Latest news with #LizRitchie
Daily Mail
28-06-2025
- Business
- Daily Mail
The top towns Aussies are fleeing to in droves and the surprising group that's leaving the big cities for a lifestyle change
Aussies fleeing the housing affordability crisis in Sydney and Melbourne are choosing to settle in more affordable regional centres that are still within reach of capital cities. Those making a sea or tree change from a major city are choosing destinations like Newcastle, Geelong, and the Sunshine Coast as their new home, based on Commonwealth Bank customer data shared with the Regional Australia Institute. These three towns are within two hours of Sydney, Melbourne and Brisbane respectively and share some of the delights of Australia's biggest cities - just without the same prohibitive cost. 'They're bigger centres ... they come with the amenity that can sometimes be a barrier for other regional locations,' said Liz Ritchie, CEO of the Regional Australia Institute. 'It's a big decision to move and so (they have) closer proximity, where they know that they can drive within a couple of hours back to see family or friends back in that capital city. 'It makes sense that your first move might just be dipping your toe in the water.' It is clear that many Australians are moving - with New South Wales reporting an exodus of 28,000 residents this year, while cheaper south east Queensland gained 26,000 residents. However, just over 3,200 people leave Victoria every year, suggesting many leaving Melbourne are heading to a regional area a short drive away rather than another state with warmer weather. In Victoria, Geelong received the largest share of migration from another part of Australia with a generous 9.3 per cent share, Regional Australia Institute data showed. The neighbouring Moorabool council area, north of Geelong, gets 3.7 per cent of interstate migration while Ballarat attracts 2.4 per cent of Australians relocating. Queensland gets the biggest number of Australians moving from another state with the Sunshine Coast north of Brisbane getting an 8.9 per cent of movers. Surprisingly, the Gold Coast is no longer the hotspot for interstate migration it once was, attracting just one per cent of Aussie movers. 'Having spoken to many people who live there, it was very popular in the Covid period, then we felt that it was starting to experience some of the growing pains,' Ms Ritchie said. 'Even just getting around, driving regular sort of errands, became quite difficult. 'As price rises increase, places become too hot.' Instead, the Fraser Coast - which includes Hervey Bay - was the second most popular place to move to, getting 3.3 per cent of relocators. Nearby Gympie is the third most popular tree change destination, with a two per cent share. In New South Wales, areas near Newcastle are the magnets for those moving to a regional area. Lake Macquarie attracted 5.3 per cent of people moving from another part of Australia while nearby Maitland took in 3.5 per cent of movers. The Shoalhaven council area - covering Nowra and Ulladulla on the south coast - was the third most popular place to resettle in NSW, getting 2.6 per cent of interstate migration. When it came to making the move to a regional area, Millennials born from 1981 to 1996 were the most enthusiastic about change. More than half or 57 per cent of Millennials are considering such a move, a YouGov poll of 1,028 people for the Regional Australia Institute found. In a break with recent decades, those in their thirties and forties raising children are now actively considering a regional area, where they could afford a house with a backyard and be close to nature. 'What was once not happening is now happening and so they're taking over,' Ms Ritchie said. 'The housing's more affordable, cheaper cost of living and you don't have the commute. 'Because of the hip pocket, high inflation, high interest rates - the issues we've been reading about daily for the last two years, this is driving these decisions.' Moving to a regional area also gives young people the chance to be more involved with the community they live in. 'Not only do they want to buy a house, they also want to coach the local football team or be part of the local community group, whatever it is that makes them tick,' she said. 'So you do have more time and more space and more connection to each other and more connection to the environment.' Generation Z adults - born from 1997 onwards - were also open minded about moving, with 40 per cent inclined to make the move, putting it well ahead of the 25 per cent of boomers considering a change. The e61 Institute think tank noted Millennial and Gen Z Australians - aged 25 to 34 - were particularly struggling to buy a home, like their parents were able to do at the same age 'with this disparity greater in capital cities'. 'Regardless of occupation, Millennials are leaving Sydney and, more recently, Melbourne, as traditional milestones like owning a home may no longer be seen as attainable to many young Australians living in these major cities,' it said. 'Whether home ownership rates will converge with age remains to be seen.' The ability of white collar professionals to work from home is also accelerating the move to regional areas among younger people. Some 47 per cent of those able to work from home say they would consider moving and continuing in their current role on a remote or hybrid basis. Ms Ritchie suggested working from home was now embedded in Australia's workplace culture, and could accelerate the shift to regional areas among the young. 'It tells us that this is here to stay,' she said. 'They're moving because they want to bring the job that they're in, they want to work remotely. 'Look at how our technology and connectivity has emerged and the pace of change - with that technology uplift, younger people are taking advantage of those opportunities.' The number of Millennials moving to a regional area grew by 54,000 between the 2016 and 2021 Census surveys, a Regional Australia Institute analysis showed. Even before Covid, a major shift was underway. 'Probably you have to go back to the mid-1950s - so a massive change really in a short period.' To illustrate this point, house prices in regional areas rose by 5.4 per cent over the year to May, CoreLogic data showed. This outpaced the three per cent growth pace of capital cities.
