$25k HomeBuilder payment

To support a substantial amount of residential construction workers, the Australian Government has introduced a new HomeBuilder package to inject $688 million into the industry, which is falling as a result of COVID-19.

Seeing a drop in approvals of ~2%* since March, the Building Industry is still feeling the effect this pandemic is continuing to cause.

This $25,000 grant comes with income and valuation eligibility requirements as well as restrictions on what type of construction the funds can be used for.

Homeowners will be able to use the money to put towards building a new owner-occupier home or any substantial renovations on their primary place of residence.

To be eligible to receive the one-off cash payment, singles must earn less than $125,000 and couples $200,000 between them, in the previous financial year. The building work contract must be signed between now and December 31, with works to begin within 3 months of the contract date.

For homeowners wishing to renovate, their renovation costs must be valued between $150,000 and $750,000, with the home valued as less than $1.5 million (before the renovations) to be eligible.

For people looking to build a new home to live in, the house and land must be valued at less than $750,000 to be able to take part in the incentive.

Types of construction not covered in the incentive:

swimming pools, tennis courts, outdoor spas and saunas, sheds, or garages.
new builds or renovations of any investment properties

The new HomeBuilder Package will be available alongside any current first homeowner incentives in place by governments in each state and territory.

Contact Paul Duncan at The Hrkac Group and our lending team for more information on the HomeBuilder Grant, how to apply, and to assess if you’re eligible.

* Source.

HG Financial Services – Corporate Authorised Representative 401592 of Alliance Wealth Pty Ltd ABN: 93 161 647 007 AFSL: 449221

As part of the Government’s measures to support businesses survive the economic impact of COVID-19, the instant asset write-off (IAWO) threshold amount was increased from $30,000 to $150,000 as of 12^th March, 2020.

Initially intended to end on 30^th June 2020 and revert back to different, less beneficial depreciation rules from the 1^st July 2020; the Federal Government has decided to extend the period up to and including the 31^st December, 2020. This proposed extension is currently being processed by the Government, and is yet to be finalised at the time of posting this blog (see here for more information).

This IAWO increase is available to all businesses with an annual turnover of less than $500 million and will help to further support planned investments for around 3.5 million businesses in Australia.

Here are the facts:

Eligible businesses will be able to claim immediate deductions on their annual turnover for assets purchased for $150,000 or less (excluding GST where applicable)
There is a cap for some “Motor Vehicle” purchases – which are limited to a maximum of $57,581 for the 19/20 Tax Year ($59,136 for the 20/21 Tax Year)
This deduction will be claimable on a PER asset basis (i.e. you can write off multiple assets at $150,000 each) (grouping rules do apply in some instances)
To be eligible your business must have an annual turnover of less than $500 Million
This IAWO increase is in effect from 12^th March 2020 until December 31^st, 2020 for assets first used and installed by the end date
This will result in a lower payable tax amount at the end of the financial year

We will endeavour to keep you updated on when this extension is confirmed by the Government. In the meantime, if you have any questions or queries relating to the IAWO increase please contact our Accounting team here.

Liability limited by a scheme approved under Professional Standards Legislation

It’s that time of year again, and although it’s been a bumpy 2020 so far, your tax appointment doesn’t need to be stressful. If you’re prepared with the right paperwork, receipts, and statement information, you are on track for a hassle-free appointment with the Hrkac Group Accounting team.

Our Accounting team has prepared some handy checklists for both Personal and Business tax return appointments. You can use these as a guide for what you might need to bring with you/have them handy for your appointment this year.

Personal Tax Return Checklist

Working from home?

If you have been working from home over the past few months, you may be able to claim work-related expenses on your tax return.

For more information on what you can and can’t claim, visit the ATO website:

Working from Home Information.

Business Tax Return Checklist

Book online

The Hrkac Group is ready to take your Tax Return appointments for 2020, whether it be in person, over the phone or via video call – the choice is yours.

You can make your appointment online with John, James, Shane or Linda by clicking the button below.

When you arrive for your appointment, please take the time to read our COVID-19 policy notice at the entrance, before entering. We ask if you are feeling unwell, to please reschedule your in person appointment to a later date or contact our office to change your appointment to a Zoom/Phone appointment.

Book online.

Liability limited by a scheme approved under Professional Standards Legislation.

