WFO 2022 Feb issue #2

ISSUE 2 FEB 2022

WOMEN’S FINANCIAL OUTCOMES

The Top 5 Property

Estate Planning Mistakes

Director IDs

From Romance to Finance

How to Agree when you disagree

STRUCTURING property ownership ISSN 2653-3693

Mortgage

Mates

JOIN the CHALLENGE

women’s

financial 2

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outcomes

welcome Welcome to the WFO 2022 Issue 2. Just when New Year was almost a long distance memory, we are seeing wishes for great happiness and prosperity for the Lunar New Year, the Year of the Tiger. In the lunar calendar the Year of the Tiger represents, hope, braveness, courage, and strength. These are such perfect words to add to your core values and to recall as you continue on your financial journey.

This month we continue our focus on real estate. We look at the other side of relationships,with How to Agree When You Disagree by Thinking Expert Jennifer Jarrard, Dealing with Separation Agreements by Jessica Purcell, The Top 5 Mistakes in Estate Planning by Chris Herrald, and we interview Daisy Ashworth-Brown and find out How to Find a House Mortgage Mate.

We are continuing with challenges for our readers this year, and this month we continue our budget challenge. This will set the stage and have you ready to start the savings challenge. Taking up a challenge is not easy, things always get in the way, life gets in the way, we simply forget, something else seems more important, or we lose focus. So to help you stay on track we will be guiding you and reminding you to stay with the challenge throughout the year. So make sure you read the savings article to help you start the challenge.

Don’t forget to like our Facebook page to win one of the 10 copies of Anita Marshall’s book “Achieve the Dream” to give away.

And in keeping with our philosophy of caring and giving, we at WFO seek to encourage a spirit of giving in all our readers and will continue to support those smaller charities that support women and their families. In this issue we feature and celebrate the work done by Rosies – Friends on the Street, Pinchapoo, and the Brainchild Foundation.

We encourage you to read about the support these charities offer, and offer your financial support so that they may continue to thrive and provide.

Each month our readers enjoy informative articles from women in the finance, financial planning, real property, and legal professions.

Our wonderful network of contributors and our own in-house editorial team who seek to educate, inform and inspire women to increase their financial literacy and create our financial future they desire.

www.wfomag.co

So, as we hit the button to publish this issue in the spirit of the New Lunar Year, I wish you great happiness and prosperity throughout 2022.

Jacqueline Hodges

WFOMag

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WFO is Australia’s only financial magazine created by women and written by women from across the financial services industry for women so that our readers can learn, prosper, and enjoy a healthy and balanced financial future.

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©WFO Magazine 2022

WFO TEAM

wfo team

JACQUELINE HODGES

ASHLEIGH KENT

Editor-in-Chief

Graphic Designer

ISABELLA STEPHAN

GEORGIE ARNAUD

Journalist

Journalist

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CONTENTS

contents 12

How To Agree, When You Disagree

18

From Romance To Finance

25

Join The WFO Challenge

26

Director ID's are Here

28

Top 5 Estate Planning Property Mistakes

34

Introducing Mortgage Mates

42

Who Should Own The Property

52

RBA Cash Interest Rate Update

54

How To Give

60

Focus on Giving

70

Financial Mind Games

72

Goals & Planners

pg 34 Mortgage Mates

pg 18 From Romance To Finance

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CONTENTS

pg 28 Top 5 Estate Planning Property Mistakes

pg 25 Join The WFO Challenge

pg 42 Who Should Own The Property

pg 12 How To Agree, When You Disagree

pg 60 Focus On Giving

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women’s

financial opinions 8

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OUR CONTRIBUTORS

our contributors

CHRIS HERRALD

DAISY ASHWORTH-BROWN

Lawyer Partner of Mullins Lawyers Bio pg.33

Founder Mortgage Mates Bio pg.41

JENNIFER JARRARD

JESSICA PURCELL

Thinking Expert Mindwerx International Pty Ltd Bio pg.17

Lawyer, Mediator & Coach JP Family Law & Mediation Bio pg.23

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a copy of Anita Marshalls' book

"Achieve the Dream"

We have 10 "Achieve the Dream" books to giveaway. Written by Gold Coast award winning mortgage broker Anita Marshall, this newly released handy book holds the formula to get you from renter to homeowner.

If you want key ideas on how to get out of the rental market with detailed, practical, straight forward tips and a step-by-step format to get you into your own home ... this is a must read!

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MINDSET | How To Agree, When You Disagree

How ToAgree, When You Disagree Words Jennifer Jarrard

Why is it sometimes difficult to agree?

Have you ever had a difficult time agreeing on something personal or in business with family members, friends, or work colleagues? What about deciding on something important with others, or even in making your own decision? I think it is fair to say everyone experiences this at some time, even when it isn’t a significant issue.

There are of course many reasons, ranging from the personalities involved, to a lack of information, to just having too many options.

Choice theory can certainly play a part in procrastination or lack of agreement. Research tells us that it is not the decision making that is the barrier, it is the fear of not making the right, or best, decision. Many people will choose not to choose, rather than risk making the wrong choice. Imagine taking six years to choose a mattress because there might be a better option next week.

Then there is the familiar challenge many partners have in simply going out for dinner, or to a movie. How is an agreement reached, how is a decision made? Often one relents and lets the other decide to keep the peace.

The ramifications can be significant, so having a strategy or process for making decisions and coming to agreements can be very useful.

This strategy won’t work when having to decide on big things such as property investment and it can be really difficult to agree.

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How To Agree, When You Disagree | MINDSET

couple who recently immigrated to Melbourne from India, Richna and Raj*, were trying to find an apartment to rent.

How we come to an agreement is often as important, or even more important, than reaching the agreement. The logic being that, if we agree or decide on something without a clear process, and it then doesn’t meet our expectations, we can feel we have let ourselves, and others, down.

In looking for the apartment they knew the basic size they wanted, and that they wanted to live close to work in the city. Richna fell in love with a large modern apartment which was on the ground floor facing a busy street.

Raj preferred an older apartment 100 meters away that looked onto a central garden and was slightly cheaper. After going round and round in circles trying to convince each other, in desperation they asked me to look at the properties and make the decision for them.

So, can we improve how we reach satisfactory agreements?

In our example of investing in a property, let’s say as a new home for the family, there will be some obvious things to consider – location, price, schools, financing, family size and needs, etc. Coming to a mutual family agreement can be challenging, and in a sellers’ market we often feel the pressure to decide quickly.

I wanted to be sure that they made the decision themselves, so I took them through a critical thinking process we have used many times the Six Thinking Hats™.

This was certainly the case when a young

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MINDSET | How To Agree, When You Disagree

Edward de Bono’s Six Thinking Hats™ The Six Thinking Hats are a deceptively simple approach to thinking an issue through but can be very powerful when used well. A quick look at the Six Hats: • • •

• • •

White Hat – identifies the facts, data, and information needed and relevant to the focus of the thinking.

Yellow Hat – considers all the positives, benefits, useful aspects of the situation, issue, or idea being examined.

Black Hat – opposite of Yellow and draws out all the negative aspects, why it isn’t a good idea, what barriers or drawbacks may be present.

Red Hat – opposite of White and allows emotions, gut feelings, instant reactions to be expressed.

Green Hat – looks at alternatives, options, possibilities, and ideas.

Blue Hat – the one hat that rules them all. The Blue Hat is the thinking process manager, it sets the focus for the thinking, outlines the flow of thinking (order of the hats), facilitates the thinking process, and brings things to a conclusion.

The key is to ensure your thinking is in parallel, that is: • Only one hat is used at a time, • Everyone involved wears the same hat at the same time, • Timing and time management are important’ • And of course we need to understand that Hats do not do the thinking, YOU DO. The Hats are your guide as you metaphorically put each hat on, one after the other in a planned sequence.

This Parallel Thinking process helped Richna and Raj explore the situation, understand each other’s point of view and decide what was most important when starting their new life.

They happily lived there for 3 years and have just bought their first home, with a bit more help from the Six Thinking Hats.

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How To Agree, When You Disagree | MINDSET

Six Thinking Hats In Action - Buying A New Home Here is a quick example to help understand how the Six Hats can help structure your thinking.

Blue Hat - To start we set the Focus for our thinking. Let’s say we have narrowed our house searching down to two properties, both meet most of our already identified requirements. Location, size, price range, facilities etc. But we can’t agree, so we’ll use a range of the Six Thinking Hats in a sequence to think each option through separately.

This will help ensure we have considered everything, and hopefully reach a common decision.

