Reasons to Refinance Your Home Loan

First up, what is refinancing?

Refinancing your home loan means changing your existing loan for a new one and in most cases, with a new bank. The two main reasons people look to refinance their home loans are either to get a better rate or to increase their existing loan to withdraw some home equity.

1) I want to reduce my home loan repayments
If interest rates have changed since you got your original home loan, you may be able to refinance to a new loan with a lower rate. By refinancing your loan you can also reduce the amount of interest you pay. Reducing monthly repayments ultimately means you will pay less over the life of your loan.

2) My property has increased in value
Broadly speaking, property prices in Australia have increased over the past 5-7 years. If your property’s value has gotten a boost, you might be able to refinance and get a better rate.

3) I want to increase my loan and take cash out
A cash-out refinance allows you to use the equity you have in your home to borrow money at a lower cost. You may want to invest these funds into shares or use it as a deposit towards a new investment property.

4) I want to do some renovations
After you’ve been in your home for a few years you might feel its time to do some renovations. These generally fall under two categories: simple renovations, like adding air-conditioning, solar panels or painting and structural renovations, like adding an extra level to the house, a pool or new kitchen.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

What is Loan To Value Ratio(LVR)

LVR stands for Loan to Value Ratio and is the amount of money you borrow for a home loan compared to the value of the property and expressed as a percentage. Lenders use this calculation to determine the risk factor of the home loan.

You can find this out by dividing the amount you’ll need to borrow to purchase a property by the property’s value.

If you buy a property for $500,000 and need a loan amount of $300,000 to purchase it, your LVR will be 0.60, or 60% when expressed as a percentage.LVRs are important when it comes to getting a mortgage.

Generally, the lower the LVR, the lower the risk you present to your lender. Also, lower LVRs often qualify for cheaper interest rates. Generally, a loan of 80% or less is recommended, as borrowing more leads to more fees and charges and the possibility of higher interest rates.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Federal Budget 2019 -Tax Refund On Spot

Australia’s 2019 Federal Budget has been unveiled. The key features of this year’s Budget were tax cuts and infrastructure spending with the theme of “A stronger economy and a secure future. Here is the people who will get benefit from federal budget 2019 are:
Succeeding generations – The budget predict a return to surplus of $7.1 billion by 2019-20, after more than a decade of deficits since the global financial crisis.
Individual taxpayers – The budget promises a $302 billion package of personal tax cuts to be rolled out over the next decade.
Middle and low-income earners – Immediate tax relief for low- and middle income earners of up to $1,080 for singles or up to $2,160 for dual income families to ease the cost of living.
Small business – The small business instant asset write-off threshold will be lifted to $30 000 and expanded to include businesses with a $50 million turn over. This change applies from 7:30 AEDT on Tuesday night to June 30, 2020.Small business tax cut – For businesses with a turnover of less than $50 million a year their tax rate will be lowered to 25 per cent by 2021-22.
Infrastructure – The budget includes a record $100 billion in funding for transportation around the country over the next decade.
Patients – Extra $7.7 billion over three years to 2022-23 for better access to MRI scans for patients with breast cancer, and $1.4 billion over five years from 2017-18 for new Pharmaceutical Benefits Scheme listings, including medicines to treat spinal muscular atrophy, breast cancer, refractory multiple myeloma, relapsing-remitting multiple sclerosis and a new medicine to prevent HIV.
Medical research future fund – $ 5 billion will be granted to the fund, including $614 million for rare cancers and diseases, $220 million for cardiovascular health, $605 million for clinical infrastructure and $150 million for stem cell research.

Mental health – $737 million has been included in budget over seven years to deliver more services for people living with mental illness, including $461 million for youth mental health and suicide prevention.
Drug addicts and their families – Through it $337 million drug strategy, the Government is hoping to target the harmful effects of ice, alcohol, tobacco and opioids by increasing access to services outside metropolitan areas, funding local family drug support services and include measures to target opioid use.
Parents/children – Preschool education will get a $453 million boost for the 2020 school year.Regional students – $93.7 million will be granted over four years for scholarships to attend regional universities or vocational education.
Regulators – Gain $600 million in funding for the banking royal commission fallout.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Centrelink Parental Income – Tax Refund On Spot

The main income support payment while you’re a young child’s main carer. Only an Australian citizen, a permanent residence visa holder or a protected special Category visa holder are eligible for parental income.
 
Who is eligible? ·
1. have income under the limits ·
2. meet principal carer rules and care for a child under 8 if you’re single  or  under 6 if you’re partnered ·
3. meet residence rules ·
4. can’t claim before the birth of a child

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Easy Income Easy Go

If you tax is a little high this year and you can beat the June 30th deadline you could boost your Refund for the year with Wage Protection Insurance Premiums to be claimed, and if you’re expecting a Tax Bill this year, maybe you should look to prepay yours.

Possibly your greatest financial asset is your ability to earn an income. Income protection insurance replaces up to 75% of your salary if you are unable to work due to sickness or an accident. The insurance premium is generally tax deductible, plus you get the benefit of protecting your family’s lifestyle if you cannot work due to sickness or an accident. It’s a small price to pay for peace of mind. Similar to rental property interest, income protection premiums can also be pre-paid for 12 months to increase your deductions.

Maximise your Tax Refund this year by keeping all your receipts for Work Related Expenses. Keep any receipts for work-related expenses such as uniforms, training courses and learning materials, as these may be deductible for tax purposes, simply enter in the details into the system and maximise your Refund this Tax season.

