What is it?

Visa’s system is referred to as Paywave and MasterCard’s as Paypass. They are essentially the same technology and operate via a RFID chip (Radio-Frequency Identification) located in your ATM card. For the system to work, you must have a participating card and the vendor must have a compatible card reader or terminal.

A RFID has a relatively short range. It is activated by power supplied by the terminal and because that power is usually quite limited, has a short range. As applied to the credit card, the device is activated when placed in proximity to a reader. It then transmits its information to the terminal. In the case of a credit card, this will probably be the information that is usually stored on the magnetic stripe but may be more. The card is usually activated when it’s within 4 to 5 cm of the terminal and the terminal must be activated to request a transaction. Typically the maximum transaction is $100, so it’s perfect to quickly pay for the milk and bread or your morning coffee. This relatively low maximum transaction does go part of the way to minimising the risk of fraud or what is known as ‘skimming’.

Is it safe?

The obvious question is whether the cards may be read by a rogue terminal and if so, from what distance. If they can be read, then they may be cloned, that is, all the information reproduced and inserted into a fake card. The process is called ‘skimming’.

To protect you from fraud and skimming, the providers offer some guarantees, however it is up to you to prove you have been defrauded which often isn’t as easy as it sounds.

Here is what Visa and MasterCard have to say about the security of ther offerings:

Visa payWave-enabled cards are backed by Visa’s Zero Liability Policy¹ and are as secure as any other Visa chip card. They carry the same multiple layers of security, which ensures that you are not responsible for fraudulent or unauthorised transactions.

Visa payWave cards only work when the card is within 4cm of the card reader and the payWave terminal can only process one transaction at a time. Because your Visa payWave card doesn’t leave your hand during the transaction, you remain in control of your card at all times.

¹Visa’s Zero Liability policy covers Australian and New Zealand-issued cards and does not apply to ATM transactions, transactions not processed by Visa or certain commercial card transactions. Cardholders should notify their issuer promptly of any unauthorised Visa use. Please consult your issuer for additional details

MasterCard is constantly working to protect you with sophisticated fraud-fighting tools that proactively predict, monitor and prevent fraud.

With secure encryption technology and Zero Liability † protection, PayPass is as safe as your regular card:

• You are in control — your PayPass never leaves your hands to make a payment
• No accidental payments — your PayPass device is equipped with secure technology ensuring each transaction is unique. What’s more, you must be in extremely close range of the reader at checkout for it to work
• Not billed twice — even if you tap more than once at checkout, you’ll only get billed once for your purchase

The decision’s up to you

At the end of the day, the decision is up to you whether you feel comfortable with the technology. If you don’t, its as easy as contacting your financial institution and requesting the technology be disabled on your card.

To be honest though… the biggest risk I can see with this technology is how easy it is to spend that hard earned cash.

References:

VISA

MasterCard

Alan Tyree

The high dollar and depreciation of land values are putting significant pressure on many farmers, leaving otherwise viable farms facing serious difficulty to stay operational.

Farm Finance will help strengthen Australia’s agricultural sector, making sure all Australian farmers can take full advantage of the opportunities ahead.

The Gillard Government has been working with farmers to develop a number practical policy measures to give farmers a fairer deal for accessing finance.

Farmers from around Australia along with peak farming bodies have contributed to the development of Farm Finance.

The Gillard Government held a Rural Finance Roundtable in October 2012 which brought together representatives of the rural and banking sectors to discuss access to finance and farm debt. At the Roundtable the Government heard first-hand accounts from parts of the agriculture sector experiencing acute debt pressures due to lower land valuations, low product prices, and high input costs.

The Government will support our farmers so they can seize the opportunities of the future, support jobs in regional Australia and continue to feed the nation and the world.

Farm Finance will provide assistance to viable agricultural businesses and help them prepare their businesses for the future.

Farm Finance consists of four measures:

1. concessional loans to help restructure debt and invest in productivity;
2. extra rural financial counsellors to work directly with farm businesses;
3. progressing a nationally consistent approach to debt mediation across the country; and
4. enhancing the Farm Management Deposits Scheme.

The Government has today written to the State and Northern Territory (NT) Governments asking for their support in delivering components of the package. We have also sought the assistance of the State and NT Governments in administering low interest loans through state delivery agencies, such as the Queensland Rural Adjustment Authority, which are experienced in this form of loan delivery. It will be up to individual jurisdictions to determine if they wish to take up this offer for their communities.