Many businesses are experiencing great difficulties due to the COVID 19 Pandemic, with a significant or even complete drop in turnover.

The Federal and State Governments have announced restrictions on landlords taking action against tenants for falling behind on rent. The new measures also require that tenants and landlords negotiate in good faith to try to reach an agreement.

The COVID-19 Omnibus Emergency Measures Act and Regulations 2020 have been passed and they set out the rights and responsibilities of the parties involved in Commercial Leases and Licences.

As stated in the Act, if the landlord and tenant reach an agreement on any rent reduction then, that agreement will remain in place as long as both parties agree to do so.

In order for a tenant to be eligible for rent relief the following must apply:

The lease is an ‘eligible lease’ pursuant to the regulations;
The tenant must be small to medium enterprise (SME), and;
The tenant must be a participant in the JobKeeper scheme.

If an agreement hasn’t or can’t be reached, then the tenant should immediately write to the landlord:

Stating that the lease is an eligible lease and the lease is not excluded from the operation of these Regulations (under section 13(3) of the Act);
Provide evidence that the tenant is an SME and is a participant in the JobKeeper scheme

Once received, under The Act the landlord must offer rent relief within 14 days.

If an agreement still cannot be reached between the parties then either the landlord or the tenant may refer the dispute to the Small Business Commissioner for mediation.

Here at the Hrkac Group, we’re here to help.

If you are a tenant and you have qualified for the JobKeeper scheme and you need a rent reduction, you should immediately write to your landlord.

As part of our professional services, the Hrkac Groups Legal team is across the latest measures and can offer assistance with rent relief negotiations.

Preying on members of the public, scammers are targeting JobKeeper applicants by impersonating the ATO.

Stating they are calling on behalf of the ATO, scammers are asking for bank account details in order to process JobKeeper payments.

The ATO has advised that this is most definitely a scam and to hang up the phone.

JobKeeper payments are reimbursed to the employer, not directly to the employee, so therefore no individual employee bank details are required.

People are encouraged to call the Tax Office if they’re unsure a call from the ATO is legitimate on 1800 008 540.

In today’s world, planning for an unknown future is something of increasing importance. The reality of your future may involve an accident or illness that takes away your capacity to make your own financial, medical, and residential decisions. To help safeguard your future, appointing a trusted person to help you make those decisions, as you would have, will give you the confidence to continue living life to the fullest.

What is a Power of Attorney?

When you are unable to make important decisions for yourself, and you have appointed a trusted friend or relative as your Attorney, they are legally allowed to make those decisions for you. They are required to sign a legal document that gives them certain decisional powers over your financial, personal, and medical affairs so that your money, property, and well-being are cared for in a way you approve of.

There are different types of power of attorney for different decisions.

Enduring Power of Attorney: At a time of your choosing or at the point where you no longer have the capacity to make decisions about your finances, your property, or paying your bills, an attorney appointed by you as an Enduring Power of Attorney will have the legal authority to act on your behalf to ensure your best interests are taken care of.
Enduring Power of Attorney (Medical): Wherever possible, your Attorney appointed as Medical Power of Attorney will be able to accept or refuse medical treatments, surgeries, and medication on your behalf. There are restrictions to their range of power.
General non-enduring power of attorney: appointed to make financial decisions for a specific purpose or set period of time (generally used in companies and not initiated by illness).

Who can be an Attorney?

You are free to make the decision of who your Attorney(s) are, you are even allowed to appoint multiple attorneys with different designations on how decisions are made.

Generally, a spouse, partner, relative, or close friend is chosen as someone’s Attorney, however, it’s important to consider that this person must: act in your best interest, make the same decisions you would, keep accurate records of their decisions on your behalf, avoid conflicts of interest and keep your finances and property separate to their own.

You can limit their range of power by choosing the tasks they are responsible for and which they aren’t; you can also appoint more than one so that they must make joint decisions or majority decisions. It’s also possible to appoint a backup in case your primary appointed Attorney is unavailable.

What can they do?

An Attorney’s duties begin when they are designated to. You can have them commence immediately

after the Power of Attorney document is signed, at a certain time or on the occurrence of a certain event.

If you choose for the Attorney’s powers to start on a specific date, or event, they cannot make decisions before that occurs.

An Attorney may also be required to provide evidence that you are no longer able to make decisions on your own behalf – this can be in the form of a medical certificate or letter from a medical professional.

