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You may be owed money

You may have unclaimed money – here’s how to check

The recent holiday period and gift-giving has left many of us a little short of cash, so it can be comforting to learn that billions of dollars in unclaimed money are being held by various government agencies, just waiting to be claimed by their rightful owners

The largest pool of unclaimed funds is lost superannuation. The Australian Taxation Office (ATO) is holding more than $17.8 billion in superannuation for fund members who have become uncontactable.¹

Next, there is more than $2.3 billion from inactive bank accounts and life insurance policies that have not been claimed for over seven years. These funds are administered by the Australian Securities and Investments Commission (ASIC).²

Meanwhile, Services Australia is holding over $241 million in unclaimed Medicare benefits. These unclaimed funds typically result from patients not providing their current bank details to Medicare.³

Finally, all state and territory governments hold unclaimed money from various sources, including deceased estates, share dividends, salaries and wages, cheques, trust money, overpayments, and sales proceeds.

It’s important to note that searching the various government databases is free. While it may take some time and require digging up old paperwork to prove you once held an account, the process is accessible to anyone. Be cautious of businesses that offer to search these databases for a fee, as you can perform the search yourself at no cost.

Are you missing super?

It can be easy to lose track of your super if you’ve changed jobs several times and your employers have paid your compulsory super into different funds.

As a result, you might end up with several super accounts, each holding a small balance. According to the ATO, nearly four million people have more than one super account. ⁴

To address this issue, the ATO has introduced a “super health check” tool to help you search for any lost accounts and update your contact details. You can access this tool here.

The health check also allows you to confirm that your employer contributions are being made as expected. The ATO has ramped up audits and reviews of employers to ensure that compulsory super is being paid to employees.

While more than 92 per cent of super entitlements are paid without ATO intervention, the ATO reports that in the past year alone, it has recovered $932 million in unpaid super owed to 797,000 employees. ⁵

Employers are required to pay super in full, on time, and to the correct fund each quarter by the 28th day of October, January, April, and July, the ATO states.

Finding money in old accounts

Tracking down long-forgotten bank accounts, shares, investments, and life insurance policies is possible with ASIC’s unclaimed money tool.

To use the tool, enter your name in the search field and try variations, including initials and last name, first and last name, and your full name.

If you find a record that seems familiar, you can lodge a claim by providing proof that connects you to the account listed. ASIC states that you can expect a response within 60 days.

Don’t forget to check state and territory government websites for unclaimed money from various other sources. Funds can sometimes be found in unexpected places. For instance, missing share dividends might be lodged with an agency in the state where the company is based. You can view a list of these agencies’ websites here.

Finding your Medicare benefits

If you are not receiving the Medicare benefits, you’re entitled to, it is likely that your bank account details are either not lodged with Medicare or they are incorrect.

You’ll need to set up a MyGov account then link your Medicare account. From there you can check that your details are correct.

It may take a bit of time to find your information and track down proof of old accounts, but it could pay off with an unexpected windfall.

Your financial adviser can help you track down lost super, unclaimed bank accounts, and other forgotten funds while providing guidance on how to make the most of them. If you know someone who could use expert help in managing their finances, consider referring them to one of our trusted financial advisers. It’s a simple step that could lead to a valuable financial boost!

 

Sources

i Total lost (fund-held) and ATO-held super | Australian Taxation Office

ii Unclaimed money | ASIC

iii Check now: Aussies owed $241 million in unpaid Medicare benefits. | Department of Social Services Ministers

iv Trend towards single accounts | Australian Taxation Office

v Super action sees over $900 million super returned | Australian Taxation Office

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Tips for financial success

5 tips for financial success in the new year

As we welcome the new year, it’s the perfect time to reflect on our financial goals and explore essential financial tips for the new year to ensure we’re on the right track. This article is not only a timely reminder for you but also a valuable guide to share with your children, friends, or anyone who doesn’t yet work with a financial adviser. These practical tips offer a solid foundation for making smart financial decisions and setting up a successful year ahead.

Set clear financial goals

Financial planning begins with goal setting: short-term, mid-term, and long-term goals. Short-term goals might include creating a spending plan, reducing debt, and building an emergency fund. Medium-term goals may address insurance coverage and further debt reduction, while long-term goals focus on long-term financial health.

Start by identifying what you want to achieve financially this year. Be specific about your goals, whether it’s saving for a house deposit, paying off a credit card, or building an emergency fund. Use the S.M.A.R.T framework to make your goals Specific, Measurable, Achievable, Relevant, and Time-bound. Break these goals into smaller, measurable steps and set a timeline to keep yourself accountable.

Create a spending plan

A spending plan is a cornerstone of financial success. Track your income and expenses to understand where your money is going. Categorise your spending into needs, wants, and savings, and allocate your income accordingly. Tools like spending plan apps or spreadsheets can make this process more manageable.

When creating your spending plan, consider:

  • Fixed vs. Variable Expenses: Identify fixed expenses like rent and utilities, as well as variable ones such as groceries and entertainment.
  • Debt Repayment: Allocate a portion of your income to pay down high-interest debt.
  • Savings Goals: Include savings as a non-negotiable expense in your spending plan.
  • Lifestyle Adjustments: Look for areas where you can reduce spending without sacrificing your quality of life, like dining out less often or finding cheaper alternatives for daily expenses.

