Change in family situation

Children

Whatever your personal situation, having children will affect your financial situation. You may have a period of time on one income or no income at all. Planning ahead can help you manage the financial side of growing your family.

Some costs to consider are:

• Costs involved with pregnancy and birth
• Loss of income
• Cost of childcare
• Increased living expenses
• Increased medical expenses
• School fees.

Your super

If you have to take time out of work your employer will stop contributing to your super until you return. A financial adviser or planner can help you plan for the long-term effect of not contributing to your super for this period of time. You should also check with your fund to see what happens to any insurance cover when you are not contributing to your fund.

Couples are able to split their taxable super contirbutions with their spouse subject to certain conditions.  While one spouse is at home caring for children, the working spouse may split their taxable contributions with the "stay-at-home" spouse.

 

The taxation position described is a general statement and should only be used as a guide.  It does not constitute tax advice and is based on current tax laws and our interpretation.  Your individual situation may differ and you should seek independent professional tax advice.