Personal wealth hits $575,000, only one in two plans to claim tax breaks, and the door closes on Volt. Here are five things you may have missed this week.
Volt Bank asks customers to withdraw their savings
The arrival of neobanks caused a stir. But many have fallen by the wayside.
Volt Bank, which was launched in 2019, is closing its deposit business and handing over its banking license.
Volt customers have been asked to withdraw money from their Volt accounts by July 5, 2022.
Explaining the bank’s closure, Volt says the pandemic and difficult global economic climate prevented it from getting the funding it needed to continue.
Volt joins other high-profile neobanks that have disappeared from the scene, including Xinja (closed in 2021) and 86,400 (now owned by NAB).
This shows how difficult it can be to take on the big Australian banks, let alone beat them.
Wealth per capita hits record high of $574,807
You might not be feeling particularly wealthy right now, but the Australian Bureau of Statistics (ABS) says household wealth rose 1.2% in the March quarter of 2022, hitting a record 14, $9 trillion.
This brings the average wealth per person to $574,807.
The past few years have brought the hardships of COVID-19, but the pandemic has led to a boom in household wealth.
Since the March quarter of 2020, household wealth has jumped 35.3%.
Residential real estate has accounted for most of the growth, with values up 39.9% since the start of the pandemic according to the ABS.
Those who do not own property did not miss out.
Superannuation balances rose 22.5% as stock markets were supported by accommodative monetary policy.
Households have also accumulated $305 billion in deposits since the start of 2020, as many of us have been hoarding money to help us through difficult times.
Only one in two plan to claim tax deductions this year
Finder research shows that just one in two Australians (53%) plan to claim tax expenditures this year.
This means that almost half of us could potentially get back less than we should in tax refunds.
While it’s important to get the right tax deductions, it makes sense to claim all the expenses you’re entitled to.
Finder says the average tax refund is probably worth around $2,500, so it’s definitely worth dusting off the receipts to see what can be claimed.
If you’re unsure whether an expense qualifies as a legitimate tax deduction, the Australian Taxation Office (ATO) website lists work-related tax breaks for a variety of jobs and industries. Or speak with a registered tax agent.
Tax returns can be filed from July 1, although most people will have to wait a few weeks to get a tax return from their employer.
If you are filing your own tax return, it must be with the ATO by October 31.
Pay-as-you-go health insurance: is it a good idea?
Can’t afford to cover yourself but worry about the cost of an injury?
Flip claims to offer Australia’s first ‘on-demand’ insurance policy.
A subsidiary of HCF life, Flip offers accident insurance, with the freedom to pay for cover when you think you need it most – for example, if you plan to go horseback riding or abseiling in the next few days. 24 hours.
Flip has two main cover options. A day pass, which costs $6 per day for the days it’s needed, or Flip’s Always On subscription, which costs $9 per week but offers full-time coverage up to $20,000.
Flip is only designed to cover accidental injuries – and not all activities are covered. Motorcycling, including off-road biking, is a notable exclusion.
Compare market health insurance expert Anthony Fleming says: “This type of cover might be ideal for some people who want cheap cover for short periods of time, but it won’t suit if you want the assurance of access in daily care.”
Romance sparkles, not sizzles, for those who run a small business
Love is not in the air for small business owners.
Nearly 2.5 million small businesses operate across Australia, and while running your own show can be financially rewarding, it can also place great demands on your time, often spilling over into personal life.
Xero’s latest emotional tax returns survey shows that one in three business owners don’t remember their last date (compared to one in four in 2021). One in eight respondents have not had an appointment for at least 12 months.
Meanwhile, a quarter of business owners say their company’s demands leave them with fewer opportunities for privacy, even leading to neglected birthdays and anniversaries.
To make up for these missed opportunities, Australians who run a small business spend an average of $119 a year on gifts for their partner.
Even their pets are urged to show sympathy for the small business owners who spend nearly $50 on pet gifts every year to buy their furry forgiveness.
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