The sequence we will use is:

1. White Hat

2. Yellow Hat

3. Black Hat

4. Yellow Hat

To capture all the information we need to take into account for House #1 and House #2

What are all the positives of House #1

What are all the negatives of House #1, and what might be problematic

What are all the positives of House #2

5. Black Hat

6. Red Hat

7. Green Hat

8. Blue Hat

What are all the negatives of House #2, and what might be problematic

What are we feeling now, have we had any change in thinking

Do we need any ideas now, or are there any alternatives

Summarise and ask Where to from here?

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MINDSET | How To Agree, When You Disagree

Each grab a piece of paper and set a timer on your phone. Separately write down your own thoughts under the first Hat and then when the timer stops, take turns sharing your thoughts.

As you work through each Hat, allocate a set time for the thinking, allowing enough time to flesh out as much relevant thinking as possible - 10 minutes may be needed for the White Hat. For the Yellow and Black Hats you may start with 5 minutes, and add extra minutes if needed, but don’t stop early – push yourselves to fill the 5 minutes. The easy ideas will come quickly, the more useful ones generally come later when we are pushed. Be sure to capture every thought or idea making sure you don’t exclude anything.

or alternatives – maybe upsize/downsize your preferences for a new home. Review the list of things that came out during the Black Hat thinking as there will be clues of things that are important to either of you.

Summary

I have avoided doing the actual thinking for you here as that could potentially sway you.

It takes a little practice and suggest you give it a go comparing something relatively easy – such as two display homes and use the Hats to compare them. And if you do use the Six Hats in such a scenario, or anything else, I’d be delighted if you wanted to share it with me for some constructive insights.

We mostly decide on something with an emotion – we love it, we hate it etc. though we often disguise our emotion with logic (I hate it because…). Putting on the Red Hat allows you to share your gut reaction so far, you both may decide to stop and make the offer on a property. Or you might try the Green Hat to just explore if there are any other possible ideas

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What if we still can't agree or decide?

This will happen. So, I suggest you Flip a Coin to decide. If it comes up Heads and you are happy, you have a decision, if you’re unhappy, take the Tails option. This is actually legitimate Red Hat thinking. Have fun, and all the best in your decision making.

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How To Agree, When You Disagree | MINDSET

Jennifer JARRARD

Jennifer describes herself as a Jill of All Trades. She with husband Bill Jarrard cofounded, Mindwerx International and the Buzan Centre Australia/NZ. She is a Master Trainer of iMindMap and is a Think Buzan Licensed Instructor.

Jennifer is a thinking expert, leading individuals to discover new and creative ways to identify and solve problems. As a HDBI Facilitator she guides individuals to leverage the power of Whole Brain® Thinking helping individuals, teams and organisations unleash their collective intelligence.

She was a lecturer in creativity at Swinburne University in the Master of Entrepreneurship and Innovation Program, and has trained corporate teams internationally on creativity and innovation, is a recognised Fellow for the Learning Professionals, She has held executive level roles with World Commerce and Contracting, World Memory Championships, and is currently the VicePresident of Geelong Sustainability.

Jennifer Jarrard (nee Goddard) MEI Mindwerx International Pty Ltd www.mindwerx.com 0407 541 497 LinkedIn

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From Romance To Finance | LEGAL COMMENTARY

Protecting Your Financial Future After Separation Words Jessica Purcell

He then sent me one message after another demanding I pay him more money for other expenses as they came up. This was only the first of many acts he carried out reactively in response to me having left our marriage.

Most of us don't plan for divorce. I know, because I certainly didn’t. Not really. And I was the one who instigated it.

In my experience, personally and professionally, I see women plan for the immediate future following the breakdown of their relationship.

Do not underestimate the actions of a spurned lover.

Despite what you think you may know about your former partner, if you are in a position to protect your assets and financial resources before you separate, do it.

Where will I stay?

What funds will I have access to?

Where will my income be coming from?

If you have the ability and opportunity at the time of separation to make a record of the main assets and liabilities of you and your former partner, including bank balances and credit card debts, this can be useful if there is any contention later. If you can keep copies of the statements as evidence, even better.

These are all extremely important and critical things to consider. Indeed, if you are the member of the couple who is planning to end the relationship, it is prudent to ensure you have separate funds available to you at separation, as well as arranging for any income sources to be redirected to accounts in your sole name so that the other person cannot stop your access to money or take your money from you.

The ability of your former partner to transfer funds out to family, or build up excessive credit card debt, could pose challenges to you down the track if you don’t have clear evidence or records.

When I left my husband, I forgot to redirect my pay. It had always gone into an account in his sole name (another issue for another time) to which I had a card for access. I felt guilty for leaving the marriage, and didn’t chase this money, considering it a contribution toward our living expenses and an act of good will in an otherwise rubbish situation.

Also, make sure you leave with anything that is of importance or value to you. This includes birth certificate and passports, as well as special jewellery and keepsakes. It’s amazing what can ‘disappear’ after you walk out.

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LEGAL COMMENTARY | From Romance To Finance

You've left, where to next?

I will always recommend obtaining your own, independent, tailored legal advice. This is your best resource to ensure that whatever you do, and however you settle your property and financial circumstance with your former partner, that it is a just and equitable outcome for you.

Basically, these agreements can save you far more money than they cost you and/or provide you insurance against any future risk or claim from your former partner. Think about how much you spend on car and home insurance every single year, in the hope you don’t have to use it. This insures everything and is worth the investment – for your freedom and peace of mind.

What is a property settlement, though? And do you need to do it?

Okay, so how do we make this agreement?

If you have been in a de facto relationship for at least two years, or you were married, the Family Law Act 1975 (Cth) provides for you to enter into a legally recognised agreement which fully and finally severs your financial ties with your former partner.

The key word here is ‘agreement’. You and your former partner first need to reach agreement. You might be able to work through this amicably, like accountable and responsible adults. If, like the rest of us, that isn’t going to happen, you have a few other options available:

*It is vital that you are aware of the time limits under the Act. If you were in a de facto relationship, you have two years from the date of separation to apply for property/financial orders. If you were married, you have one year from the date of divorce (and you have to be separated for one year to apply for divorce, so it’s about two years as well!).

Mediation If you aren’t comfortable to work through the issues directly with your former partner, or you would benefit from having a third party ‘referee’, a mediator or family dispute resolution practitioner would be a great first step.

There are two simple reasons you should be formalising your division of property in a formal legal agreement: 1. Agreements or orders pursuant to the Act will grant you concessions or exemptions to fees you might otherwise incur, such as capital gains tax, and stamp duty exemptions i.e. receiving a stamp duty exemption if a property is transferred into your sole name, rather than having to pay stamp duty again on the same property; and 2. To protect the assets you are retaining, and indemnify you from any liabilities your former partner may thereafter accrue i.e. your partner can’t come back at a later date chasing you for money because they went and wracked up a huge gambling debt.

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What I love about mediation, as both a lawyer and accredited family dispute resolution practitioner, is that you as the client still make all the decisions.

A good mediator will guide you and facilitate good, productive discussion between you and your former partner, to work through the issues and structure an outcome or resolution that works for you both (as best able).

Mediators are usually highly trained and have a stealthy ability to bring two opposing parties together to an agreement they didn’t

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expect could happen. Even if you don’t get an agreement, you will know more about what they other person is thinking and you need to do this in case you have to take it to court anyway.

Negotiation Before a lawyer advises you to go to court, they will usually want you to have a crack at resolving things through negotiation.

There is no set process or way of going about this, but it does usually look something along the lines of this: •

•

•

You have a consultation with your lawyer, and they provide you with initial legal advice, including the range you can expect your property settlement to fall in (usually in the form of a percentage); You go home and realised that your belongings cannot be laser cut into these respective percentages and that, in fact, you need to work out what each of you keep, what debts each of you take, and how to do this to best reflect something in the ball park of that percentage figure you were told about; and Your lawyer will then negotiate your idea with the other person or their lawyer, often via letters, sometimes through discussion, either looking like a game of word tennis.

Hopefully, you reach a point in which you both agree to the proposed way of dividing your assets.

Litigation If you cannot reach a resolution outside of court, you will be heading into it. Which works with the tennis analogy, I suppose, but it is nowhere near as entertaining to watch.

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LEGAL COMMENTARY | From Romance To Finance

Court proceedings take time. Money. Energy.

Emotion. All of which can be incurred sitting and waiting outside the court all day for your first mention. An agreement will happen. One day.

Both are recognised by banks and government authorities for the relevant fee exemptions like stamp duty and capital gains taxes.

You do not need to be divorced to formalise your property settlement and, indeed, I will always recommend you do it sooner than later to protect yourself moving forward. It will let you move on peacefully into a new and different (hopefully, better) future.