Revisit your spending plan regularly to adjust for changes in income or expenses. Flexibility is key to staying on track.

Build an emergency fund

Life is unpredictable, and having a financial safety net can save you from unnecessary stress. What will you do if you encounter an unexpected expense or loss of income? Having money set aside can help you create a financial safety net, and knowing it’s there can do wonders for your peace of mind. Aim to save three to six months’ worth of living expenses.

Start small by creating short-term savings goals and practice saving money every week or month. Put the funds in a separate savings account, and soon enough, you’ll see you’re making progress. For a longer-term goal, aim to have at least three months’ worth of living expenses saved in your emergency account. Make saving even easier by automatically paying yourself first with direct deposit or automatic transfer. Every little bit helps.

Invest in your financial education

The more you know about managing money, the better equipped you’ll be to make informed decisions. Take the time to read books, listen to podcasts, or attend workshops on personal finance. Understanding concepts like compound interest, investment options, and tax strategies can have a significant impact on your long-term wealth. Financial literacy empowers you to take control of your financial future and avoid common pitfalls, such as falling into high-interest debt or making poorly informed investment choices.

Make learning engaging and relevant by focusing on areas that align with your goals. For instance, if you’re planning to buy a property, learn about mortgages and property market trends. If retirement planning is a priority, delve into superannuation strategies and long-term investment vehicles. Additionally, consider joining online forums or groups where you can exchange ideas and learn from others’ experiences.

Work with a financial adviser to create, review, and adjust your plan

Achieving financial success isn’t a one-time effort—it’s an ongoing process that requires regular reviews and adjustments. Your financial adviser provides valuable insights and ensures your financial plan stays aligned with your evolving life circumstances and goals.

Your financial adviser helps you implement your strategy, review your progress, and make informed decisions when changes are needed. Our check-ins allow you to identify new opportunities, avoid potential pitfalls, and stay on track toward your objectives.

Achieving financial success in the new year doesn’t have to be overwhelming. Make this year your most financially successful yet!

Happy New Year!

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Recharging for success

Recharging for success

As a small business owner, you may find it difficult to justify taking time off. After all, your business demands constant attention, and you might worry about what will happen if you step away. However, taking a break can be one of the most beneficial decisions you make for your business.

In fact, regular holidays can lead to significant benefits, including process improvement and automation, while also rejuvenating your spirit. Let’s explore how taking time off can be a game changer for you and your business.

Operating at your peak

If you’re dragging your heels, the impact on your business can be profound. Constantly working without breaks can lead to fatigue, irritability, and a decline in both motivation and productivity. Taking regular time off is essential for maintaining your mental and physical health, allowing you to return to your business refreshed and ready to tackle challenges with renewed vigour.

Charge your creative batteries

When you’re deeply immersed in your work, thinking outside the box can be challenging. A change of scenery—whether it’s a beach, a mountain retreat, or a new city—can ignite fresh ideas and perspectives. Many business owners find that their best insights emerge during moments of relaxation, when their minds are free from the pressures of daily operations. Taking time off creates the mental space needed to brainstorm innovative solutions and strategies that drive your business forward.

Regular breaks also enhance decision-making. A refreshed mindset allows you to see the bigger picture and prioritise what truly matters for your business’s growth. This newfound clarity can help you identify potential pitfalls and opportunities that may have gone unnoticed while you were entrenched in daily operations.

Strengthening your team’s contribution

Taking a break isn’t just beneficial for you—it can also strengthen your team. Delegating responsibilities while you’re away empowers your employees, helping them build their skills and confidence. It demonstrates that you trust them to manage tasks independently, without constant oversight. Upon your return, you may find your team stronger and more cohesive, ultimately boosting overall productivity.

Moreover, by prioritising work-life balance yourself, you set a positive example for your team. This can encourage them to do the same, fostering a healthier and more supportive workplace culture.

Automate your processes

Planning a break can provide the perfect opportunity to consider how automation might improve your business processes. Many small business owners feel overwhelmed by repetitive tasks that could easily be automated. Use your time off preparation as a chance to research tools and technologies that streamline operations.

For instance, look into customer relationship management (CRM) software to manage client interactions or explore project management tools to keep your team organised. Upon your return, these solutions can continue to save you time and enhance your efficiency.

Tips for a stress-free vacation

While the benefits of taking a holiday are clear, the thought of planning one can be daunting. Here are some practical tips to ensure your time off is stress-free:

  • Communicate clearly: Inform your clients and colleagues about your absence in advance. Setting up an out-of-office message can help manage expectations and redirect urgent inquiries to your team.
  • Delegate wisely: Identify team members who can handle various responsibilities while you’re away. Provide them with the authority to make decisions and access to necessary resources. Trust is key here.
  • Unplug and unwind: Resist the urge to check emails or take business calls during your holiday or arrange specific time you are available if needed. Create boundaries so you can fully enjoy your time off.
  • Reflect and recharge: Use your holiday not just for leisure but also for reflection. Consider what’s working in your business and what changes you’d like to make when you return.

Holidays are not just an indulgence; they can be a crucial component of sustainable business success. From enhancing creativity to preventing burnout and improving decision-making, the benefits of taking time off extend far beyond personal relaxation. So go ahead—book that trip, recharge your batteries, and return ready to lead with renewed energy and vision.

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2020