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As a young medical or dental professional in your first few years out of uni, not everything will be applicable to you with regards to financial management. |
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Salary Packaging
If you are not doing this…. check your head! Salary Packaging simply means the ability to rearrange your salary so that a part of it is redirected towards paying certain expenses in pre-tax dollars. You are paying for bills before tax is taken out, which can then reduce your tax.
Tax Returns
In the first few years out of uni, you will probably be due a refund on your tax return. It is important to have your tax return completed as soon as possible after the end of the tax year, so you have the benefit of the refund money! Make an appointment as soon as you receive your PAYG statements. As we say: “The money is better in your pocket rather than in the hands of the tax man!”
Home Loan
If you are thinking of getting into the property market, either to purchase your own home or to hold a rental property, we have a special package for young professionals. Not only can we organise a reduced interest rate but we can arrange for up to 95% loan against the value of the property without mortgage insurance. It is worth talking to us about this before you see a mortgage broker. We can also help you with specific property and suburb statistics so you don’t get taken for a ride.
Travel
If you use your car, bike, public transport to travel for your job, you may be able to claim the km’s and other costs in your tax return. You can’t claim from home to work and then back again, however, if you go from one workplace to another (or from work to study) and then home, you can claim that travel. Depending on how much travel you do for you job, will depend on what method you can use to claim. If you are doing over 5,000km per year, it’s best to keep a log book with all your travel details.
You can even claim the travel to see us at Bongiorno!!
Tax Rates
At a quick glance the tax rates for the 2007/08 year are:
$30k - $75k: |
$3,600 plus 30c for each $1 over $30,000 |
$75k - $150k: |
$17,100 plus 40c for each $1 over $75,000 |
If you are earning: |
$50,000 - you will be taxed $9,600* |
At a quick glance the tax rates for the 2008/09 year are:
$34k - $80k: |
$3,600 plus 30c for each $1 over $34,000 |
$80k - $180k: |
$18,600 plus 40c for each $1 over $80,000 |
If you are earning: |
$50,000 - you will be taxed $9,600* |
Income Protection
You may think that because you are young, you are invincible and nothing will happen to you. Maybe it won’t….but what happens if something does go wrong and you can’t work for a period of time, or worse, ever again. Your income will cease and the bills will pile up. Income protection is an insurance that keeps paying you whilst you are injured. So you can focus on getting better rather than where the money for the bills will come from. Plus why not preserve your good state of health now instead of risking premium loadings and/or exclusions, should your health deteriorate as you get older?
Private Health
Private Health Insurance is important at any time of your life. It’s your Health - so get covered. In addition to protecting your health, if you earn over $100,000 for the year, you will need to have Private Health Cover otherwise the tax office will slap a charge on you. For any days that you aren’t covered, you will pay a Medicare Levy Surcharge, which is 1.5% of the amount you earned during the period you didn’t have health insurance.
Professional Library
Make sure you keep a list of all your books you used at university, and all the receipts for them. This list should contain book name, author, date bought and the cost of the book.
