Archive for the ‘Secret Tradie Business’ Category
Loosely speaking Income Protection Insurance is a product offered by the insurance industry that is intended to pay a policy holder a percentage of their income in the event of being unable to work because of injury or illness. The virtue of have this type of insurance may seem obvious. Unfortunately, many of us do not understand or differentiate Income Protection Insurance and other insurance products.
Income Protection Insurance is sometimes known as Income Insurance or Disability Income Insurance. This should not be confused with salary continuance insurance that is offered through superannuation.
Income Protection differs markedly across different insurance companies and policies and comes with a raft of inclusions and exclusions. Don’t make the mistake of thinking that Income Protection Insurance is the same as, or includes Mortgage Protection Insurance, Disability Insurance, Loss of Earnings Insurance or Personal Injury Insurance.
Likewise, don’t make the mistake of thinking that an IPI policy will provide 100% of what you normally bring home. Even the best policy will only pay between 50 % and 75 % of an individual’s pre-tax or gross salary. Coverage can be purchased to cover specific costs such as a mortgage or any basic costs.
The two most important things to remember about IPI is that the premiums you pay are tax deductible and the “Benefit Payments” (i.e. the amount you receive each month), is considered income. Therefore you will be paying income tax on every cent you receive.
The cost of the premiums and the payment amount you would receive comes with all sorts of variables including, but not limited to, the following:
- A Waiting Period. With most policies you have to be ill or injured sometimes for long periods of time, before you start to receive a cent. So in the case that you are only off work for a few weeks you will not receive any payment benefit. To get cover starting immediately you are ill or injured is prohibitively expensive.
- The Benefit Period. Regardless of how long you have been paying premiums the period of time that you will receive a monthly payment under the terms of the policy is very limited. You are not automatically covered until you are recovered and back at work.
- Occupation. Tradespeople traditionally work outside and often do more manual work. As such, you will attract higher premiums than someone who works in an office environment.
- Your Age. Premiums increase and benefits decrease as you get older. The more likely you are to need it, the more it will cost you.
There are some good Income Protection products, best advice is to ask other Tradespeople what their experience has been.
There are literally hundreds of products available. You will need to do some research to see which offer the best value and security. Make sure you read the insurer’s product disclosure document (PDS) carefully before making a decision.
Friday 20 July is National Carpenters Day! Last year more than 10,000 carpenters and apprentices attended nearly 200 BBQs across the country to celebrate the contribution that carpenters make to our environment, business and community.
“What a great way to end a week – turning up to a free Friday BBQ with a few mates, have some fun, win some prizes on the day and enter the draw for the major prize!” To find a BBQ near you (or register to host one yourself!) check out the webpage www.carpentersday.com.au.
There’s a big one in Fed Square, Melbourne 6:30-10:30 on Friday 20 July. You can RSVP on the above link… free brekkie, lots of fun competitions and great prizes!
QR, or Quick Response Code, is a type of two-dimensional barcode that can be read using smartphones. Unlike the old lined barcode, a QR Code can hold a wide range of information, making it a perfect way for your clients to connect with you – through phone numbers, SMS, email or a link to your website.
All a potential client needs is a smartphone and one of the many free QR Code reading apps… They scan your QR Code while walking past your vehicle and their phone is automatically loaded with your phone number. Easy!
If you want to direct someone to your Facebook page – use your Facebook URL. Want them to send you an SMS – load the text details you want them to send, the options are endless.
Originating in the Japanese automotive industry, QR codes are rapidly gaining traction as a marketing and advertising tool in Australia.
Our Premium membership includes QR Code setup, support and materials to get you started… For more information click here.
When you quote a job, you know you’re more than likely not the only one… How often do you get quotes on the tools you use? If you do your research online, you may find you can get equipment and materials a bit cheaper.
A word of warning – if you’re looking online, check out the shipping costs and returns policy – you don’t want any nasty surprises that may end up costing you money.
Online sales have put pressure on local retailers across the board. The ‘support your local business’ message is loud and clear – but business is business and if you can get what you need more cheaply you need to consider it.