We've agreed, so how do we formalise it?

There are two legally recognised options: 1. Consent Orders 2. Financial Agreement (often called Binding Financial Agreements or BFA’s)

It’s always better if you can settle amicably but realistically this is very rare. Mediation and negotiation are the next best option.

Litigation, depending on your situation can take a lot of time; years in fact. Not all divorce proceeding take years, but those long drawn out proceedings will drain your cash reserves, sap your energy, and have your emotions volleying. And if you aren’t ready to walk away, make a plan, keep your records, and be prepared.

Consent orders are made by the Court, are sealed and legally enforceable documents.

They are comprised of an application form, and the orders themselves. You can do this yourselves, online, or you can engage a lawyer to do it for you.

The benefit of having a lawyer do the orders is that they know what the court wants, and can avoid filing applications that the court will reject or requisition.

Financial Agreements are legally recognised documents which ‘contract out’ of the provisions of the Act and are instead a private contract between the parties. You would use a Financial Agreement if you are past the time limit to apply for consent orders (see above) or if the proposed agreement would not be approved by the court (if it were not just and equitable).

You must have independent legal advice to enter into a Financial Agreement, as does your former partner, and they are extensive and complex, require full financial disclosure, and thereby cost a lot more to have drafted.

As a family lawyer, I would only recommend a post-separation Financial Agreement if my client was out of time to apply for consent orders.

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From Romance To Finance | LEGAL COMMENTARY

Jessica PURCELL

Jessica Purcell is a Lawyer and mediator and an Accredited Family Dispute Resolution Practitioner. Having worked in legal practices and government, Jessica opened her own Family Law practice in 2021.

She holds a Bachelors of Law and a Master of Laws majoring in Family Law and Family Dispute.

Jessica's first hand personal experience in domestic and family violence provides her with the desire to help her clients through their separation.

Jessica Purcell Lawyer, Mediator & Coach JP Family Law & Mediation www.jpflm.com 0466 090 434 LinkedIn

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in JoThe WFO Challenge CHALLENGE 1

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Join The WFO Challenges

ESTABLISH YOUR GOALS

This year we will be introducing 6 challenges to help you on your journey to become a successful woman.

If you don’t know where you are going, you might end up someplace else.

This is a short challenge to get you started and heading in the right direction, so you can achieve what you set out to achieve.

Subscribe at www.wfomag.co/Join-the-challenge-2022 WFOMag

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PERSONAL FINANCE | Director ID Mandate

Director ID Mandated

For Company Directors Calling all company directors. An announcement from the Australian Securities and Investments Commision (ASIC) states that all company directors are required to apply for a Director ID. In order to distinguish directors and avoid cases of fraud identities, a unique identifier will be applied to directors to use forever.

How To Apply?

It is free to apply for a Director ID. The process of applying is similar to applying for a Tax File Number, however it must be you and you only who applies for it. First navigate to the Australian Business Registry Services’ website- abrs. gov.au/directorIDapply. Then click the button that says ‘Apply now with myGovID’ and login using your myGovID details. If you don’t have a myGovID account, you can easily sign up via the site- myGovID.gov.au. Or you can download the myGovID app and apply via that platform.

What is Director ID?

To verify your identity as a company director, a 15-digit identification number will be allocated to directors indefinitely, even if you stop being a director or other circumstances change such as moving overseas or switching companies.

This initiative was introduced as part of the Government’s Modernisation of Businesses Registers (MBR) Program, meaning less fraudulent activity will occur due to the greater security that the Director ID offers.

Next, you will be asked some questions to verify your identity. To fast-track this step, have your Tax File Number and residential address prepared and ready to go.

In regard to privacy, your Director ID will not be accessible by the public or anyone unless permission is given by the director.

Directors of foreign companies, Aboriginal and Torres Strait Islander Organisations, registered Australian bodies or even corporate trustee of self-managed super funds, will have to apply for a Director ID. However, you do not need one if you are running a business as a sole trader or haven’t been appointed the position of director through the Corporations Act.

Once you’ve answered those questions, you will be required to fill out a quick Director ID application form. Once you have done this you can click submit and will immediately be issued your unique Director ID, displayed on your screen. If you are unable to apply for the ID online, there are other non-digital options available.

As a precaution it is important to think of your Director ID as similar to a Tax File Number, in that they should not be revealed without necessity.

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It is ideal to give your Director ID to whoever's responsible for keeping your records on file and your company agent.

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When You Must Apply By Corporation Act Directors When you were appointed director Existing directors

When you must apply by

New directors (between 1 Nov 2021 & 4 Apr 2022) Intending directors

Within 28 days of your appointment Before being appointed (only from 5 Apr 2022)

By 30 Nov 2022

So, if you are a director of a company and still have yet to set up your Director ID, log on to the ABRS website and navigate your way to the business section to apply. Keep your own business as well as fellow businesses safe by applying now. Do not miss your application cut-off date or you will face heavy fines or even jail time!

Director ID Check List 1. Go to the ABR - abr.gov.au 2. Set up your myGovID account 3. Click 'apply now with myGovID' 4. Verify your identity by filling in your details 5. Fill out the online application form 6. Click submit and recieve your Director ID on screen

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LEGAL COMMENTARY | Top 5 Estate Planning Property Mistakes

Top Estate Planning Property Mistakes Words Chris Herrald As a succession (inheritance) lawyer, I see many Wills come across my desk. My clients include people who have never made a Will before, people who want to change or update their Will and people who need help with administering (or litigating!) an estate after a person has died.

In the thousand or so Wills I have reviewed in my career, I see the same 5 mistakes when it comes to property time and time again.

So, here are the top five property-related mistakes, in no particular order, and what you can do about them!

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Top 5 Estate Planning Property Mistakes | LEGAL COMMENTARY

Getting The Ownership Wrong!

then, in your Will, you could give the shares to another person. The person who now owns the shares in Example Pty Ltd (because they have inherited them from your estate) can choose who to appoint as Director/s of Example Pty Ltd. Therefore, if Example Pty Ltd owned Property A, then your Will cannot give Property A to a beneficiary. Rather, your Will would need to gift the shares in Example Pty Ltd to the intended beneficiary.

This mistake usually manifests in the following ways: 1. Purchasing the property using an ownership structure incompatible with your estate planning wishes; or 2. Your estate planning documents do not deal with the property effectively on your death, because the property ownership is not understood and accounted for properly in those documents.

Jointly owned property is the other area where I see estate planning failures time and time again.

If you get the ownership of your property wrong, in either of these ways, it can have a seriously detrimental effect on your estate plan, and, in some cases, lead to a court dispute about your estate.

Generally speaking, when you own property jointly with someone, there are two different ways that property is co-owned: either as joint tenants, or as tenants in common.

Here is a brief overview of the different ways to own property, and how they can affect your estate planning.

The difference between the two ways of coowning property is this: when property is owned by two (or more) people as joint tenants, the person who outlives the other co-owners will end up owning the whole property.

Firstly, we need to distinguish between property that you own personally, and property that is owned by an entity, that may or may not be controlled by you.

For example, if a husband and wife own a property as joint tenants and the husband dies first, then the property automatically becomes the sole property of the wife. The husband's interest in the property bypasses his Will entirely.

So, for example, if the husband's Will said that he wanted to leave his half of the property to say, his children from a previous relationship, that part of his Will is not valid!

Only property that is owned by you, personally, can be given to another person under your Will.

If the property is owned by an entity that you control, such as: (i) a company (Example Pty Ltd); or (ii) a trust (Chris Herrald as trustee for the Example Trust or Example Pty Ltd as trustee for the Example Trust) or (iii) a Self-Managed Superannuation Fund, then you cannot gift someone that property by your Will.

Conversely, if the property was co-owned by the husband and wife as tenants in common in equal shares, then the gift in the husband's Will to his children would have been valid.

However, it might be possible to give control of an entity to someone via your Will.

Of course, that would then mean that the wife would be left in the situation where she had to co-own her home with her step-children!

Are you still following? For example, if you owned all of the shares in Example Pty Ltd,

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SECTION | Top 5 Estate Planning Property Mistakes

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Top 5 Estate Planning Property Mistakes | LEGAL COMMENTARY

Not Documenting Living Arrangements Picture this: your 35 year old daughter telephones you and asks if she can move back in for short period of time so she can study to advance her career prospects.

Fifteen years later….she is still there!

However, you have probably never formally documented things like: (i) how much rent she needs to pay; or (ii) whether she will be permitted to stay there if you need to move out.

