If your work is stressful, consider whether you could reduce or change your responsibilities. For jobs that are physically demanding, do you have the option to shift into a role that is less hands-on – such as training others, workplace safety or compliance monitoring?

Or, if the idea of extending out your retirement date is unappealing, another option could be taking some time off. If you have accrued a lot of annual or long-service leave, then the financial impact may be negligible.

Three smart super strategies

Making changes to your super can help you get your plans back on track so you can achieve your retirement goals. Here are some strategies that can boost your super or minimise your tax in your final years of working.

1. Make additional contributions. You can add more to your super using either your before-tax salary or your take-home pay. The most common ways to do this are by salary sacrificing, making a tax-deductible personal contribution, using some of your unused concessional cap from previous financial years in a catch-up contribution, or using the bring-forward rule to make a large, one-off contribution to your super.

2. Transition-to-retirement (TTR) strategy. A TTR strategy lets you access some of your super while you’re still working. It’s only available for people who are aged 60 or above. The most common way to use this strategy is to continue working full-time and salary sacrificing into super while drawing a tax-free income from your TTR pension. So while you’re growing your super you’re also paying less tax in the lead up to retirement.

3. Review your asset allocation: Seek financial advice to review how your super is being invested to meet your retirement needs.

Try a different kind of work

If you’re not enjoying your work, or your work has finished up, then consider lifting your gaze towards something new:

Learn. Flexible learning options have never been more accessible or plentiful. They can also be very affordable, with low cost or free courses bringing easy learning within reach. The time it will take you to complete a course is a small investment for the benefit of undertaking more satisfying work.

Start a business. Business ownership is a popular option for 8% of Australians aged between 50 and 64. What’s more, if you start a business as an older person, you have a better chance of success than if you’d started at an earlier stage of life. This is because you’ve accumulated valuable work experience, built broad and deep professional networks, and developed life skills, wisdom and resilience that could help your business succeed. It’s important to remember that starting a business requires upfront capital investment and there are risks involved in running a business, so it’s best to seek professional advice before you do so.

Career coaching. If you want to change what you do for work, a career coach can help you explore your options and advise you on your next step.

Get a sounding board

When you have plans in place, it is unsettling when they are disrupted. Your financial adviser can explore your options with you, advise you on the impact of different strategies and recommend away forward. So it’s important to check in with them, especially before you make any changes to your super.

Give the Integra team a call or book a meeting here and set yourself on the right pathway to financial freedom.

Source: Colonial First State

The post Rethinking retirement appeared first on Integra Financial Services.

We’ve seen volatile share markets, slashed dividends on bank stocks, record-low interest rates and sectors like airlines, tourism and traditional retail struggling to survive. On the other hand, online shopping and e-commerce have surged, and more people are saving now than before the pandemic.

During this uncertainty, many people have found their financial adviser to be a critical source of guidance and a valuable sounding board. In many cases, the adviser-client relationship has been a long-term connection. It’s built over many years and based on trust and confidence that the adviser has the client’s best interest at the centre of every decision.

Demand for advice doubles

The financial advice industry is full of examples of clients reaching out to their advisers in recent months, leveraging these long-term relationships at a time of worry and crisis.

Recent research from the Investment Trends 2020 Financial Advice Report showed three in four financial advice clients had been in contact with their adviser to discuss the impact of the COVID-19 pandemic.

Advisers are also fielding an unprecedented number of calls from potential clients who are confused by the current markets and understand they need help.

The instability of recent times has undermined the confidence of those who are retired or are about to retire, with many wondering if they’ll be left with enough superannuation savings for a comfortable retirement. But those who have a long-term relationship with their adviser can rely on the fact their adviser knows them well, understands their unique circumstances and life goals, and can deliver advice tailored to them.

Advice for different life stages

Financial advice can be helpful at a range of life stages, not just when thinking about retirement. Some common things advisers can help navigate financially are:

• saving for and preparing to buy your first home
• getting married or starting a family
• budgeting and money management
• growing wealth
• estate planning
• planning for retirement
• retirement and aged care.

Advisers can help with practical advice in all these scenarios. But more importantly, they can help you focus on your financial priorities and goals and create a plan to achieve them.

Life’s journey has many twists and turns and points at which priorities change. For many people, it’s a journey best navigated not only with partners, family and friends but with a trusted financial adviser by their side.