An Attorney appointed as Enduring Power of Attorney can:

Make financial or legal decisions on your behalf
Manage your banking
Maintain your property
Pay your bills
Choose where you live
Decide how your healthcare is maintained

They can’t:

View or edit your will
Make medical decisions
Exercise personal powers, such as vote on your behalf

An Attorney appointed as Medical Power of Attorney can:

Agree or refuse medication or surgery
Agree or refuse your involvement in medical research
Refuse treatment if it will cause you distress or if you would warrant it unnecessary
Take precedence over an attorney with healthcare powers

They can’t:

Agree to treatment that will compromise your fertility
Terminate your pregnancy
Agree to the removal of tissue for a transplant
Refuse treatment to alleviate pain and suffering in palliative care

How to choose/appoint an Attorney?

Appointing an Attorney can be completed in four steps:

Choose your Attorney or Attorneys.
Advise them about your decision, and confirm they are happy to act as your Attorney.
Instruct HG Legal to draft all required Powers of Attorney documents.
Execute the Powers of Attorney in front of a fully qualified witness.

When does an Attorney’s authority end?

There are a few reasons why an Attorney is no longer required to make decisions on your behalf:

You recover or return to decision-making capacity.
You revoke their rights as your Attorney. You can do this by either filing a revocation or by appointing a new Attorney, which will overwrite the previous.
They can resign as your Attorney.
If you pass away, your Attorney is no longer able to make decisions on your behalf.

If you need assistance appointing an Attorney or have any questions on how to go about appointing one, Stuart and our Legal team are here to help you at any stage. Take control of your future and live life to the fullest. Contact us on 03 5224 2245 or legal@hrkacgroup.com.au.

Valid as at Monday 31st March 2020 Last updated Thursday 25th September 2020

This page has a summarised checklist of measures that may apply to you and then the following information is more detail on some of the current measures. We stress that this is in no way intended as advice or a replacement for your Accountant and/or Financial Advisors assistance.

We will be updating this post regularly as new information comes to light. Please continue to check back on this page for the latest information.

Various Stimulus Measures:

JobKeeper Payment – Confirm eligibility, gather required information and apply online
Employers – Lodge all Activity Statements correctly and in a timely fashion to get access to the Business Cashflow Boost
Apprentices/Trainees – Talk to your Apprenticeship/Trainee body to lodge your Application ASAP
Banking – Talk to your Business Banking Manager to determine what your eligibility to various measures are
ATO – Speak to the ATO or your Accountant to organise Debt deferrals where applicable/eligible
Payroll Tax – Apply for Refund of any Payroll Tax paid this year where applicable (Please continue lodging where required)
Victorian Business Support Fund – A third stream of funding is now available to eligible small businesses (applications open)
Victorian Business Resilience Package – Further grants are available to both Metro Melbourne and Regional Victoria as a result of further lockdown restrictions in place.
Rental – have you spoken to your Landlord and negotiated your lease payments?

Other Tasks:

Ongoing Employment Arrangements – Work out on what basis you are going to pay employees or send onto unpaid leave etc
Suppliers – speak to your Suppliers. Negotiate payment terms for any accounts and/or negotiate rates for a period
Have you reviewed all Overheads? Cancelled or Suspended any Subscriptions not required during this period?
Accounts/Bookkeeping – Stay on top/up to date with your Accounting/Bookkeeping during this period – you will hopefully be to busy to worry about trying to catch back up when things pick back up
Floor plans for applicable businesses – Speak to your Financier to negotiate terms
Other Financiers (E.g. Car finance, Equipment finance etc) – Contact them and negotiate terms

Members personal matters:

Personal Mortgage – Per above – speak to your banking manager – some banks are offering repayment holidays etc.
Superannuation – Are you eligible to draw down up to $10,000 from your Superannuation Fund? More information here
Centrelink – Are you eligible for Job seeker stimulus payments? More information here

Employers

JobKeeper Payment

You may be eligible to receive assistance in paying your employees if your business is affected by COVID-19.

Extended to March 2021

Originally due to run until September 27 2020, the JobKeeper payment will now continue until March 28 2021. From September 28 2020, the payment rate of $1500 per fortnight (per employee) will reduce to $1,200, reducing further for $1,000 per fortnight (per employee) on January 4th 2021.

