Month: May 2026

Don’t want to pay Mortgage Lender’s Insurance? Check out the 95% First Home Buyer Scheme

Under an Australian government-backed initiative, eligible first home buyers can purchase a property with as little as a 5% deposit and without paying Lender’s Mortgage Insurance (LMI), which can add tens of thousands of dollars to the upfront cost of buying a home.

Why is there no need to pay LMI?

The 95% First Home Buyer Scheme was introduced to enable the government to guarantee up to 15% of a home loan, thereby reducing the lender’s risk and enabling first home buyers to avoid paying LMI.

To qualify, first home buyers must meet specific eligibility criteria, including property price threshold, and be an Australian citizen or permanent resident. The scheme is generally limited to those people who will purchase new and existing properties as owner-occupiers.

Thinking about buying your first home?

Speak to us to see if you’re eligible and how this scheme could work for you by calling us on (02) 8383 4466 and requesting a callback or making an appointment with the YML Finance Team.

How can YML help?

Talk to our YML Finance Team today to see how YML Group can assist you with your first property purchase. For more information, view our website and contact us on (02) 8383 4466 or by using our Contact Us page on our website.

Instant Asset Write-Off – a most valuable Tax Concession for your Business before 1 July 2026 Threshold Change

For Australian small business owners, the Instant Asset Write-Off concession, used strategically, provides an opportunity to both claim a tax deduction and, equally, invest in their businesses.

The Australian Taxation Office (ATO) allows eligible Australian small businesses to immediately deduct the full cost of an asset under $20,000, rather than depreciating it over many years. This amount applies to each asset claimed, meaning unlimited multiple purchases may be written off in the same year. However, there are stipulations to follow to ensure compliance under the law.

To access the Instant Asset Write-Off, an Australian business must:

Timing is Critical

The Instant Asset Write-Off threshold of $20,000 is currently legislated until 30 June 2026 with an expected significant drop to $1000 from 1 July 2026, unless the Australian government legislates an extension. Therefore, timing is critical for businesses who want to claim the write-off of their business asset purchases this financial year.

IMPORTANT!

Review planned assets for the next 12 months, bring forward any necessary purchases that align with your business’s needs, allow time for delivery and installation before 30 June 2026, and confirm your business’s eligibility to access the Instant Asset Write-Off concession.

How can YML help?

Talk to our YML Chartered Accountants today to see how YML Group can assist you with your Instant Asset Write-Off claims. For more information, view our website and contact us on (02) 8383 4400 or by using our Contact Us page on our website.

$100,000-plus Tax Deduction? Three Superannuation Strategies to implement NOW before 1 July 2026 Rule Changes

As 30 June 2026 approaches, you can take advantage of superannuation strategies still available under current rules that are due to change on 1 July 2026. This is the final year to use some deduction-friendly tactics and with some well-timed contributions before end-of-financial-year (EOFY), you can strengthen your retirement savings and receive some EOFY tax benefits.

These strategies must be implemented before 30 June 2026 to ensure that your contributions are received before the superannuation funds close off for the year, so early- to mid-June is your cut-off.

Maximise Concessional (Tax-Deductible) Contributions

People who use their concessional (tax-deductible) superannuation contributions up to the annual cap and follow the catch-up rule whereby the unused portions of the annual caps from the past five financial years can be added together, could claim $100,000-plus in tax deductions. If you have a starting balance of no more than $500,000 total in your superannuation account, you can effectively claim a consequential tax deduction using this concessional contribution strategy.

Therefore, if your total super balance is below the relevant threshold and you have not fully used some or all your concessional annual caps from the past five years, you may be able to make a larger tax-deductible contribution this year.

Concessional contributions are generally taxed at 15% with your superannuation fund which is much lower than most personal marginal taxation rates.

If you contributed, for example, $10,000 in a year when the annual cap was $27,500, you would have $17,500 unused, giving you the opportunity to contribute more than the standard annual cap this year ($30,000) and thus claim a larger tax deduction.

Factors including age eligibility, work test criteria, and lodgement of notices of intent must be met for this strategy to be implemented successfully. However, it remains one of the most tax-effective strategies for retirement savings growth.

Make Non-Concessional (After-Tax) Contributions

Considering making superannuation contributions from after-tax income can make a powerful impact on long-term wealth building.

Currently, superannuation rules allow an individual to contribute up to $120,000 per annum of after-tax income, which will increase to $130,000 from 1 July 2026, and up to three future years’ worth of contributions can be made at one time under the bring-forward rule.

For couples, this can mean contributing, if structured correctly and eligibility criteria is met, over $1 million of after-tax income into their superannuation accounts.

Co-Contribution Schemes

For people earning below $62,488 gross per annum, and who meet the eligibility criteria, the Australian government contributes up to $500 on up to $1000 of non-concessional (after-tax) contributions made by an individual into a superannuation account.

Additionally, if your spouse earns below $40,000 gross per annum, and eligibility conditions are met, an offset amount of up to $540 is claimable when you pay up to $3000 into your spouse’s superannuation account.

Downsizer Contribution Concession

If you have sold your owner-occupied, for at least 10 years, home and are aged over 55 years, you may be allowed to boost your superannuation account by an extra $300,000 in addition to any other contributions. This could be $600,000 for couples. It is worth seeking professional financial advice to ensure you follow the rules for this concession.

ACT NOW

This financial year is unlike any other in recent years due to the major superannuation reforms to commence on 1 July 2026. This is your last chance to use several contribution strategies to boost your retirement savings.

If you are unsure how much you can contribute or which strategy is right for you, seek advice from YML Group. Acting now can deliver both immediate tax-deductions and long-term financial growth.

How can YML help?

Talk to our YML Super Solutions Team today to see how YML Group can assist you with your superannuation contributions. For more information, view our website and contact us on (02) 8383 4444 or by using our Contact Us page on our website.