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Queensland

The good news is that from 1 August 2011, the Queensland Government has announced a new $10,000 grant for eligible property purchasers called the “Queensland Building Boost Grant”. This is available for any purchase or construction of a new home for owner occupier or investment purposes. The grant is only available on property purchases or building contracts made between 1 August 2011 and 31 January 2012 and for owner builders, construction must start between these dates. A couple of points to note are that the grant is available to any person, corporation or trustee where the property value is less than $600,000 and that the grant can be used in addition to any other current grants (i.e. First Home Owner Grant) or any Duty concessions that may apply.

The bad news is that the Transfer Duty Rates increased through the removal of the Home Concession although the First Home Concession and the First Home Vacant Land Concession will continue.

Other changes are:

Registration of Mortgage – iincreased from $127.90 to $132.00
Discharge of Mortgage – increased from $127.90 to $132.00

Northern Territory

The NT Government has also introduced a similar scheme as Queensland with the BuildBonus Scheme that also provides $10,000 for home buyers and investors including companies and trustees entering into a contract to purchase a new home between May 3 2011 and 31 December 2011.

Customers can only receive one BuildBonus payment and the value of the new home or total construction cost is capped at $530,000. First Home Buyers are eligible for both the $7,000 FHOG grant as well as the BuildBonus meaning they are eligible for $17,000.

New South Wales

The Land Titles Office registration fees have increased as follows;

Registration of Mortgage – from $97.00 to $99.50
Discharge of Mortgage – from $97.00 to $99.50
Registration of Transfer – from $194.00 to $199.00

Victoria

The Land Titles Office registration fees have increased as follows;

Registration of Mortgage – from $100.10 to $102.40
Discharge of Mortgage – from $100.10 to $102.40
Registration of Transfer – from $122.00 plus $2.46 for every $1,000 of the transaction with the maximum fee of $1,352 to $124.80 plus $2.46 for every $1,000 of the transaction with a maximum fee is $1,355

There is some good news though in that Victorian Transfer Stamp Duty rates will be reduced by 20% for eligible first homebuyers purchasing principal places of residence valued up to $600,000. As well as this, The First Home Bonus and VIC Regional Bonus for newly constructed homes will be extended until 30 June 2012.

WA

The Land Titles Office registration fees have increased as follows;

Registration of Mortgage – from $135.00 to $160.00
Discharge of Mortgage – from $135.00 to $160.00
Registration of Transfer Mortgage

• Property value does not exceed $85,000 – from $135.00 to $160.00
• Property value does not exceed $120,000 – from $145.00 to $170.00
• Property value does not exceed $200,000 – from $165.00 to $190.00

Note: For transactions over $200,000 the fee is $190 plus $20 for every $100,000 or part thereof.

SA

The Land Titles Office registration fees have increased as follows;

Registration of Mortgage – from $121.00 to $140.00
Discharge of Mortgage – from $121.00 to $140.00
Registration of Transfer Mortgage

• Property value does not exceed $5,000 – from $121.00 to $140.00
• Property value does not exceed $20,000 – from $135.00 to $154.00
• Property value does not exceed $40,000 – from $150.00 to $170.00

Note: For transactions over $40,000 the fee is $237.00 plus $69 for every $10,000 or part thereof above $50,000.

Some good news in SA is that the First Home Bonus and will be extended until 30 June 2012.

TAS

The Land Titles Office registration fees have increased as follows;

Registration of Mortgage – from $85.50 to $119.70
Discharge of Mortgage – from $106.00 to $148.40
Registration of Transfer – from $131.00 to $183.40

As well as these increases, the TAS FHOGS Transfer Stamp Duty Concession for established dwellings was abolished although the existing concession for the purchase of vacant land still applies

ACT

Registration of Mortgage – from $99.00 to $102.00
Discharge of Mortgage – from $99.00 $102.00
Registration of Transfer – from $195.00 $201.00

These figures have been provided in good faith but should be checked with the appropriate government department.

Planning for retirement is a critical function for anyone and the closer you get to retirement, the more important it is to have appropriate plans in place.

We have asked for some information to be provided on this topic by Kate Zerbst of Community Wealth and this is shown below. Please note that this is intended for general information and should not be relied on as being applicable to your own circumstances without checking with Kate or your financial advisor.

In 2005 the Government announced new superannuation rules which opened up a host of opportunities for people aged 55 and over. So whether retirement is 10 years off or just around the corner, if you are over 55, you can access your super as an income stream – this is called a transition to retirement pension.

