Our 50,000th Client Competition

We are getting closer to welcoming our 50,000th client and there is still a chance for you (and the person you refer) to win what's in this box!

All you have to do is refer someone to us, and if they are our 50,000th client the box is yours! You had better be quick as the magic number is approaching fast!

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Industry News

Rates to stay on hold..

“Australians are more likely to win a chook raffle than be hit with an interest rate rise..” Australian March 6 2007

Who has won a chook raffle lately?

Economists are pretty much in agreement interest rates are on hold for some time but differ as to when the next change might occur.

The general consensus is they will stay steady until June 2007 and that’s where the differences start arising. Some believe a rate rise during the second half of the year is probable whilst others don’t see any change until 2008. There are even a few analysts predicting the next rate move will be down!

So what does that mean for borrowers?

With variable rates stable it means all the action will be in the fixed rate market. Already we are noticing some excellent fixed rate offerings as lenders position themselves and manage their overall mortgage books.

The story below gives some further insight into some great fixed rates currently on offer.

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Product News

Current Fixed Rate offers can provide big interest savings

With variable interest rates steady, all the action between the lenders as they fight for market share is centred on fixed rates.

Arguably the best offer at present is a 5 year fixed rate of 6.99% p.a.

This is an extremely attractive offer for anyone considering fixing in a rate for 5 years; in fact it is lower than most current 3 year fixed rates.

We already have a number of clients who have decided the time is right to fix either all or a portion of their loan for 5 years and are in the process of refinancing or re-structuring their current facilities to take advantage of the offer.

For whatever reason, there seems to be a trend of people preferring to lock in their interest costs for an extended period by taking out a fixed rate loan rather than leaving themselves open to interest rate volatility associated with variable rates. This is especially so for those with investment loans but more and more so for people carrying larger mortgages who are splitting their loans into part variable and part fixed in order to provide an amount of certainty going forward.

These fixed rate offers are only available for short periods so if you are interested and would like to discuss how you might be able to use them to your advantage, please contact me as soon as possible and we can discuss your options.

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What to expect during a Tax Audit

From time to time we like to update you on how best to deal with the Tax Office. Previously we have provided some information on how to ensure you are claiming all the deductions you are entitled to, especially in relation to property investments. Every now and then we hear stories about people and/or businesses being subject to a Tax Audit. The normal reaction is one of fear and frustration, but if you understand what to expect, the audit process need not be worrying or troublesome – here are a few tips on what to expect should you ever be subjected to an audit.

• An audit by the Tax Office generally involves ensuring you can substantiate your income and expenses.

• Therefore you may be requested to provide information regarding:

  • The records and systems you use to account for your income and expenses.

  • If it’s a business audit, details of cash drawings and the value of stock used by you or your family.

• You should prepare for an audit by reviewing your relevant tax records, tax returns and activity statements and remember the Tax Office may obtain information from other sources [such as banks, insurance companies, state revenue departments] to verify your data.

• As you would expect penalties can be levied where you have either underpaid tax or received more payment than you were entitled to. However the penalties may be reduced or remitted if you made an honest mistake, or if you voluntarily disclose your errors to the Tax Office.

If you keep adequate tax records to substantiate your income and expenses all will be Ok.

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