small business gets a helping hand

information taken from the government site http://www.budget.gov.au/2015-16/content/highlights/jobsandsmallbusiness.html

ACCELERATED DEPRECIATION

All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000. (Currently, the threshold sits at $1,000).

This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. These arrangements start from Budget night and continue until the end of June 2017.

Further information on accelerated depreciation is available on the ATO website.

TAX CUTS

The Government is reducing the tax rate for the more than 90 per cent of incorporated businesses with annual turnover less than $2 million. The company tax rate for these businesses will be reduced by 1.5 percentage points to 28.5 per cent.

To help all Australian small businesses grow, the Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015. This delivers a tax cut of $1.8 billion over the next four years.

Further information on tax cuts for Small Business is available on the ATO website.

CUTTING RED TAPE

The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by expanding the FBT exemption for work‑related portable electronic devices. This will help small business employees stay connected in the digital economy.

Small businesses will also benefit from Capital Gains Tax rollover relief when changing their legal structures but keeping the same owners.

Further information on changes to the FBT is available on theATO website.

Information on starting and running your small business is available at business.gov.au.

lets kill small business by wrapping it in beurocratic red tape by those who have never run a business

I have been very busy with starting a new business and all the accreditations that are required to go with it so when I read the following it totally resonated with me:
Over the last few months, the Gillard government, the Federal Parliament and statutory bodies have made a number of important decisions that will impact on many businesses and add to business costs and compliance.

While a few of these decisions are individually reasonable, the compounding effect of additional costs and compliance burdens will be a further hit to business confidence which is already fragile after the lingering effect of the GFC, years of political instability and increasing uncertainty about policy settings. 
Many of the decisions have been hurriedly introduced without proper consultation and due process. The decisions will add to the frustration and cynicism of many business owners who are finding the ever-increasing burden of regulation, compliance and red tape difficult to finance and manage.
The list of recent changes includes:

• 5% increase to the carbon tax (1 July)

• Award wages up 2.6% (1 July)

• Award allowances up CPI or 2.6% (1 July)

• Superannuation levy paid by employers rising to 9.25% (1 July)

• Fourth increase in four years to weekend penalty rates for retailers (1 July)

• Unfair dismissal threshold and compensation going up (1 July)

• Superannuation now paid to workers above 70 (1 July)

• New consultation obligations whenever rosters or hours change

• New obligations to consider family friendly rosters

• New parental leave obligations

• Increased powers to Fair Work Commission (union entry, workplace productivity)

• Penalty rate principles legislated

• New restrictions on recruiting overseas skilled workers under 457 visas

• Reverse onus of proof and increased sanctions on employers to prove employee legal status (1 June)

• Employers to finance union travel and entry to remote workplaces (1 January)

• Right to sue employers for workplace bullying (1 January)

• Union officials right to occupy workplace lunch rooms (1 January).

 
In the meantime here are a few suggestions for both sides of politics as they head into the Federal Election:

1. RECOGNISE THE CRITICAL ROLE THAT BUSINESS PLAYS as the creator of jobs, innovation and wealth.

1. SHELVE ANTI-BUSINESS LEGISLATION - such as changes to 457 visa laws, right of entry for unions and the legislation of penalty rates.

1. CUT DOWN ON RED TAPE AND REGULATION 

1. Regulation is suffocating small business. The costs and time involved in complying with those regulations is bad enough, and the unnecessary duplication makes it even worse. Let's cut the red tape and give small business a break.

1. SIMPLIFY THE TAX SYSTEM 

1. Our tax and finance systems are impossible for the average small business person to understand and comply with. Many small businesses need to employ specialists and the whole process adds unnecessary cost and time while draining entrepreneurship. Let's ease the tax burden and make it simpler.

1. MAKE IT EASIER TO EMPLOY PEOPLE 

1. Australia has become a very costly place for small business to hire, keep and dismiss staff. And when times are tough, that means jobs and hours get cut. It's also too hard to get workers with the right skills. Let's make it easier to employ people and create more jobs.