Give the Integra team a call or book a meeting here and set yourself on the right pathway to financial freedom.

Source: AMP

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With the Reserve Bank reducing interest rates to record lows and not anticipating a rise until 2024, it’s more important than ever to ensure your retirement savings are working as hard as possible.

One way to do that is by taking advantage of super, which offers valuable opportunities to tax-effectively rebuild your retirement savings.

Reducing your tax bill

If you make super contributions by setting up a salary sacrifice arrangement with your employer, for example, you can potentially reduce your tax bill while also boosting your super.

By diverting some of your pre-tax salary into super rather than taking it as take-home pay, your money will be taxed at 15 per cent, rather than your marginal tax rate.

Investments made through super also enjoy a concessional tax rate of only 15 per cent on any investment earnings. This compares with tax at your marginal rate, which could be as high as 47 per cent (including the Medicare Levy), on investment earnings outside super.

Claim a tax deduction

You are also able to make personal super contributions on which you claim a tax deduction.

Previously only available to the self-employed, this strategy is now available to everyone. It allows you to claim a tax deduction in your annual tax return for eligible voluntary contributions into your super account made during the financial year from your after-tax earnings.

Providing you stay under the annual concessional contribution limit (currently $25,000 a year), this can be a useful way to cut the amount of income you pay tax on.

Play catch-up with your contributions

If you have less than $500,000 in your super account, you may consider making carry-forward concessional contributions. If you haven’t fully used your annual concessional contributions caps since 1 July 2018, you may have some unused cap amounts that you could use to make a larger contribution this financial year.

Unused concessional cap amounts can now be carried forward for up to five years.

Consider non-concessional contributions

If you have more funds available and are closer to retirement, you might also consider making a non-concessional (after-tax) contribution into your super account to boost the amount you have in the run-up to retirement.

Generally, you can contribute up to $100,000 a year in after-tax money. Not only is the tax on investment earnings on these contributions only 15 per cent, but they boost the income you can enjoy tax-free in retirement.

If you have a larger amount available, from an inheritance or selling an asset, for example, you could even consider making a bring-forward contribution of up to $300,000 in a single year if you are under age 65.

Get the government to contribute

Another opportunity for eligible low to middle-income earners is to make a personal after-tax contribution of up to $1,000 and potentially receive a co-contribution of up to $500 from the government. The co-contribution amount will vary depending on your income and the number of contributions you make, but it can be an easy way to increase your super balance.

Another tax strategy to consider if your spouse or de facto partner earns less than $40,000 is to make an after-tax contribution into their super account. You could be eligible for the maximum tax offset of up to $540 if you make a contribution of at least $3,000 into your spouse’s super account, provided they earn $37,000 or less. The tax offset tapers off as your spouse’s income increases before cutting out at $40,000.

Strategic review of asset allocation

As super is a structure for investing, not an investment in its own right, it might also be a good time to take a closer look at the mix of assets in your super.

After COVID-induced market volatility, and with historically low-interest rates, your allocation may have drifted away from your strategic plan.

With the right advice, tax-effective super strategies offer an easy way to rebuild your retirement savings and achieve your overall wealth creation goals.

If you would like to discuss your super or investment strategy, call us today.

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And while that’s all led to a whopping 76% of us believing it’s more important than ever to plan for a secure financial future, we still don’t know what that means when it comes to retirement.

The first step is figuring out how much you need. Once you know the figure you’re aiming for, how much you currently have, and how many years you are away from finishing work, you can put a plan in place to help you reach your retirement savings goals.

Ways you might consider doing this include:

• Topping up super with additional contributions. (Be aware of contribution caps).
• Replacing any super that’s been accessed through the COVID early release of super scheme.
• Paying down personal debt like loans or credit cards.
• Making additional home loan repayments so you own your home sooner.

Consolidating your super accounts so you aren’t paying multiple fees. (Check you don’t lose important insurance benefits or won’t be charged an exit fee first).

Plan to protect retirement savings

COVID has made us pay closer attention to how our retirement savings are invested and some people may have seen their super balances drop. If you’ve got 15 or more years before you retire, chances are, your balance will likely have time to recover with the usual long-term market movements. But there’s no guarantee, and it doesn’t mean you can just sit back and relax.

