Managing the Rising Cost of Living: Tips from a Financial Planner

It’s no secret that the cost of living in Australia is rising. In fact, it’s been consistently increasing over the past few years.

This is a problem that affects many Australians, particularly those starting to think about retirement.

However, there’s good news.

If you’re starting to think about taking a step back from work, there are a number of ways to manage the cost of living. And with the help of a financial planner, you can find solutions that work for your unique situation.

Our financial planners, Mark, Daniel, Prue, and Joseph share a few simple tips on managing the rising cost of living.

  • Review your current expenses and identify what you will and won’t need in future years. Consider making changes now rather than later. This may include cutting back on unnecessary costs, such as entertainment and dining out.
  • Make a budget and stick to it. Do this for your current lifestyle as well as your future lifestyle. This will help you keep track of your spending and ensure that you’re not overspending.
  • If you are not already, then consider investing in income-producing assets*. This could include property, shares or managed funds. These investments can provide you with an additional source of income, which can help offset the cost of living and support your retirement.
  • Save for unexpected expenses. It’s always a good idea to have some money set aside for unexpected costs, such as medical bills or car repairs. This will help you avoid going into debt if something unexpected comes up.
  • Seek professional advice. A financial planner can help you assess your situation and develop a plan to manage the cost of living now and into your retirement. They can also provide you with guidance and support, which can make a big difference when it comes to managing your finances.
How can a financial planner help

As financial planners we understand the financial pressure being put on families and individuals and the current challenges being faced. Particularly the rising cost of living.

Many think of financial planners as focused on providing advice to help people build a nest egg for long-term goals, like retirement.

However, a financial planner is so much more. Alongside helping you plan for the future we can help you manage your finances and make sure you are getting the most out of your money – now and into the future.

For example, if you’re finding it hard to manage the increasing cost of living, we can help you develop a plan and find ways to save money. We can also offer advice on how to invest your money so that you can build wealth over time.

A financial planner can provide peace of mind and help you navigate through these difficult times.

If you are concerned about the rising cost of living and the impact it may have on your retirement, contact one of us today. As qualified financial planners we will be able to offer guidance and support so that you can make the most of your money.

Email: Mark Reidy
Traralgon Office		Email: Daniel Bremner
Moe Office		Email: Prue Cox
Drouin Office		Email: Joseph Auciello
Moe Office
Wealth for life

Remember, wealth is more than just money. It’s about financial freedom.

Wealth for life means having the flexibility to change your financial planning as your life and circumstances change.

If you’re like most people, your cost of living will continue to increase as you get older. At the same time, your ability to earn an income may decrease. That’s why it’s important to have a financial planner who has your interests at heart and can offer the flexibility to change your financial planning as your life and circumstances change.

Make the most of your money and ensure that you’re always prepared for whatever life throws your way. With our help, you can navigate future changes and enjoy financial freedom and peace of mind.

We offer a wide range of services, including retirement planning, estate planning, investment advice, and more. Contact Mark, Daniel, Prue, and Joseph today to learn how we can help you secure your financial future.

Email: Mark Reidy
Traralgon Office		Email: Daniel Bremner
Moe Office		Email: Prue Cox
Drouin Office		Email: Joseph Auciello
Moe Office
Phone Mark Reidy
Traralgon Office
03 5120 1400 		Phone Daniel Bremner
Moe Office
03 5120 1400		Phone Prue Cox
Drouin Office
03 5120 1400		Phone Joseph Auciello
Moe Office
03 5120 1400

We can help you find solutions that work for your unique circumstances and ensure that you’re on track to meet your financial goals.

* This information is general in nature and does not take into account your personal goals, objectives or financial situation. Personal advice should be sought prior to making any investment or strategy decisions. RGM Financial Planners Pty Ltd ABN 36 419 582. AFSL 229471.

Material contained in this publication is a summary only and is based on information believed to be reliable and received from sources within the market. It is not the intention of RGM Financial Planners Pty Ltd ABN 36 419 582 Australian Financial Services Licence Number 229471, RGM Accountants & Advisors Pty Ltd ABN 69 528 723 510 that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and RGM and its related bodies corporate will not be liable to the reader in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of the reader relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded).

Liability limited by a scheme approved under Professional Standards Legislation.

Tax Alert September 2022

With the tax regulator taking a more aggressive approach to tax debts and reviewing work from home deduction rules, tax issues could become a higher priority in 2022-23.

Here’s a roundup of some of the latest developments in the world of tax.


Consultation on working from home deductions

Taxpayers could face the prospect of new rules when it comes to claiming working from home deductions after the ATO announced it was undertaking a targeted consultation.

Now the temporary shortcut method for working from home deductions has ended (available 1 March 2020 to 30 June 2022), the ATO is currently refreshing its approach to the traditional fixed rate method of calculating work from home deductions.

The regulator is consulting tax practitioner representatives and expects discussions to be completed in October 2022, with any new rules for the current financial year to be announced after this.

Offsetting of tax debts resumes

After taking a lenient approach during the pandemic, the tax man has begun chasing outstanding tax debts by sending taxpayers letters reminding them about existing debts placed on hold.

During the 2022-23 financial year, the ATO will recommence offsetting tax refunds or credits to pay off a taxpayer’s existing tax debts.

In some cases, tax credits will also be used to pay off debts owed to other government agencies such as Centrelink.

JobMaker Hiring Credit open

The seventh claim period for JobMaker Hiring Credit payments is now open and will end on 31 October 2022.

The scheme allows businesses to claim the credit for up to a year for each eligible employee hired between 7 October 2020 and 6 October 2021.