Details of the Package:

1. Providing farmers with access to Concessional loans

Reducing debt repayments in the short-term will provide farmers with the breathing space to continue to run their businesses and support their families. Concessional loans targeted at restructuring debt and investing in productivity can provide that support. This has been identified by peak bodies as a significant issue facing many farmers.

The Gillard Government will make available a loan of up to $60 million over two years to the relevant state delivery agency in each state and the Northern Territory for the provision of the concessional loans to eligible farm businesses.

Under this program eligible farmers will be able to receive concessional loans of up to $650 000. Concessional loans will only be made available to viable farm businesses. Loan recipients will need to demonstrate financial need, participate in a farm business planning exercise, and demonstrate their capacity to meet a debt repayment schedule.

The Government encourages State and NT Governments to support this package and consider matching the efforts the Federal Government is making.

2. Increasing the number of Rural Financial Counsellors

The Rural Financial Counselling Service is a crucial service which provides free, impartial and independent financial advice right into the offices and onto the kitchen tables of Australian farming businesses.

Recognising the importance of these services in building ongoing financial resilience and capability, particularly for farmers experiencing financial distress, an additional 16 full-time equivalent Rural Financial Counsellors will be deployed across the country to focus on regions and industries experiencing acute debt stress.

This is on top of more than 110 currently funded Rural Financial Counsellors.

3. Working towards a nationally consistent approach to farm debt mediation

Recognising that Australian farmers need clear and consistent advice, the Government will work to establish a nationally consistent approach to farm debt mediation.

This will help farmers and their bankers access a simpler, more consistent system that delivers real results for all involved. We will work with the banking industry, agriculture industry and the States and Territories to provide this much needed service.

4. Enhancing Farm Management Deposits

Farm Management Deposits are an important risk management tool for primary producers to manage fluctuations in their farm income. However, improvements are needed to provide primary producers with greater flexibility in how they manage and use their deposits. Therefore, we will increase the non-primary production income threshold from $65 000 to $100 000 so that more primary producers can access the scheme and diversify their income to help better manage variations in incomes. We are also cutting red tape to help primary producers keep track of their finances and reduce their administration fees.

We will work closely with banking and agricultural industry groups as well as the States and the NT to roll out Farm Finance.

The increase in funding for the Rural Financial Counselling Service will start from 1 July 2013, enhancements for Farm Management Deposits will take effect from 1 July 2014 and the concessional loans measure will take effect as soon as possible.

For more information, visit the Department of Agriculture, Fisheries and Forestry website.

Source: Press Office – Treasury Minister

• Cyprus and developments in the Eurozone;
• China’s debt level & its potential implications for Australia;
• current valuations of our US-listed exposure; and
• Microsoft – the case for its addition to the Magellan Global Fund.

Magellan Global Fund Update - April 2013

Types of insurance offered by super funds

Super funds typically offer three types of life insurance to members:

• Life cover – your beneficiaries receive a benefit if you die
• Total and permanent disability cover - you receive a benefit if you become seriously disabled and are unlikely to ever work again
• Income protection - you receive an income stream for a specified period if you can’t work due to temporary disability or illness

Life insurance benefits are paid as either a lump sum or an income stream.

To find out how your super fund’s insurance works, contact your fund and ask as many questions as you need to. You can also consider getting financial advice if you have broader questions about what sort of insurance or other financial products are suitable for you.

Like other insurance policies, you will pay insurance premiums to be covered through your super fund. Many super funds have a default option, providing a small amount of insurance cover. However, you can choose to lower or increase your level of cover to meet your needs.

Why insure through super?

There are benefits in getting life insurance through super:

• It’s often cheaper because super funds purchase insurance policies in bulk
• There may be a tax advantage because the premiums are paid from your super account, not your after-tax income
• It’s easy to manage because premiums are automatically deducted
• Some funds automatically accept you for cover without requiring a health check

However, you also need to be aware that:

• The level of cover may be limited
• If you move to a different super fund or the contributions stop, your cover may end without notice
• You may choose to top up with an insurance policy outside super to get as much cover as you want
• Tax may be payable on some benefits
• If your super recipient is not a dependant consider getting financial advice as there may be tax implications

The key to deciding if you want insurance through your super fund is knowing how much cover you need and whether your super fund will offer the full amount. Being insured through super is generally a cost-effective and easy option. Just remember that if you change funds your insurance cover may stop.