Getting adult (middle-aged) children out of their parents' homes can be very difficult – especially if you have appointed that child as an attorney under an Enduring Power of Attorney and that document does not include terms to cover such things as: (i) whether the attorney can continue to reside in the home; (ii) what is to happen if the home needs to be sold to cover the fees for retirement living; (iii) how rent is to be calculated, if rent is payable; or (iv) whether the attorney is permitted to invite anyone else to live at the property with them.

Not Getting, Or Ignoring, Taxation and Financial advice Now, a lawyer cannot provide taxation or financial advice – but they can identify when such advice is needed!

Here in Australia, we do not have inheritance tax or death duties, but increasingly, our federal and state taxes and revenue laws act like inheritance tax.

It is also difficult removing adult children from a property after their parents have died. This can lead to a significant increase in the legal fees incurred in the administration of the estate.

Things like Capital Gains Tax, the Foreign Investment Review Board regime, and various state duties can have a huge financial impact on the benefit a beneficiary receives from a person's estate.

Ensuring that arrangements like this are property documented is a critical part of the estate planning process.

This is especially true if the beneficiary (or an intended beneficiary) is a foreign person (note – even Australian citizens can be foreign persons under some of our laws).

Some of our laws that were enacted in January 2021 can have the effect that foreign beneficiaries can be required by the Australian Government to "divest" (i.e. sell) property that they have inherited.

If your estate planning lawyer tells you that you must get this taxation or financial advice – do it, or your beneficiaries may pay the price, quite literally.

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LEGAL COMMENTARY | Top 5 Estate Planning Property Mistakes

Not Updating Your Estate Plan

Not Having An Estate Plan At All

Every succession lawyer like me has had this happen in their office when they are meeting with family members to discuss the Will of a loved one: a specific property has been gifted to one of them in the Will, and then these words are spoken, "But Mum and Dad sold that property 10 years ago."

Of course, the biggest mistake property-related estate planning mistake is not having an estate plan at all!

I have spent many a barbeque arguing with people about the need for a properly drafted Will, Enduring Power of Attorney and superannuation death benefit nominations, at a minimum!

Now the beneficiary gets nothing. Whoops.

Common phrases uttered my way include, "I won't care, I will be dead." True. But.

It is the law that a "Will speaks from death". This means that if a particular property is described in the Will, but is not owned by the deceased person at the date of their death, then the gift is said to have "adeemed". As in, it doesn’t count.

Every single family member that I have ever assisted after someone has lost capacity to make decisions for themselves or has died, has uttered this phrase to me, "I just wish Mum/Dad/ Brother/Daughter had sorted this out properly."

Now, there are various exceptions if attorneys for the elderly parents were involved in the sale but for the sake of this article, let's assume that it was Mum and Dad themselves that sold the property but did not update their Wills.

In not updating their Wills, the parents have deprived that family member of their inheritance.

Related to this problem is when a Will contains specific gifts of property that have equal value at the time the Will is prepared, but at the date of death they are of significantly different value.

For example, let's say that Child A is gifted Property A, Child B is gifted Property B and Child C is gifted Property C. In the minds of the parents, these gifts were probably equal gifts because at the time that the Will was drafted, the values of the properties were similar. However, at the time of death, it is entirely possible that Property A has increased in value at a significantly higher rate than the other properties.

If not equalisation clause has been included in the Will, then once again, there are beneficiaries who receive unequal gifts and the parents' wishes cannot be fulfilled.

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Disclaimer; This article is intended for educational purposes only and is not to be relied upon as legal advice. If you have a legal problem or matter for which you require advice, please do not hesitate to contact the author.

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Top 5 Estate Planning Property Mistakes | LEGAL COMMENTARY

Chris

HERRALD Chris is a Partner of Mullins Lawyers in their Private Client Group. Chris provides clients with practical advice based on knowledge gained from her years practising as a wills & estates lawyer. She advises in relation to a broad range of estate matters including estate planning, estate administration, contentious and non-contentious estate litigation, as well as guardianship and administration matters (including enduring powers of attorney, proceedings in the Queensland Civil and Administrative Tribunal and advice to attorneys, guardians and administrators in relation to the exercise of their powers).

Chris is an active member of the legal community being the current Chair of STEP Qld, a member of the STEP Australia Board and a former Deputy Chair of the Queensland Law Society Succession Law Committee.

Chris Herrald Partner at Mullins Lawyers www.mullinslawyers.com.au (07) 3224 0256 LinkedIn

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FINANCIAL TECHNOLOGY | Mortgage Mates

Mortgage Mates

'The Bumble of Homeownership'

Words Daisy Ashworth-Brown & Georgie Arnaud We had the pleasure of interviewing Daisy Ashworth-Brown, Founder of the innovative new property co-ownership platform, Mortgage Mates. If you’ve ever wondered what it would be like to team up with a friend or family member to purchase property but without all the complications, Daisy explains how you can do this using Mortgage Mates.

What is Mortgage Mates and how is it different from other property purchasing platforms?

Mortgage Mates is a co-ownership platform that matches two or more users (or as we like to call them, Mates) to own a home together.

We were the first co-ownership platform to launch in Australia and are the only platform that focuses on helping people get into the property market.

We match our Mates based on their housing needs such as where they hope to live, how much they want to spend and how much deposit they have, alongside housemate preferences such as whether they want to live with a dog or a cat person.

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Dairy Ashworth-Brown, Founder of the new property co-ownership platform Mortgage Mates.

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What is co-ownership?

Co-ownership is where two or more people own the same property together. This can be two people who already know each other (partners, family members or friends), or, people who have matched together on Mortgage Mates.

Mortgage Mates isn’t a real estate platform, we are a platform that matches people to own a home together either as an investment, or a property to live in.

We developed Mortgage Mates, because as many of us know- the housing market is almost unaffordable for the everyday Australian.

For example, we know that whilst 92% of renters aspire to own only 49% believe this is attainable.

There are two primary types of co-ownership, but for the purposes of the information provided on our website, we are specifically looking at Tenants In Common. Further information should be sought for other types of co-owning opportunities.

We wanted to make a difference in this space.

Legalvision define Tenants In Common as follows:‘When parties own property as tenants in common it means that two or more people co-own a property in defined shares that they can dispose of as they wish. The shares owned by each tenant in common can be equal or unequal. For example, one person may own 99% of the shares with the other owning 1%.

The precise way that you choose to split the shares is up to you and the other parties.’

Mortgage Mates has two purposes: One: to match people to buy together so

we can halve the cost of owning a home (by sharing a house with another person you halve the cost of the deposit, ongoing mortgage payments, bills and living costs) which means you can afford to buy where you want to live in a much shorter time frame.

Two: to make sure people who co-own, own

their home safely together, using information and resources on our website to help navigate this process. In particular, regardless of whether you match with someone on our website, or buy with a partner, family member or friend we champion the use of a co-ownership agreement to protect both parties’ assets. We have links to specialist agencies in this space who can help all our users draft the correct agreement to meet their housing needs.

Co-ownership can also be known as mortgage sharing, joint ownership, shared ownership or a declaration of trust. We use the co-ownership when we talk about our Mates owning together, because it is the legal definition of owning a home with another person.

Co-ownership can apply to properties being purchased for investment, for homes being purchased to live in and a mixture of the two.

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FINANCIAL TECHNOLOGY | Mortgage Mates

information on services which specialise in coownership and owning property with another person.

Do you have a background in finance?

Coming from a background in housing and homelessness I have seen first-hand the impact a lack of long-term affordable accommodation can have on an individual and decided to do something about it.

How does the Mortgage Mates algorithm work?

Technology is at the heart of everything we do with Mortgage Mates and without it we wouldn’t exists. Specifically, to our platform, tech has enabled us to match Mates across the country, co-owning homes from Melbourne to Margaret River. The weighted algorithm uses user information to match with another person or people based on a variety of requirements including the location, price and property amount someone wants, and who they want to own with, such as a co-investor or with someone to co-live with.

Did you know we are currently more expensive than New York to buy a home in and that before Covid19 even existed Melbourne and Sydney were two of the world’s most expensive cities to buy, rent or live in. I began to see a growing gap in the home-ownership market, between those who can afford to buy and those who are being increasingly priced out of property.

Using sharing technology, I began to work on the idea that if we already stay in a stranger’s house, already get into a car with a stranger and rent houses with a stranger, why can’t we buy with one?

Technology increases our scope, capabilities and our outcomes for our Mates.

What is the platform's target market?

There are a huge number of benefits that come from owning your own home- from the practical benefit of having long term, secure, affordable accommodation to live in, through to social benefits including long term connection to community, increased positive mental health and the ability to create personal and intergenerational wealth for our families.

