Who can access the concession?

The new concession package will remove the existing Stamp Duty cap applicable to first home buyers and owner occupiers and will open the concession to anyone buying an apartment, unit or townhouse off-the-plan, including investors.

Buyers of strata-titled apartments, units and townhouses will be eligible for Stamp Duty concessions.

How much will I save?

The amount of stamp duty paid will be calculated based on the cost of the land prior to construction, not the total price of the finished property.

Example of savings:

A Victorian who buys an off-the-plan apartment for $620,000 – with the land valued at $77,500 – would pay just $4000 in stamp duty, rather than $32,000 – a $28,000 reduction.

Note: For properties under construction, stamp duty will be based on land value and amount of construction that has already been completed.

Want to know more? interested in buying property in Victoria?

Call us on 1300 784 246 , email us at energise@spect.com.au or visit out website www.spect.com.au

The post Stamp Duty savings: Victoria off the plan purchases appeared first on Spectrum Financial Advisors.

In addition to being the Director of Spectrum, Reid Swift also dedicates his time to perform the volunteer role of Treasurer and Executive Committee member for the Randwick Family Centre (RFC), located on-base at Randwick Barracks. As an Executive Committee member, Reid meets with other organisations who also provide support to past and present ADF Members.

RSL LifeCare has been supporting veterans and their families for more than 110 years. With a holistic approach to wellbeing across a range of areas, RSL LifeCare offers assistance with: –

• Career counselling, skill identification and job application support
• Natural Disaster relief assistance
• Homelessness & housing support including retirement living options
• Mental and Physical wellbeing support therapies
• Other Veteran-centric services

To find out more about RSL LifeCare: –

https://rsllifecare.org.au/home-care/frequently-asked-questions/

The post Spectrum & RSL LifeCare appeared first on Spectrum Financial Advisors.

Recently the Tax Office finalised their Ruling and clarified their position. As a result:-

Owners can include interest and borrowing costs for their construction loans if they are building an investment property (not a property to sell).

Holding costs for the land such as interest and borrowing costs, as well as council rates, land tax, etc will continue to be non-deductible but can be capitalised as part of the cost base for CGT purposes.

What does this mean?

If you bought an investment property and paid interest between 1/7/19 and 30/6/24 on a construction loan – you may be able to apply for an amendment to your tax return(s) to include additional deductions for any interest/borrowing costs that have not already been claimed.

What years can be amended?

Tax returns can be amended based on standard ATO amendment time limits – generally 2 years from the day after your original notice of assessment is sent to you (eg if the date of your 2022 notice of assessment issued is 31 October 2022, then you have until 31 October 2024 to request an amendment to your 2022 tax return).

https://www.ato.gov.au/individuals-and-families/your-tax-return/amend-your-tax-return

https://www.ato.gov.au/individuals-and-families/your-tax-return/amend-your-tax-return/time-limits-on-amendments

If the above applied to you – what to do now:-

• Contact the Tax Agent who lodged your tax returns to request they amend your tax return(s)
• They may charge a fee so in order to minimise the cost involve have ready the necessary paperwork required being:-

1. Loan documents relating to the property
2. All loan statements relating to the property from date of purchase of the land until construction was complete

Holding costs that you can’t claim

Any costs that you incur on an investment property from land purchase to the property being rented and haven’t been claimed in your tax returns will be able to be included in the Cost base to reduce your capital gains tax when you sell the property. Therefore, it is vitally important that you keep records of all expenses during that time. We would suggest keeping an excel spreadsheet to summarise these expenses as well as the source documents being – loan documents, loan statements, bank statements, receipts, etc. remembering that you will need to keep until after the property is sold. To confirm the type of expenses I am referring to:-

Holding costs of land & any construction costs that you don’t claim as outright deductions:-

• Upfront loan costs;
• Interest paid
• Bank charges
• Rates
• Land Tax
• Building inspection costs

Want to know more information?

Contact us at https://spect.com.au/contact-us/ if you have any questions.

The post ATO changes for all purchasers of House and Land Packages appeared first on Spectrum Financial Advisors.

The 2024-25 budget handed down by the ACT government has announced an overhaul to Stamp Duty concessions for home buyers.

From 1 July 2024:

• Stamp duty concession threshold for off-the-plan apartment or townhouse purchases increasing from $800,000 to $1 million
• Threshold for household income will increase to $250,000 p.a. (up from $170,000 p.a.)
• The scheme will be eligible to to buyers who have not owned a property for five years (previously two years)
• The existing Disability Duty Concession Scheme, which is available to eligible home buyers with a disability, will provide a partial concession on stamp duty on properties over $1 million. (Previously, the scheme only provided a concession on properties valued up to $1 million.)
• Pensioner Duty Concession Scheme will provide a full stamp duty concession on the first $1 million of property value and a partial concession of over $1 million for pensioners downsizing their homes. (A substantial increase from full stamp duty concession previously only available for homes valued up to $550,000, with a decreasing concession to zero for homes valued between $550,000 and $765,000.)

