Should I ‘fix’ my home loan?If you’re wondering whether ‘fixing’ your home loan is worthwhile and to help you decide what to do, consider the following:
The main advantage of a fixed rate home loan is that it gives you cash-flow certainty. That is, you know exactly how much your loan repayment will be over the fixed term period. When you are a new homeowner or are setting up a business, this certainty can give you great peace of mind.
The main disadvantage of a fixed rate home loan is that fixed term loans tend to be inflexible – and can be expensive if you break the contract!
If I decide to ‘fix’ my home loan, what interest rate is on offer?
For a fixed 2-year investment home loan, where principal + interest repayments are made, you can access an interest rate from 3.98% per annum.
For a fixed 2-year home loan for a first home buyer-owner-occupier, where principal + interest repayments are made, you can access an interest rate from 3.69% per annum.
For a fixed 2-year home loan for other owner-occupiers, where principal + interest repayments are made, you can access an interest rate from 3.72% per annum.
You don’t have to answer the question alone.
At YML Group we can help you to find out more about your home loan interest rate options and decide whether ‘fixing’ your home loan is in your best interest.
How can YML help?
Talk to our YML Finance Team today to see how YML Group can assist you with your home loan. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
Working with Remote Staff – Business Process OutsourcingOne of the fastest-growing sectors in the business world, particularly in the Information Technology (IT) sector, is Business Process Outsourcing (BPO). And The Philippines is leading the way with its third-party outsourcing availability for companies in Australia.
Third-party management of virtual employees offshore combines managerial control with cost effectiveness for an Australian company whose head office and senior management may be located onshore in Australia.
Whether you’re a fast-growing business with a need for more employees to carry the load or your business requires business process services without the need for on-the-ground workers, BPO could be the answer for your business processing demands.
The types of work a virtual employee could engage in are: IT, data entry, customer service, call centre operations, bookkeeping and other back-of-house administrative functions, as well as many other work areas related to general business processing.
Major Benefits of BPO:
There are many advantages to remote staffing practices. Your company may benefit from any or all of these:
- Screened, qualified and approved employees adding value to your business
- Easy access to remote staff for – direct and targeted communication
- Focus on work goals – no excessive or unnecessary activity
- No local Australian labour law requirements to meet
- No local Australian tax requirements to meet
- No fixed overhead costs – no desk space required
- No Human Resources (HR) involvement required
- No insurance (WorkCover) requirements to meet
The cost-effectiveness of remote staff may make financial sense to your company. BPO may contribute to enriching your business and its economic results by delivering on KPI objectives and ensuring a more streamlined application of your business processing tasks.
At YML Group we have the expertise in BPO – both as a company itself utilising this workplace-of-the-future scenario and with a specialist team at your service – to advise and assist your company towards finding and integrating a BPO solution.
Consider your company’s current growth and future BPO opportunities by exploring your options with us.
How can YML help?
Talk to our YML Innovation Team today to see how YML Group can assist you with your BPO. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
ATO Payment Arrangements – Avoid Overseas Travel BanOwe the Australian Taxation Office (ATO) a debt? You are not alone. Many businesses – sole traders and companies – cannot pay a debt to the ATO upfront. So the ATO offers you recourse with its payment arrangement system that allows you time to pay off your debt, saving you the stress of finding the money to pay a debt upfront in full.
A payment arrangement with the ATO will also ensure you are not subject to the new Departure Prohibition Order (DPO), an action enforceable at the border when you wish to travel overseas. This order provides that you pay your taxation debts – or have an active payment arrangement in place – prior to being allowed to leave the country.
What is a payment arrangement?
A payment arrangement is an agreement between the ATO and you, whereby you agree to pay off your debt gradually – in instalments – over an agreed period, usually 12 months.
Once you are in a payment arrangement with the ATO, it’s important to stay on track with your repayments and make sure that you:
✔ Pay the exact amount expected to be received by the ATO – it is matched to repayments
✔ Pay in to the correct account – check if you normally use more than one
✔ Pay on time – check due dates
✔ Pay all future ATO obligations by the due date - keep up to date with your future ATO lodgments
Fulfilling these requirements precisely will help you to avoid defaulting on your payment arrangement, avoid penalty and a General Interest Charge (GIC) accruing on your remaining unpaid debt.
How do you apply for an interest-free payment plan?
