On Tuesday May 1, NT Treasurer Delia Lawrie announced the 2012-13 NT budget. The budget took particular focus on the areas of health, education, community safety and infrastructure with the overall aim supporting the NT economy and creating jobs for Territorians.

Expenditure in Budget 2012 has been broken down in the following ways:

• $1.2 billion for Health
• $1.3 billion for Infrastructure
• $850 million for Education and Training
• $450 million for Housing, Local Government and Regional Services
• $343 million for Police, Fire and Emergency Services
• $272 million for Justice
• $264 million for Business and Employment
• $177 million for Children and Families

So, if you are a Territorian, just what do these figures mean for you?

Infrastructure:

With investment of $1.3 billion in Infrastrucure, Budget 2012 aims to keep Territorians working and businesses open in what still is a tough economy. This sizable investment is expected to create 2,600 jobs and build better hospitals, schools and roads.

Investment in this area is split in the following way:

•    $607 million for the capital works program

•    $380 million for Power and Water Corporation’s infrastructure program

•    $217 million for the repairs and maintenance program and

•    $73 million for capital and repairs and maintenance grants.

Health:

With Budget 2012 wanting to pay particular attention to the area of health, significant investment was made in this area of $1.2 billion. Of this $1.2 billion, $553 million has been allocated to the upgrading of hospitals Territory wide and of this $147 million has been allocated to the Alice Springs Hospital.

Education:

$850 million has been invested into education and training initiatives. This spend will focus on increasing teacher rates in NT schools and improving school infrastructure.

In Alice Springs, we can expect the following:

• $73.99 million for primary school education in government and non‑government schools
• $31.33 million for senior years education and Vocational Education and Training in Schools in government and non‑government schools
• $25.7 million for middle years education in government and non‑government schools • $7.94M for preschool education in government and non‑government schools
• $2.86M for the provision of school buses and special needs transport for students
• $2.75M for isolated student education through the Alice Springs School of the Air and distance education
• $1.92M for early childhood programs including Families as First Teachers
• $0.57M to provide back to school vouchers of $75 per student

Community Safety:

With a continued focus on community safety, Budget 2012 will see $343 million invested to help increase police numbers Territory wide. A significant proportion of the $343 million will also be allocated to support educational programs like the Enough Is Enough alcohol reforms where $18.24 million has been allocated.

Central Australia will receive $47.39 million to provide police, fire and emergency services including nine police stations, two fire stations and twelve volunteer groups.

Home Buyers:

Home buyers will be happy to hear that Budget 2012 has included funding to extend the BuildBonus scheme until 30 June, providing a $10,000 grant to all homebuyers purchasing or building a home up to $600,000.

Indigenous Territorians:

Budget 2012 has allocated $433 million in infrastructure spend and $50 million over three years in partnership with Commonwealth Government to support employment programs in the bush.

Budget 2012 will also allocate $15.49 million for Charles Darwin University, Batchelor Institute of Indigneous Tertiary Education and other providers to deliver qualifications to Territorians. Territory and Commonwealth funds will also allocate $0.3 million for the Indigenous Training Employment Program to support employment for Indigenous Territorians of worling age in remote communities.

Local Business:

Small business was also considered in Budget 2012 with high infrastructure spending included and a focus on helping small business grow. The Territory remains the lowest taxing jurisdiction for small to medium business in Australia. Investment in this area will be split in the following ways:

•    The lowest recurrent taxes for small and medium sized businesses in Australia

•    $100  million towards training and apprentices to grow a skilled Territory workforce

•    $260 million infrastructure program for Territory roads and national highways, (a 165% increase since 2001)

•    $21 million to sell the Territory as a tourism destination ($0.75 million allocated to Tourism Central Australia); and

•    $64.9 million to develop industrial land.

It is also worth noting that $0.36 million has been allocated for the Territory Business Centre to provide business advice and information.

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In the interest of saving you time and hassle and saving the environment paper at HAS, we've recently set up a client portal on our website that will allow you to upload, send and download files with your HAS accountant as quickly as you can say, "that was easy!".

Located on our home page (www.hasbs.com.au) on the left hand side is a login area for Secure Returns. Once we issue you with a username and password (which you can change later) you can login to this secure site where you can upload financial files for your accountant to download. Similarly we can upload files which you can then download and read at your leisure. You will be notified  there is a file waiting for you via an email notification. It really couldn't be much more simple.

No more lugging great big files into the post office, no more waiting to receive documents, with Secure Returns you are able to send and download in an instant.

We will be allocating login information to all clients as required but should you wish to jump on board for this free service now, simply email reception@hasbs.com.au and we will be able to set you up quickly.

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While many Aussies were having a punt on the horses, on Tuesday, Nov 1, the RBA met to discuss interest rates and the news for home owners was good.

A rate cut of 0.25% was announced meaning that for around 2.5 million Aussies with variable rate home loans, their repayments will now be automatically lower next month. 

