• Has your lender reviewed your mortgage or financial position recently?
• How long since you have checked to see if you have the best deal deal for your circumstances?
• Do you think your lender is likely to suggest a better, cheaper way  to structure deal with them?
• Do you think they would be objective in their offering when they only represent one brand, Theirs?

If you think the answers to any of the above is ‘No’, then HAVE YOU CONSIDERED A FINANCE BROKER?

• They will have access to numerous lenders in addition to major banks!
• being able to provide options that would take you hours to research. There are always ‘Specials’ being run by lenders , which can change weekly.
• Can advise of costs & pricing & provide various options
• Assist with developing a strategy to meet your goals like reducing number of payts & amount
• In a lot instances, present options for lower interest rates and costs
• Generally free to you as in most cases they are paid by the lender that you choose
• Brokers must be licenced

It’s TAX time again…. and I have seen with some of my existing clients, the ATO has been a little lenient with some of the outstanding tax monies, until now that is!

Traditionally banks are not kind on Tax Debt payments and if the ATO is pushing for payment of last year’s outstanding then you may need some options and quickly.

The GFC has seen a huge impact upon the Finance markets especially with the non bank lenders. The good news is lending has been slowly improving with the confidence, so has the lending options available to those who don’t fit the normal banking guidelines.

Policies for non banks have improved allowing for higher lending ratio’s on residential housing even if you have had some late payments or some credit dispute.

The approach avoids mortgage insurers so a more common sense approach can be adapted to an individual’s / business circumstances.

The pricing is more in line with overdraft rates; however the options can be structured to allow you to return to main stream lending options in a relatively short period of time.

Contact Howard now for a no obligation discussion

Mtge & Finance Brief Oct 2008

Chartered Accountant and registered tax agent Jo Kelab of australianbiz.com.au says income taxs laws on the provision of fringe benefits to employees, their associates and clients are complex, especially at Christmas.

Holding a Christmas party is fraught with tax requirements, so its best to run any ideas past your accountant. Again, it all get back to the planning. “Christmas parties consitute ‘entertainment benefits’ and as such are subject to fringe benefit tax (FBT) unless specifically exempt, or they are subject to the ‘minor benefits’ exemption,” explains Kaleb.

A minor benefit is one that is provided to an employee or their associate on an ‘infrequent’ or ‘irregular’ basis, which is not a reward for services, and the cost is less than $300 per benefit inclusive of GST”

He says holding the Christmas party on the business premises on a working day is usually the most tax effective, because expenses such as food & drink are exempt from FBT for employees with no dollar limit, but no tax deduction or GST credit can be claimed.

“Alternatively, Christmas parties held off the business premises are exempmt from FBT where the cost for the employee and their assocaite is each less than $300 inclusive of GST, bit no tax deduction or GST credit can be claimed.”

In regards to gifts, Kaleb says that non enterainment gifts provided to employees are usually exempt from FBT where the total value is less than $300 inclusive of GST. A tax deduction and GST credit can also be claimed. These include flowers, wine, perfumes, gift vouchers and hampers.”

Kaleb recommends keeping these tips in mind:

• Non Entertainment gifts given to clients and suppliers do not fall within the FBT rules as they are not provided to employees. Generally a tax deduction and GST credit can be claimed for these gifts, provided they are not excessive or overly valuable
• The provision of entertainment gifts has different tax implications ( examples include threatre tickets, passes to attend musical, live play, movie, tickets to a sporting event or providing a holiday) Where the cost for the employee and their associate is less than $300 each GST inlcusive, there is no FBT, no tax deduction is allowed and no GST redit can be claimed
• However, if the cost for the employee and their associate is each $300 or more GST inclusive, a tax deduction and GST credit can be claimed, but FBT is payable. The cost of any entertainment gifts provided to clients is not subject to FBT and no tax deductions olr GST credit can be claimed.

It is that time of year again! Tax Time! Are you one of the ones that absolutely dread this time of year! Have you already had thoughts around “If I get a tax bill, I don’t know where I am going to get the money to pay for it?”

So what’s the best way to handle the situation?

Firstly, see your accountant and get an idea of what the $$ maybe. Secondly, if you are not an owner of residential property, your best option will be to contact the ATO and seek out repayment options. However if you are an owner of residential property, there are lenders that will enable you to refinance this debt into your mortgage if you have suitable equity.

Best to be on the front foot however! Contact Howard at Finance Know How about your Tax Debt and discuss your options today! Howard has specialised in the area of refinancing taxation debt for nearly 10 years!

Tax Debt can be overcome! Finance Know How - We Know How!