It’s worthwhile checking what type of superannuation investment product your retirement savings are invested in. Diversified or balanced options can help offer some protection against volatile market swings because they’re made up of assets other than shares, like buildings and other infrastructure (although these are still susceptible to fluctuations).

One of the most important things to do is avoid making hasty decisions. Do your research, and if possible speak to your financial adviser if you’re wondering whether it’s the right time to switch investment options or move your super from one fund to another. There may be a risk of locking in losses or unfavourable tax components that could have a significant impact on the kind of retirement you’d like.

Don’t bank on working for longer

Given what we’ve seen with COVID and the economy, it’s hardly surprising 30% of people said they were worried about sequencing risk – a market crash or downturn which significantly reduces the value of super savings. And if that happened, over 50% of us say we’ll work for longer to build our retirement savings back up.

However, that might not be a failsafe backup plan. ABS data shows that of the people who retired in 2018-19:

• 21% had to stop working due to sickness, injury or disability
• 11% retired because they were made redundant or couldn’t find work

Add to that the average retirement age was just 55.4 years, working for longer to top up your super isn’t an option for everyone.

Educating yourself and taking control of your financial future can help alleviate concerns about retirement. Having a plan and feeling financially prepared can give you peace of mind. You spend your life working hard, and deserve to feel excited, not anxious, about retirement.

Take a step in the right direction and give the Integra team a call or book a meeting here.

Source: AMP

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One of the main reasons people give for wanting to establish an SMSF is to have greater control of their investments and taking control of a difficult situation is exactly what they’ve been doing.

Changes to asset allocation

According to the 2020 Vanguard/Investment Trends SMSF investment report, nearly half of SMSFs made substantial changes to their asset allocation this year.

The survey of over 3000 SMSF trustees shows most reacted defensively, with 55 per cent increasing their cash and property holdings, mainly at the expense of equities. Direct shares now represent 31 per cent of SMSF portfolios, their lowest level since 2009 during the GFC.

The report found that one third of SMSF have fixed income exposure. Hybrid securities remain the most popular product, although more trustees are investing in bonds which has become easier with the profusion of bond ETFs (exchange traded funds). In fact, bonds were among the better-performing asset classes in the year to June 2020. International bonds returned 5.4 per cent while Australian bonds returned 4.2 per cent.ⁱ

However, the search for a reliable income stream that is better than you can get from bank deposits remains a challenge. The hunt for yield

With interest rates on the decline for several years, and currently at or near zero, investors have turned to shares for their dividend income as well as capital growth. But this source of income is also under threat from the economic impact of COVID-19 on company profits.

The Vanguard/Investment Trends survey also found that SMSFs expect dividend yields to fall from 4.8 per cent pre-COVID-19 to 3.6 per cent this year. While the actual decline in dividend income will depend on the shares you hold, many SMFS will already be feeling the pinch.

In July, the Australian Prudential Regulation Authority (APRA) ordered Australian banks and insurers to restrict dividend payments to 50 per cent of their earnings. Given the banks generally pay out up to 90 per cent of their earnings, this will have a big impact on SMSFs who often rely heavily on bank shares.

In the latest company reporting season, many popular blue-chip companies cut or suspended dividends. According to CommSec, 68 per cent of companies issued dividends in the year to 30 June 2020 but dividend payments were down 32 per cent on aggregate.

Yet despite this setback, SMSF investors are already positioning themselves for the future.

The Vanguard/Investment Trends survey showed SMSFs were poised to buy back into the share market, with 37 per cent willing to increase their allocation to blue-chip Australian shares, and 23 per cent to increase investment in international shares.

Diversification is key

In these uncertain times, having a well-diversified portfolio with multiple sources of income as well as capital growth is more important than ever.

As well as Australian shares, many SMSFs also have relatively high exposure to property, either through residential real estate or listed property. But the property also faces challenges.

Listed property was the worst-performing asset class last year, down 13.4 per cent.ⁱ Although past performance is not a reliable guide to the future, commercial property faces challenges due to falling demand for retail and office space during the pandemic, as well as falling rents.

While residential property held its value last year, the outlook there is also uncertain given rising unemployment, falling rents and a halt to immigration. It’s also yet to be seen how many investors who temporarily deferred loan repayments will eventually decide to sell their properties.

