Tag: March

Interest Rates on Hold

Last week (05/03/19), the Reserve Bank of Australia decided not to change the official cash rate of 1.5%. Two days later the December quarter economic growth figures showed that the economy had slowed considerably – growing by just 0.2% from October to December, and 2.3% over the previous 12 months. This is considerably less than the forecast 3% in the Federal Budget. As a result, many economists are now expecting the Reserve Bank to reduce interest rates even further in the coming year; which would represent record lows. It’s an opportune time therefore to review whether you are making the most of this low rate environment. 

Have you considered the following? 

*         Fixed rate options. While rates are at an all-time low there may be opportunities to fix your loans for 3 or 5 years at under 5% per annum. Explore your options. Some borrowers may wish to fix just a portion of their loan. 

*         Review your position. Low interest rates offer an opportunity to refinance or revise your payment schedule to pay your loan off sooner. Talk to your broker to see if there’s a home or business loan that better suits your needs. 

*         Debt reduction. With lower rates, your monthly/fortnightly repayments will be less. Rather than pocketing the difference, if you put the difference into extra repayments, you can shave years off your loan and, in doing so, save thousands in interest. For example, a $500,000 home loan at an interest rate of 7% requires repayments of $3,078 per month over 30 years. At 4.5%, the repayments are $2,533, a difference of $545 a month. If you put that $545 into extra repayments, you can potentially take more than 9 years off the home loan term and save almost $140,000 in interest. 

*         Create an offset account. This is effectively a money source sitting beside your mortgage. Any savings inside this account are effectively offset against your loan, which in turn reduces the amount of interest you pay. 

Of course, low rates will not be around forever. As a borrower it’s important not to become complacent and to make sure that you still have the capacity to meet your repayment obligations in the event that rates increase. 

Key Dates for Business Mar-Apr 2018

March 2018

21 March
February monthly Activity Statements – due for lodgement and payment.

April 2018

21 April
March monthly Activity Statements  – due for lodgement and payment.
21 April
Quarter 3 (January-March) PAYG instalment Activity Statments for head companies of consolidated groups – due for lodgement and payment.
28 April
Quarter 3 (January-March) Activity Statements – due for lodgement and payment (if lodging by paper).
28 April
Quarter 3 (January-March) PAYG instalment notices (forms R and T) – final date for payment and, if varying the instalment amound, lodgment.
28 April
Quarter 3 (January-March) GST instalment notices (forms S and T) – final date for payment and, if varying the instalment amount, lodgement.
28 April
Quarter 3 (January-March) superannuation guarantee contributions to be made to a complying fund on behalf of your employees.
30 April
Quarter 3 (January-March) TFN Report for closely held trust for TFNs quoted to a trustee by beneficiaries – fiinal date for lodgement.


Where one of these dates falls on a weekend or a public holiday, the due date is extended to the next business day.

KEY DATES FOR BUSINESS – March/April 2017

March and April 2017
Many lodgement and payment deadlines are looming for business including those relating to Activity Statements, superannuation, and more…..

MARCH 2017

21 MARCH – February monthly Activity Statements – due for lodgement and payment
31 MARCH – Lodge tax return for companies and super funds with total income in excess of $2 million in the latest year lodged (excluding large/medium taxpayers), unless due earlier. Payment for companies and super funds in this category is also due by this date.
31 MARCH – Lodge tax return for individuals and trusts whose latest return resulted in a tax liability of $20,000 or more, excluding large/medium trust. Payment for individuals and trusts in this category is due as advised on their notice of assessment.

APRIL 2017

21 APRIL – March monthly Activity Statements – due for lodgement and payment.
21 APRIL – Quarter 3 (January-March) PAYG instalment Activity Statements for head companies of consolidated groups – due for lodgement and payment.
28 APRIL – Lodge and pay quarterly Activity Statement for quarter 3, 2016-17 – paper lodgements.
28 APRIL – Pay quarterly instalment notice (form R,S or T) for quarter 3, 2016-17. You only need to lodge if you are varying the instalment amount.
28 APRIL – Quarter 3 (January-March) Superannuation Guarantee contributions to be made to a complying fund on behalf of your workers.
30 APRIL – Final date for lodgement of January-March 2017 TFN report for closely held trusts for TFNs quoted to a trustee by beneficiaries.
30 APRIL – Lodge lost members report for the period 1 July 2016 to 31 December 2016.

*Where one of these dates falls on a weekend or a public holiday, the due date is extended to the next business day.