You may be eligible to take advantage of the Government Incentives
Click here for more info :- http://www.exponentialprograms.com/business/blog/events/1-day-mini-mba/
Monday, May 16, 2011
Wednesday, May 11, 2011
Back to the Black Swan
Please find below our May 2011 Ark Informer which covers the main outcomes of the budget from a financial planning perspective.
Our current poll on our Ark Website is "do you think that the Budget is good or bad" . Feel free to make a vote.
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A Summary of the Budget in education/skills sector
The major focus of the Budget is Jobs, Jobs, Jobs and upskilling the Nation through Training. What does this mean to you?
You or your team will probably be eligible for grants to enable you to upskill you or your team to take part in the Economies Growth.
If you need more information, click here to register your Interest
Federal Budget 2011: Government unveils major skills, workplace participation drive
By Oliver Milman
Tuesday, 10 May 2011
A National Workforce Development Fund, bringing 130,000 new training places, will be created as part of a fresh drive to increase skills and participation rates in Australia’s workforce.
Financing
The government revealed that $3 billion will be spent over the next six years to tackle Australia’s skill shortage and encourage the long-term unemployed back to work, amid a declining unemployment rate.
Of this, $558 million has been earmarked for the National Workforce Development Fund, which will work with industry groups to tackle skills shortages.
The government says the initiative will deliver 130,000 “high quality training places directly tailored to industry skills needs” over four years.
Training will be a third funded by small businesses, with medium-sized enterprises contributing 50%. The scheme will target “high need” industries, with the resources, construction and aged care sectors highlighted as immediate priority areas.
A competitive process will be set up to apply for grants, with the fund set to be supported by the creation of a new National Workforce and Productivity Agency from July 1, 2012. This agency will be tasked with identifying skills shortages in Australian businesses.
The new fund is the flagship announcement among a raft of government measures in what is a noticeably skills-heavy budget.
In his budget speech, Swan said: “In a growing economy like ours, we cannot justify the fourth highest proportion of jobless families in the developed world.”
Major workplace initiatives unveiled in the budget include:
Skills
The government has taken a carrot-and-stick approach to the states and territories over vocational education and training.
The Budget commits an extra $1.75 billion in funding over five years from 2012-13 to the states for training, but only if they sign up for “more ambitious” reform of the sector.
The government says it will introduce “tougher new standards” for its National Agreement for Skills and Workforce Development, including better quality training and aligning programs with economic needs. Negotiations are set to kick off in the coming months.
Elsewhere, $143 million has been put forward in the budget to improve basic employment skills, with the creation of 30,000 additional places in the Language, Literacy and Numeracy Program.
Apprenticeships
Mentoring programs for apprenticeships have received an additional $200 million in funding. The government says this cash will help remedy the current situation, where less than half of apprentices finish their training.
More than 300 mentors will be funded to help nearly 40,000 apprentices in traditional trades and small businesses.
In addition, 144 apprentice advisors will be employed to assist school leavers to select the best option when taking up an apprenticeship.
Participation
Faced with a declining unemployment rate, the government has set its sights firmly on raising participation rates among long-term workforce absentees.
Income support for single parents will be restructured to encourage them back into the workforce. $103 million will be spent on training and career advice for single parents to ease them back into work.
From July 1, 2012, there will be participation requirements for those on Disability Support Pensions aged under 35. The DSP will be made more stringent, while wage subsidies will be given to employers who take on disabled workers for at least 15 hours a week.
A further $68 million will be spent to help school leavers develop basic employability skills, while $95 million in funding will reward businesses who give a job to someone unemployed for more than two years.
Immigration
A “measured” increase in permanent migration will see 185,000 visas issued in 2011-12. This is up slightly from the 180,000 given in the year ending September 2010.
Of this total, 125,850 will be skilled migrants, with the government fast-tracking permanent residency for temporary business visa holders who have spent two years in regional Australia and where their employer is prepared to sponsor them for a further two years.
You or your team will probably be eligible for grants to enable you to upskill you or your team to take part in the Economies Growth.
If you need more information, click here to register your Interest
Federal Budget 2011: Government unveils major skills, workplace participation drive
By Oliver Milman
Tuesday, 10 May 2011
A National Workforce Development Fund, bringing 130,000 new training places, will be created as part of a fresh drive to increase skills and participation rates in Australia’s workforce.
Financing
The government revealed that $3 billion will be spent over the next six years to tackle Australia’s skill shortage and encourage the long-term unemployed back to work, amid a declining unemployment rate.
Of this, $558 million has been earmarked for the National Workforce Development Fund, which will work with industry groups to tackle skills shortages.
The government says the initiative will deliver 130,000 “high quality training places directly tailored to industry skills needs” over four years.