A time to revise strategy

All in all, SMSF are performing well. However, with reduced dividend income and low-interest rates in the medium term, SMSFs in retirement phase may need to make decisions that were not anticipated, such as drawing on their capital to cover their income needs.

At the very least, this is a good time to ensure that your SMSF is well diversified and positioned for continuing market volatility. If you would like to discuss your SMSF investment strategy, retirement planning or tax planning, do give the Integra team a call or book a meeting here.

i Vanguard: The power of diversification

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Being prepared, reviewing your super contributions and submitting your return on time are good policies every year, but the shadow of COVID-19 (coronavirus) means many of us face unexpected pressures in a changing economic environment.

This is an end of financial year like no other. Many people will have concerns around job security, which makes long-term planning seem less important.

You may face urgent priorities for your money, such as mortgage repayments, covering bills and paying down debt.

If you’ve worked from home this year, the government has recently released guidance on claiming working from home expenses as a tax deduction. Due to COVID-19, this financial year the ATO will accept a shortcut method for calculating running expenses from 1 March to 30 June.

Here are some other things to consider as 30 June approaches.

1.What’s new this year if you’re at or near retirement

Changes kicking in this financial year include lower minimum pensions drawdown requirements to help retirees affected by significant losses in financial markets as a result of COVID-19.

The minimum annual payment required for account-based and allocated pensions and annuities has been cut by 50% in the 2019–20 and the 2020–21 financial years.

If you’ve recently retired, you may still be able to make voluntary super contributions and potentially claim a tax deduction for personal super contributions. Current regulations allow eligible ‘recent’ retirees, aged 65 and over, a limited exemption from having to meet the work test, which is otherwise required to make voluntary super contributions. This applies to contributions made from 1 July 2019.

This is also the first year that those who are eligible can use unused carried forward concession cap amounts from the previous financial year.

First applications for early release of super withdrawals up to $10,000 must be made by 30 June. A further application can be made between 1 July and 24 September 2020.

Super fund members born between 1 July 1962 and 30 June 1963 will reach their preservation age during the 2020/21 financial year and may wish to consider whether a transition to retirement pension is appropriate.

Proposed changes

From 1 July 2020, the following proposed changes, if legislated, may benefit members aged 65 and 66 who want to make additional contributions to super.

• Up to age 67 (currently 65) you will be able to make personal and non-mandated employer contributions to super without needing to satisfy the work test (ie been gainfully employed for 40 hours in 30 consecutive days during the financial year in which the contributions are made).
• You will be able to access the bring forward provisions for the non-concessional cap up to age 67 (currently 65). This means you will be able to contribute up to $300,000 to super (you can generally bring forward up to $300,000 if your total super balance on the previous 30 June is less than $1.4m, or up to $200,000 if it’s less than $1.5m). Note that legislation around this change hasn’t yet been passed.
• The maximum age at which you will be able to receive a spouse contribution will increase from 70 to 74.

2. Super contributions

End of the financial year is usually a good time to think about making extra contributions to take advantage of the lower rates of taxation on super.

While that might be harder this year with competing priorities, it still makes sense to keep in mind that additional contributions today could boost your super balance in the future. There are a number of different types of contributions to consider. You may also be able to reduce your taxable income and pay less on investment earnings.

To claim a tax deduction on your post tax contributions, you need to tell your super fund by filling in a notice of intent. You will generally need to lodge this notice and have the lodgement acknowledged by your fund, before you file a tax return in the year you made the contributions.

If you’re earning more than your partner and would like to top up their retirement savings, or vice versa, you may want to think about spousal contributions. The spouse making the spousal contributions could be eligible for a tax break.

You and/or your partner may also be eligible to receive a government co-contribution. If so, you might consider making a personal non-concessional contribution before 30 June to make sure you receive the matching government co-contribution for the 2019-20 financial year that you are entitled to.

3. Insurance

If you have income protection cover, and your budget allows, you may consider pre-paying your premiums 12 months in advance to take advantage of claiming a bigger tax deduction this year. This may work well if your income is higher in the current income year than next.

However, it is important to get some tax advice as to whether doing so this year is a good idea for you based on your income.

4. A bumper year for bargains? 

Tax time often tempts retailers to discount older stock from computers to cars. This year, the awakening of the hibernating economy may see more businesses keen to generate short-term cash flow by lowering prices or extending credit terms.

