Welcome to the Summerhill Group’s Autumn newsletter – a combined publication for both Summerhill Financial Services and Summerhill Financial Management.

It has been a terrible time for many along the east coast of Australia, with floods up in the Queensland, and severe bushfires in Victoria and New South Wales. Our thoughts are within anyone who has been affected by the bushfires.

It continues to be a period of uncertainty, both in Australia and around the world and it continues to be a tough decision to stay the course with your investment strategy. Even many experienced investors are finding it hard to continue with their strategy, and we have included an article on investor behaviour and how emotion can impact investment decisions.

Given the economic uncertainty and to help people spend to kick start the economy again, the Government has announced a $42b stimulus package. We have outlined benefits that you may be entitled to under this package.

As another school year starts, we remind parents to keep receipts of expenses that can potentially be claimed in your 2009 income tax return, and include a link to one of our previous articles on the education tax refund below to check your eligibility for this benefit.

Given there is so much happening with the economy, share market and government activity at the moment, we have included more content in this newsletter than usual. However, the newsletter is designed so you can easily access articles that are relevant to you.

As always, we appreciate and welcome your comments and questions on both the newsletter and the services we provide to you.

Enjoy the read,

Caroline and Andrew

Bonus Payments for Australian taxpayers

As many would be aware, the Federal Government is spending $42 billion over a number of measures to stimulate our Australian economy during this current world economic crisis.

One measure is to provide up to $900 as a tax-free cash bonus to Australian taxpayers. It is estimated that 8 million Australians may be entitled to this bonus, or part thereof.

>> read full article

Other Stimulus Package Bonuses To Be Paid

Other bonus payments that have been announced as part of the Government’s $42b Stimulus Package are outlined below, and are dependent on being entitled to Family Tax Benefit Part A or Part B.

>> read full article

From bleak to black – what’s the timeframe and the pain?

Although it’s early days – and the financial crisis is certainly continuing – encouragingly, some key signposts to global economic-recovery are showing tentative signs of improvement. So with that in mind, is it too early to bargain hunt for investments?

>> read full article

People begged to invest with him

A long list of wealthy investors both in the US and abroad have been shocked to learn that Bernard L. Madoff, a prominent and well-respected broker and money manager, has been accused of orchestrating one of the most extensive investment frauds in US history. So what is a Ponzi Scheme and what happened?

>> read full article

Self sabotage on investments is just a thought away

Think you approach your investments logically? Research shows investors can sabotage their investment strategy based on several types of behaviour, including a ‘herd mentality’ and emotion. Knowing how and why you can sabotage your investment strategy gives you a stronger understanding of how to avoid it.

>> read full article

Superannuation pension drawdown relief

As a result of the significant downturn in financial markets, the Government has announced a 50% reduction in the minimum drawdown requirement for account based pensions for the year ending 30 June 2009. This will apply to account based, allocated and term allocated pensions and annuities.

>> read full article

Future Shocker

“Prediction is very difficult, especially if it is about the future.”

So said the Danish physicist Niels Bohr, whose ground-breaking work in quantum mechanics and atomic structure earned him a Nobel Prize in 1922.

The truth contained in Bohr’s cheeky observation is highlighted every year in the prognostications of market economists – but no more so than in 2008.

>> read full article

Investment Allowance for Businesses

For those that are running businesses and want an incentive to go purchase some new depreciable assets for the business, read on.

>> read full article

Economic update and outlook

Following a rough start to 2009 and some of the toughest economic conditions in recent history, BT Chief Economist Chris Caton gives his views on what he’s expecting this year in the webcast link below, including:

The outlook for 2009
The bottom or more to come?
Concerns for the Australian market
Interest rates, house prices, unemployment and the Australian dollar
What will the history books say?

>> read full article

27/08/2008 – Education Tax Refund
19/12/2008 – Why profits and prophets don’t mix
21/01/2009 – Update: a look back, a look forward
22/01/2009 – What is a dead man’s penny?