Training will be a third funded by small businesses, with medium-sized enterprises contributing 50%. The scheme will target “high need” industries, with the resources, construction and aged care sectors highlighted as immediate priority areas.
A competitive process will be set up to apply for grants, with the fund set to be supported by the creation of a new National Workforce and Productivity Agency from July 1, 2012. This agency will be tasked with identifying skills shortages in Australian businesses.
The new fund is the flagship announcement among a raft of government measures in what is a noticeably skills-heavy budget.
In his budget speech, Swan said: “In a growing economy like ours, we cannot justify the fourth highest proportion of jobless families in the developed world.”
Major workplace initiatives unveiled in the budget include:
Skills
The government has taken a carrot-and-stick approach to the states and territories over vocational education and training.
The Budget commits an extra $1.75 billion in funding over five years from 2012-13 to the states for training, but only if they sign up for “more ambitious” reform of the sector.
The government says it will introduce “tougher new standards” for its National Agreement for Skills and Workforce Development, including better quality training and aligning programs with economic needs. Negotiations are set to kick off in the coming months.
Elsewhere, $143 million has been put forward in the budget to improve basic employment skills, with the creation of 30,000 additional places in the Language, Literacy and Numeracy Program.
Apprenticeships
Mentoring programs for apprenticeships have received an additional $200 million in funding. The government says this cash will help remedy the current situation, where less than half of apprentices finish their training.
More than 300 mentors will be funded to help nearly 40,000 apprentices in traditional trades and small businesses.
In addition, 144 apprentice advisors will be employed to assist school leavers to select the best option when taking up an apprenticeship.
Participation
Faced with a declining unemployment rate, the government has set its sights firmly on raising participation rates among long-term workforce absentees.
Income support for single parents will be restructured to encourage them back into the workforce. $103 million will be spent on training and career advice for single parents to ease them back into work.
From July 1, 2012, there will be participation requirements for those on Disability Support Pensions aged under 35. The DSP will be made more stringent, while wage subsidies will be given to employers who take on disabled workers for at least 15 hours a week.
A further $68 million will be spent to help school leavers develop basic employability skills, while $95 million in funding will reward businesses who give a job to someone unemployed for more than two years.
Immigration
A “measured” increase in permanent migration will see 185,000 visas issued in 2011-12. This is up slightly from the 180,000 given in the year ending September 2010.
Of this total, 125,850 will be skilled migrants, with the government fast-tracking permanent residency for temporary business visa holders who have spent two years in regional Australia and where their employer is prepared to sponsor them for a further two years.
What are the analysts saying? Budget 2011
http://www.abc.net.au/news/stories/2011/05/09/3211180.htm
Stephen Long: It's hard to fault the political priorities of the budget - increasing skills training and workforce participation - but a "tough budget"? Tough as tofu.
Alan Kohler: Despite all the stern prime ministerial repetition, this budget is not tough... Any decent CFO would be embarrassed by this budget.
Ross Gittins: Taken in sum, there are plenty of cuts and savings that suggest some courage in Canberra.
Peter Hartcher: Stop the presses: it's a budget that ditches tax cuts.
Dennis Shanahan: It's not radical in any sense of the word but it's as close to an old-fashioned Labor budget as you could get.
Peter van Onselen: The political impact of this year's budget will only really be known in two years' time.
Key budget stories
- Overview: Swan makes jobs his budget mantra
- Mental health: Swan 'proud' of $1.5b boost
- Economics: Australia to ride 'Asian century'
- Defence: Boost for Uruzgan mission
- Immigration: Malaysia refugee deal to cost $216m
- Science: High hopes for massive telescope project
- Health: $1.8b for regional health facilities
- Tax: Middle class on fringe of benefits
Key budget videos
- Budget breakdown: What's it all about
- The speech: Highlights from Wayne Swan's speech
What's been the reaction?
Find out what the following groups are saying about the budget:
- The Opposition
- Australian Council of Social Service
- Mental health groups
- The Greens
- National Seniors Australia
- Australian Council of Trade Unions
- National Farmers Federation
When does the Opposition respond?
Opposition Leader Tony Abbott will deliver the Opposition's budget right of reply on Thursday May 12 at 7.30pm. It will be broadcast on ABC News 24 and ABC1.
AUSTRALIAN BUDGET – 2011 - Back to the black swan
The Government promises to have the budget back in the black in 2012-13, forecasting a modest surplus of $3.5 billion…. But will there be a Black Swan
The deficit this year is $49.4 billion - up nearly $10 billion on the previous estimate - and will fall to $22.6 billion next year, up from the estimated $12 billion – attributable to black swans….
