Chance to win a share of $15,000 to live the life you want…..
Play the Sovereign Life’s Choice Game and be in to win a share of $15,000 to live the life you want.
Visit Sovereign’s website www.sovereign.co.nz/chooselife/#/start to enter the competition and be in to win!
If you are not currently a Sovereign client, contact us for Life Insurance quotes and to arrange an application now! Sovereign also offer very competitive home loan options that have no transactional fees. If you are contemplating a new purchase or have a fixed rate rollover coming up, speak to us now about your options.
We are award winning insurance brokers who service clients nationwide, so if you desire service excellence, contact us for a full insurance review soon.
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Thorners August 2011 Newsletter
Lean about Contract Works requirements when doing rennovations on your house!
Read our newsletter now if your looking for a new home for your mortgage?
Click here to read our August newsletter.
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Client – 47 year old divorcee KiwiSaver Scenario
Client – 47 year old divorcee
Sarah joined KiwiSaver as she wanted to get back on the property ladder. Sarah had previously owned her own home but when her marriage broke up she had to start back at scratch saving once more.
What do you like about KiwiSaver Sarah? I didn’t realise that I could also be eligible for the Housing Corp subsidy, even though I had owned a property previously. Denis spoke to me about the ‘second chance’ home buyer which was just like the situation I am in. I’m saving again to buy my ‘first home’ with KiwiSaver – I can get the Housing Corp subsidy plus take out my contributions and my employers contributions after only three years – it’s given me a whole new independence!
discuss your Kiwisaver options with Thorners.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
Rising medical insurance payouts vs premiums is unsustainable
The health insurance industry is warning the growth in the rate of its claim costs compared to premiums is unsustainable.
Publishing the industry’s quarterly statistics today, the Health Funds Association identified rising health costs as its key challenge.
Executive director Roger Styles said claim costs had grown at double the rate of premiums during the past two years, which was not sustainable.
Premium income for the year to the end of September of $859 million, was up 5 percent or $41m on a year earlier. Claims paid were up 9.9 percent or $67m to $743m.
The two main reasons behind recent cost pressures were that more people were claiming on their health insurance, and the average value of each claim was rising, Mr Styles said.
In the past year additional services became available, such as private radiotherapy in Auckland, which was not previously an option for people with health insurance.
Cost-shifting was continuing from the public sector, with a rise in the number of claims for surgery knocked back by ACC, he said.
Also from this month, ACC would require co-payments from patients for physiotherapy, which would have an impact on insurers who covered top-ups for ACC in their policies.
Contact Thorners if you require any Health Insurance cover as they have access to several providers and understand the market.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
Cautionary advice on under-insurance – SME’s and Trustees
- Directors, officers, trustees and others could be fined for not arranging and maintaining adequate insurance cover;
- The levels of under-insurance in New Zealand in both the domestic and commercial sectors are alarmingly high;
- Being under insured is nearly as bad as being uninsured;
- Critical failures include not insuring your business and its assets for the correct replacement value and failing to anticipate how long it will take to get your business back up and running;
- Be realistic about potential recovery costs so that you don’t end up paying the cost of being under-insured;
- Allow for incidental costs such as architect’s or engineers fees. Also include an allowance for the cost of demolishing the remains of damaged buildings or plant and clearing the site of debris: the expense involved in clearing up can exceed demolition costs;
- There is anecdotal evidence of an increase in the incidence of fraud and theft. Liability is also a critical area to regularly review;
- Few businesses have internet liability cover – do you know what your employees are emailing?
Think ahead, not short term.
Thorners have vast experience in all insurance matters and provide advice New Zealand – contact us today to discuss your situation.
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What happens if all of your information isn’t written on the application form?
It is really important when somebody else completes an insurance application for you that you check to see the answers are correct and that no information has been left out.
The insurer can avoid the policy and decline to consider the claim if all the information wasn’t written on the application form.
Even when your broker writes the answers on the application on your behalf, you are still expected to read all the answers and sign a statement declaring all the information is correct.