1. BUILD BETTER INFRASTRUCTURE

1. Support enabling infrastructure to lift productivity and create jobs.  In Australia we talk a lot but it's time to move past rhetoric and actually do something about it.  For Canberra and the region this means

• Building the Australia Forum Convention Centre NOW and

• Putting a High Speed Rail connection between Canberra and Sydney (as a first stage in linking the East Coast capitals) out to the market NOW, rather than in 15 years time.  Both of these projects will deliver positive economic returns, create jobs and provide opportunities for businesses across in the ACT and region.

Canberra Business Council
CEO

Survival tools for the busy woman

Emotional pain is all based on the ego’s opinion. It decides things should be one way and things don't always go the same way. It is not a pleasant thing to suffer an ego-hit but it happens to all of us. So say to yourself when things go against you “This is natural. it's ok, this too shall pass” and then move on.

If you must get obsessed about something make it your freedom. Strive to take what comes in your path and if its an obstacle then move around it

If you are suffering then do it in silence never mention it or hardly ever mention it. Whinging and moaning about it just makes it worse. Ask for 'relief'

Some emotional pain is sexual or romantic pining. Learn to be warrior and be celibate and wait till one person with decency and honor comes along. Most of the people you fancy are not worth having and they may hurt you in the end. Wait.

Family: much pain arises from within the family unit. Give up on your desires for them or your need to control them. You’ll die from it if you don’t. And remember Einstein said “It’s all relative!”

Rip Offs: Werner Erhard of the EST seminar trainings said “Life is a rip off then you die” He was right. So get over it and focus on all the things that are beautiful and not a rip off.

 Lavender is a protector. When you feel emotional go to silence and put lavender in your bath water. When you get out put a few lavender drops in a towel and rub yourself down with it. As your skin radiates the flower essence the your vibration eases and changes. You become freer.. Be eco friendly and use handkies not tissues put a few drops of lavender on your handkerchief and smell it throughout the day.

You will thank yourself for it.

super...

A tax exemption on superannuation earnings supporting pensions and annuities will be capped at $100,000, and anything above that level taxed at a rate of 15 per cent, the Federal Government has announced.

Announcing long-awaited changes to superannuation in Canberra today, Treasurer Wayne Swan said the measures would only impact on those with super assets of more than $2 million, or about 16,000 individuals.

The Government has been under pressure to detail any changes to superannuation planned for the May budget, with ongoing speculation that it would increase taxes for high earners.

Mr Swan said there was a disproportionate level of Government support that flowed to a select few.

“There is something wrong in the system where working Australians on average wages are providing excessive support to people with millions in their superannuation account,” he said.

“Why should someone who has millions of dollars in a superannuation account pay no tax on their earnings while someone on $80,000 a year pays a marginal tax rate of 37 cents in the dollar on every additional dollar they earn.”

Mr Swan said the changes addressed that imbalance.

Opposition Leader Tony Abbott has vowed to “fight ferociously” to block Labor's latest changes to superannuation.

“It is a raid on people,” Mr Abbott said.

Mr Abbott said the changes would play havoc with retirement plans.

“We will fight ferociously to stop this change from going ahead,” he said, adding it was a Government raid on people.

“Every time a government raids people's funds, there are shades of Cyprus about it.”

Under existing arrangements, all earnings on assets supporting income streams (superannuation pensions and annuities) are tax-free, in contrast to earnings in the accumulation phase of superannuation, which are taxed at 15 per cent.

The $100,000 threshold will be indexed to the Consumer Price Index, and will increase in $10,000 increments.

Assuming a conservative estimated rate of return of five per cent, earnings of $100,000 would be derived from individuals with around $2 million in superannuation.

These changes will not affect the tax treatment of withdrawals.

Withdrawals will continue to remain tax-free for those aged 60 and over, and face the existing tax rates for those aged under 60.

