Exciting Times!
The thing I love about winter is that the colder weather, and more time indoors, allows us more time to reassess personal goals and plan for the future.
This winter sees a perfect environment for saving more. Rates on savings accounts and
term deposits have never been more competitive. And as we know, increased competition always means a better deal for the customer.
Higher rates also mean that putting extra money aside for that special treat or that longer term goal is more effective than ever.
But there's more to effective savings than putting money in the bank. Valuable savings can also come from reassessing your day-to-day living expenses.
There are opportunities to save money without impacting too much on your lifestyle. Look for
our article on cutting your power bill, the tips are simple and common sense but the savings quickly add up. But why stop there. Use the winter months to reassess your longer term finances and look for ways of consolidating debt or refinancing your mortgage to get a better deal. Any savings can go straight into your Savings Maximiser.
Don Koch
CEO, ING DIRECT
I WANT TO RENT OUT MY PROPERTY, BUT WILL I HAVE TO PAY CAPITAL GAINS TAX?
Matt Sinnamon, our Head of Legal & Compliance, answers questions about Capital Gains Tax.
"It is possible to rent out your house without paying Capital Gains Tax (CGT). However, the Australian Taxation Office only allows CGT exemptions for a rental property under certain circumstances."
What are those circumstances?
As a rule of thumb, there are a few basic rules:
- The house must be owned by you personally and must be your main dwelling. You cannot move back and forth between two residences and claim the exemption on both properties.
- Generally, you must have lived in it when you first bought it (not rented it out) to be entitled to a full exemption.
How long can I rent out my property?
Assuming the above two points are met and you rent out your home for less than six years, you are exempt from CGT.
Generally, if you own the property for less than 12 months, you will not be entitled to a CGT discount. If you've had the property for more than 12 months you may be entitled to a 50% CGT discount.
Beyond this point it can become a bit complicated as it depends on your individual circumstances, how many properties you own and how frequently you move.
So what needs to happen to keep the full CGT exemption?
Assuming the house is your sole dwelling, you can rent the house out for six years after you move out. After that, you must live in the house again for an acceptable period to be granted another maximum rental period of six years.
You can keep doing this repeatedly. Or if you rent your house out for six years then leave it vacant, it will still be CGT exempt (but you can't claim the exemption for another house as well).
Where can I get more information?
It's important to carefully examine the tax rules on the subject. For more information visit ato.gov.au
Important Information:
You should treat these comments only as a guide, and before relying on the exemption you should examine the rules as they apply to your particular situation and get advice from a qualified specialist.
Did you know
Term Deposits are savings accounts that give you the benefit of locking in a great rate for an extended period. They're ideal if you're saving for something special or looking for somewhere to grow your spare cash.
How is interest calculated?
Interest is calculated daily, from the date the Term Deposit account opens to the date it matures. Interest is paid at maturity.
Earn extra funds on your own terms
Our customers wanted a wider range of terms and we were happy to oblige. Go to www.ingdirect.com.au/savings to view our full range of terms and competitive rates.
What happens when you break your term?
Interest is calculated from the date the Term Deposit account is opened to the date it closes. The interest rate will be the same as the day your Term Deposit account is opened, less an interest rate reduction. (Visit ingdirect.com.au/savings for details.)
Apply quickly and easily for all our terms online, simply:
- Login to online banking
- Click 'My Applications'
- And complete the form!
Existing customers can also apply over the phone by calling 133 464 anytime. All of this plus the security of the Australian Government guarantee on combined balances up to $1 million per customer until 12 October 2011.
Orange Everyday's International Payments
Enjoy FREE international transfers
During the month of August enjoy FREE international transfers with Orange Everyday when you transfer $2,000 or more.
Orange Everyday gives you great exchange rates.
Your Orange Everyday account offers you competitive exchange rates for international transfers. So for transfers greater than A$2,000, login to online banking and transfer in more than 50 currencies. You'll receive a fast, and secure service all provided by ING DIRECT International Transfers.
Transfers > A$10,000 = no fees
Transfers A$2,000 - A$10,000 = Free during the month of August otherwise a maximum fee of A$15 applies
If you're not already enjoying our International Transfer service, register by simply logging in to online banking and selecting 'International Transfers' under 'Move My Money'. You can also check our rates or make a transfer while you're there!
Going overseas? Pack your Orange Everyday
Don't forget to pack your Orange Everyday Visa Debit Card when travelling overseas.
Need some cash?
Withdraw some cash for incidentals from over 1 million Visa ATMs world-wide ($2.50 fee applies).