First, your business’s eligibility is assessed using these criteria:
- Annual turnover of < $2 million
- Activity Statement debt of up to $50,000 – overdue for up to 12 months
- Ongoing compliance with payments and activity statement lodgements
- Unable to obtain finance / loan through normal business means
- Demonstration of ongoing business viability
Should your circumstances change, the ATO may be able to vary the terms of a payment plan to make it easier for you to repay your debt. Make sure you contact the ATO if you cannot pay an instalment.
There is no need to go it alone when it comes to debt and the ATO.
YML Group can not only help you to determine your eligibility for an ATO payment arrangement but also help you to administer your 12-month interest-free repayments.
How can YML help?
Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your ATO payments. Contact us on (02) 8383 4400 or by visiting the Contact Us page page on our website.
Proposed Partner Visa Changes – NEW Two-Step Process
Partner visas are subject to legislative changes by the Australian government, and this year it is expected that certain proposed changes will be made law. These changes would affect all married and de facto relationships where a foreign national with an Australian Citizen or Permanent Resident partner wishes to apply for a Partner visa.(more…)
Non-Residents and SMSFs – Tax Alert!
The Australian Taxation Office (ATO) considers a self-managed superannuation fund (SMSF) to be an Australian super fund, so long as it meets certain residency conditions. Any SMSF trustees and members need to be aware of their residency within and outside of Australia to avoid breaching the residency rules and rendering their SMSF subject to the highest marginal taxation rate of 49%!(more…)
Superannuation Guarantee Amnesty – Self-Correct your past Super Guarantee Liability
Superannuation entitlements payable by employers continue to be short-paid or unpaid and the Australian Governments wants to rectify this with a one-off Superannuation Guarantee (SG) Amnesty. The 12-month amnesty is currently legislated and available to you. It will run until 23 May 2019.
From now until 23 May 2019, you can take advantage of the amnesty by calculating the amount of SG payable (shortfall plus nominal interest) and preparing and lodging a SG Amnesty payment form.
Undeclared SG shortfalls between 1 July 1992 and 31 March 2018 are allowed under the amnesty. Beware that from 1 April 2018, deference to the law of timely SG payments is advisable, as any shortfalls from this date will not be considered under the amnesty.
You may choose to pay the SG shortfall directly in to the employees’ super fund/s or to pay the SG shortfall via the ATO.
Are you eligible under the amnesty?
Yes, if you voluntarily disclose a previously undisclosed SG shortfall within the amnesty period, exempting any SG shortfall disclosed prior to the 12-month amnesty start date.
You remain eligible so long as you commit to a payment plan and comply with the payment plan. The ATO will notify you to help you avoid a default or failure-to-comply.
No, if you are subject to a current SG audit by the ATO. Consult your financial advisor if you aren’t sure about your eligibility.
Why use the amnesty?
For some very attractive benefits to your company and your staff:
Resume SG-Compliancy… You will ensure your company resumes its SG-compliant status. Avoid Administration Fees*… You will avoid the *$20 administration fee on all SG shortfalls for new employees during the amnesty period.
Tax-Deductibility… All catch-up payments made during the amnesty period are tax-deductible.
Up-to-date Employee Super… Your employees’ fund/s will be up-to-date and your employees can more readily assess their contribution caps.
So, breathe a sigh of relief that you can rectify your SG shortfall (and avoid penalties). You can get back on track with your employee super payments, making for a far healthier financial future for both your company and your staff.
At YML Group we can guide you through the steps. Let us identify your unpaid SG, assess your eligibility and then prepare and lodge your SG Amnesty payment form.
For more information… https://www.ato.gov.au/Tax-professionals/Newsroom/Superannuation/Superannuation-guarantee-amnesty/?landingpage
How can YML help?
Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with the SG Amnesty. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.
The Importance of Estate Planning
People often do not like talking about wills, however a will enables you to help and protect the ones you love after your passing, especially if you have a range of assets and investments. Without a will, your passing can be an expensive, time consuming and often distressing period for your family and loved ones.
POWER BI – BUSINESS DATA TOOL
Microsoft designed and developed Power BI as a data-mining and business intelligence (BI) tool and business analytics service for end users, making it a practical, straightforward way of communicating your business’s information without a team of IT specialists(more…)
NEW Skilling Australians Fund (SAF) Levy
Australia’s local labour market has a shortage of skilled Australians and the Federal Government has sought to redress this imbalance by introducing a levy that, managed by the Department of Education and Training (DET), will provide training specifically for Australian citizens.(more…)
Over 65? Downsize your home to contribute to your super!
Your main residential home may be the solution to increasing your superannuation.(more…)