The changes will save the Government about $900 million over the forward estimates.

Combined with changes announced in last year's budget to increase the tax rate of 15 per cent to 30 per cent for those earning $300,000, the measures will save $10 billion over the next decade.

The Government will save $6 million applying the new concession cap to those on a defined benefit fund, such as federal politicians and judges.

The Government will simplify the design and administration of the proposed higher concessional contributions cap by providing an unindexed $35,000 concessional cap to anyone who meets certain age requirements.

It has decided not to limit the new higher cap to individuals with superannuation balances below $500,000 in light of feedback from the superannuation sector.

The system of excess contributions tax, introduced by the Howard government in 2007, will be changed.

Excess concessional contributions will be taxed at the individual's marginal tax rate, plus an interest charge to recognise that the tax on excess contributions is collected later than normal income tax.

About 59,000 people on the top marginal tax rate will have a slightly larger tax liability because of the interest charge.

Treasury estimates in 2013-14, the change will reduce the tax liability of about 41,000 people by an average $1300.

Superannuation Minister Bill Shorten said the Government was acutely aware that many people approaching retirement were keen to boost retirement savings beyond the mandatory contribution.

For people aged over 60, concessional caps will be increased from $25,000 to $35,000 from July 1.

That concession would be extended to those aged 50 and over from July 1, 2014.

There will be further changes to the handling of lost super accounts.

Last year, the Federal Government announced lost super accounts up to the value of $2000 would be transferred to the Australian Taxation Office, to protect them from being eroded by fees.

The balances would also earn interest equivalent to the consumer price index once they are reclaimed.

The balance threshold will be increased to $2500 from December 31, 2015 and $3000 at the end of 2016.

“This means that rather than shrinking, people who are temporarily disconnected from their super, will have it grow by the time that it's found,” Mr Shorten told reporters.

A 20-year-old with $3000 in an inactive superannuation account will be able to claim about $3400 from the ATO after five years.

Mr Swan said the change in the tax exemption cap on earnings would help restore a number of the original intentions of the superannuation system to keep it fair and sustainable.

Manufacturing activity has fallen for the 14th month in a row, according to a survey from the Australian Industry Group released today.
More businesses are closing due to aging manufacturing population and apprentices not being encouraged to enter the manufacturing and "hands on" work force as more and more Australians go for work in "clean" work environments such as offices rather than in building and manufacturing. I think we may be a few moreyears away from 3D printing storming the market place.

Cougars, grr

Light reading for the weekend

Allure did another one of those fluffy surveys.  This time it was to find out how men and women really feel about a woman’s changing looks, the effects of plastic surgery, and whether sex gets better with age.  Allure polled 2,000 people nationwide

survey says:- women believe their beauty peaks at 31 – but agree with men that 30 is the most seductive age for a woman.

- men are the most confident in bed between the ages of 50 and 69, while women experience their peak of sexual confidence between age 18 and 29.

-57% of the men and women polled agreed that sex gets better with age, only a third of male baby boomers said they were attracted to women their own age.

-36% of men between 18 and 29 say that ’cougars are hot’.

-women are more pressured to look young.

-grey hair makes a women look old, but on a man it’s considered distinguished…although 63% of men color their hair to look younger, compared to only 36% of women.

Overall, 70% of men and women say they take non-invasive anti-aging measures, and only 1% admit to getting cosmetic surgery, injections and/or laser treatments.

thought for the day

so few people view low interest rates as a form of financial repression that favours the elite

reverse mortgaging

If you have a home that's paid off - or almost paid off - a reverse mortgage can help you live better by providing a steady stream of dependable income.

This type of mortgage is called a reverse mortgage because instead of you paying the lender a certain amount per month for a certain number of years, the lender pays you. These payments are cash advances against the value of your home.

There are different kinds of reverse mortgages, but all of them are similar in certain ways. You continue to own your home just as you do with a normal mortgage. You pay the property taxes and are responsible for maintenance, homeowners insurance and property repairs.

