The Reserve Bank of Australia (RBA) has delivered its final cash rate announcement for the year with the decision to leave the rate unchanged at 0.75%. In making the decision the RBA appears to be assessing the impact on the broader economy of the three previous cash rate reductions together with recent tax cuts, government spending on infrastructure and signs of improvement in the resources sector. The RBA will be keeping a close eye on household consumption and the GDP numbers being released later this week as it stays focused on the aim of restoring inflation to within its target range of 2 – 3 %. From behalf of the MAP Team – we would like to wish everyone a Merry Chrsitmas and a Happy New Year!
Interest Rate Update Since the election this year there have been two interest rate changes, a new prime minister and the banks have lowered their assessment rates. August is the first month where things appear to have stabilised. This is true for todays RBA announcement with the RBA deciding to keep the cash rate on hold at the historical low of 1%. Many economists will tell you that a lower cash rate is a reflection of the lack of business confidence in our economy. So whilst those of us with Home Loans would like to see our minimum monthly reduce as much as possible, it can be a double edge sword. So to close on that, no changes this month (August) to the cash rate. A reminder that there are some amazing fixed rates on the market below 3% with some lenders already pricing in 1-2 more rate cuts. And anyone with a variable rate mortgage with P&I repayments should… Read More
On Tuesday, the Reserve Bank of Australia decided to decrease the Cash rate by 0.25% to 1.00% It was a surprise move according to many economists in the media, as there was a rate reduction in the previous month of June. Before the decrease in June, there were no rate changes for 18 meetings; this was a record. The last time this happened was in 1996 more than two decades ago when the RBA went for 17 meetings with no changes to the Cash rate. What does an interest rate decrease mean for home loan owners? If you are on a fixed rate, this does not affect your monthly repayment. For homeowners or investors with variable home loan rates, your bank will decide on how much of the 0.25% reduction they will pass on. Some banks have made announcements already, and some will have set dates to when they make a decision. If you are unsure, contact your bank or… Read More
Labor’s negative gearing policy was announced in February 2016. Whilst there has been much debate about the merits of negative gearing and whether negative gearing should be abolished, Labor’s decision to make substantial changes to negative gearing and capital gains tax discount has been controversial. But how does it impact Australian Expats? Craig Joslin, the founder of The Australian Expat Investor, explores the issue.
Did you know that every year people just like you lose money, by not understanding their rental property depreciation entitlements? People short change themselves by not using these rental property tax deductions effectively. Well this article may help you avoid this, and assist you in getting the most out of your tax return. So first of all what is depreciation? Depreciation Depreciation is basically the decline in the value of an asset that you can claim as a tax deduction against your income. To give what could be a more familiar example, after you purchase a car it loses value over time due to various factors including wear and tear. This loss of value is called depreciation. Similarly, your rental property (being the building not the land) starts losing value from the time you purchase it, again due to various factors including wear and tear and the limited life of various fittings and appliances (eg. Hot water systems and… Read More
Coming to Australia – Taxation issues for Non Residents Thanks for visiting Australia – and chipping in Resident or not? | Being a non-resident | Tax file numbers | Double tax agreements| Medicare | Superannuation If you are lucky enough to enjoy a visit to Australia and earn some money while you’re here, good for you. The only thing is, being on vacation Down Under doesn’t automatically translate into a tax holiday as well. And, for the new arrival, the Australian tax system may seem a little bewildering. However, by using the links provided below, you should be able to ensure you’re ticking all the correct tax boxes. If you’ve arrived from overseas and want to work here, you need to check that you have the right permissions to do so – one way is to check what type of visa you have. Another way is to contact the Department of Immigration and Citizenship (DIAC) which will also tell you what type of visa you need to get for working. DIAC is open… Read More
This is a copy of an article from the Taxpayers Association of Australia: http://www.taxpayersassociation.com.au/tax-deductions/living-away-from-home-allowance.html The government realised long ago that sometimes getting a job, and then keeping it, can be a difficult task for some people. And if it’s hard to find work in your local area, at times the realistic option is to move to another location if a job is available there. The living away from home allowance (LAFHA) can at least make the task a little easier. It is classified as a fringe benefit that is given to compensate for the additional expenses that crop up from having to live somewhere other than your own home in order to be gainfully employed (although the term ‘additional expenses’ does not include expenses that you will be able to claim as tax deductions anyway). The Tax Office defines ‘living away from home’ by you having a ‘usual place of residence’ that you would have continued to live in but for the fact… Read More