Contact us to see how these changes can get you into your own home sooner – https://spect.com.au/contact-us/ 

The post ACT home buyers to save thousands on stamp duty appeared first on Spectrum Financial Advisors.

Our Director, Reid Swift provides a snapshot of everything that is happening in the finance industry including DHOAS loans, mortgages, loan repayments and interest rates.

YouTube channel link here

Tell us what you want to hear! Click here to contact us and let us know what topics you’d like to hear on our Vlog!

The post Spectrum Vlog – Volume 1 – 21/11/22 appeared first on Spectrum Financial Advisors.

Owning a property is a big financial responsibility, and there are many factors to consider when you decide to buy.

Although depreciation is never the primary reason for purchase, it certainly has quite a bearing on the cash flow of your property that cannot be overlooked.

Duo Tax Depreciation have created the following video giving detailed pros and cons for each situation when deciding between purchasing a brand-new and existing property in the context of tax depreciation.

ADF members where you have posted away and rented out your home – you may be able to claim Capital Works write-offs.

The above can also be viewed here on YouTube

If you’re considering buying a property and want to discuss tax depreciation, tax planning or have general questions about investing in property, contact us today 

The post Buying new property or existing – from a depreciation perspective appeared first on Spectrum Financial Advisors.

What is an emergency fund?

An emergency fund is essentially a savings safety net: money that you’ve stashed away for a ‘rainy day’. You commit to building it by putting money aside regularly and not touching it unless there’s a crisis.

Having this buffer enables you to access your own personal funds when they’re needed without having to max out your credit card, borrow money off friends or family, or get into debt by taking out a loan.

How much should be in your emergency fund?

Everyone has different needs, income and expenses. For some people, putting aside $10 a week into an emergency fund may be all they can afford – and that’s fine! For others, the goal may be having a month’s worth of expenses tucked away. Or maybe a year of expenses might be the absolute minimum you’re comfortable with.

Some experts suggest saving at least three months’ worth of expenses in your fund. To work out how much your expenses are, add up everything you spend per month including rent or mortgage payments, food, bills and other costs. Don’t forget to factor in the little expenses too, like lunches at work or daily coffees. It all adds up!

Let’s says for example, once you add up all your monthly expenses, you need roughly $4500 per month then your goal may be to save a buffer of $13,500, which gives you three months’ worth of expenses in a crisis. A savings calculator can also help you determine how much you can set aside and you can find many of these online – including the Federal-Government run MoneySmart website.

5 ways to boost your emergency fund

1. Slash expenses and save the extra: Paying for a full on-demand TV package? Compare providers, their packages and what you watch and need. If you swap your subscription and end up saving about $100 per month – that’s $1200 per year for your emergency fund.
2. Save into an account paying higher interest: You may wish to ask your bank to send a regular payment to the account or ask payroll to send a portion of your pay to that account. Try to choose an account that offers bonus interest if you don’t withdraw money.
3. Create your emergency fund in an offset account: You could use your home loan’s offset account as your emergency fund if you feel that is a better option for you. Or, if you have a redraw facility, add more to your mortgage repayments to create funds that sit in your mortgage but are there to dip into in an emergency.
4. Top your account up with any extra: If you’re in the habit of cleaning out your wallet or bag and dumping excess change into a jar at home, wait until it’s full then take it to your bank and pop it into your emergency fund. Similarly, you could transfer your tax rebate into your fund or even sell stuff you no longer want to boost your fund further.
5. If you can find the time: Why not get a side-hustle and save what you earn into your emergency fund? It could be an Uber or Air tasker style of gig or AirBnB. Maybe you have some skills you’re not utilising that could earn you money.

When should you use it?

Having a large chunk of change in an account may be tempting for many of us – but this isn’t money you can use for something you want (like a new outfit or a trip to Fiji). It’s only there to cover the cost of real emergencies.

As a rule of thumb, you may define ‘emergencies’ as things you absolutely cannot get out of dealing with right now, such as:

• Repairs to your car or needing to replace household appliances.
• Home maintenance that’s not covered by insurance.
• Unexpected travel to see a sick loved one.
• Job loss for you or your partner, or a slow patch when you need to cover bills and the mortgage (if you work for yourself).
• Leaving a toxic job
• Escaping an unsafe family home environment.

We hope that the above has been helpful. Feel free to contact us should you wish to discuss.

Happy saving!

The post MONEY TIPS: Your essential guide to building an emergency fund appeared first on Spectrum Financial Advisors.