At the end of the mortgage, you or your heirs must pay all of your cash advances plus interest. If you or your heirs cannot do this, the lender can foreclose on your house.

There are financing fees associated with a reverse mortgage just like with a forward mortgage. The money you get form the reverse mortgage can be used to pay these fees. These costs are added to your loan balance and must be paid back with interest when the loan is over.

How much money can you get with a reverse mortgage?

The monthly amount you get will depend on your age and the value of your home. Here's an example. One reverse mortgage currently available is the Federally-insured Home Equity Conversion Mortgage or HECM. Assuming you have a home worth $200,000 and owe nothing on it, an HECM could get you $641 a month for the rest of your life. Alternately, you could get a credit line account in the amount of $107,466 that you then could draw from whenever you wished. Or you could choose to get a single lump sum payment for the same $107,466.

Keep in mind that, as a rule, reverse mortgages are first mortgages. In this case, if you still owe any money on your home, you must pay off the old mortgage first. If you don't have the money to do this, you can usually use money from the reverse mortgage to pay off the old debt.

How much will you or your heirs end up owing?

The debt will equal all the cash advances you have received, plus all interest that is added to your loan balance. If that amount is less than your home is worth, you or your heirs get to keep the difference. The other good news is that you can never end up owing more than your house is worth at the time the loan is repaid.

If you are "house rich" but "cash poor," a reverse mortgage could help make your golden years more golden, However, make sure you read the loan papers carefully to be certain you understand all the loan's conditions.

Wouldn't you like to know more than 100 ways to save money and live better? For example, there are several simple ways to save money on your auto insurance that insurance agents will never tell you. You can learn these tips and many other money-saving tactics by clicking here. Do this today and start enjoying a happier and less stressful life.

Article Source: http://EzineArticles.com/128247

start of something extraordinary

Three lenders cut some of their variable interest rates in the past week. Unsurprisingly, they did not include the major banks, but financial comparison website RateCity says it is “the start of something extraordinary”.

IMB cut one home loan by 0.05 percentage points, BMC Mortgage cut several loans by 0.10 percentage points and Holiday Coast Credit Union cut several loans by 0.20 percentage points.

RateCity said it was the first time it had recorded three lenders cutting variable home loan rates out-of-cycle.

"While there have been several rate increases out-of-cycle, we've never seen lenders drop variable home loan rates while the cash rate remains stable,” said RateCity spokesperson Michelle Hutchison.

"Lenders have room to move after keeping on average 0.42 percentage points of the Reserve Bank's 1.75 percentage point cut to the cash rate since November 2011 from variable home loan borrowers. If these three lenders can afford to cut variable rates out-of-cycle, other lenders - including the major banks - have no excuse to sit on their hands."

Hutchison said borrowers needed to take control of their home loan instead of waiting for a discount from their lender.

"This is the start of something extraordinary as it's likely to shake up the home loan market,” Hutchison said. “It opens the door for borrowers to expect better deals and more discounts without needing to wait for the Reserve Bank to lower the cash rate.

"But it will be up to borrowers to keep your lender in line with the competition: find out what interest rate you're paying, compare your home loan to the rest of the market and demand a discount from your lender or switch to a better deal.”

She said a 0.20 percentage point discount - for instance, for a $300,000 home loan dropping from 5.9% to 5.7% - could mean a saving of $456 per year or $13,680 over 30 years.

What you could buy with the gender pay gap

When President Obama mentioned the US gender pay gap during his State of the Union address last week, he declared his commitment to the Paycheck Fairness Act that would ensure women earn "a living equal to their efforts".

So far, it seems he's only referring to a pipe dream. According tonumbers from the Bureau of Labor Statistics, in 2012 U.S women who worked full-time earned just 80.9% of the salaries of their male counterparts.