We can help you search the market to find the cover that will get to work when you can’t. If you would like to discuss trauma insurance, please contact a financial planner at our Gympie or Ipswich office.

If you would like to discuss anything in relation to this interview, please contact a financial planner at our Gympie or Ipswich office.

Key points to note are:

• Cash and bonds have been the place to be over the past five years as a whole, providing higher returns than residential property and shares.
• We all know that past returns are not a good guide to future returns and this is particularly likely to be the case for cash and bonds. 
• Going forward, shares and to a lesser degree property, are likely to be a better option for investors.

Click here to read the article.

Source: ampcapital.com.au

• Friday 8th February 2013 – Gympie – Neslon Reserve, Jaycee Way Gympie Time – 9.00am to 4.00pm

• Saturday 9th February 2013 – Imbil – Imbil Showgrounds, Edward Street, Imbil Time – 9.00am to 12.00nn

• Saturday 9th February 2013 – Widgee Community Complex, Power Road, Widgee Time – 2.00pm to 4.00pm

• Sunday 10th February 2013 – Lower Wonga Hall, Wide Bay Highway, Lower Wonga Time – 10.00am to 12.00nn

Staff on the Bus will be providing information and assistance to small business operators, primary producers and community organisations to access support, funding and information in relation to the recent natural disasters experienced in the Gympie region.

For more information please visit https://www.facebook.com/GympiesResilientLeadersNetwork

The key points are as follows:

• 2013 is likely to be another good year for investors underpinned by a lessening in tail risks, very easy global monetary conditions and improving global growth.
• Watch global business conditions purchasing managers’ indices (PMIs), European bond yields, Chinese money supply growth, the Australian dollar and Australian housing indicators.
• Australia will likely continue to grow, but could go through a rough patch as mining investment slows, before picking up pace during the second half of the year.
• There is always a cycle and investors should avoid the crowd. Right now the cycle is moving away from cash and bonds in favour of equities and growth assets.

Click here to read the article.

Source: www.ampcapital.com.au

• While 2012 has had its share of worries, it has turned out far better than feared and share markets and growth assets have been able to generate strong returns for investors. This has been helped by investors looking for higher yields in the face of zero or falling cash rates.

• The combination of diminishing extreme downside risks globally, a modest pick up in growth as the year progresses and attractive valuations for most growth assets points to another year of reasonable returns in 2013. Expect interest rates to remain low globally and fall a bit further in Australia.

• The main risks relate to US budget and debt problems, a relapse in Europe, slow growth in Australia and a sharp back up in bond yields if investors get more confident.

Click here to read the article.

If you would like to discuss anything in relation to this article, please contact a financial planner at our Gympie or Ipswich office.

Source: www.amp.com.au

In most cases child support is paid with after tax dollars which may mean for example you need to earn nearly $50,000 to pay $25,000 child support if you earn over $180,000 where the marginal tax rate is 45%. When a child gets “unearned” income their tax rate after $643 climbs to 66%! However, income from a Child Maintenance Trust allocated to the child is treated as ‘exempt trust income’. The child is then given, for this income, an adult tax rate.

In a nutshell this  is a trust that is established to provide support for a child or children where there is an obligation to provide financial support for your children. In simple terms it is a mechanism that allows separated parents to pay less tax and satisfy their child support obligations at the same time.

A child maintenance trust is established by placing income producing assets into the trust, such as an investment property, shares or a term deposit, and the income generated is used to meet your child maintenance obligations.  The income from the trust, instead of being subject to tax at the paying parent’s rate which can be as high as 45%, is taxed in the hands of the child who gets the benefit of the adult marginal tax rates. This means for example that each child can claim the tax free threshold of $18,200 for this income.

This is a very attractive option for legitimately reducing your maintenance obligations. However, there are a number of pre-conditions that need to be satisfied including:

• There must be a family breakdown
•  Both parents must consent and agree to the terms of the trust
•  The contributing parent must earn a taxable income exceeding the income threshold.
•  The initial property or cash settled in the trust must meet a set minimum amount.

If you meet these pre-conditions it is worth discussing this strategy with your financial adviser. The only potential issue that you need to be aware of is that  eventually your children will get their hands on the capital of the trust at what is known as the “vesting date” . This date can be when they turn 18,21 or even 80 depending on what you decide.

These trusts are very attractive to high income earners, and small business owners.

If you, or someone you know finds themselves in this unfortunate position please contact a financial planner at our Gympie or Ipswich office to discuss your options.

Source: Civic Legal