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Deciding on what you do when you leave school is a difficult decision. If you decide to go to university, a college or do an apprenticeship, there are costs involved.There are a number of loans available from the Australian Government to help you complete further training and study. Examples are provided in table 1. Table 1: Types of study loansHELPVSLTSLThe Higher Education Loan Program (HELP) assists eligible students with their student…

Consider the following case studies and use the ATO study and training loan repayment thresholds and rates table to work out how much each person will repay on their HELP debt in 2022-23. Scenario 1Timothy logged into his myGov account and learned that he has a HELP debt of $12,000. His taxable income (after deductions) for 2022-23 was $58,000. His reportable super contributions were $5,510. He is liable to pay the Medicare levy.Timothy…

Your hypothetical situation For some time, your ambition has been to start and run a business in your local area. You have worked in a variety of businesses over the last 8 years, as an employee and as a manager. You and your partner have built up savings and a recent inheritance has ensured you now have enough funds to follow your dream.  After surveying the local business area, you have shortlisted the following opportunities for a…

What is super?Currently employers in Australia must, by law, pay into a super fund, super to their eligible employees to the tune of 11% of the employee's ordinary time earnings. This is called the superannuation guarantee (SG).Ordinary time earnings are what you generally earn for ordinary hours of work; it includes over-award payments, bonuses, allowances and some paid leave. Overtime is not included.In Australia, super was made compulsory to…

Most people have super and it will make their lives better when they retire. Use the moneysmart retirement planner to investigate the retirement funds of the people in the following scenarios. Ludie is 60 and works part time as a nurse. Her taxable income is $32,000 per year. She is hoping to retire at age 67. She has a super balance of $150,000. She does not make extra contributions. Her husband is 72 years old and has just retired. He has no…

Why plan? The first step to business success is planning. Businesses need to make plans for the short- and long-term that will help them successfully achieve their objectives. Developing a business plan will help you to: start your business by acquiring the finances you need give your business direction, define objectives and map out strategies that will achieve your goals evaluate your business performance and continually improve your…

Superannuation is money put aside for your retirement. You cannot access your super until you either reach your preservation age, which is between 55 and 60, depending on your date of birth, or meet strict requirements set by the government. There are only a few other circumstances in which a person may be able to access their super before retirement. These include severe financial hardship, compassionate grounds, a terminal medical condition,…

Refer to Planning for business success – Explainer Fred currently makes money from friends and family by walking their dogs. Fred wants to turn this hobby into a business. Explain to him why he should begin this venture by writing a business plan. Include all the reasons why business plans are important. Let’s write a very basic business plan for Fred’s new dog walking business. The explainer has information on what to include in…