At Thorners we always provide you with a copy of everything completed during a Life Insurance interview to give you time to reconsider your answers.
Call Thorners if you are considering any form of insurance to get the best advice in New Zealand.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
What happens if you fail to disclose information to an insurer?
Currently the NZ law does not make a distinction between deliberate or innocent non disclosure. Effectively if you just left information out of an insurance application unintentionally or by accident, the insurer can still decline your claim, avoid your policy or make changes to your policy.
Contact Thorners if you need insurance advice and we will work with you to ensure that you understand the proposal form and disclose the relevent information.
Thorners service clients New zealand wide and are an award winning insurance agency offering personalised service.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
Is it fair that insurers exclude pre-existing medical conditions?
We are often asked why insurers exclude pre-existing conditions.
Unless a policy offers cover for pre-existing conditions, the insurer isn’t obliged to cover any of them.
Companies generally exclude associated treatment for pre-existing conditions as they pose a higher risk and greater likelihood of a claim.
For sound advice on any new Life insurance policy, contact Thorners. We service clients New Zealand wide and have a sound knowledge of the best options available.
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
Transfering Australian Super to New Zealand – July 2009 update
The New Zealand and Australian labour, financial, and goods and services markets are highly integrated by international standards. Retirement savings portability is part of the Single Economic Market (SEM) work programme, which builds on our existing relationship and aims to reduce barriers that may impede the movement of people, trade and capital across the Tasman.
The introduction of retirement savings portability will support and add to the degree of integration between the two countries by allowing New Zealanders and Australians to consolidate their financial affairs in their country of residence.
When will the portability arrangements take effect?
The Minister of Finance and the Australian Treasurer have signed a Memorandum of Understanding that formally records the intention of both countries to allow for retirement savings portability. To implement the arrangements, legislative changes are required in both countries, which we expect to be in place around mid-2010.
What kind of transfers will be allowed under the portability arrangements?
- Savings that are held in a New Zealand KiwiSaver scheme may be transferred to Australia. This means savings in all other funds (including complying funds) or other retirement funds cannot be transferred.
KiwiSaver fund, including member tax credits and the $1000 kickstart from the government.
– The portability arrangements will be the only way of making a transfer of KiwiSaver funds to Australia. This means individuals will no longer be able to withdraw their savings as cash one year after permanently migrating to Australia. However, as noted above, you will be able to transfer the amount of member tax credits you have accumulated. The current KiwiSaver rules require you to return your member tax credits to the government if you withdraw your savings as cash.
- KiwiSaver funds can only be transferred to Australian complying schemes regulated by the Australian Prudential Regulation Authority (APRA). This means you cannot transfer your savings to an Australian self-managed superannuation fund. For more information on which Australian schemes apply, go to http://www.apra.gov.au/Superannuation/
- Retirement savings transferred from Australia may only be transferred into
KiwiSaver funds in New Zealand. This means Australian savings cannot be transferred into any other private retirement funds (including complying funds).
If I move to Australia, can I leave my savings in KiwiSaver instead of transferring them?
Yes. Transferring your savings to Australia when you emigrate is optional. However any contributions you make to your KiwiSaver account while living offshore will not be eligible for member tax credits.
If I transfer my savings to Australia, when will I be able to access them?
You will be able to access your KiwiSaver funds at the age of entitlement to New Zealand superannuation. Currently this is at 65 years of age. Any earnings on these KiwiSaver funds as well as contributions made while in Australia will be subject to all Australian rules regarding access to funds.
Which country’s rules will apply to savings transferred between the two countries?
In general the rules of the host country regime will apply. However there are certain differences that will be applied to transferred savings in order to protect the integrity of the respective regimes. These differences apply only to the savings that are transferred, and not to any subsequent earnings on these transfers.
The key differences are set out below:
New Zealand KiwiSaver funds transferred to Australia:
May not be accessed until the New Zealand age of retirement (65 years).
May not be transferred into Australian self managed superannuation funds.
May not be transferred to a third country.