More information on the extension changes here.

More general information here.

JobKeeper Fact Sheet.

JobKeeper changes to the Fair Work Act information.

Each month

You must make a business monthly declaration each month to:

re-confirm your business and employee eligibility
provide your business’s current and projected GST turnover.
By the 14th of each month: complete Step 3: Make a business monthly declaration to claim JobKeeper payments for the previous month.
You should also make any updates to your employees’ eligibility using the ‘Maintain’ function as part of your business monthly declaration.
- **You need to do this between the 1st and 14th of the following month (for example, to be reimbursed for JobKeeper payments in May you need to complete your declaration by 14 June).

**After May: If you are enrolling and identifying your employees and business participant for the first time after May, you must complete Steps 1 and 2 in the month you wish to claim for.

For more information on key dates click here.

To apply for future month’s click here.

We recommend you review the relevant ATO and/or Federal Treasury websites for the current situation.

JobKeeper Scam

Preying on applicants, scammers are targeting the public by pretending to call on behalf of the ATO and ask for bank details over the phone. The ATO has announced that is definitely a scam.

The ATO does not need individual employee bank account details for the JobKeeper payment.

Providing Cashflow boost to Employers

Stimulus payment tied to PAYG Withholding and Activity Statement Lodgements. Entitlements may be between $20,000 to $100,000 over the relevant period depending on your circumstances.

Boosting cashflow overview Treasury Support for Businesses Assistance Fact Sheet.

You do not need to apply for this – but it is based on your Activity Statement lodgements. Therefore timely and correct lodgement of your Activity Statements are crucial to receiving your entitlement.

The cash flow boosts will be made from the Government’s announced date of 28 April 2020. If you lodge early, you will not receive the cash flow boost before this date.

Supporting Apprentices and Trainees

The government will pay some of the wages of your qualifying Apprentices/Trainees.

Support Fact Sheet (page 5)

You need to apply for this. It is best to discuss this with your contact through whom you complete the Apprenticeship paperwork etc.

Other Notes

If you stand down employees on no pay – please be aware some awards may require Annual and/or Sick Leave to continue accruing.

Banking/Lending

Government Measures

Banks may provide some unsecured loans to eligible businesses. Each bank’s offering may vary. Banks were still developing (yet to announce) their policies and offerings at time of writing this guide.

The Government will provide eligible lenders with a guarantee for loans with the following terms: * Maximum total size of loans of $250,000 per borrower * The loans will be up to three years, with an initial six month repayment holiday * The loans will be in the form of unsecured finance, meaning that borrowers will not have to provide an asset as security for the loan

Bank Measures

Each bank will have its own support measures. Many are offering repayment holiday periods for example. Don’t dig your head in the sand – speak to your Business Banking Manager – they are there to help.

Links to the big four Bank sites: Commonwealth Bank of Australia Ltd Westpac Group National Australia Bank Ltd ANZ

ATO (Australian Tax Office)

Increasing Instant Asset Write-Off

Business assets only. Was $30,000 and is now $150,000. (We believe that Motor Vehicles may be limited to $57,581 but are awaiting advice from the ATO on this). Only applies to Capital Purchases contracted to purchase and take possession of between the 12th March 2020 and 30th June 2020. The Federal Government has decided to extend the period up to, and including, the 31^st December 2020 (pending parliamentary approval). Provides an instant deduction for eligible Capital Purchases for eligible businesses (rather than depreciating/claiming Tax Deductions over their effective life).

Support Fact Sheet ATO information Extensions details.

Other depreciation incentives may apply to 30th June 2021.

Debts – Payment Deferrals

The ATO will work with businesses that have been severely affected. You can contact the ATO to discuss whether you are entitled to have your Debt put on hold up until the 12th of September 2020. The ATO may also consider other items such as remitting or reducing the interest charged etc.

Changing the GST Cycle

Businesses can temporarily change their Activity Statement reporting cycle from Quarterly to Monthly where you may be entitled to a refund.

Victorian State Government

Payroll Tax Relief

Eligible businesses will not be required to pay any Payroll Tax for the 1st July 2019 to 30th June 2020. Eligible businesses can apply on the SRO PTX system to have any any Payroll Tax paid to date, refunded. **Please note that you are still required to furnish all required lodgements as normal.

More Information.

