So your child has started their first job, they’ve filled out all the paperwork and they have their first pay packet – what now?

One of the best lessons you can teach your children early in their working life is how to save.

In the days of internet banking and electronic transfers – this can be a lot more simple than it was in days gone by when you had to go to the bank to transfer funds between accounts – but it also presents a temptation many will find hard to resist.

My suggestions for saving money area:

• calculate how much you want to save per pay packet (this may be a dollar amount or a percentage) and set up a direct debit from your normal bank account to a savings account on the day of or after your pay day
• many employers will allow you to split your pay packet between two or more bank accounts, if this option is available – take it!
• your savings account should have limited access (I have one account with no key card or internet access, it means I have to actually go to the bank to get the money – who has time for that?)
• in calculating how much to save, set your self a goal – this might be buying a car or new electronic device, or perhaps a holiday is in order – work out how much you need and go from there
• savings goals for kids might be lower in value, but the lesson learned from having to work for it will be valuable to them

Tell me, what are your money saving tips?

Regards

Ah, superannuation (super)…the golden nest egg…

Of course I can’t tell you where to put your super, but you do have to tell your employer where you want them to put it…in certain circumstances.

If you are a new employee who is eligible* to choose your super fund then your employer must provide you with a Standard Choice Form (you can also request one from your employer if you are an eligible employee and wish to change your nominated super fund).

The form itself includes some information that MUST be completed by the employer…and some sections that MUST be completed by the employee…so everyone has a role to play!

As an employee, if you do choose your own fund, please read the fine print clearly and provide ALL of the details and supporting documentation requested – this will save both you and your employer valuable time!

*You are eligible if you are:

• employed under a federal award
• employed under a former state award, now known as a notional agreement preserving state award (NAPSA)
• employed under an award or industrial agreement that does not require super contributions
• not employed under any state award or industrial agreement (including contractors who are regarded as eligible employees for super purposes).

If you’re not sure what, if any, award or industrial agreement covers your employee:

• visit the Fair Work website at fairwork.gov.auExternal Link
• phone the workplace relations department in your state or territory
• check with your employer association.

(*eligibility information is from www.ato.gov.au)

Regards

Whether you’re starting your first job or just starting a new job…one of the first pieces of paper your employer should give you is the TFN Declaration.

This form helps your employer to work out how much PAYG (Pay As You Go) they should withhold from your gross wages based on the ready reckoners as published by the Australian Taxation Office (ATO).

While the form itself is pretty self explanatory, one of the most common questions I get asked is in relation to claiming the tax free threshold.

At present, the tax free threshold is $18,200 for resident taxpayers and you would usually claim the tax free threshold from your primary job.

In the past when the tax free threshold was a much lower $6,000, it was common practice to only ever claim the tax free threshold from one employer.  However if you have a second job, and your total combined income is expected to be less than $18,200 then you can claim the tax free threshold from both employers!

BUT BEWARE: If you have income from other sources (such as interest), or your wages end up higher than expected…you may end up with tax to pay upon lodgement of your income tax return – so always seek professional advice (preferably from ME!) if you are ever in doubt.

Regards

Note: please refer to our Important Information and get in Contact to discuss your individual circumstances.

One minute you’re nursing them in your arms…the next they’re heading off to their first job!!

My cousin contacted me recently to share the news that her daughter had landed her first job!  Apart from being in denial at her baby girl growing up…she was interested to know, as a parent, what she should be aware of?

The first thing is to ensure your child has a Tax File Number (TFN) – many schools run a program where they assist students in completing their TFN application.  But if this program isn’t available at your school, or your child has not been involved in it, you can access the TFN application process here.  You’ll need to have some documents ready – there’s a long list but if you have a birth certificate and a Medicare Card that would be a great start!

Secondly, employers are not required to pay superannuation for children under the age of 18 unless they earn more than $450 in a calendar month and work more than 30 hours in a week, for a student in a casual job, this is unlikely.  However, an employer may still be required to give your child a Standard Choice Form for superannuation which should be completed and returned.

And thirdly, in regards to breaks while working and between shifts, you should refer to your State or Territory business department (such as Business Victoria).

On a personal note, I think the parent should introduce themselves to the employer or relevant manager, it’s important to know where your child will be spending time and what duties they’ll be performing and if there’s anything you can do at home to assist the child in making the transition to employment.

Over the next week or two we’re going to look at the TFN Declaration, Choice of Super Form and savings plans for children…so stay tuned!

Regards