Yahoo
07-06-2025
- Business
- Yahoo
What pensioners need to know about income tax
Retirement is often seen as a time to relax and enjoy the rewards of a lifetime of hard work – but that doesn't mean that the dreaded taxes disappear. For pensioners, understanding how income tax applies in retirement is essential to managing finances and avoiding surprises. Whether you're drawing a state pension, private pension, or other forms of retirement income, knowing what's taxable can help you plan more confidently. We got in touch with some experts who have broken down some key things every pensioner needs to know about income tax, so it's one less thing to worry about in your golden years. What is income tax? 'Income tax is a tax paid on most types of income, from your salary at work, profits from a business to interest you make on investments,' explains Liz Ritchie, head of tax at Forvis Mazars. 'It applies to earnings from employment, self-employment, pensions, savings and investments. The amount you pay depends on how much you earn, with different income bands taxed at different rates.' Who has to pay income tax? 'Currently, anyone who has an income of more than £12,570 for the 2025/26 tax year will pay income tax on the amount they earn above the standard personal allowance,' says Amy Knight, personal finance and small business expert at NerdWallet UK. 'The rate at which you pay tax depends on how much you earn. 'The basic rate is 20%, charged on income up to £50,270 per year. Income tax is charged at 40% on earnings between £50,271 to £125,140 (known as the higher rate). If you earn more than £125,140, you'll pay the additional rate of income tax on those earnings, which is currently 45%.' If you run your own business or have a side hustle that makes less than £1,000, you do not need to report this or pay tax on that little bit of extra money you make. 'However, as soon as you cross the £1,000 mark, HMRC needs to know about this extra income, which will be factored into your tax calculations,' highlights Knight. 'You report self-employed income by filing a self-assessment tax return. The same applies if you start earning rental income from property you own.' What types of income are taxable for pensioners? Tax on income you receive from a pension is calculated in the same way as earnings from employment. 'Pensioners pay income tax once their income exceeds the £12,750 limit each year,' confirms Knight. 'This includes money from their state pension, any private and workplace pensions, rental income if they have a second property, and interest earned on savings and investments above the personal savings allowance. 'People who choose to run their own business after reaching state pension age will be taxed at the usual rates.' Some state benefits are also taxable, meaning pensioners may end up paying back some of the financial support they receive from the government, Knight adds. 'For example, bereavement allowance is taxable, so an older person who claims this benefit could see some or all of it wiped out if their income is above the tax-free allowance,' says Knight. What common tax reliefs or allowances do pensioners often overlook? 'Certain tax reliefs and allowances are often overlooked, such as the ability to take 25% of a private pension free of income tax [usually when you reach the age 55],' says Julia Rosenbloom, tax partner at law firm, Shakespeare Martineau. You can also still receive income tax relief on your pension contributions when you are retired up until age 75, says Ritchie. 'This is up to the amount you earn or the annual allowance of £60,000,' says Ritchie. 'If you are a higher or additional rate tax payer, you can also claim additional tax relief through self assessment and there are millions often left uncollected.' Plus, if you have unused pension annual allowance for the previous three tax years, this can be carried forward to allow for additional contributions and tax relief, adds Ritchie. 'However, if you have accessed your pension and started taking an income flexibly the rules can be different,' explains Ritchie. 'This usually triggers the Money Purchase Annual Allowance (MPAA) which sees the amount you can contribute to your pension and still receive income tax relief limited to £10,000.' Another allowance that is often overlooked is dividend allowance. '£500 of income from dividends can be taken income tax-free in 2024/25,' says Ritchie. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-06-2025
- Business
- Yahoo
What pensioners need to know about income tax
Retirement is often seen as a time to relax and enjoy the rewards of a lifetime of hard work – but that doesn't mean that the dreaded taxes disappear. For pensioners, understanding how income tax applies in retirement is essential to managing finances and avoiding surprises. Whether you're drawing a state pension, private pension, or other forms of retirement income, knowing what's taxable can help you plan more confidently. We got in touch with some experts who have broken down some key things every pensioner needs to know about income tax, so it's one less thing to worry about in your golden years. What is income tax? 'Income tax is a tax paid on most types of income, from your salary at work, profits from a business to interest you make on investments,' explains Liz Ritchie, head of tax at Forvis Mazars. 'It applies to earnings from employment, self-employment, pensions, savings and investments. The amount you pay depends on how much you earn, with different income bands taxed at different rates.' Who has to pay income tax? 