That adds up to approximately $10,784 in lost salary each year according to The National Partnership for Women and Families. It's a number that's dipped one full percentage point since 2011 and takes any progress in closing the American gender pay gap back all the way back to 2005.

Forbes has calculated the pay gap and come up with a few ideas on how women might spend the extra money based on their locations- and it isn't just a bit of pocketchange.

The $10,784 could see women afford:

• 1.7 years worth of groceries in Washington
• Mortgage and utilities for 4 months in New York
• Rent for 14 months in Wisconsin
• Family health insurance premiums for 3.7 years in Connecticut
• College tuition for three semesters at a State University in New York
• Nearly $800,000 in retirement savings (based on an assumed 25-year career)

In Australia, our numbers don't fare much better. The national gender pay gap hovers at around 17.5 %, and a report by the Workplace Gender Equality Agency in January found the Graduate gender pay gap had doubled since 2011, now sitting at $5000 per annum.

As of August 2012, the average full-time working woman took home $252.80 less per week than a male who also worked full-time. That's extra cash that could pay a week's rent in Sydney, or a few trips to the supermarket.

There's still a way to go until we reach gender pay equity. Until then, we can always dream.

Super!

Sadly, the 17.5% gender pay gap combined with breaks from the workforce associated with maternity leave means women are at a considerable disadvantage to men when it comes to the funds they have to retire on. A 2012 Suncorp-ASFA Super Attitudes Survey found women hold just 37% of Australia's total super account balances.

In line with International Women's Day, ASFA is encouraging women to start thinking about super. It's a big job given 81% of us "are not currently engaged" with our super, according to ASFA/Suncorp research. A new independent website called Super Guru, which provides information and tools to get the most out of their superannuation, should help.

According to Vamos, women need to accumulate $250,000 in super by the time they retire, in order to supplement the pension (giving them a total of $500,000). That's a lot of money to earn when you factor in career breaks, a slow start on salary and numerous debts associated with education, property and raising children. Indeed, for most of us it's almost impossible without making voluntary super contributions on top of compulsory savings.

For women planning to take two years out of the workforce while raising children, Vamos recommends they contribute an extra 1% over the course of their working life. She adds that while it'd be sensible for school-leavers to start making voluntary contributions – and she makes such contributions on behalf of her own daughters as a "Christmas present" each year – the reality is that most women will wait until they've finished university and joined the workforce in a full-time and secure capacity before making such contributions. All women, at least by the age of 25, should be considering their super.

So what can you do right now? Here's what ASFA recommends:

1. Roll you super accounts into one. You need to know your tax file number.
2. Get excited about your super. Check your account balance and insurance arrangements regularly, remembering that it's your money and you have the right to know how it's performing.
3. Build it up. Make voluntary contributions and pay an additional 1% if you've had/are considering having children.

Dominant driver of economy

The Resources Revolution is the dominant driver of the economy – and likely to remain so for many years. Cities and towns with export ports have a head start in generating growth.

Export ports are one of the nation’s greatest growth industries. Projects under way or in planning for new ports or expansions of existing ones total $82 billion

Cloud storage

The general public's often poor understanding of complicated privacy settings and terms and conditions that stretch a mile long in legal gobbledygook means there are many embarrassing incidents where people have believed what they posted or shared was private, to then realise nothing is private as their comment or action goes viral around the world.

I wonder how many people know what it says in the iTunes terms and conditions, or how many people read it, before they click I agree. How many businesses understand the various cloud and storage providers' terms and conditions as we willingly dump our commercial information into their online storage systems?

It's a valid concern.

In August 2012, it was reported that Steve Wozniak, co-founder of Apple with Steve Jobs, opened up about his concerns, referring to the cloud:

It's going to be horrendous. I think there are going to be a lot of horrible problems in the next five years.

With the cloud, you don't own anything. You already signed it away.

I want to feel that I own things. A lot of people feel, 'Oh, everything is really on my computer', but I say the more we transfer everything onto the web, onto the cloud, the less we're going to have control over it.