Mortgage Mates gives another option for entering the market at lower cost.

We don’t believe everyone should have to own their own home, but we believe every Australian should have the capability to do so. For us, we see co-ownership as a housing option for ever individual, however, our target market is really people who would otherwise be unable to purchase a home independently.

Whilst there are lots of other investment based fractional platforms, Mortgage Mates focuses on providing an opportunity for people to live together in the property they buy so they can build connection to community, build equity in their own home and have housing security in a volatile market.

I see you refer to Mortgage Mates as the 'Bumble of Homeownership', could you please explain this more?

We call ourselves the Bumble of homeownership as a way to explain what we do, but instead of matching for love, we match for homeownership!

We are not a real estate agent, mortgage broker or lawyer.

We currently work with lone parents looking to share the cost of a property, and the lifestyle of raising their children. We have older adults (particularly women) returning to the market after a relationship breakdown, who want to age in place with someone to share that part of their life with, and we support first homebuyers to find someone to buy with. We are also working with providers in the disability sector to help more people build and have access to suitable properties across Australia.

We don’t provide any of these services because we want to focus on the matching part of co-owning (we say we see the people behind the property). However, we can link our Mates into these services through the What to do Next page on our website- here we provide

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Mortgage Mates | FINANCIAL TECHNOLOGY

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FINANCIAL TECHNOLOGY | Mortgage Mates

How does the platform work? How long has the platform been live?

Why should our subscribers choose Mortgage Mates for their property purchasing needs?

Just like Bumble the website works by matching two or more people to own a home together based on their personal profile and their user dashboard. We initially launched our MVP product between 2019 and 2021, before launching our comprehensive website in September of this year.

Mortgage Mates can help you in a variety of ways if you want to buy a home in 2022.

Firstly, if you want to buy a property to live in, but can’t quite get your foot on the property ladder we can match you to someone you can co-own a home with. Our Mates can choose to co-live, co-invest or a mixture of the two and we have information, guides and resources to take you through the varying stages of this process.

Would our subscribers enjoy using the site? Is Mortgage Mates convenient and user-friendly?

We like to think so! After having our MVP from 2019-2021 we spent a long time working with our developers to create the new platform.

However, with anything new it is not a finite process. We are continually reviewing user feedback and making changes to the website which we believe will add to the overall user experience.

Secondly, if you are looking at buying a

home with someone you know, our website provides information on how to do this safely and securely. We have a free co-ownership manual and other resources available on our website, as well as useful information on what steps to take and when.

For us, the key to the platform is providing useful information, free resources and helpful guides to enable people to co-own a home together.

Thirdly, if you would like to own a home in the

future, but now isn’t the right time for you to buy- we can match you with someone to share a rental with. This means you can receive all the benefits of living in a home together (such as reducing the cost of the rent, bills and living costs) whilst increasing your savings capacity for when you want to buy a home.

Co-ownership as a method of owning a home isn’t well known here yet, so we want to support the market by introducing the concept, ensuring the options is safe and secure and then ultimately, help more people own their own home!

How do our subscribers get started navigating the Mortgage Mates site?

Will the platform be secure for our subscribers' finances?

All you need to do is go to www.mortgagemates. com.au and sign up to the website. From here you can create your profile and fill in the dashboard of what you are looking for.

Our algorithm will then go on and do the rest!

Once you have matched with a fellow user, our website lets both of you know, so you can make the decision to move forward with getting to know one and other.

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Yes- because we don’t process any funds on our platform, we are the website that enables users to double their access to resources whilst halving the time they have to wait to enter the market.

Mortgage Mates also suggests our users take various safety steps along their

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Mortgage Mates | FINANCIAL TECHNOLOGY

homeownership journey, such as sharing information like a police check and personal references, so they can feel confident that the person they buy with is the right co-owner for them to own a home with.

Whilst matching on Mortgage Mates is a new way to enter the market, the products you use to buy the property are the same as traditional owners. The mortgages, legal agreements and real estate are the same as if you are buying with a family member or friend.

I see you are Founder of Mortgage Mates, who else is involved in the Mortgage Mates project?

I used to say that Mortgage Mates was only me- but now I say it’s all me! I am the Founder, CEO, marketing and everything in between!

In 2022 we will be looking to expand the Mortgage Mates team, but for the remainder of 2021 we will continue as a bootstrapped start-up- working with other entrepreneurs in the proptech and housing space to boost our impact in the housing industry.

Should our subscribers expect any performance, exit or withdrawal fees when using Mortgage Mates? What fees should users of Mortgage Mates expect?

Mortgage Mates is completely free to use for our Mates. We do not charge individuals to sign up to, match or use the website. Any income we receive is met by the third party we link our users too. This was really important for us, as we want to prevent/remove barriers to the housing market- rather than adding to them.

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FINANCIAL TECHNOLOGY | Mortgage Mates

You say the platform can be safter to use than purchasing property with a family member or partner. How is it safer? And how does Mortgage Mates mitigate risk?

Sadly 132 marriages currently end in divorce every day in Australia and for the most part they don’t come with much protection.

We also know that for many people who buy with someone they know, they don’t have the hard conversations early on, meaning they compromise on what they want, leading to difficulties in the future. By using our website, we make everything easier, simpler and clearer for both parties!

A co-ownership agreement can also be known as a legal contract, cohabitation agreement or deed of trust. It acts just like an insurance policy by setting out the terms of how you own together- protecting your assets IF you need it to.

In the co-ownership agreement you can include information about how you own together, how long you own together and how much you own together. This may include highlighting how much of a deposit was paid in, how much is paid towards the mortgage each week and who benefits from any renovations made to the property.

You Give Me Hope

Will Mortgage Mates ever be transformed into an app?

Eventually we plan to develop an App, but first we are launching our UK website which is due to go live on Christmas Eve! We have just launched our landing pages in New Zealand and the USA and look forward to matching more Mates to own homes together across the globe.

It's a fantastic website for people like me, and so many others. You've done a fantastic job of catering to people who always get overlooked. Thank You

So, what do current users say?

Below are some of the statements our users have made about the work we are doing and how we support them to own a home.

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Mortgage Mates | FINANCIAL TECHNOLOGY

Daisy

ASHWORTH-BROWN

Daisy is the founder of Mortgage Mates and the Dell's 2021 Changemaker of the year.

With over 15 years experience within the legal, housing, and welfare space, Daisy saw the growing problem in the housing market with individuals being priced out of owning their own home. Daisy used this knowledge and developed Mortgage Mates.

Daisy is also a Community Programs Leader with the Australian Red Cross.

Daisy Ashworth-Brown Mortgage Mates www.mortgagemates.com.au 0458 619 666 LinkedIn

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Who Should Own The Property | FINANCIAL PLANNING

who OWN THE PROPERTY? SHOULD

Words Jacqueline Hodges As an accountant and financial planner, I am often asked who name should we put on the contract. That is to say, who should own the house? Some people have a strong view, they like to feel that they are the sole owner and are happy to have everything in their own name. Some couples, see themselves as equal partners in life and are adamant that everything be split equally, 50:50 down the line. Some seek advice as to what is the best tax outcome, with a view to minimising their tax as much as possible. These short-term solutions may provide a good outcome for those concerned.

But for others the decision may be more complex. So, in this article I will outline some of the basic types of the entities that can be used to own the property and some guidance on the pros and cons of each.

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FINANCIAL PLANNING | Who Should Own The Property

INDIVIDUAL PROS

The simplest of home ownership is owning the property in your own name. This option is generally suitable for younger people who are starting out on their home ownership journey, for singles, for retirees, and for first-home owners of any age. If you are a first-home buyer, purchasing in your own name is the only option. You want to make sure that you can take advantage of the First Home Owners Scheme.

This is the simplest form of ownership and has no set up fees.

Your primary residence: • Exempt from Capital Gains Tax • Reduced stamp duty fees* • Exempt land tax assessment* • Exempt for Centrelink asset test • Lower mortgage interest rates • Ease of intergenerational transfer Check with your lawyer or State Revenue.

If you are buying property with your partner then depending on your circumstances this may be suitable option for your family home.

However when it comes to joint ownership arrangement with friends then you will need to consider whether tying your name in ownership with others is the best option. You may need to consider whether you own the property in joint names or as tenants in common.

Your investment property • Capital Gains discounted to 50% after 12 months • Negative geared income reduces your tax • Ease of intergenerational transfer

CONS

Owning a home in your own name can be a great solution, it does have some downsides.