Land Tax Deferral

Eligible Landowners can defer their 31st December 2019 Land Tax Assessment payment.

Tax Deferral FAQs.

Business Support Fund – Expansion Program

**Applications are now open for the further support grants

If you submitted an application before 11.59pm, 1^st June, 2020 and require any further assistance please call Business Victoria on 13 22 15 or email info@business.vic.gov.au.

Expansion Fund Grant Details:

Eligible businesses will receive grants of $10,000, $15,000 or $20,000, depending on the business’ annual payroll.

Applications are now open and close at 11.59pm on 23^rdNovember, 2020 or when funds are exhausted.

See our blog for more information here. More Information Expansion Program Fact Sheet Support Fund FAQs.

Please note this link is only for the Victorian State Government Business Support Fund Grant. If you are located outside of Victoria please check your State Government website for any similar grants available in your home state.

Business Resilience Package

The $3 billion put forward is to help Victoria businesses feeling the ongoing effects of Covid-19 restrictions, move to Covid-normal operating levels.

$5,000 will be available to Outdoor Eating and Entertainment venues $30,000 will be available to Licensed Hospitality Venues $3,000 will be available to Sole Traders

See our blog here for more information Business Resilience Package information.

Rental Agreements

The State and Federal Governments have started making announcements on this topic. Please familiarise yourself with the current state of play as we expect further announcements and changes post production of this guide.

Commercial Rent Relief

There is a temporary hold on evictions plus a mandatory code of conduct for commercial tenancies to support small and medium sized enterprises (SMEs) affected by coronavirus.

Commercial Rent Relief.

We will be updating this post regularly as new information comes to light. Please continue to check back on this page for the latest information.

If you would like to discuss any of these matters – please feel free to contact one of the members of The Hrkac Group on 03 5224 2366 or accounting@hrkacgroup.com.au.

** Important Disclaiming – Neither The Hrkac Group or SIBS can provide any form of payroll or Human Resources advice. The information contained on this page is of a generic nature only and have not been tailored to and therefore do not take into account your personal or business objectives, situation or needs circumstances. The information is objectively ascertainable and, therefore, does not constitute financial product advice. If you require personal advice you should consult your qualified Accountant or Financial Advisor as applicable.

Liability limited by a scheme approved under Professional Standards Legislation

You could be eligible for a tax rebate or cash payment.

In response to the COVID-19 pandemic, the Australian Government has announced several initiatives to assist individuals and businesses through these trying times.

Whilst this is not an exhaustive list of the measures the Government is initiating, we will take you through some of the more relevant programs for our clients. It is also important to note that at time of publishing, these proposed measures are yet to be legislated so, we cannot guarantee these details are correct or final.

We will take you through each of the following changes so you know which incentives you may be eligible for.

For businesses, these are the new initiatives:

Business Cashflow Assistance
- For businesses with employees
- For businesses with apprentices/trainees
Instant Asset Write Off (IAWO) increase
Backing Business Investment
Other Business Support

For individuals, you could be eligible for:

House Hold Stimulus payment

Business Cashflow Assistance – boosting cashflow for employers

Facts:

Eligible businesses could receive 50% of their employees’ withheld tax payments back.
This would be received in the form of a credit on your Activity Statements (either monthly or quarterly) between March and June 2020.
The maximum Activity Statement credit is $25,000 over this period.
To be eligible, your annual turnover must be LESS than $50 million and have employees (sole traders may not qualify).
If you do not meet the tax threshold for tax withheld, you would receive a credit of $2,000 on your activity statement over the period.

The aim of this assistance package is to support cashflow challenges faced by businesses; more specifically to allow businesses to retain their employees and continue to pay their wages.

For more information on the proposed Cashflow Assistance for employers, see this fact sheet from the ATO.

Business Cashflow Assistance – supporting apprentices and trainees

Facts:

Eligible businesses could apply to receive 50% of their apprentices/trainee’s wages back.
This will be received as a reimbursement, accessible after an assessment.
The maximum reimbursement amount is $21,000 per apprentice/trainee for their employment period between the claimable dates.
The total claimable period is between January 1^st and 30^th September 2020. The apprentice/trainee must be with your business as of March 1^st, 2020 to qualify.
To be eligible, you must have less than 20 full-time apprentices/trainees.

