It's good to be back
Hi there, my name is Don Koch and I’m really excited about being the new CEO of ING DIRECT. I’m no stranger to the bank, in fact you could say I’ve done a full circle.
I joined ING Group back in 1999 and oversaw the introduction of the Savings Maximiser. To help launch a product that changed the banking landscape in Australia was an amazing experience.
After that I held executive banking positions in Europe and Asia. It gave me a great opportunity to sharpen my skills in managing people, processes and technology. All the ingredients necessary to deliver world class customer service.
Now, 10 years on, I’m back in Australia to steer ING DIRECT into another exciting new era, which includes the launch of our ground breaking transaction account. I can’t wait for it to happen and I’m sure neither can you. Not long to go now.
I hope you enjoy all the great stories in this issue of The Juice.
Don Koch
CEO, ING DIRECT
Making sense of the interest rates - 3 months on
Glenn Baker, our Head of Treasury, explains the rollercoaster ride
Glenn, one minute the rates are high, the next minute they're low, what's happening?
Given the size of reductions to interest rates over the past six months, and the fact that the official cash rate set by the Reserve Bank of Australia is just 3%, the lowest in almost 40 years, it’s highly probable that we’re near the bottom of the current cycle.
The Reserve Bank has been indicating lately that it believes higher stimulus spending through the Federal Budget and the lowering of interest rates is already working. They now need to wait and see if extra stimulus will be needed. Therefore it’s likely that interest rates will be held at current levels for some time.
However, if the economy worsened and unemployment spiked, chances are the RBA would consider a further reduction in interest rates.
Why have they moved so much?
It’s really too early to say that a recovery is in sight. I think it appears the worst is behind us and it may take some time for stronger positive levels of economic growth to emerge.
Important Information: The information is of a general nature only and is not to be construed as an indication or prediction of future outcomes or interest rates.
An Insight Into The Government Budget From ING Australia
The budget and your savings – now the dust has settled
Graeme Colley, National Technical Manager at ING Australia, highlights how the recent Federal Budget released in May could help your savings.
Personal income tax cuts
From 1 July 2009 there will be a cut in the income tax you pay. For example, if you earn between $45,000 and $60,000 you may end up with another $300 in your pocket over the financial year. When added to the lump sum you may have received from the stimulus package it can provide a tidy sum to start or add to your savings. For more information on any possible tax cuts applicable to you, click here (PDF 284KB)
Pensions up
Pensions such as the Age Pension, Carer Payment and Wife Pension are proposed to increase from 20 September 2009. This will provide that extra needed cash for living expenses in these difficult times. For single pensioners the increase each fortnight is $64.98 and for a couple it’s $20.28 per person.
First Home Owner’s Boost extended
If you’re saving for your first home you may be eligible for the First Home Owner’s Boost, which has been extended. For new homes this could mean $21,000 and for existing homes $14,000 until 30 September 2009. From 1 October to 31 December 2009 the boost will reduce to $14,000 for new homes and $10,500 for existing homes. These amounts include the $7,000 First Home Owner Grant.
Paid parental leave
Another good story is the new paid parental leave scheme which starts on 1 January 2011. The scheme provides 18 weeks paid leave after the birth of the child equal to the Federal minimum wage.
Mark turns his dream home into reality
We were glad we could help Mark buy his perfect apartment and he was happy everything happened so easily and efficiently.
“I selected the Mortgage Simplifier home loan as it has a competitive interest rate, the flexibility to make unlimited additional repayments, free redraw and no ongoing monthly fees. I found these features important as they gave me flexibility.
The service I received from my Home Loan Specialist was excellent. They were helpful, efficient and were very easy to deal with as they assisted me throughout the whole process.
I am so happy in my new home, I’m loving the independence of living alone and furnishing my own place.”
TAKE A TAX TIP FROM THE EXPERTS
Frank Brass from H&R Block highlights some recent tax changes that could help your savings, plus a couple of things to watch for when lodging your 2009 tax return.
Your child’s education
The Government has introduced a new tax offset that could help you pay for your child’s primary and secondary education.
The refundable tax offset per child is:
- Primary: $375 which is 50% of all eligible expenses up to $750
- Secondary: $750 which is 50% of all eligible expenses up to $1,500.
Any eligible education expenses claimed over these amounts can be carried forward to the next financial year. If they’re not claimed the following year the claim will be lost.
The family tax benefit
Previously some had the choice of lodging claims with Centrelink’s Family Assistance Office fortnightly, or claiming the family tax benefit annually on their tax return. Now you can only lodge claims with the Family Assistance Office.
Help with HECS
The Government has introduced a HECS-HELP benefit. This is available to:
- eligible mathematics and science graduates employed in specified occupations; and
- eligible early childhood education teachers working in specified locations.