If you are a business owner or a professional, you should consider whether your business or profession places the assets you hold in your own name at risk. It may be wiser to purchase property in a suitable investment structure.

Your primary residence: • Reduced asset protection • Partial loss of exemption if Home Based Business

Homes are one thing, investments are another.

Ownership of your investment properties should be carefully considered, including your circumstances over the short, medium, and long term, and as part of your estate.

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Your investment property • Capital Gains included in your income • Positive geared income increased your tax • Reduced asset protection

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Who Should Own The Property | FINANCIAL PLANNING

COMPANY A company is a more complex structure, with specific corporation and taxation laws and rules applying. You will also need to register for your director’s identification through your myGov account. A company is a separate legal entity that is controlled or run by the directors and owned by shareholders. Determining who the shareholders are will take some time. It may simply be you or you may require further separation and use a trust to own the shares.

A property owned by a company is registered with the Titles Office in the name of the company as would the mortgage.

PROS

Your primary residence: • May have some asset protection • Ease of intergenerational transfer • Expenses are tax deductible

If you are starting a company you will have setup costs which will be around $1,000 to $2,000 or more depending on who the shareholders are.

Companies last indefinitely. A company also has a more complex compliance affairs, with annual financial statements and a company tax return to prepare. Which also means a company may be more costly to run.

Your investment property • Negative geared carry forward losses • Company tax rate of 30% • Ease of intergenerational transfer

That said, if can be a good option if you have a long term view and you are building a dynasty for the generations that come after you.

Investment companies are taxed at 30%. So, if you are a high income earner, this may be a good option to reduce your taxes and develop a future nest egg for your retirement. You’ll be able to pay yourself dividends from the profits in the company.

Your primary residence: • Positive geared income is taxable • Loss of Capital Gains Tax exemption • Increased stamp duty fees* • Potential for land tax assessment* • Complex corporations and tax laws

CONS

Owning a home in your own company can be a great solution, it does have some downsides.

Your investment property • Loss of Capital Gains Tax 50% discount • Positive geared income increased your tax • Increased stamp duty fees* • Potential for land tax assessment* • Complex corporations and tax laws

While you may think of the house as your home, if it is owned by the company it will never be treated as a home by the ATO or the State Revenue Office.

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FINANCIAL PLANNING | Who Should Own The Property

TRUST There are so many types of trusts, discretionary trust, unit trust, fixed trust, hybrid trusts, bare trusts, testamentary trusts, and the list goes on. Like a company a trust is a more complex structure with a number of roles: trustee, appointer, settler, beneficiaries. We’ll consider the use of a Discretionary Family Trust with a Corporate Trustee. If the trust makes a profit in a year, the beneficiaries are the ones who receive a share of the profit.

PROS

Your primary residence: • May have some asset protection • Ease of intergenerational transfer • expenses are tax deductible

A trust is a fairly complex structure, with specific trust and taxation laws and rules applying. A trust controlled or run by the trustee and it is the trustee who determines who received a distribution each year. It is common practice for a company to be the trustee, but determining who will be the director is an important decision and will be based on your situation.

If you are starting a trust with a corporate trust you will have setup costs which will be around $ $2,000 or more.

Your investment property • Capital Gains Tax 50% discount • Negative geared carry forward losses • Potential tax minimisation • Ease of intergenerational transfer

CONS

Owning a home in your own company can be a great solution, it does have some downsides.

A trust also has a more complex compliance affairs, with annual financial statements and a trust tax return to prepare. The good news is, a family discretionary trust can distribute profits to any family member.

Your primary residence: • Positive geared income is taxable • Loss of Capital Gains Tax exemption • Increased stamp duty fees* • Potential for land tax assessment*

While you may think of the house as your home, if it is owned by the trust it will never be treated as a home by the ATO or the State Revenue Office.

Your investment property • Positive geared income increased your tax • Increased stamp duty fees* • Potential for land tax assessment*

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Who Should Own The Property | FINANCIAL PLANNING

SMSF A Self Managed Superannuation Fund is a good option for holding property. But you cannot live in a house that is owned by the super fund. So, if you were looking for a way to use that super fund balance to buy your home, you’ll need to think again. But if you are buying a farm, a camping ground or potentially even a bed and breakfast operation then you may be able to live in the farm house or the manager residence.

PROS

This is the simplest form of ownership and has no set up fees.

Your primary residence: NONE Your investment property • Capital Gain discounted to 50% after 12 months • Income Tax Rate of 15% • Capital Gains taxed at 10% • Tax losses carried forward • Rental income can improve cash flow to pay pension members

A SMSF is a fairly complex structure, with specific superannuation, SMSF and taxation laws and rules applying. A SMSF is controlled or run by the trustee for the benefit of the members of the fund. It is common practice for a company to be the trustee, and each member of the SMSF MUST be a director of the trustee. You can have up to six family members in an SMSF. If you are starting a trust with a corporate trust you will have setup costs which will be around $ $2,000 or more. Unlike trusts an SMSF lasts in perpetuity, as long as there are members.

CONS

Whilst owning a property in your own SMSF can be a great solution, it does have some downsides.

Your primary residence: • You cannot live in a property • Family members cannot use the property • Positive geared income is taxable • Loss of Capital Gains Tax exemption • Increased stamp duty fees* • Potential for land tax assessment*

As SMSF also has a more complex compliance affairs, with annual financial statements and an SMSF tax return to prepare. Which also means am SMSF may be more costly to run but there are some benefits. The good news is, a SMSF is only taxed at 15%. Unless, you are a high income earner, then you will have to pay super tax and a surcharge totalling 30%.

Further good news is that your assets are save from creditors, and your pension income in retirement is tax free earned on the first $1.6m of assets.

Your investment property • Capital Gains included in your income • Positive geared income increased your tax • Reduced asset protection • Increased stamp duty fees* • Potential for land tax assessment*

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FINANCIAL PLANNING | Who Should Own The Property

When deciding who should own the property, there are many factors to consider.

But before you consider who should own the property, the very first consideration is what type of property are you buying? Is this your home, is it an investment property, or is it a holiday home? Is it a farm, or a bed and breakfast, or other commercial property that will become your business and used for its income earning potential? Is it your first-home?

Is it your forever home?

With some forward thinking and professional advice, you may consider holding property in your own name, a company, or a trust, or even in a self managed superannuation fund. By learning more about structuring and seeking professional advice, an individual can become informed about their options, think strategically in making this investment decision, think about their investment horizon, about their current and future needs, and about their estate.

If you haven’t got a plan yet, that’s ok. Now is the time to focus on your future, consider what options you have and set your plan in motion.

“The best time to start was yesterday.

The next best time is now.” – Unknown

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Who Should Own The Property | SECTION

Disclaimer: The information contained in this article is general in nature and may not be relevant to your personal circumstance and needs. Taxation, legal and other matters referred to in this article are of a general nature only and are based on laws existing at the time and should not be relied upon in place of appropriate professional advice.

We recommend that you assess whether the information is appropriate to your needs and if appropriate speak with a financial adviser to discuss your needs, financial situation and investment objectives.

HQ Wealth Pty Ltd as trustee for HQ Wealth (CAR 1238791) and Jacqueline Hodges (AR 1238790) are Authorised Representatives of Wealth Today Pty Ltd (ABN 62 133 393 263), AFSL 340289.

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FINANCIAL PLANNING | Who Should Own The Property

Jacqueline

HODGES

Jacqueline Hodges is a Chartered Accountant, Registered Tax Agent and SMSF Auditor. She is a Financial Adviser and an authorised representative of Wealth Today. She has a wealth of experience having worked in the financial services sector for most of her career. Jacqueline is a firm believer in continuing education and holds a Bachelor of Commerce (UQ), a Master of Taxation (UM), and a Financial Planning Certificate. She established her own accounting firm servicing individuals and small businesses in 2005 and complemented the business in 2015 with the opening of the financial advice division.

We strongly believes in supporting women’s financial growth and created WFO, Hepburn, and Embrace magazines to fulfil this objective.

Jacqueline Hodges Managing Director HQ Tax HQWealth www.hqfinancialgroup.com.au 1300 474 829 LinkedIn

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women’s

financial outlooks wfo

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PERSONAL FINANCE | RBA Cash Interest Rate Update

RBA Cash Interest Rate Update The Reserve Bank of Australia met on 01 February. At its meeting today, the Board decided to maintain the cash rate target at 0.1% for the 14th month in a row.

The cash rate is the interest rate on unsecured overnight loans between banks. It is the near risk-free benchmark rate for the Australian dollar.

