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When do taxi’s become cheaper then Uber

Many Australians have ditched taxis for Uber for a number of reasons. These include the convenience of being able to request a ride with the tap of a button, the convenient payment method, being able to follow how far away your driver is and also the high quality service because the driver must maintain a high rating.

Another big reason is the assumption that it is cheaper. However this is not always the case, especially during the busy holiday season.

During peak times when Ubers are in high demand Uber will apply surcharge pricing, which is a multiplier applied to the cost of the fare. As a result there becomes a point where Uber is no longer the cheaper option compared to taxis. Research by Finder.com.au has identified the price point that taxis become cheaper than Uber in Melbourne, Sydney, Hobart, Adelaide, Perth and Brisbane.

Melbourne

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.8 times the normal price

Sydney

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.7 times the normal price

Hobart

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.4 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.6 times the normal price

Adelaide

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.5 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.8 times the normal price

Perth

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.6 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.6 times the normal price

Brisbane

  • Taxis become cheaper in weekday daytime hours when the surcharge is 1.8 times the normal price
  • Weekend evenings taxis become cheaper when the surcharge is 1.9 times the normal price

Surge prices for taxis and Uber are tough to understand “with Uber fares changing based on how busy the streets are, taxi fares changing based on time of day and with different fares for both of these in every city, it can be confusing to know which is cheaper.” He also said “generally, it is cheaper to get a taxi in Australia, after the surge ratio hits 1.6.”

Melbourne traffic

Mr Cooke recommends The GoCatch app because it allows consumers to book an economy rideshare car as well as a traditional taxi. “If economy cars are not available when you book, the app will often upgrade you for free to a taxi.”

Article sources:

Tim McIntyre, news.com.au
Finder.com.au
Jason He, Quora

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

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This article is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Integrity One Planning Services Pty Ltd is a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 (which is the holder of AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. We recommend that you seek personal advice from an advisor prior to implementing any of the information contained in this publication.

Christmas Essentials – What you need to know

Featured in the newsletter 

  • Tips to save money during the festive season
  • Tips to save money on Christmas gifts
  • 5 ways to track and control your spending
  • Aged care quick facts
  • Realistic financial new year’s resolutions

Click here to view the Christmas Essentials newsletter

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

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Email: integrityone@iplan.com.au

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Is it worth paying off your HECS debt early?

It is often called “the best loan you’ll even get” and Griffith University Business School lecturer Tracey West says that it is probably true. So should graduates pay off their HECS debt as quickly as possible or should they invest their money elsewhere.

Why it is the best loan you’ll ever get

It is called the best loan you’ll ever get because of the low interest and the high payback income threshold. Repayments are only collected once your income meets the $55,874 per annum threshold. The repayment rate once the threshold is reached is 4% of taxable income. If your income reaches $103,766 the repayment increases to 8%.

Pay off other debts first

If you have other debts to be paid off such as a car loan, credit card, home loan or other debts with higher interest rates you should pay them off earlier because they compound quicker over time. They should also be paid off earlier because they can impact on your credit rating if they are not paid in time.

Dr West also said that there were no tax benefits associated with early repayment.

Changes to how student loans will work

If the federal government has their way, the repayment threshold will be reduced to $42,000 and the repayment rate will be reduced to 3%. They also want to change the indexation to be linked to the bond rate rather than CPI, Dr West said.

How much a HECS debt increases if you just leave it

Dr West says the consensus on student debt seems to be set and forget as it takes care of itself. Dr West also said it makes sense individuals in their early career to focus on lifestyle demands such as travelling and also acquiring other assets such as a car or saving for a home deposit.

Dr West said “If you assume an average inflation rate of 3 per cent per annum, a HELP debt of $20,000 will accumulate to $26,900 in 10 years’ time, with no repayments.”

We can’t just forget about our HELP debt as it still compounds over time, just at a lower rate. So yes we should focus on paying off other debts first, however there are still future benefits associated with paying off your HECS early. This is because you don’t want to be still stuck paying off your student loan when you’re older and have a young family and mortgage commitments.

Article source: Jessica Haynes, ABC news

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

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This article is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Integrity One Planning Services Pty Ltd is a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 (which is the holder of AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. We recommend that you seek personal advice from an advisor prior to implementing any of the information contained in this publication.

5 ways to track and control your spending

Budgeting is a great way to control spending, but it is also important to track what you are spending to ensure that you are sticking to your budget. This can be a challenge for some and hopefully the 5 ways to track your spending below help.

Track your spending by store

If you shop at a particular store regularly, you can track your spending at each individual store. Keeping receipts to work out the total amount spent over a period of time at the same place will help you track what you spend.

Set an amount for a period of time that you will spend at a specific store and aim to keep under that amount. Your amount will depend on different factors such as whether or not you have children.

As an example, you may set a budget for $600 a month to spend at Woolworths. If you only spend $550, the left over $50 can either be reinvested or put into a savings account towards a holiday or luxury item you were wanting to purchase.

Use a separate spending account

This is the easiest way to budget and monitor what you spend. Using this method you should have an account for paying the bills and essential expenses such as insurance, phone bills and rent. A separate account for other spending or “fun money” for things such as going out for dinners and other luxury expenses should be created. A portion of your pay should be transferred into that account every pay period and when that account gets low you are forced to reduce those expenses. Another savings account for investing can also be created.

Track as you go

This involves keeping a spreadsheet that plans for expected bills and expenses over a month or another time period of your choice. When expenses are paid for they are then recorded in a running tally against budgeted expenses. By doing this you are not only budgeting, but you are also ensuring that you stick to the budget.