Having switched to cashless payments during lockdown, many retailers may keep these arrangements and pay more attention to online sales.

Shopping via your phone or other online device means you don’t have to rub shoulders with anyone at the office supplies discount bin. You also don’t have to leave home to use price comparison sites such as Finder or Compare the Market to seek out a better deal on everything from children’s toys to pet insurance.

Remember to hang onto your receipts for anything relevant to your work for tax time.

5. Key dates 

Online lodging has made most tax returns quicker and easier than the days of losing paper receipts. Lodging on time keeps the ATO happy and means that if you’re in line for a refund, you’ll get your money faster.

Individuals can lodge a tax return with the ATO from 30 June. If you’re doing it yourself, you have until 31 October 2020 to lodge it, or potentially longer if you’re using a registered tax agent.

For businesses, super guarantee contributions for the current quarter are due by 28 July, however, if you want to be able to claim these contributions as a tax deduction in the 2019–20 financial year they must be paid by 30 June.

6. Talk to a professional

To discuss your situation and how you may benefit from these strategies, please feel welcome to get in touch. You can speak with the Integra Financial team here.

Source: AMP

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The Coronavirus pandemic has disrupted every aspect of our daily lives from workplace closures to schooling children at home, from lockdowns to panic buying.

Globally, as of 13 April 2020, there have been 1,776,867 confirmed cases, including 111,828 deaths reported to the World Health Organisation. In Australia, from Jan 26 to 13 Apr 2020, there have been 6,322 confirmed cases with 61 deaths.

Costing more than $320 billion, the Government has released economic relief to support affected workers, businesses and the broader community.

This is part 1 of a 3-part series on how the Government will support individuals and households, businesses, and the flow of credit in the Australian economy. We’ll explain what’s been announced, how it may affect you, and what to do next.

Here are the key measures released:

1. Support for individuals and households. Financial assistance in the form of wage subsidy, income support payments for the unemployed and pensioners, and temporary early release of superannuation.
2. Support for businesses. This includes measures for a temporary cash flow boost, a safety net for financially-distressed businesses, investment incentives, and wage subsidies for apprentices and trainees.
3. Supporting the flow of credit. To better manage the impact of the Coronavirus and help support activity, these reforms are designed to encourage lending to businesses through low-cost funding and cutting red tape.

How the pandemic affected our economy and the rest of the world

These are challenging times – for everyone. The outbreak of the Coronavirus poses significant health impacts, but also major economic consequences.

A decline in economic activity and financial markets

While the initial effect was felt in the Chinese economy, lockdowns announced in major economies in Europe, the Americas, and Asia to contain the outbreak meant economic activity has declined.

China recorded the largest fall in industrial production and manufacturing in its history.

Demand for goods and services has declined in the tourism, hospitality and retail industries due to restrictions on large gatherings, availability of imported goods and travel bans.

Stock markets around the world have fallen substantially and the Australian dollar is 11% lower than it was in early January.

On the upside, falls in global demand have pushed oil prices down 65% lower but consumers tend to benefit from lower petrol and gas prices.

Protecting the community but at a cost

The Government has now put in place strong measures to protect Australians to limit the spread by activating the National Incident Room, releasing masks and other personal protective equipment, enhancing border controls and imposing strict travel restrictions and promoting social distancing. Is it enough? Can our health system manage the outbreak?

Ironically, by restricting the movement of people, some businesses have been forced to close and jobs are being lost.

The good news?

There is good news and it largely relates to support for individuals, households, and businesses to minimise the significant economic consequences from this pandemic.

Let’s take a look at what’s available, what it means for you and what you can do to get it.

Support for individuals and households

In response to the crisis, Prime Minister Scott Morrison has announced measures at an estimated total cost of $320 billion, to support workers, households, and businesses. In this article, we discuss what’s available for individuals and households.

JobKeeper Payment

What is it?

This is a wage subsidy of $1,500 per fortnight, per employee, available to businesses and not-for-profits significantly impacted by the Coronavirus, so they can continue paying their employees. Payments will be made to the employer monthly in arrears by the Australian Taxation Office (ATO). The subsidy starts on 30 March 2020, with the first payment to be received by the employer in the first week of May.

Who is eligible to claim?

