News/Blog
Stay up to date with all our latest news, guidance and regulatory information here. We like to focus on the practical implications of changes to tax, insurance and financial planning legislation as well as offering insights on topical issues relevant to our clients.
LATEST ARTICLES
Federal Budget 2022-23 – Tax summary
This week (29 March 2022), the Treasurer announced the Federal Budget 2022-23, which is the Governments economic plan for the next stage of Australia’s post pandemic recovery. To help you understand how the Budget 2022-23 may affect you, we have uploaded Australia’s plan for a stronger future - overview to our downloads section of the website. In terms of tax, the budget includes tax relief for working Australian’s and business tax relief to support investment and create jobs. Here is our summary: One-off cost of living tax offset From 1 July, over 10 million individuals will receive a one-off $420 cost of living tax offset. This is combined with the low and middle-income tax offset (LMITO), so eligible low and middle-income earners will receive up to $1,500 for a single income household, or up to $3,000 for a dual income household. The amount of tax relief you receive relates to your taxable income as it did in previous years. If you already receive the LMITO offset, this one- off tax offset adds to that. If you earn up to 37,000 a year, your tax relief [...]
How quickly can rates rise?
We have had a lot of questions asking about home loan interest rates and whether it is worthwhile fixing them in place. It's definitely an option that bears some merit, but one of the usual questions/statements made is along the lines of "if I get the variable option, it's not going to go up that quickly, is it?" As the headline picture shows, interest rates have certainly had times where they have shot up remarkably quickly (here's looking at you GFC), with a rate rise of over 1% over the course of 2 years. Interest rates don't always rise quickly, as can be seen from the gradual increase from the early 2000's to 2008. Banks often charge a small premium to their clients for fixing their interest rate (and certainty), but this premium doesn't always demonstrate good value for borrowers. We can't rely on past history to guide our decisions, but it is interesting that interest rates for the past 30 years have shown that most rate increases have ended up being short term and have generally trended downwards. A word of caution, however, [...]
Important Covid-19 update for Taxpro clients
To our valued customers, With the recent increase in cases, and Level 1 public health and social measures coming into play this week (Monday, 21 February), we wanted to reassure clients that all our services are continuing as usual in accordance with WA Government guidelines. We have taken extra steps to keep staff and visitor interactions to a minimum by utilising the extra office space from our recent office expansion, in line with the 2 square metre rule, and offered staff further flexibility to work from home. In addition, all staff will conduct a RAT test each week. Client appointments We would like to keep in-person appointments to a minimum at this time, so we welcome emails, video conference calls and phone call appointments to ensure all your tax, mortgage and finance requirements are met. However, we understand that a face-to-face appointment is sometimes necessary and if that is your preference, we are happy to arrange this. We just have a few preparatory requirements before your in-office appointment takes place: Please press the buzzer to gain access to the building You must wear a [...]
Fixed rate home loans are on the rise!
All of the ‘big four’ banks have raised their fixed interest rates for home loans. There have been predictions that the cash rate, which is at a historic low, could start rising from November, however RBA Governer Phillip Lowe said while this was plausible, it was not certain when he addressed the National Press Club on 2 February. On 1 February, the Reserve Bank confirmed the official cash rate will remain at 0.10% for the foreseeable future, but this has not stopped the banks from protecting their profit margins ahead of any rise. What does this mean for customers looking for a fixes rate? To give an example; one of the big four banks has raised its owner occupier 5-year fixed loan rate by 0.40% (from 3.59% to 3.99%) effective from 8 February. This means that any new customers wanting to secure that fixed rate mortgage on a $500,000 loan will pay an extra $114 per month. A number of smaller lenders are also following suit. Unfortunately, even though the banks have increased the rates once, it won’t stop them from continuing to increase [...]
Keep on top of due dates with this handy reminder
Get your calendar ready and save yourself some time and stress in the year ahead. Mark these due dates in there now, so you can keep on top of your tax obligations with the ATO. There are penalties if you fall behind. 28 February 2022 Tax Agent BAS due date – Quarter 2. Lodgings and payments relating to October – December. Lodge tax return for non-taxable large/medium entities as per the latest year lodged. If required, payments for companies and super funds are also due on this date 28 April 2022 Tax Agent BAS due date – Quarter 3. Lodgings and payments relating to January - March. 1 July 2022 Start of the 2022 fiscal year ATO begins to process tax returns from the fiscal year just ended 14 July 2022 Annual Pay As You Go (PAYG) payment summary provided by employer. Make sure you receive this and check everything is in order. 16 July 2022 Estimated date for the issue of rebates from the previous fiscal year. 14 August 2022 Businesses to submit anannual summary of PAYG withholding. 25 August 2022 Tax Agent BAS [...]
Demand for mortgages continues with new record high
5 tips for entering the market in 2022 The Australian Bureau of Statistics (ABS) reported on 1 February 2022 that housing loans rose 4.4 per cent in December 2021, driven by a 5.3 per cent increase in loans for owner-occupiers. Western Australia saw the strongest rise, up 7.1 per cent, for owner-occupier loans. (Source ABS 1/2/22) If you are looking to enter the housing market this year, want to refinance your existing mortgage or invest in a second property, speak to our in-house broker. Here are our top tips Use a mortgage broker Selecting a lender is crucial, so we work closely with you to understand your needs to find the right deal for you! We offer free advice, and don’t favour one lender over another. We then negotiate with the lenders on your behalf to facilitate them competing for your business. Don’t just ask what a bank can offer, there are many lenders that may suit your personal circumstances better. Make sure your credit rating is good This will be based on your previous borrowing or repayment history, and also when you have [...]
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