This assistance will assist small businesses in retaining their apprentices/trainee’s over difficult months ahead. If there is no opportunity to retain your apprentices/trainees, there is support in place to organise re-employment of those individuals.

For more information on the proposed Apprentice/Trainee Support assistance, see this fact sheet from the ATO.

Instant Asset Write Off increase (IAWO)

Facts:

Eligible businesses will be able to claim immediate deductions on their annual turnover for assets purchase for ~$150,000 or less (the cap for vehicle purchases could be limited to a maximum of $57,581)
This IAWO increase is in effect from now until June 30^th, 2020 for assets first used or installed by the end date.
This deduction will be claimable per asset (i.e. you can write off multiple assets at $150,000 each)
To be eligible your business must have an annual turnover of less than $500 Million.
This will result in a lower payable tax amount at the end of the 2019/2020 financial year.

This IAWO increase will back businesses to invest in the economy to help recover from the economic impact of COVID-19.

For more information on the proposed IAWO increase, see this fact sheet from the ATO.

Backing Business Investments

Facts:

Eligible businesses may be able to claim an extra depreciation deduction of 50% of an asset’s costs, on top of the standard 30% depreciation, in the first year.
This will result in a tax benefit over the life of the asset, as well as provide better cash flow.
This applies to assets purchased & first used/installed between now and June 30^th, 2021.
To be eligible your business must have an annual turnover of less than $500 Million.

This accelerated depreciation deduction scheme will allow businesses to purchase equipment, support the economy, and lower taxes over the next financial year.

For more information on the proposed Backing Business Investments scheme, see this fact sheet from the ATO.

Other business-related support

Along with the above-proposed measures, the ATO has also released a list of optional relief support, available to certain businesses facing financial difficulties.

These support options include payment deferrals, GST cycle changes, and credits, Pay As You Go (PAYG) installment variations, and low-interest tax re-payment plans.

Of particular interest is the support offered to PAYG payers. If you pay quarterly PAYG installments, you can lodge a revised activity statement for the March 2020 quarter, to vary your installment payment and potentially claim a refund for payments already made.

For more information about PAYG variations and other relief support options for businesses, visit the ATO website here.

House Hold Stimulus payments

Facts:

Eligible individuals could receive a ONE-OFF payment of $750 (payment is per person, not per household).
This would be received as an automatic deposit into your bank account.
To be eligible, you must hold a certain concession card or receive a certain support payment (for a full list see here).
You must hold an eligible concession or receive an eligible support payment as of March 12^th, 2020 to receive the one-off stimulus payment.
This one-off stimulus payment will be paid automatically from March 31^st, 2020.
If you are under 22 years of age and do not have employer leave entitlements, you may be eligible for the JobSeeker Payment.

In order to support lower-income Australians, pensioners, and income support recipients, this stimulus payment will be made to assist the increased demand on the economy.

For more information on the proposed House Hold Stimulus payment, see this see here from the ATO.

If you believe you qualify for any of these proposed initiatives summarised above and would like to know more information specific to your situation please contact us and we will be happy to help.

Again, it is also important to note that at the time of publishing, these proposed measures are yet to be legislated so we cannot guarantee they will be enacted according to these details.

There is talk of an additional stimulus package on the agenda and soon to be announced, however, this has not been confirmed at the time of posting this article. As this is passed and comes to fruition, we will update you. You can stay informed here.

Liability is limited by a scheme approved under Professional Standards Legislation.

First Home Loan Deposit Scheme

Purchasing your first home is a mix of making a daunting life decision and overwhelming excitement all at once. Even though you’re locking yourself in for a significant debt for the first time and you might be doubting your saving ability, there are many support systems in place to make the process of buying your first home easier.
The First Home Loan Deposit Scheme is a new initiative by the Australian Government and the National Housing Finances and Investment Corporation (NHIFC), where the Government will guarantee support for a percentage of your deposit.

Generally, you need to save a minimum of 20% of a home’s value as a deposit to avoid paying extra insurance and bank fees on your first home loan. Referred to as Lenders Mortgage Insurance, you’re basically paying the bank a fee to cover you for the amount you fall short on your deposit. With the new Deposit Scheme, the minimum deposit you’re required to pay, to avoid extra fees, is just 5%. If you can put forward 5% of your new home’s value, the Government and NHIFC will provide a guarantee to your bank for the remaining 15% (maximum).