In a statement by Philip Lowe, Governor of the Reserve Bank, the Board held that the Australian economy remains resilient and spending is expected to pick up as case numbers trend lower.

The announcement confirms the Board’s decision that the RBA will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.

The RBA's central forecasts are: • the unemployment rate to fall to below 4 per cent later in the year and to be around 3¾ per cent at the end of 2023 •

GDP* growth of around 4¼ per cent over 2022 and 2 per cent over 2023

•

the underlying inflation to increase further in coming quarters to around 3.25%, before declining to around 2.75% over 2023 as the supply-side problems are resolved and consumption patterns normalise.

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The statement notes one source of uncertainty is the persistent disruptions to supply chains and distribution networks and their ongoing effects on prices. It is also uncertain how consumption patterns will evolve and how this will affect the balance of supply and demand, and hence prices.

To date the banks have held their interest rates at an all time low. While the RBA cannot confirm when interest rates will rise again, they have forecast a rise towards the end of the year.

The graph on the opposite page is from the RBA and shows just how low the interesst rates are.

Notice how high the interest rates were in the 1990's.

If you think your parents and grandparents enjoyed low housing costs, look at what their repayments must have been with the RBA cash rate at close to 18% in 1990, the banks were charging over 20% at that time.

Note: GDP or Gross Domestic Product in Australia is the total market value of all goods and services produced within Australia in a given period of time.

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RBA Cash Interest Rate Update | PERSONAL FINANCE

Source: RBA 2022

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PERSONAL GIFTING| How To Give

HOW TO GIVE Words Georgie Arnaud Have you ever thought to yourself, I want to give back but I’m not sure where to start?

Giving to others is one of the best things we can do as humans. At some point in our lives, we’ve all required the help of someone more fortunate than ourselves and all we need is a helping hand to lift us up. As humans it is in our nature to want to provide a helping hand, the question lies in who we offer this hand to and for how long?

engaged is such life-changing generosity it can be challenging to pin point where to donate their time and energy. There are a multitude of causes to invoke change upon, the world is unfortunately a flawed place, so identifying what issue resonates with you can be the most challenging and poignant part of your philanthropy journey.

HANDING DOWN THROUGH GENERATIONS

YOUR PHILANTHROPY JOURNEY

Not only is it important to know your philanthropy plan but it’s also essential to the succession of philanthropy through family generations.

Deciding what resonates most with certain family members and generations is key to ensuring charitable behaviour continues through your family. Having some sort of structure is the only way to make sure the tradition of philanthropy doesn’t come to a halt due to uncertainty or disagreement.

Philanthropy is defined as ‘goodwill’, or looking out for human kind. Wonderful milestones can be achieved through the philanthropy of others. It is the foundation to which humans practice kindness and gratitude towards each other in an impactful way. Engaging in philanthropy can be extremely rewarding and life-changing, if given the right direction or focus. However, for people who have never

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How To Give | PERSONAL GIFTING

The Steps To Effective Giving THE PERPETUAL/STANFORD PHILANTROPY TOOLKIT To assist you with your giving venture, Perpetual and the team at Stanford University’s Centre on Philanthropy, have derived a philanthropy toolkit to act as a guardian angel for your charitable endeavours. There are six steps to success in philanthropy:

1. Your Core Values

If you don’t align your values with how you give to others, you will never be successful in reaping the endless benefits of being generous to people in need. The tool kit will guide you through how to identify what issues resonate with you the most in life and how to effectively make a difference.

4. Choose The Right Vehicle

Making sure you are giving through the right medium is vital in providing tax-effectiveness and managing your finances in a form that suits you and your family. Learn how to achieve this with the Philanthropy Toolkit.

2. Your Philanthropy Plan

3. Give With Your Family

Having a structure to your giving practices is vital to the successfulness of philanthropy. If you give too little to a certain cause but too much to another, you may be disappointed with the results you achieve. Use the toolkit to develop a sustainable giving plan.

The best way to establish your intentions for philanthropy throughout your family is to sit down together, engage in interactive activities provided by the toolkit and sort out who’s contributing what, as well as how everyone’s values will be met.

5. Give With Others

6. Time, Talent & Treasure

Giving back with other likeminded people makes the philanthropy process majorly more rewarding for you. Getting together with people who share the same core values, to contribute to a worthwhile cause, is what makes giving a human experience like no other. The Philanthropy Toolkit will describe in detail just how you can do this.

Giving can come in a number of forms. Whether it’s unleashed through your personal time, the talents you possess or the treasure you have to donate, the toolkit will show you how to effectively embark upon your own personalized giving process.

This is just a brief summary of the guide to philanthropy. To access the full tool kit jam packed with handy tips to keeping your giving on track, visit the Perpetual website.

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PERSONAL GIFTING | How To Give

HOW TO USE THE TOOLKIT TO GIVING When you download the Perpetual/Stanford Philanthropy Toolkit it will take you through step by step the most effective way to approach philanthropy. Sit down with your family and engage in an interactive, well devised solution to all your giving concerns.

In your own time, gradually the kit will solve common questions that you may have, such as how should you structure your giving? Should I involve my family members in the process?

Will the support that I provide actually make a difference to the cause I care about?

HOW TO ACCESS THE TOOLKIT

You can very easily download the beginner's guide toolkit on the Perpetual website. Simply jot down your details into the website and you will be emailed a copy of the full book for free. You can find further resources regarding philanthropy on their website and are welcome to contact them with any concerns or queries via the online form.

Be responsible for a well-planned, effective philanthropy structure in your family. Don’t put your giving prospects on hold due to uncertainty. Using this toolkit, you will never feel caught out by the pressures of giving back to others and will fulfill all of your philanthropy goals in the most efficient manner possible.

Hopefully these tips will provide you with the confidence to accomplish your charitable dreams. So, gather around with your family and discuss how you are going to lend a helping hand to those who need it.

Visit the Perpetual website and start your guided giving journey today- Your Philanthropy Toolkit | Perpetual.

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PERSONAL GIFTING | Focus On Giving

giving

FOCUS ON Words Georgie Arnaud

Start your year in the giving spirit. If you’re looking to begin the new year by giving to others and emitting positive energy into the world, we’ve got the perfect answers to your generous dreams. Make a plan of all the ways you’re going to give back throughout the year. Each issue we feature three different charities committed to giving back to people less fortunate than ourselves. So, start your year off the right way sending love to those who need it, because we all hope to receive the same kindness that we give to others this year. You know what they say, “you get what you give.”

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PERSONAL GIFTING | Focus On Giving

ROSIES

Friends On The Street PROVIDE A BRIEF DESCRIPTION OF THE SERVICES YOU OFFER AND WHAT YOUR OVERALL AIM IS AS A CHARITY?

We had the pleasure of interviewing Jayne Shallcross, Chief Executive Officer at Rosies, a charity dedicated to providing people who need extra support, with love and friendship.

Rosies offers community and connection through street outreach to those who are homeless, at risk of homelessness, or socially isolated in the local community. We also operate in youth detention, provide court support, and continue to support Schoolies. Additionally, Rosies provides education and awareness in the community, including a robust School Engagement Program where year 11 & 12s attend outreach with the Rosies teams. It is our mission to ensure that no Queenslander feels left out or disconnected from their community.

Rosies offers friendship and unconditional acceptance to those doing it tough and we do that with hospitality, just as you would if a friend dropped in for a visit. That hospitality could be a warm drink or food, hygiene products, a blanket, information about other services, or just a smile and a listening ear. The stress that comes with homelessness or being at risk of homelessness also increases the risk of mental illness. You would be surprised what a difference a simple chat and basic hospitality can do to impact an individual’s mental health and physical wellbeing.

HOW DID ROSIES ORIGINATE? Rosies began in the 1970’s in the seaside town of Rosebud on the Mornington Peninsula. Fr Tom Shortall OMI, an Oblate priest, noticed that there was not much for the young people in the community to do and opened a dropin centre to provide a safe place for them to spend time during summer holidays. A number of years later, Fr Paul Costello OMI saw a similar need during the Schoolies Week celebrations on the Gold Coast. While the area was a hive of activity during the event, there wasn’t a safe place for the young people to just “hang out” if they needed a break from the week-long party.

Aside from the usual tea/coffee and a friendly chat, the team also provided transportation to keep the school leavers safe. During this outreach, the team came into contact with the local homeless population and realised that Rosies was needed in the community all year round, not just during Schoolies.