Australian funds transferred to New Zealand:
May not be accessed until age 60 and the individual satisfies the Australian definition of retirement at that age.
May not be used to assist with the purchase of a first home.
May not be transferred to a third country.
If I transfer savings from Australia, can I use those funds to put towards buying a first home?
As noted above, funds transferred from Australia will not be able to be used to buy a first home. This is consistent with Australia’s policy regarding superannuation funds. In addition, any savings transferred from Australia will not count towards your eligibility for the deposit subsidy. For more information on the housing-related initiatives of KiwiSaver, go to
http://www.hnzc.co.nz/hnzc/web/rent-buy-or-own/home-loans/kiwi-saver-homeownership-features.htm
How will these different rules be applied to transferred savings?
Any savings transferred between the countries must be separately identified within an individual’s retirement savings account.
Can I transfer my savings to Australia even if I don’t emigrate there?
You can only transfer funds to Australia if you permanently emigrate. Before transferring your funds, your KiwiSaver scheme provider will require proof that you are
residing in Australia.
Can I transfer some savings to Australia and leave some in New Zealand?
No. If you choose to transfer your savings to Australia when you emigrate, you must transfer them all. This avoids the proliferation of small and inactive accounts which are costly to administer.
If I transfer savings from Australia, can I withdraw these for reasons of significant financial hardship or serious illness?
Yes, so long as you meet the relevant conditions of release contained in the Australian Superannuation Industry (Supervision) Regulations 1994.
It is not compulsory for scheme providers to transfer or receive funds to or from Australia. However KiwiSaver members are able to transfer their savings to a KiwiSaver scheme that does offer this facility.
Do I have to transfer my savings if I move to Australia or vice versa?
No, the arrangements are voluntary.
Will New Zealand tax any transfers from New Zealand to Australia or vice versa?
No.
Will Australia tax any transfers?
Australia will not specifically tax the transfer of retirement savings to or from New Zealand. However at the initial point of entry into the Australian superannuation system, transfers of New Zealand savings will be subject to Australia’s rules regarding the taxation of retirement savings contributions greater than $150,000 per annum. This is known as the non-concessional contributions cap. Australian-sourced retirement savings, and any New Zealand-sourced retirement savings re-entering Australia, will be exempted from these rules upon re-entering the Australian superannuation system.
For more information on this cap go to http://www.ato.gov.au/superfunds/content.asp?doc=/content/00106372.htm&page=6&H6
Is there a difference in the rate of tax on earnings between Australia and New Zealand?
Yes, Australia has a flat rate of 15% on earnings. From 1 April 2010 the New Zealand tax rate on superannuation earnings will range from 12.5% to 30%. It is also not traightforward to make a comparison between the two tax regimes because of other factors. For example Australia also taxes capital gains on equities whereas New Zealand does not tax capital gains on Australasian equities.
There are also other advantages to transferring your retirement savings to your country of residence such as being able to consolidate you financial affairs and not pay multiple sets of fees.
Any changes to your Australian Super schemes require specialist advice so talk to us first. We service clients NZ wide so contact us for information today.
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Click here to email Thorners or Call Us on (04) 528 8088
Sun Super Industry Superannuation Fund Australia
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Sentinel Lifetime Loan Interest Rate Change from 1 July 2009
Sentinel have advised that the floating rate for their Lifetime Loans will drop to 6.85% p.a. effective from 1 July 2009.
This is a dramatic drop reflecting current market changes and takes affordability of the lifetime loan to a new level and the lowest it has ever been.
If you are retired, own a home and are suffering financial distress or just need some additional cashflow, there has never been a better time to consider a Sentinel Lifetime Loan.
Thorners offer a NZ wide service so call or email us for more information on Sentinel Lifetime Loans today. All discussions are confidential.
New Zealand wide service – let us know your situation today to allow us the opportunity to provide you with some options
Click here to email Thorners or Call Us on (04) 528 8088
Click here to view our disclosure statement
Click here to view our disclosure statement.
Click here to email Thorners or Call Us on (04) 528 8088