Here’s a thought: If you find a great deal online – why not go back to your local and see if they can match it?
There’s no better advertising than being seen working – it provides the social proof that you are honest, reliable and affordable. Do you put up signage where you are working? If not you may be missing out on a relatively cheap advertising opportunity.
Knock off time for you is when the community comes home… they may be able to see that their neighbours are having work done to the house, but unless you’ve left signage there, they may not know who is doing the work.
There’s a range of options for signs, free standing, metal, Corflute material, vinyl banners, window signs… the list goes on.
Check out some ideas here:
The National Tradies Expo presented by Nissan Navara, turns 12 this year and promises to be bigger and better than ever! The Expo brings together the largest range of equipment, tools, trucks, earth moving equipment, work wear, accessories and services, as well as a world of bargains, technical expertise and business advice for Australian trades people.
Tradies can see, try, buy and save on the great deals offered at the Expo!
Visit the 2012 National Tradies Expo at the following venues:
- Melbourne Showgrounds 25 – 27 May 2012
- Burswood Dome, Perth 22 – 24 June 2012
- RNA Showgrounds, Brisbane 22 – 24 June 2012
- Sydney Showgrounds, 29 June – 1 July 2012
The Australian Bureau of Statistics has released a report this month highlighting the continued decline in the new home building market. We have all heard that Australians are not spending on anything other than the necessities.
The total number of loan commitments (seasonally adjusted) for owner occupied housing finance fell 2.5% in February.
Between Januaryand February, the number of owner-occupied housing loans (seasonally adjusted) fell in Queensland by 1.1 per cent, New South Wales by 9.4 per cent, the Australian Capital Territory 1.7 per cent, Tasmania 5.3 per cent, and the Northern Territory 0.4 per cent. Rises were recorded in South Australia up by 2.0 per cent, Western Australia up 0.8 per cent and Victoria 0.3 per cent.
Whilst loans to buy established new homes dropped by 10.4 per cent in February, loans for construction of new houses increased by 3.1 per cent, meaning that total loans for new dwellings eased by 0.6 per cent. Loans for existing dwellings net of refinancing fell by 4.2 per cent.
In seasonally adjusted terms, the total value of dwelling finance commitments excluding alterations and additions fell 1.3 per cent.
The Housing Industry Association’s quarterly National Outlook for Residential Building reports the number of new homes being built will plummet below levels seen during the 2008 global financial crisis if current building approval trends persist. As house construction stats continue to decline there is a risk of a fall below the 2008/09 GFC induced trough. The housing industry has been warning of this serious situation for over 12 months.
However, the sector was buoyed by record renovations activity in 2010/11, with households spending nearly $30 billion on upgrading bits of their homes. The forecast is for growth in renovation activity over coming years to reach a level of $30.41 billion in 2013/14.
Tradespeople may be interested to know that contrary to what you may have seen in the media, Australians across the country are still renovating. In fact a study recently commissioned by Winning Appliances, a company that supplies electrical appliances, found that:
- 51% of homeowners plan to renovate within the next four years
- 28 % have plans to renovate in the next 12 months
- 37 % are renovating bathrooms
- 28 % kitchens
- 25% plan to renovate living areas
- 18 % the laundry
The Galaxy Research Survey of 1091 Australian homeowners also found that:
- 25% have never renovated a home
- 58 % have renovated within the last 4 years
- 17% have renovated in the past 12 months
It’s probably obvious that the companies that are to be levied with the Labor Government’s Carbon Tax will be forced to increase their prices as from July 1 this year. Building industry representatives have warned that the tax will put pressure on availability and affordability of housing.
Australia’s biggest brick maker has said that the tax will cost $12.8 million in earnings before interest and tax.
CSR said it will increase the cost of plasterboard, roof tiles and fibre cement products this year.
Cement producer Adelaide Brighton reports the tax could slash its net profit by about $5 million.
As a result, it will be the Tradespeople will be forced to increase prices for the work they do. It will be left to them to explain the increased price to the Australian public.