The major initiatives are:
· new $1.5b program to address mental illness
· $360m National Workforce Development fund to deliver 130,000 training places
· $425m in bonuses for excellence in teaching
· up to $4,200 in new support for low-income families with teenagers still at school or in training
· $200m for more school facilities and programs for disabled students
· $222m to expand school chaplaincy program to 1,000 more schools
· $1.8b for regional health services
· 16,000 skilled migrants allocated to regions to take advantage of mining boom
· low-paid workers to have tax offset paid during year rather than at tax time
The deficit this year is $49.4 billion - up nearly $10 billion on the previous estimate - and will fall to $22.6 billion next year, up from the estimated $12 billion – attributable to black swans….
The major initiatives are:
· new $1.5b program to address mental illness
· $360m National Workforce Development fund to deliver 130,000 training places
· $425m in bonuses for excellence in teaching
· up to $4,200 in new support for low-income families with teenagers still at school or in training
· $200m for more school facilities and programs for disabled students
· $222m to expand school chaplaincy program to 1,000 more schools
· $1.8b for regional health services
· 16,000 skilled migrants allocated to regions to take advantage of mining boom
· low-paid workers to have tax offset paid during year rather than at tax time
In all, the Government has flagged new spending of more than $19 billion and savings of $22 billion.
Positives
· Money for training to upskill Australia – various programmes your company can take advantage of
· Looking to bring in 15,000 skilled migrants
· Funding for Health $16.4b– especially mental Health $1.5b - Reduction of Company tax to 29% in 2013
· big cuts in Public Service $2b and Defence $2.5b
· 2011-12 Federal Budget measure to allow refunds of excess concessional superannuation contributions of up to $10,000 for first time breaches from 1 July 2011.
· $425m for teachers performance bonuses
· $4.3b for the bush – hospitals, health care, universities and roads + NBN
· Support to SME $5000 of up front write off for cost of work car – woopee doo!!
Negatives
· $50b deficit this year, $22b deficit next year and budgeting for $3.5b surplus in 2013 – yeah right!!
· "Australian businesses embrace fierce competition, but many are feeling the pinch of workforce shortages and our rising dollar," Mr Swan said.Swan talks about the pain of Exporters but does nothing to support them – although the EMDG programme that has been a major support for exporters has shown a 12 to 1 return of revenue per $ spent
· Swan does nothing to support Innovation – key to continued growth of the Economy
· shelving the Green Car Innovation Fund
· a $500 million cut in renewable energy programs
· 4% growth in GDP expected, 4.5% unemployment rate – Rate rise seems on the cards… may be kept down because of high A$ - Reserve Bank will have their work cut out for them
· Asylum seeker stuff
· shelving the Green Car Innovation Fund
· a $500 million cut in renewable energy programs
· 4% growth in GDP expected, 4.5% unemployment rate – Rate rise seems on the cards… may be kept down because of high A$ - Reserve Bank will have their work cut out for them
· Asylum seeker stuff
Assumptions
· BRIC countries – specifically China will continue to grow and rely on our Minerals
· We are have been on a roll in last few years, and look at our deficit!!
· No Black Swans
Comments from Around the traps
The Australian is calling this a "nip and tuck" budget of "thousands of tiny cuts".
The ABC economics correspondent Stephen Long, called it as "tough as tofu". and quotes from the lyrics of Lou Reed: "Vicious - you hit me a flower."
Australia now has a twin-speed economy - Swan called it a "patchwork economy".
This budget was about "jobs, jobs, jobs", said Swan.
Australian economy cannot continue to rely on the resources boom for its revenues - partly because the mining giants, like Rio Tinto and BHP Billiton, are investing so heavily in infrastructure, for which they receive tax deductions.
Western Australia Premier Colin Barnett claims the federal government's emphasis on the mining boom as the driving force of the national economy will prove to be "inherently flawed" because only the resource rich states will significantly benefit. It will not flow to Sydney nor Melbourne
Xingweiinc ♥♫ lisa ,xing,☼ ♥ Wayne swan kicked mothers in Australia in the teeth " and family,s .So heartless ..Cant believe labor would do that @@
CHRIS UHLMANN Channel 7: But if you could miss your back by $8 billion this year and $10 billion the next, anything like that would see you miss your surplus by a considerable mark in two years' time, so why can't we just focus on the now rather than the never-never?
Greens leader Bob Brown said the budget was "lacklustre" and his party, which will hold the balance of power in the Senate from July 1, would discuss changes with the treasurer.
Joe Hockey – said the governments budget is bullshit and rubbish
LyndsayFarlow Lyndsay Farlow $32m saved from "rationalisation of corporate functions"#FewerDepartmentalPissUps #budget2011 #auspol
Asked why he thought Treasurer Wayne Swan did not mention the words environment or indigenous in his speech, Senator Brown said: "I just think there's a mind-blank there."
