying the course will bolster your portfolio’s value.

Given there is so much happening with the economy, share market and government activity, we have included more content in this newsletter than usual. However, the newsletter is designed so you can easily access articles that are relevant to you.

As always, we appreciate and welcome your comments and questions on both the newsletter and the services we provide to you.

Enjoy the read,

Caroline and Andrew

A Few Interesting Observations From the Budget

Much has been written of the Federal Government’s recent Federal Budget and the changes proposed, and we provide our comments on some of these announcements in this article

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Impact of March and April returns on your investments

It’s spring in the northern hemisphere and the changed conditions in global markets are attracting much attention. While no-one knows whether these “green shoots” will last, they are a good reminder of how quickly the investment climate can change.

>> read full article

Interest rates: to fix or not to fix…

Australia’s Reserve Bank has cut interest rates to their lowest point in nearly 50 years – with more tipped to go. But how much lower can they go? If at all? And what effect will the world financial situation have on rates rising? To fix or not to fix is more than a $64 question!

>> read full article

Investment Allowance – Extra incentive for Small Business

As reported in our last newsletter, the federal government announced in December 2008 an investment allowance would be made available for businesses that purchase new plant and equipment. The allowance would enable businesses to claim an extra tax deduction as a percentage of the cost of the new plant and equipment.

>> read full article

Investment Allowance – How Does it Apply to Cars

For small business operators interested in buying new cars, the new investment allowance will be of interest to you.

>> read full article

Changes to ‘income’ definitions – how this will affect you

In the 2008-09 Budget, the Federal Government announced measures to reform income tests across the tax and transfer systems; these will come into effect from 1 July. This includes now taking into account items such as salary sacrifice superannuation contributions in benefit calculations.

>> read full article

First home-owner grant changed in Victoria

This month’s Victorian state budget saw an increase to the First Home-Owner Grant, but the First Home-Owner Boost will be scrapped from January 2010. However, the First Home Bonus and will First Home-Owner Regional Bonus will continue.

>> read full article

Individual Tax Rates – Next Year’s Rates

The recent Federal Budget made no changes to the previously announced personal tax rate scales. As a reminder, we have listed the income tax rates to apply from 1 July 2009 below, as well as the change to the income that can be earned by minors (under age 18).

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How the changes to family assistance will affect you

The changes to the Family Tax Benefit will affect most recipients in some way. Along with a change in “income” definition, from 1 July, some people may need to provide additional information to Centrelink to receive the right amount of family assistance.

>> read full article

Want to outsmart the bear? Stick to dollar-cost averaging

History has shown that dollar-cost averaging as an investment strategy in shares – particularly during bear markets – results in portfolios that are worth more. How? Well, there are a couple of tips you need to follow.

>> read full article

22/02/2009 – Bonus Payments for Australian Taxpayers
22/02/2009 – Other Stimulus Package bonuses to be paid
22/02/2009 – From bleak to black – what’s the timeframe and the pain?
22/02/2009 – People begged to invest with him
22/02/2009 – Self sabotage on investments is just a thought away
22/02/2009 – Superannuation pension drawdown relief
22/02/2009 – Future shocker
22/02/2009 – Investment Allowance for businesses
22/02/2009 – Economic update and outlook (webcast)

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