This is not a cash payment or a deposit for your house, and there are no costs involved. What you get is support in the form of a guarantee from the Government to your bank, that you will be responsible for meeting all costs and repayments over the life of the loan. What’s even better, is this Scheme can be used in conjunction with other initiatives like the First Homeowners Grant (which exempts you from paying stamp duty on your first home).
As expected, there are rules for eligibility, which are outlined in great detail here. Some of them are:

It must be your first home purchase
You must be 18 years of age and an Australian Citizen
You must be either single or in a de facto/married relationship
You must earn under a certain amount ($125,000 for singles / combined $200,000 for couples)
It must be your primary residence (investment properties are not covered)
The property price must be under the price cap for its location (more information here).
It must be a principle and interest loan

If you can tick off all of these criteria, then you are eligible to apply for a place in the scheme but be quick because there are limited places available in this financial year. The Deposit Scheme is only offered in partnership with certain lenders though, so it’s best to talk to your lending specialist to reserve your position in the Scheme before they run out. There will be more places released after July 2020.

Get in touch with Paul Duncan, Geelong’s Lending Specialist to talk about securing your place in the First Home Loan Deposit Scheme today. Contact us to make an appointment, or phone 03 5224 2366.

Information is intended to be of a general nature only and any advice has been prepared without taking into account any person’s particular objectives, financial situation or needs</em

New Year resolutions come in many shapes and sizes and range from the really challenging – I am going to get fit, healthy, drink less, lose weight – through to the less strenuous – stop watching reality TV, meditate more, read some good books, or take a break from Facebook.

For most of us, we are lucky if our New Year resolutions last more than a couple of weeks, at the most. Then, we fall back into our old ways. Sound familiar? This year, being a brand-new year and the start of the “20’s”, we would like to encourage you to spend some time to get your “super” sorted. While superannuation is about as exciting as spending a Saturday night sharpening lawn mower blades, or tidying the underwear drawer, there can be some real financial benefits in getting your super in order.

How do we get our super sorted out in the most painless way?

We all have super. And, for many people, we like our super so much we have multiple accounts! The problem is we lose track of those accounts and don’t really know what we have, where it is, or how much we have saved. The Australian Taxation Office (ATO) reports that as at 30 June 2019 there was almost $20.8 billion of lost and unclaimed super, spread over 2.8 million separate accounts. That’s a lot of money currently sitting with the ATO. Now, contrary to what you might think, the ATO is keen to reunite all that lost and unclaimed super with its rightful owners.

How did we lose our super in the first place?

Well, we move around a lot. We change address, we change jobs, and we forget to tell our super fund where they can find us. And, even when they try to get in touch by email, we probably tend to ignore those emails any way. Each time we change jobs, it can seem easier to get our new company to deposit super contributions into their “default” fund. As a result, we end up with multiple accounts with a variety of different super funds. After a while, if our super fund cannot find us, our super becomes “lost” and it is transferred to the ATO.

What can we do?

Most of us will now have a “My Gov” account. If you don’t have one, then it is time to get one. This is the way the government wants us to access government services like the ATO, Medicare, and Centrelink. Within your MyGov account, if you select the ATO service you will find an option called “super”. Within that “super” option, you can select “fund details”. Once there, it will show the details of each super account you have. You can even manage your funds from here, including the ability to combine all your super accounts into one if you wish. Doing so may help save on the fees for owning multiple super funds. However, before consolidating your super, make sure to check that you are not losing valuable benefits like insurance. Talk to a financial planner and have them check out the insurance you have or, at the very least, call up each super fund and ask then to let you have details of your insurances.

How much lost super do you think the ATO might be holding for you?

Superannuation is going to become more important as we age. Living a life that is solely supported by the age pension is not going to deliver the lifestyle that many aspire to for their retirement. Now is the time to take control of your super and start to make some progress in adding to your eventual retirement nest-egg.

Take control of your Super this year. Talk to our Financial Planners to get started – contact us here.

HG Financial Services – Corporate Authorised Representative 401592 of Alliance Wealth Pty Ltd ABN: 93 161 647 007 AFSL: 449221

The information provided is general advice only has not taken into account your financial circumstances, needs or objectives. This publication should be viewed as an additional resource, not as your sole source of information. Where you are considering the acquisition, or possible acquisition, of a particular financial product, you should obtain a Product Disclosure for the relevant product before you make any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. It is imperative that you seek advice from a registered professional financial adviser before making any investment decisions.