The white elephant in the room needs facing, by companies but importantly by us individually, to take back control of our data and our lives.

Is fear holding you back?

Fear keeps many of us from getting what we want, especially in matters of money. It's true for me and it's true for you. 

Be honest with yourself and count the number of times fear has prevented you from taking action, and in the process cost you a lost financial opportunity. 

In the matter of property investment fear holds many investors back, in business growing your business to the next level can be too fearful.Some fear taking on more debt, others fear failure and some even have a fear of success (will my friends still like me?). 

Learn to harness your fears and rather than focus on the negatives, use fear to force yourself into positive action. For example, rather than allowing fear of debt to stop you taking on the commitment of buying a property you use the fear of not moving forward with your investments to motivate you

Use the fear of being stuck in an unfulfilling job for the rest of your life, without the financial independence that you are craving, to motivate yourself to take on the commitment of an investment property or start a new business or expand and grow your business.

Just like a river, fear can be bridged. 

The river of fear is only as deep and as wide as you allow it to be. And once you've crossed that river of fear and experienced the success on the other side, you usually look back and wonder why you were ever afraid. 

But here's the catch. The only people who actually realise this are those who have crossed the river and stand on the other side. 

Money and success lives on the other side of fear. 

Starting your year in a positive mind frame

1. Make a conscious effort to take a lunch break A change of scenery will do your productivity a world of good

2. Tell people what you want

3. Stop saying no to yourself and instead start saying no to others – you can’t be everything to everybody

4. Bringing your lunch from home will save you money

5. Attend networking functions that will leave with a spring in your step, new connections and pumped full of that one of a kind energy

6. Make your workplace a bit more sparkly, it makes a difference! Perhaps a new mouse pad, a photo from home or some fancy new folders will do the trick

7. Create a vision board for the year – it doesn’t have to be hard. Just make yourself think about what you want to achieve this year; cut out some pictures or simply make a list. Vision Boards Rock

8.Time your work so that you have plenty of time for you

9. Stop negative self-talk

10. Be present in the moment, practice mindfulness 

11. As Oprah said – “Surround yourself with people that will only lift you higher” 

12. Trust your gut instincts - If it doesn’t feel right, it isn’t!

2013

Welcome to the new year, may it be a good one!

Networking is no longer just for sales people or when you’re looking for a new job. 

Your personal network is becoming a more and more valuable asset in developing your career

or business. 

What are your top networking tips, what skills do you equip yourself with that you use every day?

Networking does not have to involve sales pitches or business cards being thrust in your face. 

It’s about making real connections and finding out how you can help one another. 

Where do you feel like you belong.?

Women entrepreneurs startup

Start-ups led by women in the US use a third less capital than those led by men, according to US venture capital firm Illuminate Ventures. This has to be good news for ever-frugal seed investors in emerging businesses – and also good news for a new Australian offshoot of the business accelerator program, Springboard Enterprises.

The program was started in the US in 2000 and aims to help female entrepreneurs attract funding for their businesses. It has just launched in Australia, with the first round of applications now open.

More than 500 early-stage companies have participated in the US program, which has helped raise more than $US5.5 billion ($A5.3 billion) for participants.

An early alumnus of the program was Chicago-based entrepreneur and angel investor Lauren Flanagan. Through the program's coaching on how to speak the language of investors, she was able to raise $US23 million for her then business WebWare Corporation, a "software-as-a-service" company that offered software on a subscription basis, similar to the cloud computing model that predominates today. 

She now runs BELLE Capital, a venture capital fund based in the US midwest, is managing partner of Phenomenelle Angels Fund and chief executive of strategic advisory business SCIO Corp.

'Good old boys' disadvantage

Flanagan says the Springboard program helps bridge the gap between scalable businesses that are run by women and the investment community.

“It's often difficult for women to raise capital because of a lack of access to the 'good old boys' network,” she says.

She says the community Springboard participants gain access to is just as valuable as the entrée it delivers to the venture capital world.

