Only private will do for the wealthy

Wealthy families are increasingly choosing private and Catholic schools for their children's education. Source: The Daily Telegraph

Wealthy families are increasingly choosing private and Catholic schools for their children's education. Source: The Daily Telegraph

WEALTHY families are deserting the public education system, with poorer students making up double the number of wealthy children at Australia's government schools.

This privilege exodus is most pronounced in high school, with more than 75 per cent of the highest earning families enrolled in independent and Catholic schools, according to analysis of 2011 census data.

The research shows a dramatic social shift during the past 25 years, with low and high income families equally represented at state schools in 1986.

''In contrast, a quarter century later in 2011, the differences are very marked: the government sector has almost twice the proportion of students from low income families relative to the proportion from high income families,'' said report author Barbara Preston.

In some states (Tasmania and South Australia) the proportion of students from low income backgrounds in government education is as much as four times higher than that of wealthy families.

Separate analysis of data from the My School website shows that not only do private school students attract 25 per cent more income than their public counterparts, they enjoy a higher rate of increase in government funding.

Private schools also outperform the other sectors and enjoy smaller class sizes than government schools, which have seen an increase in the student to teacher ratio.

The research also confirms the middle ground held by the Catholic education system, which has more wealthy than poor students, but mainly caters for children from medium income families.

Education experts agree higher concentrations of disadvantaged children hurt student performance, with a ''drag down'' effect felt across the school.

The report comes during intense focus on school funding, with the Federal Government struggling to push through its Gonski reform package at next week's COAG meeting.

''These findings highlight the importance of delivering funding reform to the address disadvantage and deliver money to where its needed most,'' said Angelo Gavrielatos, president of the Australian Education Union, which commissioned the report.

There are also stark differences across Australia, with wealthier states far more likely to enjoy a better social mix in their schools.

Tasmania and South Australia have the lowest family incomes and the widest social disparity, with Tasmanian school students more than two and a half times as likely to have low family incomes as high family incomes.

Western Australia and the Australian Capital Territory have the highest overall family incomes and the least social disparity.

New South Wales, Victoria and Queensland sit near the average, with around twice as many poor students than wealthy kids at public secondary schools.

The report also states access to high speed broadband is a significant advantage for students, and enjoyed by 94 per cent of students from high income families compared with just 68 per cent of lower income government primary school students.

To be released publicly today by the Australian Education Union, the research analysed census data from more than a million students whose families provided information about schooling and income in the 2011 census.

Family income was defined as low (less than $1249 a week), medium (between $1250 and $2499), high (more than $2500) and very high (more than $5000).
 

View the original article here

Ingham poultry to sell to private equity

THE head of Australian poultry producer Ingham has agreed to sell the 95-year-old family business to US-based private equity group TPG Capital.

Billionaire Bob Ingham said he and his family would retain the Ingham Racing business as well as a substantial property portfolio which is surplus to the operations of Ingham Enterprises.

He said the day-to-day operations of Ingham would continue as usual under the direction of chief executive officer Kevin McBain and his team.

"An important part of the decision for me was finding a buyer who would ensure that our customers will continue to receive the highest level of service and our employees would be well looked after," Mr Ingham said in a statement.

"I believe I have found that in TPG."

In July, Mr Ingham said he would sever his ties with the chickens business his family has owned for 95 years, although, at the time, he admitted it could take several months to find a buyer.

Inghams Enterprises is Australia's largest integrated poultry producer, with Baiada the other major player.

TPG Capital has made several unsuccessful bids for Australian-based surfwear retailer Billabong over the past year.

View the original article here

Do you need private health cover?

IS IT a worthwhile cause for your generation to spend money on private health insurance?

Gen Ys - Justine Davies

HEALTH insurance premiums are set to rise by an average of 5.6 per cent on April 1, so it's a timely question.

Let's answer it with a few other questions:

If you have a non life-threatening condition, are you prepared to spend up to 27 hours in the your public hospital's emergency department?

Are you prepared to wait four months to have your tonsils out, six months to have a knee replacement or three months for a hernia operation?

Are you willing to be financially penalised for not having insurance?

If you answered "no" to any of those questions, you probably should be spending money on private health insurance.

Don't get me wrong, our public system is fantastic if you have a life-threatening condition, but for anything else you'll face a wait and could be in a fair amount of pain during that time. That can impact on your employment, study and social life.

Then there's the lifetime health cover loading. Basically, you need to have hospital cover by the June 30 after your 31st birthday, otherwise you'll pay a 2 per cent loading for each extra year you delay.

