How to get a good credit score

Lenders look at your credit score or credit rating, which appears in your credit report, to work out if they should lend you money or give you credit. Here we explain how your credit score works and what you can do to improve it. What is a credit score? Your credit score is a number based on an analysis of your credit file, at a particular point in time, that helps a lender determine your credit worthiness. It is used by credit providers, such as banks and credit unions, to help them decide...

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Managing CGT in a Self-Managed Super Fund

When you dispose of an asset and make a capital gain, you may be liable for extra tax. There is no separate tax rate for capital gains. Instead, some or all of the capital gain is added to your assessable income and taxed along with your other income at your marginal tax rate. Capital Gains Tax (CGT) – generally speaking The CGT system is very complex but in general terms, for individuals, the capital gain can be discounted by 50% if the asset is held for at least a year. This means the...

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Generational risk management

Personal risk management is a critical foundation stone of any financial plan . The key personal insurances are: Life insurance. This pays a lump sum benefit when you die. Total and permanent disability insurance (TPD). A lump sum is paid if you meet the policy definition of being totally and permanently disabled. Income protection (IP) insurance. If, after the selected waiting period, you are unable to work due to injury or illness, depending on your policy you will receive a regular...

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Does the value of the Aussie dollar affect you?

You might think that only importers and exporters pay attention to the value of the Aussie dollar, but movements in the exchange rate affect us all. After peaking at US$0.81 in late January 2018 the Australian dollar fell as low as US$0.70 in October. It also fell against a number of other currencies. A falling Aussie dollar makes it more costly to travel overseas and increases the local cost of imported goods. On the upside, it makes many of our exports less expensive for foreign buyers,...

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The rules governing gifts from SMSFs

There are now almost 600,0001 Self-Managed Superannuation Funds (SMSFs) in Australia where the members of the fund are also the trustees. These trustees are responsible for running the fund according to the superannuation rules. If they get it wrong, the consequences can be dire. Each year, SMSFs lose their concessional tax allowance because the trustees recklessly or persistently ignore the rules. The superannuation rules aim to ensure that superannuation is for your retirement and is not used...

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Busy but broke: why don’t I have any money?

By Flying Solo contributor, By Kelly Exeter So you’re completely flat out yet have cash flow problems and never seem to have money in the bank. Where are you going wrong? Kelly Exeter has a few ideas (from experience). Seven years ago my graphic and web design business was growing at a mad rate. My three staff and I were all ‘head down, bum up’ from the time we entered the office right up to when we left each day and I was also working stupidly long hours on weekends to keep up. Yet we...

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