The idea of purchasing a property is daunting enough whether it is your first home or another addition to your investment portfolio. Add in the idea of the mountain of paperwork that goes along with obtaining a home loan and it may seem impossible!

The paperwork lenders require can be significant, and it’s important to provide the correct documentation and completed checklists. Sending your home loan application with missing or incorrect documents can result in your loan application going back and forth without result or even derail the application altogether.

After evaluating the risk involved with repaying a loan, lenders will decide whether or not your application will move forward. While requirements may vary from lender to lender, there are some key criteria commonly used to assess the risk of a client.

Income

The first and foremost area your lender will look into is how much you earn, as well as how stable your earnings are. They want to make sure you can consistently make repayments to your loan and are maintaining continuous employment. Bank statements, payslips, group certificates, and tax returns are among the documents required to give evidence of your income.

Savings

Although the overall number in your bank account is taken into consideration, lenders look at whether you are capable of saving over the long term. A bank account statement showing regular deposits is an example of a required document. In the lead-up to applying for a home loan, think twice about buying your daily coffee or eating out multiple times a week. Instead, deposit this money into your savings account. It is not uncommon for applications to be rejected if a savings history is deemed not to be genuine, for example, if the majority of savings have been given as a gift.

Other income/assets

To better determine your financial situation, lenders want to see proof of your assets and liabilities, including savings, shareholdings, and motor vehicles or an additional form of income. The Hrkac Group team can advise you on the specific paperwork requirements, as each lender can differ.

Credit

In order to determine that you have been able to make any previous credit card repayments and bill payments, lenders will look at copies of credit card and personal loan statements. Keep in mind that it’s not only just your credit card, home loan, or personal loan repayments they’ll look at, but also any mobile phone and utility bills.

Buying a home is a big step in everyone’s lives and there are certainly many hoops to jump through along the way. The team of Mortgage Brokers at The Hrkac Group aims to make the process of gathering all the necessary paperwork and applying for a home loan as simple and stress-free as possible.

Call us today to arrange an appointment.

Although speaking about mental health is becoming more accepted in society, unfortunately, the issue of mental health encompasses a complex and often ‘taboo’ subject within the workplace.

The trust clients hold in their accountants is a relationship unlike many others. With 9 out of 10 clients trusting their accountant beyond compliance and more than half of small business operators stating that running their own business has led to feelings of anxiety and depression, largely caused by financial and cash flow concerns, the accounting profession is evolving into a lot more than reconciliation, profit, and loss. Trusted advice does not always have to be all about the numbers, more so a realisation that sometimes it’s more about listening to the person sitting in front of you and what you can do to help them.

With the term ‘accidental counsellors’ being used around accounting firms more frequently, a typical day as an accountant can entail wearing a large array of hats. We may find ourselves dealing with a client-facing bankruptcy, someone going through a messy divorce, a small business owner struggling to support themselves and their family, or someone fighting to get on top of a mountain of debt.

As accountants, we are often working with people and businesses who are experiencing some level of stress about their finances, and we must be careful to ensure we don’t carry and absorb too much of the stress ourselves. This occupational hazard is a natural reaction as there is always a sense of genuine care toward our clients.

We must be conscious about how taking on other people’s stresses and issues can make an impact on our mental health. In Australia, nearly a third of accountants suffer from mental health issues, with more than half admitting depression and anxiety leaves them dreading going to work. We are all guilty of taking our work home with us during particularly busy and demanding times but, having a good work, life balance and feeling comfortable in the workplace is essential to maintaining positive mental health.

Cultivating an environment in which both employees and colleagues feel safe to talk about their mental health and the issues their clients or themselves are facing is vital to maintaining a supportive and collaborative working environment. To tackle the stigma, The Hrkac Group, along with some other leading accountancy firms, are increasingly adopting new measures and initiatives within the workplace.

From basic mental health awareness programs, maintaining open communication within the workplace, senior leaders endorsing mental health as being important, boosting mental health awareness and knowledge within the workplace is continuing to improve.

For further mental health resources, please visit the World Mental Health Day website.

If you or someone you know is suffering from mental health issues, please contact Lifeline on 13 11 14.