Card skimming: when someone illegally copies the information on the magnetic strip of your debit, credit or ATM card during a legitimate transaction.
Once a card has been skimmed and your PIN stolen, fraudsters can create fake or counterfeit cards to use at ATMs or make purchases.
What to watch for
- Any signs of a device attached to an ATM, or indications it's been tampered with
- Never disclose your PIN to anybody or have your PIN with your card
- When at an ATM or paying at an EFTPOS machine, cover your PIN with your hand
- Check EFTPOS receipts and account statements closely
- Report fraudulent transactions to us immediately on 133 464.
Rest assured, once our sophisticated systems detect suspicious transactions, action will be taken immediately!
Rising power bills are a fact of life. In coming years, the Federal Government will also look at ways to reduce carbon emissions through energy use - household energy bills could face an increase of up to 64%.
Start saving energy today
- Block all air drafts to prevent heat loss and open your curtains and blinds when it's sunny outside to let the heat in
- Water saving showerheads, for less than $50, can halve your hot water use
- Install dimmer switches in your home and only have your lights as bright as you need them or install energy saving lights
- Install insulation in your home by reputable and proven experts
- Wash your laundry at low temperatures or on cold wash and dry the clothes outside on a washing line.
What's the story behind our colourful Aussie dollars? Every design element on each denomination reflects our history, culture, characters and the Australian landscape itself.
Our Australian Bank Note series starts with the front of the $5 note, introduced in 1967.
Face fact Joseph Banks, the English botanist, and Caroline Chisholm, famous for working with female immigrants, were on the original paper notes. Her Majesty Queen Elizabeth II is on the current polymer note. Her portrait is based on photographs commissioned by the Bank in 1984.
Flora fact The leaf design is based on the Scribbly Gum and the image on the transparent area represents a gum flower.
Next issue – the back of the $5 note.
Source: the Reserve Bank of Australia website.
What else is new?
ORANGE EVERYDAY - WINS 2ND AWARD AND COUNTING!
Orange Everyday - already awarded Money Magazine's 2010 Best Innovative Product - was recently awarded a 5 star Outstanding Value Transaction Account award by leading industry body CANSTAR CANNEX. Visit ingdirect.com.au to apply.
HASSLE-FREE HOME LOANS ON SHOW
The Melbourne Home Buyer & Property Investor Show starts soon. Drop by the Melbourne Convention & Exhibition Centre (23 - 25 July) to speak with our Home Loan Specialists. Discounted tickets at www.homebuyershow.com.au/tickets.
SHOPPING AROUND FOR NEW WAYS TO SAVE?
If you're in Hornsby, Chatswood or Eastgardens Westfield Shopping Centres, look for the ING DIRECT kiosks. Pop by and say "g'day". You'll hear first-hand about any new products, services or promotions we're running.
ING FOUNDATION & UNICEF UPDATE
ING Foundation is pleased to announce its continued support of UNICEF. Funds in 2010 will support children in Zambia to fulfil their right to a quality basic education. UNICEF's program will focus on improving enrolments in basic education, gender equality, HIV and AIDS prevention, and early childhood development
VIC LORUSSO'S TOp 6 AUCTION TIPS
Auction day can be a nerve-wracking experience, it's easy to get carried away and caught up in the hype. Here are my six top tips to help you be more prepared and less stressed at auction.
1. Get to know auctions
Go to as many auctions as you can so you become familiar with how auctions run and what happens. The more prepared you are the easier it will be when you place your bid on auction day.
2. Have your finance ready
You should have a clear indication of how much you can borrow before you bid at auction.
3. How to bid
Once the auction starts you can make a bid at any time by raising your bidder's registration card and calling out your bid.
4. What to take
Take your driver's licence with you as you will need to register to bid. You will also need a deposit so take your cheque book along with you.
5. Stick to your limit
Set your limit before the auction and bid with confidence on auction day."
To arrange a pre-approval before you bid, talk to one of our Home Loan Specialists on 1800 335 592 or visit ingdirect.com.au/homeloans.
If you're deaf, have a hearing or speech impairment contact us via the National Relay Service.
TTY: 133 677
(ask for 133 464)
Voice: 1300 555 727
(ask for 133 464)
Register at
www.relayservice.com.au
Never heard that one before!
Here's a challenge! Share a savings tip or resolution that's never ever appeared in The Juice before – the most out-of the-box idea receives $100 bonus interest.
Email yours to juice@ingdirect.com.au remember, the fresher the better!
What else would you like to read about next time?
The article you voted for this issue was 'Winter Savings Tips'.