Let us help you maximise your deductions for expenses now! Click here to start the easiest tax return system you’ll ever use!

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Are You Getting Government Assistance?

Through Centrelink, the government provides financial and other assistance to people under a variety of programs. Some common payments you may have heard of are austudy, Newstart, youth allowance, parenting payment (single) and CDEP, the Community development employment program (one of the largest Indigenous programs in Australia). Depending on your circumstances you may be entitled to one or more of these payments.

Many Centrelink payments are assessable for income tax purposes and need to be included on your tax return.

Other government pensions, allowances and payments are exempt from income tax, for example, the disability support pension (when paid to a person who is below the age pension age).

Tax offset for government payments

If you receive a taxable government payment you may be entitled to a tax offset called the beneficiary tax offset. A tax offset will directly reduce the amount of tax you pay. The beneficiary tax offset is available if you receive more than $6,000 of an assessable government payment in a financial year (that is, the offset cuts in at the point you go over the tax-free threshold and would otherwise have to start paying tax). If you have other assessable income you may still need to pay some tax.

To claim the offset you must enter the payment you receive at the correct item on your tax return. The ATO will automatically calculate the offset for you when we process your tax return.

The offset will only reduce your tax, it will not reduce any Medicare levy you may have to pay.

You may also be entitled to the low income tax offset.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Approaches to Use Your Tax Refund

The end of the financial year implies that numerous Australians will get themselves a couple of thousand dollars wealthier on account of a tax refund. As indicated by the ATO, 77% of taxpayers got an expense form in the 2013/14 money related year with a normal refund amount of $3,630.

A tax refund can give a convenient chance to get your accounts all together, an opportunity to go overboard on something you’ve needed or find something new. The trap is in discovering the right harmony between these contending urges so you don’t feel lament once the cash is spent.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

Deceased Estate and Capital Gain Tax

Treatment of Property after Owner dies

When a person dies, the assets that make up their estate can:

  • pass straight to a beneficiary (or beneficiaries), or
  • pass straight to their legal personal representative (for example, their executor) who may dispose of the assets or pass them to the recipient, or beneficiary.

A beneficiary is a person entitled to assets of a deceased estate. They can be named as a beneficiary in a will or they can be permitted to the assets as a result of the laws of intestacy (when a person dies without having made a will).

A legal personal representative can be either:

  • the executor of a deceased estate (that is, a person appointed to wind up the estate in accordance with the will)
  • an administrator selected to wind up the estate if the person does not leave a will.

Date of Acquisition

If you acquire an asset own by a deceased person as their official personal representative or beneficiary, you are taken to have acquired the asset on the day the person died. If that was before 20 September 1985, you disregard any capital gain or capital loss you make from the asset.

Disregarding Capital Gain or Loss on Death       

capital gains tax (CGT applies to any change of ownership of a CGT asset, unless the asset was acquired before 20 September 1985 (pre-CGT).

There is a special rule that allows any capital gain or capital loss made on a post-CGT asset to be disregarded if, when a person dies, an asset they owned passes either:

  • to their legal personal representative or to a beneficiary
  • from their legal personal representative to a beneficiary.

For more information on myTax 2019, online tax return 2019, myGov 2019, Tax Return 2019 , or any other tax related matter, please call our professional accountant on 1300 768 284 .

 

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

Home Office Expense and Running Cost

You may be entitled to claim deductions for home expenses including a computer, phone or other electronic devices you are required to use for work purposes, as well as a deduction for running costs. As an employee, generally you can’t claim a deduction for occupancy expenses, including rent, mortgage interest, council rates and house insurance premiums. If you are an employee and required to use your computer, phone or other electronic device for work purposes, you may be able to claim a deduction for your costs.

If you perform some of your job from a home office, you may be entitled to a deduction for the costs you gain in running it, including:

  • for home office equipment, such as computers, printers and telephones, the cost (for items costing up to $300) or decline in value (for items costing $300 or more).
  • work-related phone calls (including mobiles) and phone rental (a portion reflecting the share of work-related use of the line) if you can show you
    • are on call, or
    • have to call your employer or clients frequently while you are away from your workplace
  • heating, cooling and lighting
  • the costs of maintenance to your home office furniture and fittings cleaning expenses

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.

Leaving the Workforce

For people who are retiring, there are a variety of options for making the change.

Under the change to retirement rules, if you have reached your preservation age you may be capable to decrease your working hours without reducing your income. You can do this by topping up your part-time income with a regular ‘income stream’ from your super savings. If you are over 60 years old, this income stream may be tax free.

On the other hand, you must be alert of the impact this can have on you and your situation. ATO recommends you see a financial adviser, accountant or your tax agent to help you make a decision if this option is right for you.

Employers still need to make essential super guarantee contributions for all their qualified employees – including people who are making the transition to giving up work.

For more information on myTax 2018, myGov 2018, Online Tax Return 2018 , or any other related matterplease contact us at 1300 768 284 or you can email us at enquiry@taxrefundonspot.com.au

GET FREE Tax Refund estimate and Option of getting refund in 1 Hour, prior year Tax returns are also available, Just fill in your basic details on our website at www.taxrefundonspot.com.au or by emailing us on enquiry@taxrefundonspot.com.au we will check your employment history from ATO records, personal visit available at tax refund on spot.

We also have our separate department for Home loan, refinancing, car & truck loan.