• Businesses with an annual turnover of less than $1 billion where their turnover has fallen or will likely fall by 30% or more; or
• Businesses with an annual turnover of more than $1 billion where their turnover has fallen or will likely fall by 50% or more; or
• Self-employed individuals, if they meet the turnover tests mentioned above; or
• Not-for-profits registered with the Australian Charities and Not-for-Profit Commission (ACNC) if their turnover has or will likely fall by 15% or more, relative to a comparative period.

Where you have more than 1 employer, only 1 employer will be eligible to receive the payment.

How do you claim?

Eligible employers must elect to participate by applying to the ATO as, at the time of writing, this can be done by visiting the ATO website and registering for JobKeeper updates.

Income support payments for the unemployed

What is it?

This measure comprises temporary expanded access to the JobSeeker payment and a new time-limited Coronavirus supplement to be paid at a rate of $550 per fortnight on top of the existing income support payment.

The expanded access includes payment access to permanent employees who are stood down or lost employment; sole traders; self-employed; casual workers; and contract workers who meet the income tests. In addition, there will be reduced means testing and reduced waiting times.

It’s important to note that you will not be able to access employer entitlements or income protection insurance at the same time as receiving the JobSeeker Payment and Youth Allowance Jobseeker under these arrangements.

The Coronavirus supplement will commence from 27 April 2020 and the expanded access will commence from 25 March 2020.

Who is eligible to claim?

Existing and new recipients of JobSeeker Payment, Youth Allowance, Parenting Payment, Austudy, ABSTUDY Living Allowance, Farm Household Allowance, and Special Benefit.

How do you claim?

You can claim online or over the phone.

Payments to pensioners and concession cardholders

What is it?

These are 2 separate payments of $750 to assist to lower-income Australians such as pensioners, social security and veteran income support payments, and eligible concession cardholders. The purpose is to manage the impact of the recent volatility in financial markets and the impact of low-interest rates on retirement savings.

The payments will be exempt from tax and will not count as income for social security purposes.

Who is eligible to claim?

• For the first payment:
  • You must be an Australian resident and be receiving one of the eligible payments or hold one of the eligible concession cards at any time from 12 March 2020 to 13 April 2020, inclusive.
• For the second payment on 10 July 2020:
  • You must be an Australian resident and receiving one of the eligible payments or hold one of the acceptable concession cards that we’re entitled to the first payment, except those who are receiving an income support payment that is eligible to receive the Coronavirus supplement.

How do you claim?

The first payment will be paid automatically from 31 March 2020 and the second payment from 13 July 2020 by Services Australia or the Department of Veterans’ Affairs (DVA).

Temporary early release of superannuation

What is it?

Individuals affected by the coronavirus will be allowed to access up to $10,000 of their superannuation this financial year and a further $10,000 next financial year. Payment will be tax-free and will not affect any Centrelink or DVA payments. When the ATO has processed your application, it will make a determination and then notify your superannuation fund to release the payment to you.

Who is eligible to claim?

• You must satisfy one or more of the following:
  • You are unemployed; or
  • You are eligible to receive the JobSeeker payment, Youth Allowance, Parenting Payment, Special Benefit or Farm Household Allowance; or
  • On or after 1 January 2020:
    • Redundant; or
    • Working hours reduced by 20% or more; or
    • If you are a sole trader – your business was suspended or there was a reduction in your turnover of 20% or more

How do you claim?

You can apply directly to the ATO through the mygov website (www.my.gov.au) and certify that you meet the criteria, from 20 April 2020.

Temporarily reducing superannuation minimum drawdown rates

What is it?

It’s a 50% reduction in minimum pension drawings for 2019-20 and 2020-21 for account-based pensions and similar products, to reduce the need to sell investment assets to fund minimum drawdown requirements.

Who is eligible to claim?

Retirees with Account-Based Pensions and similar products.

How do you claim?

Retirees should contact their Financial Planner if they want to make the reduction. If you have already withdrawn the current minimum drawdown requirements, you can’t put the amount back into your superannuation.

Reducing social security deeming rates

What is it?

From 1 May 2020, the upper deeming rate will be 2.25% and the lower deeming rate will be 0.25% to reflect the low-interest-rate environment and its impact on the income from savings. On average, those on the Age Pension will receive around $324 more in the first full year that the reduced rates apply.