“It's hard to be a CEO as a woman with no peer network, so having a peer network is worth even more than the funding," she says. "We say Springboard is a bit like the Hotel California – you can check out but you can't really leave because of the peer community.”

Flanagan says the coaching Springboard participants receive helps them to tell their story so investors can understand their business, figure out how they can make money from the enterprise and understand how founders have tried to de-risk their enterprises.

Commenting on the research cited above that shows women are more efficient with the use of capital, she says she suspects it is because women are able to do more with less or because they are more frugal generally.

Australian involvement

One of the Australian sponsors of the Springboard program is professional services firm Grant Thornton, which is also a sponsor of the US program. Paul Gooley is Grant Thornton's Australian national head of corporate finance and also a board member of Springboard's Australian franchise. He says the program helps young companies become commercially viable.

“Many businesses fail in that capital-constrained part of the investment cycle. Springboard helps bridge the gap from a business idea to commercialisation,” he says.

Grant Thornton is providing financial assistance to the program, although Gooley declined to say how much, as well as marketing and public relations support. It will also offer participants help in developing their financial reporting.

Why it's needed

Melissa Widner is a partner at venture capital firm Seapoint Ventures and co-founder of Head Over Heels, a network for female entrepreneurs. She cites a study by Dow Jones called Women at the Wheel: Do Female Executives Drive Start-Up Success? as a key reason why an initiative such as Springboard is needed. The research found that of all venture-capital backed companies, only 1.3 per cent are led by women.

“We need to focus on getting the 1.3 per cent figure up," says Widner. "We know that women are starting companies but they're not growing them because they don't have the same access to networks.”

Participants in the Springboard program will typically be looking to raise between $500,000 and $10 million. Businesses that go through the program generally come from the worlds of technology, new media and biotechnology.

These are the sectors where Springboard in the US has a track record. Although Springboard's capability in the US is primarily in these areas, it will also accept applications from female entrepreneurs with growth businesses from other sectors that are seeking capital. If those applications are successful, Springboard will then find investors who understand and are best matched to that business and their industry.

Plenty of interest

Flanagan says that despite the venture capital landscape being in its worst state for 10 years, investors associated with the US Springboard network have already expressed interest in investing in Australian early-stage ventures, as have investors from the Asia-Pacific region.

Australian investors already involved with Springboard's Australia arm include Investec, One Ventures, Starfish Ventures, Foundry, Right Click Capital, Anacacia Capital and AFG Venture Group.

Springboard participants also receive support after capital raising. For instance, they can tap into the network to get advice about how to establish a great board or how to get good legal advice.

The program aims to attract 20 participants in its first year, and 40 in its second. So far nine businesses have started the application process.

To qualify, companies must have a profitable market opportunity with competitive advantage, a track record of milestone achievement, a woman in a senior position with a significant equity stake, and a credible management team or ability to attract one. They must also be based in or have significant operations in Australia.

Companies that apply will undergo a rigorous screening process before being selected to participate in the accelerator program. Applications close December 15.

Read more: http://www.smh.com.au/small-business/startup/funding-springboard-to-boost-female-entrepreneurs-20121022-280cl.html#ixzz2AObwRnbj

Senior Bonds

After covered bonds and deposits, the next safest major bank investment is a “senior-ranking” but unsecured bond, rated “AA-”. Today this pays a return of about 4.3 per cent, which is also better than the average deposit.

Like covered bonds, these senior bonds are not easy to access as they are traded in the wholesale market and require minimum investments of $500,000. Two ways to tap into them are through a managed fund that focuses on fixed income, or via a broker like FIIG, which breaks bonds up into smaller chunks.

In the past year, Westpac, ANZ Banking Group and National Australia Bank have listed on the ASX $4 billion worth of “subordinated bonds”, which rank behind senior creditors but ahead of everyone else. These are not to be confused with hybrids, which give banks the option of not paying you dividends, have ultra-long if not perpetual terms, and convert into equity under adverse scenarios. The new ASX subordinated bonds have fixed maturities and legally binding payment obligations. They currently offer interest rates around 6 per cent.