'Currently, anyone who has an income of more than £12,570 for the 2025/26 tax year will pay income tax on the amount they earn above the standard personal allowance,' says Amy Knight, personal finance and small business expert at NerdWallet UK. 'The rate at which you pay tax depends on how much you earn. 'The basic rate is 20%, charged on income up to £50,270 per year. Income tax is charged at 40% on earnings between £50,271 to £125,140 (known as the higher rate). If you earn more than £125,140, you'll pay the additional rate of income tax on those earnings, which is currently 45%.' If you run your own business or have a side hustle that makes less than £1,000, you do not need to report this or pay tax on that little bit of extra money you make. 'However, as soon as you cross the £1,000 mark, HMRC needs to know about this extra income, which will be factored into your tax calculations,' highlights Knight. 'You report self-employed income by filing a self-assessment tax return. The same applies if you start earning rental income from property you own.' What types of income are taxable for pensioners? Tax on income you receive from a pension is calculated in the same way as earnings from employment. 'Pensioners pay income tax once their income exceeds the £12,750 limit each year,' confirms Knight. 'This includes money from their state pension, any private and workplace pensions, rental income if they have a second property, and interest earned on savings and investments above the personal savings allowance. 'People who choose to run their own business after reaching state pension age will be taxed at the usual rates.' Some state benefits are also taxable, meaning pensioners may end up paying back some of the financial support they receive from the government, Knight adds. 'For example, bereavement allowance is taxable, so an older person who claims this benefit could see some or all of it wiped out if their income is above the tax-free allowance,' says Knight. What common tax reliefs or allowances do pensioners often overlook? 'Certain tax reliefs and allowances are often overlooked, such as the ability to take 25% of a private pension free of income tax [usually when you reach the age 55],' says Julia Rosenbloom, tax partner at law firm, Shakespeare Martineau. You can also still receive income tax relief on your pension contributions when you are retired up until age 75, says Ritchie. 'This is up to the amount you earn or the annual allowance of £60,000,' says Ritchie. 'If you are a higher or additional rate tax payer, you can also claim additional tax relief through self assessment and there are millions often left uncollected.' Plus, if you have unused pension annual allowance for the previous three tax years, this can be carried forward to allow for additional contributions and tax relief, adds Ritchie. 'However, if you have accessed your pension and started taking an income flexibly the rules can be different,' explains Ritchie. 'This usually triggers the Money Purchase Annual Allowance (MPAA) which sees the amount you can contribute to your pension and still receive income tax relief limited to £10,000.' Another allowance that is often overlooked is dividend allowance. '£500 of income from dividends can be taken income tax-free in 2024/25,' says Ritchie. Sign in to access your portfolio
The Independent
06-06-2025
- Business
- The Independent
What pensioners need to know about income tax
Retirement is often seen as a time to relax and enjoy the rewards of a lifetime of hard work – but that doesn't mean that the dreaded taxes disappear. For pensioners, understanding how income tax applies in retirement is essential to managing finances and avoiding surprises. Whether you're drawing a state pension, private pension, or other forms of retirement income, knowing what's taxable can help you plan more confidently. We got in touch with some experts who have broken down some key things every pensioner needs to know about income tax, so it's one less thing to worry about in your golden years. What is income tax? 'Income tax is a tax paid on most types of income, from your salary at work, profits from a business to interest you make on investments,' explains Liz Ritchie, head of tax at Forvis Mazars. 'It applies to earnings from employment, self-employment, pensions, savings and investments. The amount you pay depends on how much you earn, with different income bands taxed at different rates.' Who has to pay income tax? 'Currently, anyone who has an income of more than £12,570 for the 2025/26 tax year will pay income tax on the amount they earn above the standard personal allowance,' says Amy Knight, personal finance and small business expert at NerdWallet UK. 'The rate at which you pay tax depends on how much you earn. 'The basic rate is 20%, charged on income up to £50,270 per year. Income tax is charged at 40% on earnings between £50,271 to £125,140 (known as the higher rate). If you earn more than £125,140, you'll pay the additional rate of income tax on those earnings, which is currently 45%.' If you run your own business or have a side hustle that makes less than £1,000, you do not need to report this or pay tax on that little bit of extra money you make. 'However, as soon as you cross the £1,000 mark, HMRC needs to know about this extra income, which will be factored into your tax calculations,' highlights Knight. 