Eligible employers can nominate additional eligible employees through their STP-enabled software and claim using ATO Online Services or their accountant.

ATO app for sole traders

The ATO is encouraging sole traders to download and use the ATO app for a more personalised experience when viewing their tax lodgments and payment due dates.

Did you know you can access the ATO app via our RGM app, if you don’t have our app you can download via the Apple Store – RGM app or Google Play – RGM app.

The app also allows sole traders to check the progress of their tax return, view their income tax and activity statement accounts, access transactions and payment plan details and make payments in ATO online.

Useful tools and calculators such as myDeductions and the Tax Withheld Calculator are also available, together with a Business Performance Check Tool allowing you to compare your business performance with others in your industry.

Thresholds for 2022-23 car claims

The maximum value for calculating depreciation on the business use of a car first used or leased during 2022–23 has increased to $64,741.

The car limit is indexed annually in line with CPI movements and represents the threshold limit on the cost you can use to work out depreciation on a passenger vehicle.

If you purchase a vehicle priced over the car limit, your maximum claimable GST credit is $5,885 in 2022-23.

From 1 July 2022, the luxury car tax (LCT) threshold has also increased. The new threshold for fuel efficient vehicles is $84,916 (up from $79,659) and for all other vehicles it increases to $71,849 (up from $69,152).

Crypto not taxed as foreign currency

The government has announced crypto currencies will continue to be excluded from foreign currency arrangements for tax purposes. Capital gains tax (CGT) will continue to apply to crypto assets held as investments.

The announcement will be backdated to 1 July 2021 to ensure a consistent tax requirement for crypto asset holders.

New rate for claiming car expenses

Taxpayers electing to use the cents per kilometre method when calculating work related car expenses in their income tax deductions have a new kilometre rate to use.

From 1 July 2022, a 78 cents per kilometre rate applies. This rate will remain in place in subsequent income years until varied by legislation.

Director ID reminder

The deadline is approaching for directors to apply for their director ID – a unique 15-digit identifier. If you need assistance with your Director ID please email or contact our office on 03 5120 1400.

From 1 November 2021 directors of all businesses, including directors of self-managed super fund (SMSF) corporate trustees, need a director ID. Anyone who was a director before that date has until 30 November 2022 to apply.

Directors appointed between 1 November 2021 and 4 April 2022 had to apply within 28 days of their appointment. From 5 April 2022, intending directors must apply before they are appointed.

If you need any questions in relation to our articles, please email or contact our office on 03 5120 1400.

Material contained in this publication is a summary only and is based on information believed to be reliable and received from sources within the market. It is not the intention of RGM Financial Planners Pty Ltd ABN 36 419 582 Australian Financial Services Licence Number 229471, RGM Accountants & Advisors Pty Ltd ABN 69 528 723 510 that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and RGM and its related bodies corporate will not be liable to the reader in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of the reader relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded).

Liability limited by a scheme approved under Professional Standards Legislation.




Economic Update – September 2022

In August, the focus was on US Federal Reserve chair Jerome Powell’s speech at the annual Jackson Hole business gathering on August 26, and he was blunt. To hose down talk of interest rate cuts in 2023, he said the Fed was focused on bringing US inflation down to 2% (from 8.5% now), even at the risk of recession.

He said this will “take some time”, will likely require a “sustained period of below trend economic growth”, and households should expect “some pain” in the months ahead. The S&P500 share index promptly fell 3.4% and bond yields rose. Economists expect the US central bank will continue lifting rates each month for the remainder of 2022.

In Australia, economic conditions are less gloomy. Australia’s trade surplus was a record $136.4 billion in 2022-23. Unemployment fell to 3.4% in July while wages growth rose to an annual rate of 2.6% in the year to June, the strongest in 8 years but well below inflation. The ANZ-Roy Morgan consumer confidence index rose slightly in September to a still depressed 85.0 points while the NAB business confidence index jumped to +6.9 points in July, well above the long-term average of +5.4 points. Half-way through the June half-year reporting season, CommSec reports ASX200 company profits increased 56% in aggregate while dividends are 6% lower on a year earlier.

The Aussie dollar fell more than one cent over the month to close around US68.5c. Aussie shares bucked the global trend, finishing steady over the month.

If you wish to speak to an adviser about any information in relation to our articles, please get in contact via email.

Material contained in this publication is a summary only and is based on information believed to be reliable and received from sources within the market. It is not the intention of RGM Financial Planners Pty Ltd ABN 36 419 582 Australian Financial Services Licence Number 229471, RGM Accountants & Advisors Pty Ltd ABN 69 528 723 510 that this publication be used as the primary source of readers’ information but as an adjunct to their own resources and training. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and RGM and its related bodies corporate will not be liable to the reader in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of the reader relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded).

Liability limited by a scheme approved under Professional Standards Legislation.

Federation University Gippsland Business Awards 2022

We WON! It is a great privilege to be the recipient of the Federation University Gippsland Business Awards in the category of Business & Professional Services for 2022.

We would like to acknowledge and thank you our loyal clients who we get to work with every day as we enjoy your pathway to success as well as ours, a great support to our business.

Special thanks to all the sponsors and in particular the sponsor of our award, Wellington Shire Council. An event as such is not possible without the sponsors who continually support businesses in the Gippsland region.

Congratulations to all the other finalists and winners, you should be proud of your achievements and the positive contributions you have made in our Gippsland community, we commend you in what has been a difficult few years.

A big shout out to all our team who have been on this journey to success!

If you would like to get in touch, please go to our contact page or you can give us a call on 03 5120 1400 and let us know how we can assist you.