What are covered bonds?

The safest of all bank investments is a “covered bond”, which is secured by a specifically identified pool of assets. If the bank goes bust, you have recourse to these assets ahead of anyone, including depositors. In fact, the “AAA” covered bond rating is higher than the bank’s “AA-“ rating.

While covered bonds may have a five-year term, you can trade in and out of them every day. They are bought and sold in the liquid “wholesale” bond market, and settled via a platform called Austraclear, which the Australian Stock Exchange owns. And, like a variable or fixed-term deposit, you can get “floating” or fixed covered bonds.

A fixed covered bond pays the same coupon over its life. The variable option provides a predetermined margin above a variable benchmark that is reset every quarter. This benchmark broadly tracks the RBA’s cash rate, and is called the 90-day bank bill swap rate. Today it is around 3.2 per cent. CBA’s variable rate covered bond currently pays 3.9 per cent, which is slightly better than the average bank deposit.

There has been a striking compression in the cost of bank bonds. When CBA issued its first covered bond in January, it was required to pay investors a margin of 1.75 per cent above the bank bill rate. Today the same bond offers a margin of only 0.7 per cent. While incoming investors are receiving lower returns, the original ones made terrific capital gains through an increase in the bond’s price as CBA’s perceived risks declined. This highlights a distinction from normal deposits. Whereas bank deposits never get “revalued”, bonds are repriced every day based on investors’ assessments of the institution’s creditworthiness.

WHERE DO THE MILLIONAIRES LIVE?

Asia-Pacific has overtaken North America as home to the most millionaires for the first time, boosted by a rise in the number of wealthy in China and Japan, a report released on Wednesday showed.

The region had 3.37 million high net worth individuals (HNWIs) in 2011 compared to North America's 3.35 million, a study jointly published by consulting firm Capgemini and RBC Wealth Management found.

Europe possessed 3.17 million HNWIs, which are defined as those having investable assets of $1 million or more excluding their primary residence and luxury possessions including art.

"Asia-Pacific is now home to more high net worth individuals than any other region for the first time," Barend Janssens, head of emerging markets for RBC, told a press conference in Singapore.

Asia-Pacific overtook Europe in 2010 to take second place and a strong growth in the millionaire population -- particularly in Japan and China -- coupled with a fall in the number of the rich in North America led to the region taking first, Janssens said.

"The most significant finding is that Asia-Pacific's population of high net worth individuals grew at a rate of 1.6 percent in 2011, twice the rate of the global population of 0.8 percent," he said.

"This is driven by growth in Japan of up to 4.8 percent and China of up to 5.2 percent."

Japanese formed the bulk of the HNWIs in the Asia-Pacific, constituting 54.1 percent of the total regional population of the rich.

China and Australia ranked second and third at 16.7 percent and 5.3 percent respectively.

Together, the three countries accounted for 76.1 percent of HNWIs in the region.

Despite hosting the most HNWIs, Asia-Pacific still lagged behind in terms of total investable wealth at $10.7 trillion, compared to $11.4 trillion for North America.

International factors such as the eurozone crisis coupled with domestic issues, including, sinking property prices and inflation bit into the pockets of millionaires, said Claire Sauvanaud, vice president of Capgemini Asia-Pacific.

International capital outflows from the region also held back its rich, with China and India seeing $1.6 billion and $4.09 billion in foreign institutional investor funds leave their markets last year, data showed.

But Sauvanaud said the region -- led by economic powerhouses China and India -- would be able to weather the problems.

"The diverse nature of Asia-Pacific exports and economies means the outlook for the region as a whole remains very strong," she stated.

"China and India are the ones to watch. Despite their challenges they are likely to remain two of the fastest-growing economies in the world in the very near future."