Plus there's the 1- 1.5 per cent Medicare levy surcharge which, if you earn more than $84,000 and don't have private cover, will be levied against your income. You're damned if you do and damned if you don't!

If you're under age 26 and still studying or training, you might still be covered under your parents' health insurance policy. Confirm this with their fund. Otherwise, you're on your own.

Shop around, because premiums and coverage can vary. Try privatehealth.gov.au for more information.

Justine Davies is finance editor and commentator with financial research and ratings firm Canstar.

Gen Xs - Bruce Brammall

THE question ain't fair! I'm a financial adviser. How can I possibly say no?

And I wouldn't say no. But I will say, emphatically, the Federal Government is making it really hard to say "yes" for Gen Xers. It's a bigger grudge purchase than insurance normally is.

The Government just ticked off on premium increases of an average of 5.6 per cent - more than 2.5 times current inflation.

That came after the removal of 30 per cent rebates for higher-income earners from July.

For many, from April 1, health insurance will cost 50 per cent more than a year ago. It's an income bracket that will impact Gen Xers and Boomers more than most.

About 54 per cent of Australians have private health insurance.

But household finances are under pressure. And like in that scene in Flying High, occasionally the brown, stinky, stuff hits the fan, at speed. And when it's your health, you don't want to be on that trolley waiting for a hospital room.

If you earn in excess of $84,000 as a single or $168,000 for a couple, then you're going to have to pay the hefty Medicare surcharge if you don't have private health cover.

And then there's the age penalty. If you're over 31 years old, there's an extra 2 per cent extra a year.

Private health insurance cover is a horrendously frustrating and complex system.

But Gen Xers, more so than most, with our tin lids and our big mortgages and our finances stretched to within a tissue paper of snapping ... yeah, Gen Xers need health insurance. Right! Just bite your tongue and buy it.

Bruce Brammall is the author of Debt Man Walking and principal adviser with Castellan Financial Consulting.

Boomers - Mark Bouris

HEALTH insurance gets more expensive the older you get and as you age, there is much more likelihood that you're going to need it.

I know a lot of people who see the costs go up and they decide to cancel their private cover, leaving them at the mercy of the public hospital system. It's understandable: Boomers are transitioning to reduced incomes, private health gets more expensive and for those who are healthy, it seems like an waste of money. In my mind, your health is your greatest asset. It's something that too many of us take for granted, that is, until something happens.

As Boomers, you've probably saved for decades to create a good retirement. But how good will it be if you're not healthy enough to enjoy it?

As you age, you're probably going to start having more frequent health issues, from common problems such as knee replacements, vision correction and daily medications, to more severe illnesses. It's part of getting older.

I read an article by demographer Bernard Salt where he said about 8000 pacemakers are implanted each year into public and private patients in Australia, with each device costing between $5000 and $12,000. A pacemaker is a device that regulates the heartbeat, and it could easily add years to a patient's life.

However for a patient without private health insurance, the cost of that surgery could be a deal-breaker. I'd hate to think anyone would have to jeopardise their health in that way, but I know it happens.

My advice is that if you can afford it, you should hold on to your private health cover. It's inevitable that you're going to need it, and the peace of mind you'll get from knowing that you're covered is invaluable.

Mark Bouris is executive chairman of wealth management and advice firm Yellow Brick Road.

Retirees - Kerrin Falconer

THERE is no doubt about it, we have one of the best healthcare systems in the world.

While many may complain about waiting times and crowded corridors in certain hospitals, if anyone is seriously ill and needs attention, he or she pretty well gets it when it is needed. We have dedicated doctors and nursing staff in our hospitals. They work long hours, often over and above the call of duty.

Having said that, the public system has its limits. It can't possibly be all things to all men and women, as much as it tries.

In a perfect world, both public and private hospitals would be funded with a never-ending stream from the money tree that is Canberra.

But it isn't a perfect world and there are always budgets, balance sheets and bottom lines to restrict services and supplies.

Retirees are a bit like vintage cars. They both have a few clicks on the clock. They require frequent oil and grease changes, valve regrinds, new gearboxes or starter motors and sometimes need major overhauls. They usually work well on short runs but often strike trouble on extended trips.

They simply aren't as young as they used to be, but are still pretty darn good.

Those prepared for the upkeep of these beauties have made a choice and are prepared to pay what it takes to keep them in good running order.

Similarly, retirees need to make a choice as to whether they are prepared to join the queue and wait for whichever doctor is available when and where they need some reconditioning.Or they can use private health insurance to ensure they can get the mechanic and the garage they choose, when they want it.

It's not cheap, but then neither is maintaining vintage cars.

Kerrin Falconer is a finance writer with 15 years of financial planning experience.

View the original article here