And what do I think? Swan needs to ensure that more money comes in than goes out, and there is a good chance there will be a surplus!
Tuesday, May 03, 2011
The RBA have decided to leave the cash rate unchanged at 4.75%
The RBA Governor Glenn Stevens noted that there will be possible inflationary pressures as a result of higher utilities costs, rising food costs due to the natural disasters in QLD and high prices at the petrol pumps.
We believe that this higher costs of living will force the Reserve Bank’s hand in moving interest rates in the second half of this calendar year to stifle consumer spending and curb further inflationary pressures.
WHAT DOES THIS MEAN TO YOU?
With all the above to consider, there is no better time to have a home loan health check.
The last 2 years have seen the Australian home loan market go through some major changes in the way in which lenders approach home and investment loan products. We have seen lenders increase interest rates above the Reserve Bank increase and we also saw lenders reduce Loan to Value Ratios (LVR’s) as a consequence the uncertain market.
In the past 3 months however, we have seen LVR’s return to more “normal” levels as well as increased competition between lenders, which has been a welcome change for the consumer.
Now is the time to ask yourself the following questions, as a review of your current home loan may be overdue.
Over time, your personal and financial situation may change. You may get a pay rise, or you might want to start a family, or look at starting to invest in either property or shares. As your needs and priorities change, you'll probably find the right home loan product for you will change. A home loan health check will ensure your current loan suits your current needs.
In stable economic conditions, a variable interest rate might look more attractive, while in more volatile periods you could prefer the predictability of a fixed interest rate. Refinance your home loan to suit the economic times. We can also look at the option of splitting your loan to give you both some amount of security without compromising the flexibility of a variable product.
Access to an Ark Total Wealth Financial Planner
As well as giving your home loan an overview, we will arrange for an Ark Total Wealth Financial Planner to give you a complementary financial planning meeting valued at $395. (including but not limited to Investments, Residential Investment Property, Superannuation, Insurance and Business Planning.)
Suite 701, Level 7, 14 Martin Place Sydney NSW 2000
GPO BOX 4013 Sydney NSW 2001
P: +61 2 9290 2777
D: +61 2 8203 0426
M: 0405 113 543
F: +61 2 9262 5788
E: michael.luca@liquidityfinance.com.au or danny.luu@liquidityfinance.com.au
We believe that this higher costs of living will force the Reserve Bank’s hand in moving interest rates in the second half of this calendar year to stifle consumer spending and curb further inflationary pressures.
WHAT DOES THIS MEAN TO YOU?
With all the above to consider, there is no better time to have a home loan health check.
The last 2 years have seen the Australian home loan market go through some major changes in the way in which lenders approach home and investment loan products. We have seen lenders increase interest rates above the Reserve Bank increase and we also saw lenders reduce Loan to Value Ratios (LVR’s) as a consequence the uncertain market.
In the past 3 months however, we have seen LVR’s return to more “normal” levels as well as increased competition between lenders, which has been a welcome change for the consumer.
Now is the time to ask yourself the following questions, as a review of your current home loan may be overdue.
- Has it been more than 12 months since you have reviewed your home loan?
- Are you unsure whether or not your current loan is still the best one for you?
- Are you looking for ways to reduce your monthly repayments or outgoings on your home loan, personal loans or credit cards?
- Are you looking to change your current situation, in regards to work or family?
- Do you want to build wealth by accessing any potential equity in your property?
If you answered yes to any of the questions above, then you need to call today or click here to arrange your complementary home loan health check. click here . Why?
You change....
Over time, your personal and financial situation may change. You may get a pay rise, or you might want to start a family, or look at starting to invest in either property or shares. As your needs and priorities change, you'll probably find the right home loan product for you will change. A home loan health check will ensure your current loan suits your current needs.
Rate rises
In stable economic conditions, a variable interest rate might look more attractive, while in more volatile periods you could prefer the predictability of a fixed interest rate. Refinance your home loan to suit the economic times. We can also look at the option of splitting your loan to give you both some amount of security without compromising the flexibility of a variable product.
Access to an Ark Total Wealth Financial Planner
As well as giving your home loan an overview, we will arrange for an Ark Total Wealth Financial Planner to give you a complementary financial planning meeting valued at $395. (including but not limited to Investments, Residential Investment Property, Superannuation, Insurance and Business Planning.)
We look forward to meeting with you
Michael Luca and Danny Luu Mortgage Brokers
Suite 701, Level 7, 14 Martin Place Sydney NSW 2000
GPO BOX 4013 Sydney NSW 2001
P: +61 2 9290 2777
D: +61 2 8203 0426
M: 0405 113 543
F: +61 2 9262 5788
E: michael.luca@liquidityfinance.com.au or danny.luu@liquidityfinance.com.au
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