Who is eligible to claim?

If you are an income support recipient, including Age Pensioners.

How do you claim?

It will be automatically calculated by Services Australia.

Let’s recap what’s available for individuals and households

The Government has announced financial assistance in the form of wage subsidy, income support payments for the unemployed and pensioners, and temporary early release of superannuation. If you are an affected worker, individual or household, help is available.  Some payments can be claimed online, over the phone or automatically paid. Call your trusted Financial Planner or accountant, if you have one.

The world is healing

A pandemic is spreading. People are in quarantine. Some businesses and schools are closed. The whole world is in crisis mode and no one knows how long it will last. These are scary times.

It’s ok to feel scared, confused and overwhelmed. As we’re all forced to deal with the new reality of a pandemic, let’s look at some positives and a small reason to celebrate.

• Fast food replaced by home-cooked meals;
• Children are home with their families;
• Parents are home taking care of their children;
• People are health and hygiene conscious again;
• Less traffic on the road;
• Petrol is affordable; and
• The air is cleaner.

Our environment has shifted radically in the space of a few weeks. Let’s do our bit to slow the spread of the virus.

Let’s check in on each other. Let’s stay home and save lives.

We’re in this together. If you aren’t sure if any of this applies to you or need help understanding what is available, reach out here to the Integra team and let us see how we can help.

Here are links to some useful resources:

https://www.ruok.org.au/

https://www.health.gov.au/

https://headspace.org.au/

https://mindspot.org.au/

https://www.ato.gov.au/

The post Your Guide to the Coronavirus Economic Stimulus Package for individuals and households appeared first on Integra Financial Services.

In Australia, investments managed in an ethical or responsible manner came in at $980 billion in 2018 – more than half of all assets professionally managed. That’s up 13 per cent on the previous 12 months thanks to positive portfolio performance and increasing demand.

Whatever label used to describe sustainable investments, it’s a growing sector, having moved beyond simply excluding certain industries like tobacco, weapons and gambling. For example, it now considers positive exposures in renewables, in new technology such as electric vehicles and batteries, and in new medicines, vaccines and health care innovations. It also takes into account the environmental impacts of traditional investments in oil, gas and mining, and the social impacts of traditional investments in consumer staples like supermarkets, and the banking and finance industry.

How are ESG investments performing?

Happily, there’s no need to sacrifice returns for principles, or vice versa. Institutional investors – such as super funds – have led the push in responsible investment, creating a scale of demand that’s difficult to ignore.

Across the share market, almost all ASX200 companies now report their ESG policies and sustainability targets and a 2018 study found that ASX200 stocks with high ESG scores “significantly outperformed” the ASX200 average over a seven year period.

The Australian experience reflects worldwide research showing that companies with better responsible-investment standards have stronger financial performance that exceeds benchmarks, including in emerging markets. This increasing attention has led to more than 80 per cent of S&P 500 companies now reporting on their ESG measures.

Why now?

Recently, United Nations member countries adopted 17 Sustainable Development Goals (SDGs) to be achieved by 2030. These goals recognise “that eradicating poverty in all its forms and dimensions, including extreme poverty, is the greatest global challenge and an indispensable requirement for sustainable development.”

This has brought more focus on responsible investing, says Professor Carol Adams, an internationally renowned author in integrated and sustainability reporting, and social and environmental accounting.

The benefits and opportunities for businesses, and by extension investors, are “significant”, says Adams.

“Businesses which set out to contribute to the SDGs through their mission and strategy stand to gain a competitive advantage in developing products, services and processes fit for future challenges,” Adams told an Australian Senate inquiry into the SDGs.

On the other hand, if businesses fail to respond to the demand for change, they may face substantial long-term risks, given the increased government pressure on emissions targets; changes to corporate governance principles; and green and sustainable finance initiatives, she concludes.

What’s next?

Super funds are becoming more active as responsible investors, with many offering bespoke ethical or socially responsible investment options. This gives investors a chance to reallocate their money in line with their personal values.

But before you dive in on a mission to do good while saving for your retirement, speak to your financial adviser about available options that can contribute to your long-term financial well-being.

Have you considered ESG investments as part of your overall investment strategy? Understanding what ethical or green investing entails takes research and education, book an appointment with the Integra Team to learn more.

Source: Colonial First State, 2019

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