Everyone!
Don’t miss out on tax deductions just because you haven’t kept the proper records. H&R Block have a number of free products to help you keep your records straight.
If you require more information on these issues or have other tax queries click here.
Keep up the savings spirit!
Thanks to everyone who got behind our inaugural Savings Week, 4 to 7 May. It was a great success and we were absolutely thrilled with how everyone got into the savings spirit (and have continued to do so).
In some capital cities we gave out freebies to help kick start savings. Overall, we saved people:
- 50,000 km in free bus rides
- 390 tonnes of hot drinks
- 140 hours of relaxation treatments
- 615 tonnes of lunches!
If you registered to take part in Savings Week, keep up the saving spirit – we don’t want you to miss out on your offer.
Check out our savings tips & calculators.
hot energy saving tips for winter
Stay warm this winter and reduce energy costs at the same time. Here are some quick pointers.
Let the sunshine in. Keep the sun’s natural warmth in your home. Open the shades during the day and close them at night. Keep internal doors closed to help stop draughts.
Get a hot bod. When the goose bumps start, reach for a jumper not a heater!
Take the heat off the electricity. Just use your electric blanket to warm up your sheets and turn it off when you go to bed. Better still, add another doona or knit some bed socks.
Borrow the neighbour’s dog. Warming up will be a walk in the park – literally!
What else is new?
Variety of short but sweet articles
THE SECRET LIFE OF SNUBBY
Thanks to donations from
ING DIRECT and our
customers, marine researchers
now know how Snubfins catch fish.
They hunt in groups and use an extraordinary spitting technique to
round up the fish and chase them to the surface. Dinner’s served!
For more about how we’re supporting Snubby or to make a donation yourself, click here
NEW CLEARANCE TIMES
To make banking even more convenient for you, we’ve extended our cut off time for deposits and withdrawals from 4pm to 7pm (Sydney time). Transfers made to your linked bank account before the cut off time, should be available the next business day.
ORANGE EVERYDAY IS JUST AROUND THE CORNER
For an everyday bank account in Australia that actually pays you for using it, we can’t wait for Orange Everyday to launch either! It’s just another way we can demonstrate how committed we are to offering our customers a real choice in everyday banking. Stay tuned for more details.
ING DIRECT EXECS ROLL UP THEIR SLEEVES FOR NATIONAL VOLUNTEER WEEK
ING DIRECT CEO Don Koch and his executive team rolled up their sleeves during National Volunteer Week. They volunteered for a ‘backyard blitz’ style makeover of a house that provides accommodation for young people in need.
The volunteer day was organised by the ING Foundation under the direction of Phoenix House Youth Services.
Here's another juicy savings tip
Congratulations to Lisa in NSW. You’ve won $100 in bonus interest for a saving tip that’s all about fun, not sacrifice. Thanks to all other tipsters too.
“Once a week our family has a ‘games’ night. After dinner we settle into a room, power down the rest of the house and enjoy each other’s company. Whilst not a savings powerhouse, it’s a great way to educate the kids about those intangible costs. As well as reducing your immediate energy consumption, you’ll also be surprised by how energy conscious everyone becomes. It also links savings to fun rather than sacrifice.”
“Here’s a thought!”
If you have something you’d like to share with us and other ING DIRECT customers, like savings tips, email us at juice@ingdirect.com.au. We’ll do our best to publish your thoughts in future editions of The Juice.
IMPORTANT INFORMATION
Information in this newsletter is current as at 24/06/2009 and is subject to change. Whilst information provided by third parties in this newsletter is published with permission, ING DIRECT accepts no responsibility for its accuracy or completeness. The information provided is general information only and should not be considered as a comprehensive statement on any matter and should not be relied upon as such. A link or reference provided in this newsletter to external websites or third parties are provided for information only. These external websites are not under the control or responsibility of ING DIRECT and when visiting these websites you do so entirely at your own risk. ING DIRECT is not affiliated with and does not endorse these third parties (excluding ING Australia) or external websites. If your savings tip is selected a tax liability may exist in connection with prize winning. Your savings tip and name will be published in the next issue of the newsletter. The judge’s decision when selecting a savings tip to be published is final and no correspondence will be entered into. All applications for credit are subject to ING DIRECT’s credit approval criteria. Fees and charges apply. Details of these and the terms and conditions are available on request. Any advice in this newsletter does not take into account your objectives, financial situation or needs and you should consider whether it is appropriate for you. Before making any decision in relation to our savings products, you should read the relevant terms and conditions booklet available at ingdirect.com.au or by calling 133 464. If you have a complaint, please call us at any time, as we have procedures in place to help resolve any issues you may have. Products are issued by ING DIRECT, a division of ING Bank (Australia) Limited ABN 24 000 893 292.