You might want to cut your working hours without taking a pay cut or you may be looking for ways to boost your super in the last few years before retirement, without sacrificing your current lifestyle. You may simply be looking for a better way to arrange your finances so that less money goes to the taxman and more goes into your pocket. Whatever your circumstances, accessing your super via a transition to retirement pension could get you onto a clear and effective path to retirement.

How might you be able to benefit from accessing your super earlier?

The benefit of this opportunity is that it may give you the chance to decide which path you will take to retirement (depending on your circumstances). By allowing you to draw down on your existing superannuation monies, you could find several new routes opening up, including:-

• Cut back your working hours whilst maintaining the same income; or
• Continue to work full time but increase the rate at which your super is growing (and potentially reduce your tax bill at the same time); or
• Continue working, draw an income stream and use it to reduce debt or build your non-super assets.

Let’s take a look at these more closely:

1. Cut your hours, not your income

If you have ever thought about retiring but don’t feel you are ready financially or emotionally just yet, then working part-time could be an option. Many of us dream of cutting back our hours but for most of us it isn’t possible as less hours means less pay. Starting a transition to retirement pension at the same time that you reduce your hours could mean that, depending on your circumstances, you end up with the same net income as when you were working full-time, so you don’t have to compromise your standard of living.

2. Boost your super, faster, without sacrificing lifestyle

For many people, maximizing their super balance is the most important aspect of retirement planning. One of the most tax effective ways to contribute to super, depending on your circumstances, is to salary sacrifice.

Salary sacrificing into super simply involves giving up some of your pre-tax salary in exchange for additional contributions into your superannuation. The benefit is that the portion of your income that you salary sacrifice is not taxed at your marginal tax rate and is instead taxed at the concessional rate of 15%. This could represent a significant tax saving.

Whilst salary sacrificing can be attractive, increasing your salary sacrificed contributions obviously means cutting your take home pay. For many people, their current commitments make this option unrealistic. However, a transition to retirement pension could allow you to top up your pay with an income stream from your existing superannuation – meaning you could increase the amount you salary sacrifice into superannuation whilst maintaining your overall income levels. In simple terms, you could say you are increasing the growth of your super by spending it.

The self-employed can also take advantage of this opportunity; instead of salary sacrificing your pay into super, you can make tax deductible contributions to super and start a transition to retirement pension to achieve the same result. It seems odd that you can grow your super by putting money in with one hand and taking it back out with the other. However this is possible because of the tax treatment of the income stream from your super.

Put simply, if the amount you are drawing down from your super to top up your reduced pay is less than the extra money you are now putting into your super through salary sacrifice then your overall super should grow. Once you reach 60, all super benefits you receive will be tax free, further lowering the amount you need to take out and further increasing the attractiveness of this approach.

3. More flexibility when you draw an income through super

Drawing an income from your super whilst working full time could open up a number of other opportunities such as:

• Improving your current lifestyle
• Reducing debt
• Growing other assets

Much thought should be given as to the consequences of drawing down your super ahead of your eventual retirement, but depending on your circumstances the emotional and/or financial benefits of this approach could be significant.

A transition to retirement pension has been incorporated into a number of Community Wealth client strategies as the benefits are so worthwhile. However it is a complex area and you should work out the merits of this type of pension with a financial adviser who can take your unique financial situation into account.

Please give Kate at Community Wealth a call on 1300 242 101 if you want to find out more.