It is advisable for those on a variable rate home loan to try and keep repayments at the level previously being paid at the higher interest rate. This is a great way to help reduce the duration of your home loan as the additional money saved can now go directly onto paying back your principal. Depending on your mortgage and repayments, this could take months if not years off of the life of your mortgage.

Of course for some households this will not be an option with the saving now required to be spent on other necessary items but where possible, maintaining your previous repayments is advised.

Make the most of the rate cut while you can!

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It's now been just over a month since we contacted HAS client, Anja to let her know that she had won $1,000 as part of our Max Your Tax Return competition.

Anja was delighted to have scored the extra $1k just for getting her tax return done and we couldnt' be happier for her. To see the draw, visit our facebook page.

What did you think of the Max Your Tax Return comp? If we were to run another competition in the future, what do you think would be a great prize?

This year, HAS processed many, many tax returns and provided many customers with juicy, big tax returns.

What did you spend your tax return on this year? Let us know by commenting below or visiting the HAS facebook page.

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New self service and online options are now available to help Australian’s more easily access Centrelink, Medicare and Child Support services. This new initiative allows more simple, 24/7 access to these services via the website (www.humanservices.gov.au) or phone (13 24 68).

The website is intended to make it easier, particularly for those who prefer online contact, to reach a range of government services. Centralising these services in this way will also reduce the need for people to visit Centrelink, Medicare and Child Support offices and will also ultimately lead to less correspondence by mail.

People are encourage to sign up to Medicare’s Online Services. By entering the required details on the site customers will then be able to claim their benefits for some Medicare visits online and receive payments directly into their bank account. 

The number of procedures which customers are able to claim for online has increased and in future will include specialist consultations and diagnostic imaging procedures. Head to the website to check out how this new 24/7 access may benefit you and if you have any questions please call the contact number.

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It’s tough being a Gen Y individual. Not only do you have a reputation for wanting things handed to you on a silver plate and for swapping jobs more frequently than most people blink, but it seems now the Gen Y’s of Australia are having an increasingly tough time entering the property market for the first time.

While the problem of the cost of housing is by no means limited to Gen Y’s alone, research is suggesting that this group of individuals born between 1980 and 1994 are bearing the brunt of an increasingly expensive property market coupled with the Federal Government’s changes to the first home owners grant at the end of 2009. In fact, according to a survey earlier this year conducted by Loan Market, 84% of 18 – 25 year olds and 78% of those aged 25 – 40 wanted to prioritise saving during the 2011 year, suggesting that a big push is being made to save for a first home deposit.

As a flow on from the global financial crisis, first home buyers today need to save harder than first home buyers from previous decades and many Gen Ys are now simply looking to get their feet in the home-owning door with an investment property. According to research by Mortgage Choice, many from Gen Y are now delaying holidays, buying cars, going out and even having children in order to fund this first major purchase in their lives.

So, if you’re a Gen Y wanting to enter the property market where should you financially begin to help make the great Aussie dream of owning your own home come true?

1. First up – start saving, NOW!

There’s no way around it, if you want to buy a property, you need to save money. While saving it is far less enjoyable than buying that new bag or meeting your mates at the pub for a beer, owning your own property is also a much better long term investment. Ideally, where possible you should aim to save at least 20 – 30% of your pay. This allows you to start a savings base which you can then roll into high interest accounts in the future.

2. Pay you debt off

When it comes to your debt, it’s very important to try and pay off as much as you can prior to trying to buy your first home.

Debt can affect both the amount you may be able to borrow towards your property as well as your ability to keep up with your repayments. Beyond this, your debt or lack thereof will also determine how quickly you can pay off your mortgage and therefore affect your long term financial position.

3. Find out what assistance is available to you

In Australia we have a few different Government initiatives designed to help get first owners into the property market game.

In particular, you should investigate the First Home Owner Grant and First Home Saver Account scheme. Each State and Territory has their own unique set up but in the NT there are also incentives like the Homestart NT scheme and the BuildBonus.

    First Home Owner Grant (FHOG):

The FHOG scheme provides eligible first home owners with a $7,000 grant in relation to the purchase or construction of a home.

FHOG is not means tested but since Jan 1 2010, homes with a value of more than $750,000 became ineligible.

For more information about Government assistance in your State or Territory, visit http://www.firsthome.gov.au/

4. Make sure you fit the house and the house fits you

In an ideal world, I’m sure that many of us could see ourselves living in castles and mansions dotted all around the globe, but in reality we can’t do that as for the majority of us this is well beyond our means.

Once you have saved, lowered or got rid of debt and found out what assistance is available to you it is then time to establish what house (and financial situation) would suit you long term. Remember that a house is a long term responsibility so sit down and work out a budget to work out exactly how much your house will cost you in the long run.

It’s often a good idea to speak with a financial adviser or home loan specialist at this point to make sure you have set yourself realistic and achievable goals.

When it comes to buying your first home, many will tell you that getting your foot in the door is the hardest part, so by following the above advice you’ll be well on your way to achieving your goals.