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WHY SHOULD OUR SUBSCRIBERS DONATE TO ROSIES?

reserved, only taking what she needs – like all of the people who attend Rosies, she has a story to tell. At 62 years old, Shirley collects 10c cans and bottles from around the local community, and then with everything piled high in her trolley she walks for about an hour to the depot to cash them in. It's hard work, but Shirley is able to collect enough containers to make $50 per week, which she sends to her daughter in Melbourne to pay for a babysitter so she can attend a course one evening per week. Shirley has a tent with the majority of her belongings in a tucked away location, however, Shirley said she “does not feel safe sleeping there.”

Rosies relies on the kindness and generosity of members of the local community to keep our vans out on the street, fully stocked and in even more communities, where we are needed most. Rosies is a grassroots organisation with a vital mission and a strong history. Rosies is out on the street every day or night of the week. Your donation today will have a positive impact on someone’s life on the street tomorrow.

WHO HAVE BEEN SOME OF THE PEOPLE YOU'VE HELPED?

WHAT INSPIRED THE WORK THAT YOU DO AT ROSIES?

We recently shared the story of a patron named Shirley who was deeply affected by COVID-19 and is currently sleeping rough on the Gold Coast. Shirley has been a regular face at our Southport outreach since COVID came to Queensland in early 2020. She is quiet and

When I first experienced Rosies outreach, I was on my own personal journey of loss and grief, and I was incredibly moved by my experience with the Rosies volunteers, the friends that we met on the street, and the wonderful sense of community and comradery that was evident.

My background is finance, banking and general management so I hope that I bring with me a strong mix of the head and the heart – business experience and skills with a passion for helping and empowering women and individuals who have found themselves in difficult and challenging circumstances.

HOW CAN OUR SUBSCRIBERS HELP SUPPORT ROSIES? You can support Rosies through monetary donations and/or donations of goods (for example, cordial, biscuits, instant cup noodles, toiletries), and we are most grateful for all those whose contribution keeps Rosies on the street.

To learn more or to donate or volunteer, please visit their website www.rosies.org.au or reach out to Rosies directly on media@rosies.org.au Rosies - Friends On The Street rosiesqld

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PERSONAL GIFTING | Focus On Giving

PINCHAPOO P

inchapoo (Slang for pinch-a-shampoo) are a charity determined to provide hygiene products to anyone in need of them and without access. After experiencing her own ordeal of panic, having to leave her own home instantaneously and provide for herself, Kate Austin, Founder and CEO of Pinchapoo had the epiphany that no one should have to be so desperate for basic supplies. She began helping collect donations for a local shelter which almost immediately grew to Pinchapoo, now leading the way in the fight against hygiene poverty in Australia. She calls it her “Robin Hood Movement” because people are pinching and dropping donations to the cause.

@ pinchapoo_aus

“Pinchapoo are leading the charge on creating change nationally for those one in five experiencing hygiene poverty. The amazing impact of your donation is never lost in not-forprofit grey area. You donate a toothbrush... someone gets to brush their teeth. Donate a shampoo...someone gets to wash their hair. It's visible and meaningful impact.”- Kate Austin, Founder and CEO of Pinchapoo.

men, women and children nationally each year. They are passionate about reducing the number of people having to make the choice between buying food for themselves or personal hygiene products. 12 years ago, there was even a pinching movement initiated

by Pinchapoo where people were pinching hotel supplies to donate to people who really need it. Pinchapoo has allowed awareness to be created over the large community of less fortunate people who can’t afford basic hygiene essentials.

Pinchapoo have redistributed more than 8.5 million personal hygiene products to hundreds of thousands of disadvantaged

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topic of #hygienepoverty one that's heard, one that's actioned! We began working with Guinness World Records to do just that! Last Sunday that event finally happened and we broke not one, but two. The longest word made from tables (501 trestle tables). The most hygiene packs made in an hour record was 5111, we smashed it with 5900.”

Pinchapoo run three key programs to improve the hygiene poverty situation in Australia: School Personal Hygiene Support ProgramIn order to increase class participation, self-esteem and positive social interactions in school, Pinchapoo provide a range of essential products to students in unfortunate home situations.

Emergency Hospital Stay Packs- They also provide emergency departments in hospitals with access to culturally appropriate, gender inclusive hygiene packs distributed to those in crisis, homeless and at risk, victims of rape, isolated from family and experiencing struggle.

@ pinchapoo_aus

“We tell a story often of a gorgeous lady who attended a Christmas lunch for the homeless years ago when she received one of our pamper/hygiene essentials bags. She cried.

The next morning this organisation partner received a call to let them know she had planned to take her life that very same day, however someone took the time to think about her individual needs. Her dignity. Her worth and she that very moment meant she's still here today!”

Crisis Program- Pinchapoo provides support and supplies to people in crisis situations such as fire or flood, where essential items are vital to getting people back on their feet.

Recently, Pinchapoo also organised a massive event gathering people to break the Guinness World Record for most personal hygiene products made in an hour. Many attended and awareness was successfully raised about hygiene poverty in Australia, as well as two Guinness World Records broken. What a fun way to raise awareness while creating thousands of hygiene support packs for a worthy cause.

They say even your $30 donation will provide up to 10 disadvantaged students with personal hygiene products that could exponentially improve their quality of life and simply make their everyday that much easier. Having access to the smallest essential items that we do tend to take for granted in life, could make all the difference in a struggling young person’s life. So, get out some of the essential items lying around your house and donate them to someone who is desperate for them.

A full list of all the items Pinchapoo accepts for donation can be found on their website.

“Last year we decided we needed to do something big enough to capture our nation, our media and our government to make the

Make your donations to Pinchapoo at www.pinchapoo.org.au Pinchapoo pinchapoo_aus

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PERSONAL GIFTING | Focus On Giving

BRAINCHILD FOUNDATION As

a mother or father, you always want the best for your child. A happy, healthy life. The Brainchild Foundation is helping provide your children with fruitful lives despite unexpected health circumstances.

Brainchild educates and supports children affected by brain and spinal cord tumours.

Parents, friends of children affected and medical professionals, volunteer their time and efforts to changing the lives of many suffering with brain or spinal cord tumours, through the Brainchild Foundation. They’re searching for a cure, while also providing financial, emotional and educational care to the families of those with diagnosed children.

issues for children. So, Brainchild’s Founders decided that all children diagnosed with a brain or spinal cord tumour will be supported and cared for by the Brainchild Foundation.

Vonnie began to recruit a small committee of passionate parents and medical professionals to help give these kids a chance at a normal, sustainable life. The Brainchild Foundation are supporting young people across Australia up to the age of 24, so that each day is less of a challenge for them to get through. Teenage years are enough of a struggle without the added difficulty of a tumour holding you back, so by donating or volunteering you are giving these kids a reason to keep fighting.

The charity was established in 2010 by neurosurgeon Dr Martin Wood, Paediatric Oncology clinical nurse Vonnie Hastings and the father of a child with a brain tumour, Rod Field. At the time there were no other NGO’s that supported the families of children with brain or spinal cord tumours. Benign tumours may not be as dangerous as cancer but they can cause a myriad of short- and long-term

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Brainchild Foundation’s key objectives are:

AWARENESS

Brainchild wish to build a community in which brain and spinal tumours among children are recognised and the families who care for these children day to day are supported well. The impact that these devastating illnesses can have on not only a young child’s life but their families, can be extremely difficult but with a little support and awareness of the assistance required, a major difference can be made in their lives.

FUNDING The more funding Brainchild receive for their mission, the more opportunities they can offer to children and their families who need assistance to live sustainably and happily.

Specifically, The Brainchild Foundation provide emergency financial relief through hospital welfare, bereavement support and tutoring assistance for young people. They also organise family camps and respite to release some stress off of carers. So, you could be responsible for putting smiles on an entire family’s faces when they're struggling through a difficult time whether it be financially, emotionally or educationally.

SUPPORT Without the support and generosity provided from the volunteers of Brainchild, disadvantaged families would lack the resources to look after their child. Brainchild is here to lend a helping hand.

RESEARCH The Brainchild Foundation promotes research into various ground breaking treatments or causes of these brain and spinal tumours.

Helping build a better future for the management of tumours in the lives of children, with a hopeful attempt at curing the diseases forever. With your help, better circumstances can be made for these children and their families.

You can donate to the cause or even apply to be a tutor for the children. Begin the year by donating to a cause that could provide a diagnosed child and their family a chance at a more positive, fulfilling year ahead.

To learn more or to donate or volunteer, please visit their website About Us - Brainchild Foundation.

TREATMENT Through extensive research and constant offering of support, Brainchild hope to improve treatments for brain and spinal cord tumours increasingly, and therefore hopefully provide a better quality of life for diagnosed children.

Make your donations towww.brainchild.org.au Brainchild Foundation brainchildfoundationau

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