FREE Property Workshop  Why is it important to use a solicitor? Are all or any of your assets exposed to Creditors? Can I buy property in my Self Managed Super Fund? How much deposit do I need to buy an investment property? How you can access over $100,000 TAX FREE on your next Investment Property? Where can I find a cash flow positive property that puts over $300 per week in my pocket? Learn the answers to all these questions and much more…………… When: Tuesday 22th March Where: Surfers Paradise Golf Course, 1 Fairway Drive, Clear Island Waters Time: 6-8.30pm Guest Speakers
		Geoff Gillette, Superannuation Specialist & Accountant Principal: Geoff Gillette & Co, Chartered Accountants B.Bus (Acct), Grad Dip (ICAA)  Specialties: Business Accounting and Taxation Advice Personal Taxation Advice Specialist Self Managed Superannuation Fund Advice Asset Protection Strategies Succession Planning Business Consulting GST Advice
		Hayden Lewis, CEO of The Access Group, B Fin MBA    (NRAS Properties)  Hayden has from inception of the NRAS scheme, been instrumental in delivering the NRAS opportunity to the market. He has over the last two years worked closely with Government, the Non Profit Sector and with ACT’s cornerstone partner QAHC, working to set policy with the major financial institutions in Australia. Prior to concentrating on the NRAS legislation being delivered into the marketplace, Hayden’s experience was in the financial services and advisory sector based in Sydney successfully providing Private Client advice in wealth creation. With a strong focus on individual and corporate structuring, capital raising and management, Hayden’s understanding of the property and finance sectors of which NRAS relates to is extremely valuable.
		Kathy Rogers, FinancialPlus Mortgage Brokers  With over 23 years experience in banking or mortgage broking and millions of dollars worth of loans written, Kathy Rogers is an obvious choice when looking for help with home loans and investment finance. She was recognised as a Sales Master in 2009 for her volume of business submitted through her aggregator—PLAN Australia—during the previous 12 months. Kathy is a keen property investor and has a great understanding of how daunting the process of buying an investment property can be and believes that surrounding yourself with a team of experts can help make this an easy journey.
		Colin Piper, CEO Property and Land Traders  Colin has been involved in property for over 30 years and is a fully licenced Real Estate agent but with a difference, he focuses on finding properties that are Cash Flow Positive. These properties are direct from Developers, Receivers & Liquidators or distressed sellers. He is also involved in the US Property Market. This year Property and Land Traders are at China’s largest Property Trade Show as well as running property seminars in Australia & China. Colin is also a Property Educator and has mentored people with great success throughout Australia.
		Deirdre Payne B.A.LL.B. Dip.FS. Principal & Authorised Representative No 314705 Professional Investment Services Pty Ltd Financial & Legal Architects  Deirdre, with over 25 years as a Solicitor and more recently Financial Adviser offers a suite of services including: Property Conveyancing Superannuation and Self Managed Super Funds (SMSFs) including advice and structure for borrowing in super Investment Advice Asset Protection (insurance) Business Expenses & Key Man Protection Retirement Planning Wills and Estate Planning

No matter if you’re buying your first home, investment property, looking for asset protection, looking for a better loan or thinking about setting up a SMSF this is a night not to be missed. Bookings are essential. To book email kathy@financialplus.com.au Or Phone 0414 818 741

 

The waters may have subsided, but the economic impact of the recent flood disaster is likely to be felt for some time. Economists predict the Queensland and northern New South Wales floods will knock around one per cent off the Australian economy in the December and March quarters. However rebuilding should see at least half of this recouped by year’s end.

Given the extent of the flooding, damage to public infrastructure such as roads, railways, bridges, electricity and water supplycould easily top $10 billion. Yet until the true cost of the damage is calculated, economists widely believe the Reserve Bank of Australia (RBA) will keep rates on hold, which is good news for borrowers.

AMP chief economist Shane Oliver says the RBA will be more concerned with the negative impact the floods may have on economic growth than in increasing rates. As such, he expects the RBA Board to leave the cash rate at 4.75 per cent until Q3, when positive inflation – generated bythe mining sector – starts to push upwards. At present, the mining boom remains alive and well. And, if anything, the boom is strengthening with the terms of trade continuing to rise. The impact is feeding through the economy via higher wealth levels and dividend payments, higher employment,  higher tax receipts and higher business investment.

Mining investment, which accounts for 4 per cent of Australian GDP, is set to add around 1.5 percentage points to Australian economic growth this financial year and 2.5 percentage points to growth for the 2011-12 financial year, according to ABS business investment intentions data. Overall this suggests an environment of reasonable – albeit still somewhat disparate – economic growth, consistent with around 15 per cent profit growth.

So, while the floods may result in soft economic growth in the near term, from mid-year onwards there is a risk that the economy will start to overheat. This is a result of reconstruction following the floods and a boost in replacement spending byconsumers combined with a surge in mining investment.This will lead the RBA to resume tightening, which may result in the lifting of the cash rate.With potential rate hikes towards the end of the year borrowers should now be thinking about how this will impact their capacityto meet mortgage repayments and what steps need to be undertaken to help relieve any stress.

Feel free to give us a call to discuss your situation – we’d be happy to run some scenarios and explore whether there maybe a more appropriate home loan for your circumstances and financial goals.