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It’s been around 8 months since the devastating floods occurred in Queensland and parts of Victoria and NSW and while the human toll can never be overshadowed, economic repair is about to get a boost with the Temporary Flood and Cyclone Reconstruction Levy (flood levy) coming into play for the 2011 – 2012 income year only.

As an employer it is important to now get your head around what this will mean for your employees and how to process this temporary levy.

The flood levy will only apply from 1 July 2011 to 30 June 2012 and only some employees will need to pay the levy. If you have employees with an income over $50,000 in the 2011-12 financial year, they are required to pay the flood levy.

For these employees, the flood levy will be incorporated into the new withholding tax tables you use to withhold amounts from their salary or wage. If you have payroll software you will need to install the new tax rates.

If any of your employees were affected by this natural disaster then they will be exempt from the flood levy. If they earn over $50,000 in the 2011-12 financial year, they may wish to lodge a flood levy exemption declaration to lower their withholding.

For more information about the flood levy, please visit the ato website or contact your accountant on 08 8951 0100. Click here to download the flood levy exemption form.

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Recently the ATO introduced a new measure to ensure investments in collectables and personal use assets by SMSFs do not allow current day benefits for SMSF trustees but rather are made for genuine retirement purposes.

SMSF trustees must comply with any rules set by the regulations in relation to investments in collectables and personal use assets, in addition to the rules as in-house assets rules that apply to some or all other assets.

This new measure will apply to all new investments and collectables and personal use assets from 1 July 2011 and all existing holdings must comply with these regulations or be disposed of by 1 July 2016.

Not sure where you stand? Contact HAS on 08 8951 0100 or speak with your financial adviser today.

HAS are also happy to inform SMSF trustees of a new educational tool produced by CPA Australia, the Institute of Chartered Accountants in Australia and the National Institute of Accountants that has been designed to assist SMSF trustees in understanding their roles.

The tool ensures that trustees have access to all the relevant information they need to remain engaged with their superannuation and assist them in achieving better control of their super.

To access the tool and find out more, visit http://www.smsftrustee.com/cpa/htm/home.asp

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No matter who you are or what you do, chances are you would have heard of a profit and loss statement and given its to-the-point title, would probably have a pretty good idea of what it’s all about. Right?

Well, this quiet achiever of the accounting world is about much more than just profit and loss. You see, the humble profit and loss statement is one of the most useful business planning and forecasting tools available to business owners and has the potential to help shape the future of any business.

A profit and loss statement (PLS), according to many sources is ‘a financial statement that gives operating results for a specific period’. Beyond this however, a PLS provides business owners with all the info they need to plan for the year or years ahead and can even assist with obtaining bank loans.

So, now you appreciate the importance of the humble PLS, think about how well you maintain your own. De-cluttering your PLS could make all the difference to your business future.

Where to start:

• Establish what information you need
Look at your business and work out what information you find helpful when measuring your business performance and planning for the future. Clearly establishing things like how much income the sale of your products and services make or identifying the costs involved with providing that good or service can help you more easily establish your gross profit per good or service. This then has a flow on effect, allowing you to asses where you should be focusing your business and personal efforts.

• Use your PLS logically
It’s all very well to have a comprehensive and detailed PLS statement, but if you don’t find it user friendly and can’t understand what it’s saying or where figures are stored then it’s not really very good to you, is it? At HAS, we’ve seen many clients create elaborate PLS’ and while for some clients’ this has suited their working style, for others it has caused more headaches than help. Keep like accounts together and create main groups for various areas of your business, eg: people or provision. Set up your PLS in a way you can drill-down for more information as you need it. If you need help setting up a user friendly PLS in MYOB, talk to your accountant when you are next in.

• Understand that your PLS will change
Like your business, the information in your PLS will be ever-changing. At the time of setting up your statement it’s a good idea to consider possible changes or growth that may occur in the future. It’s also then important to treat this as a working document, something that needs to maintained regularly. The genius in a good PLS is that it can tell you so much about your business, so it’s important to update regularly and also adapt and edit the format itself as required.

Your PLS can tell you a lot about your business and by properly maintaining these reports and reflecting on them regularly you really can achieve a far better informed base on which you can make decisions. Many businesses will generate monthly and then yearly PLS’ to reflect on how their performance is going, but depending on the size of your business, quarterly PLS’ reviews may be enough. Take the time to set up an efficient PLS, as the small amount of time this takes is well worth it for your business in the end.

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In the business world we'll all inevitably be told at some point that we're no good, can't, won't or shouldn't do something. Don't take it to heart though, just imagine how much poorer the world would be if the below people had believed what they'd been told...

• Walt Disney

A young Walt Disney was fired by a newspaper editor as he apparently "lacked imagination and had no good ideas." We think a certain mouse and a multi-billion dollar empire would prove that wrong.

• Oprah Winfrey

"Unfit for tv" was the justification made for her being fired as a television reporter. We imagine the person who decided that didn't have a long career in HR after the Oprah Show started 25 years ago.

The point is that different people will always have a different idea about what makes a good person, employee or boss. As long as you have a goal, stick to your ideas and don't give up!

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