'You report self-employed income by filing a self-assessment tax return. The same applies if you start earning rental income from property you own.' What types of income are taxable for pensioners? Tax on income you receive from a pension is calculated in the same way as earnings from employment. ' Pensioners pay income tax once their income exceeds the £12,750 limit each year,' confirms Knight. 'This includes money from their state pension, any private and workplace pensions, rental income if they have a second property, and interest earned on savings and investments above the personal savings allowance. ' People who choose to run their own business after reaching state pension age will be taxed at the usual rates.' Some state benefits are also taxable, meaning pensioners may end up paying back some of the financial support they receive from the government, Knight adds. 'For example, bereavement allowance is taxable, so an older person who claims this benefit could see some or all of it wiped out if their income is above the tax-free allowance,' says Knight. What common tax reliefs or allowances do pensioners often overlook? 'Certain tax reliefs and allowances are often overlooked, such as the ability to take 25% of a private pension free of income tax [usually when you reach the age 55],' says Julia Rosenbloom, tax partner at law firm, Shakespeare Martineau. You can also still receive income tax relief on your pension contributions when you are retired up until age 75, says Ritchie. 'This is up to the amount you earn or the annual allowance of £60,000,' says Ritchie. 'If you are a higher or additional rate tax payer, you can also claim additional tax relief through self assessment and there are millions often left uncollected.' Plus, if you have unused pension annual allowance for the previous three tax years, this can be carried forward to allow for additional contributions and tax relief, adds Ritchie. 'However, if you have accessed your pension and started taking an income flexibly the rules can be different,' explains Ritchie. 'This usually triggers the Money Purchase Annual Allowance (MPAA) which sees the amount you can contribute to your pension and still receive income tax relief limited to £10,000.' Another allowance that is often overlooked is dividend allowance. '£500 of income from dividends can be taken income tax-free in 2024/25,' says Ritchie.
Perth Now
28-05-2025
- Business
- Perth Now
Shock city Aussies are moving to
Victoria's Greater Geelong has become the nation's new top spot for regional migration, according to Commonwealth Bank's Regional Mover Index. Greater Geelong has toppled the Sunshine Coast's two-year winning streak with 9.3 per cent of total net internal migration in the March quarter 2025. The report, in partnership with the Regional Australian Institute, shows the trend of moving regionally that accelerated during the Covid pandemic is continuing, with 25 per cent more people moving from capital cities to the regions. The Sunshine Coast has been overtaken as Australia's top regional hub. NewsWire / Nicholas Eagar Credit: NewsWire RAI chief executive Liz Ritchie said Australians were leaving capital cities for the regions and not coming back. 'Regional Australia is being reimagined,' she said. 'The regions' enviable lifestyle offerings, buoyant jobs market, position as an economic leader and diverse communities are proving to be an ongoing lure, particularly for those in metropolitan areas. 'Contemporary regional Australia has what people are looking for and it's clear cliched images and misconceptions about regional living are well and truly a thing of the past.' Regional Australia's population now sits at 9.91 million, with the CBA indicating that number will continue to grow. CBA acting executive general manager Josh Foster said Geelong demonstrated Victoria's vitality. 'It's pleasing to see annual population growth is continuing to benefit Australia's regional economy as more people are drawn to the lifestyle and employment opportunities found beyond metropolitan areas,' he said. 'In a first for the RMI, Greater Geelong has become the star performer due to its idyllic location, established services and range of employment opportunities.' To support the demand for housing, the Victorian government has set a target of an additional 128,600 dwellings in Greater Geelong by 2051. The corpse flower in full bloom at the Geelong Botanic Gardens. NewsWire / Nadir Kinani Credit: News Corp Australia Sydney exodus continues Sydney continued to record the largest net outflows of all capital cities, driven by higher house prices in the Harbour City. The report said 40 per cent of those leaving Sydney were going to regional NSW, while 17 per cent were heading north to regional Queensland, a drop from 30 per cent this time last year. Despite the fall, the Sunshine Coast still ranks second overall, while the Gold Coast, Townsville and Fraser Coast are also picking up ex-Sydneysiders. 'Queensland's warmer climate and generally more affordable housing in regional locations ensures that it remains a magnet for movers from Sydney and Melbourne,' Mr Foster said. Movement was not restricted to the eastern seaboard, with Victor Harbor in South Australia recording strong interest from regional movers and Denmark and Harvey in Western Australia remaining popular with both regional and city movers alike. The index focuses specifically on movement to and from regional areas and excludes capital city moves.