The envelope method

Similar to using a separate spending account and tracking spending by store. This is useful if you feel that you spend too much one thing or if you simply want to control what you spend on that particular thing such as going out for drinks. If you want to control what you spend at a bar on drinks then put an amount you think is appropriate in an envelope and when you run out you have to stop. You must be disciplined for this for this to work.

The envelope method can also be used to cover for unexpected expenses such as an unexpected vehicle expense or buying a new fridge or other expensive home appliance when your current one breaks down. Every week or month you would add an amount to that envelope to help cover for unexpected costs

Download statements

If you just want to make sure you are not mindlessly indulging in certain areas this is a useful strategy.

This involves downloading your transactions into a spreadsheet every month. Then you would sort the transactions by merchant and add a label to each one such as food, clothing, cleaning, petrol, etc. Then you can identify areas that you may be spending too much on.

There isn’t a right or wrong way to track your spending. It is most important that you find a way that you can stick to and that works best for you. The purpose of these tips are to help you achieve your financial goals as well as enjoy life now.

Source: Kelley Long, Forbes

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent

Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This article is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Integrity One Planning Services Pty Ltd is a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 (which is the holder of AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. We recommend that you seek personal advice from an advisor prior to implementing any of the information contained in this publication.

6 pros and cons of property investment

A common long term investment in Australia is buying a property and renting it out. However there are significant pros and cons of this investment option that can be important factors when deciding whether or not to invest in property.

Pros

Low risk

Because the property market is more stable than other options such as the stock market and because of the fixed rental come the risk of the investment is low.

Fixed long term Income

You receive fixed regular rental payments from tenants. If this income is high enough, it can be used to cover the mortgage repayment and other costs associated with managing the property. The more certain income also reduces risk and increases your ability to plan for the future.

Capital gain

If your investment property increases in value, you can benefit from the capital gain when you decide to sell the property, along any rental income you received.

Tax benefits

There are a number of costs associated with buying, managing and selling an investment property. Most of these property expenses can be claimed on tax and if you are losing money on your investment property, these expenses can be offset against your income.

Physical Asset

Property is a physical asset that you can see and touch unlike other investment options such as shares.

Special knowledge not required

Although it is important to have some knowledge on the property market, it is not essential to have specialised knowledge unlike other investments.

Cons

High buying and selling cost

The initial cost of the property is generally very high and may require a loan to purchase, whereas shares can be purchased for a much lower investment. There are also other costs associated with buying and selling such as stamp duty, legal fees and real estate agent fees.

Costs of managing and maintaining the property

Along with the buying and selling costs, there are a number of expenses associated with managing the investment property such as insurance, repairs and maintenance fees, water and council rates and mortgage repayments. These expenses may be greater than the rental income you receive

Vacancy and bad tenants

There may be a period of time where you don’t have a tenant. As a result you would be receiving no rental income and be forced to cover the cost of managing the property yourself. Bad tenants who don’t pay rent or cause damage can increase financial stress as well.

Loss of value

There is a chance that the value of the property may decrease over time. This could result in you owing more than what the property is worth and/or having to sell the property for less than what you bought it for.

Inflexible

You are normally locked into a contract with tenants for a fixed time and fixed rental payments. Therefore you wouldn’t be able to receive more rental income until the contract is finished, even if the value of the property increases during the contract.

Risk of the property being your only investment

Because of the high entry cost, it is common for a property to be an investor’s only investment. Therefore if the market changes and the investment doesn’t perform well you can be opened up to devastation. You should diversify your investments or grow your skills and specialise in the property market.

Sources: ASIC, On Property, Loan Market

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This article is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Integrity One Planning Services Pty Ltd is a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 (which is the holder of AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. We recommend that you seek personal advice from an advisor prior to implementing any of the information contained in this publication.

5 reasons why it’s worth paying an accountant to do your tax return

Paying an accountant vs doing your own tax is a much debated issue. Although there are arguments for doing your own tax, there are significant benefits of hiring a professional.

They can save you time

Yes it costs more to pay for an accountant, however the value of your time should be taken into consideration when deciding if you want to pay an accountant or do your own tax. By paying for a professional you can maximise your time to focus on your own interests. Depending on how complicated your tax situation is, the cost of a professional may be very small when compared to the time saved by not doing it yourself.

Reduced risk of errors

This is important if you own or have sold shares, if you don’t understand capital gains tax, if you are unclear on what deductions you’re eligible for and if you have a complex tax situation. Hiring a professional reduces the risk of mistakes and fines from the ATO.

Higher tax return

Accountants may be able to find deductions that you didn’t realise you’re eligible for, therefore reducing your tax liability. The deductions that they find for you may outweigh the fee for the accounting service.

It is tax deductable

On top of finding deductions you may not have been aware of, the accounting fees are also tax deductable

They can help plan for the future

As well as maximising your tax return for a previous period, accountants can also help organise and maximise your finances in a safe and legal manner. What sets Integrity One apart is that we focus on planning for the journey ahead.

 

Source: Savings guide

Please contact Integrity One if we can assist you with any of your financial needs.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

This article is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Integrity One Planning Services Pty Ltd is a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 (which is the holder of AFSL 225051). Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. We recommend that you seek personal advice from an advisor prior to implementing any of the information contained in this publication.

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Integrity One Planning Services Pty Ltd (ABN 59 125 846 933) is a Corporate Representative (315000) of Integrity Financial Planners Pty Ltd (AFSL No. 225051).