“How much can I borrow?” is a standard question for many prospective residential property purchasers.  The start point should be what repayments can you afford to make?  Banks do not willingly issue loans to clients who cannot afford to repay them, they are under regulatory pressure to lend responsibly, but you should always check your own numbers as well!

The bank term ‘loan serviceability’ refers to their test which largely determines your borrowing capacity.  It is important to note that every bank has different rules and parameters, in fact the same person asking at 20 different banks and financial institutions can receive 20 different answers to how much a bank will lend to them (one advantage of using a broker!)

Every different component of the analysis can vary bank to bank.  For example how long you have worked at your current position matters, even how you earn your income:  Base wages, overtime, penalty rates, commission, independent contractor, self-employed, rents, dividends, child maintenance.

‘Assessment’ rates vary and will not be the same as the actual interest rate payable.  Banks will add a margin when assessing serviceability, to make allowances for future interest rate rises, they will also assess at principle and interest repayments.

Negative gearing allowances also vary bank to bank, having significant impact where investment loans are evident.

Then you need to consider your actual monthly living expenses.  How much of your income do you already spend?  Many banks will look at your last 3-month bank statements and credit cards, that should be where you start too.  You may need to stop spending before you apply for that loan.

Credit card limits are important, banks will allocate repayments based on your card limits whether you have them maxed out or not.

Personal loan and car loan repayments will severely limit your borrowing capacity.  If you are wanting to buy property consider the effect that holiday or car may have on your serviceability before you make the purchase!

Even more important is your credit record.  Pay your bills on time (including that mobile).  If you are unsure of your credit record discuss that with your broker.

Click here to learn more & meet Nic & Tom, our finace and mortgage specialists, or  just give them a call on (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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Nicholas Berry Credit Representative Number 472439 and Thomas Bailey Credit Representative Number 472440 are Credit Representatives of Integrity Finance (Aust) Pty Ltd – Australian Credit Licence 392184.

This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. These articles are not owned by Integrity One Planning Services. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Transition into aged care can be an emotional time for all involved.

IntegrityOne have dedicated aged care specialists who will help you navigate your way.

Click here to learn more & meet Catherine, Jenny & Matt, our aged care specialists, or  just give them a call on (03) 9723 0522

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser before making decisions using this information.

Well almost new! Welcome back Eliot!

After 3 and a half years away from the group, Eliot has re-joined the Integrity One office.

This time around, she will be assisting Kerrie Knox in the role of Centrelink & Aged Care Consultant. Eliot will be working with us on a Monday, Wednesday, and Thursday and would be happy to assist you with your inquiries.

Eliot is a country girl at heart, she grew up on a farm in Corryong where her love of fishing, fitness and health food began. These passions live on today, when she is not working at Integrity One she can be found either running group fitness sessions in her role as a personal trainer or serving food from her other venture a healthy mobile food van.

Looking after people certainly is a full-time occupation for Eliot!

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

The Australian Government’s Health Direct website recommends a balanced diet for seniors.  

This includes the normal advice about fruit and vegetables (five portions of vegetables and two portions of fruit a day), wholegrain varieties of bread, pasta and rice, some milk and dairy foods, as well as protein from lean meats, fish (two portions of fish a week, including one that is oily, like tuna), eggs and beans. As always, food and drinks that are high in fat or sugar should be limited.

When older, we need to maintain our fluids – aim to drink at least six times a day to minimise the risk of dehydration. Water is best, but tea, coffee, mineral water, soda water and reduced-fat milk can all count towards your fluid intake. If you’re a heavy tea or coffee drinker, mix it up with non-caffeine drinks.

We also need to make sure we keep up our iron intake. The best source of iron is lean red meat. The Australian Dietary Guidelines recommend older men over 51 should eat two and a half serves and women over 51 should eat two serves of protein a day. A serve is 65g of cooked lean red meat such as beef, lamb, veal, pork, goat or kangaroo (about 90-100g raw). Liver is a good source of iron. However, it’s also rich in vitamin A, too much of which can be harmful, so make it an occasional food only.

More information is available at www.healthdirect.gov.au/healthy-eating-over-60

The World Health Organisation recommends adults aged 65+ should do at least two and a half hours of moderate-intensity exercise each week. Muscle-strengthening activities, involving major muscle groups, are important for maintaining muscle mass and should be done on two or more days a week.

The Better Health Channel website has some great exercise ideas for older Australians, including tips for staying active in your senior years. Check it out at:

www.betterhealth.vic.gov.au/health/ten-tips/10-tips-for-active-seniors

If you would like more information on planning and preparing for retirement and/or aged care services please give us a call. One of our qualified financial planners and/or aged care specialists are more than happy to have a chat.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

SMSFs have a range of reporting requirements, one of which changes to members transfer balances. A member’s transfer balance is the total amount of superannuation benefits in retirement (pension) phase.

Where a member’s transfer balance is over $1m reporting is required to be undertaken in real time. The value is the sum of the member’s total individual superannuation balances. Total superannuation balance refers to the total amount of funds in superannuation for an individual which may be across more than one fund and partly in retirement phase and partly accumulation.

Events that will impact balances & must be reported to the ATO include:

• The commencement date and start value of retirement phase superannuation income streams on or after 1 July 2017.
• Member commutations from a retirement phase income stream.
• The commencement of a death benefit income stream.
• Personal injury contributions from 1 July 2017.
• Limited recourse borrowing arrangement (LBRA).
• An income stream stops being in the retirement phase.

Reports are generally required to be lodged no later than 10 days after the end of the month in which the event occurred, or a later date at the ATO allows. Penalties may apply for failure to report on time and in the prescribed form.

This requirement has important timing and taxation implications for individuals considering retirement where their member balance is over $1m. The flexibility to retrospectively retire during the course of the year is no longer an option for these individuals.

Does this sound complicated? Give us a call and we’ll explain the detail.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.

Treasurer Josh Frydenberg’s first Budget focused on reducing the tax burden for the majority of working Australians, greater superannuation flexibility for retirees and a one off energy relief payment for eligible income support recipients.

Note: These changes are proposals only and may or may not be made law.

Personal tax savings

Immediate tax relief

Low and middle income earners will receive a tax saving of up to $1,080 per person. While the intention was that this saving could be claimed in the 2018/19 tax return, the proximity of the Federal election to the end of the financial year and the administrative actions require post-election may impact the timing of this saving.

Preservation of tax relief for low and middle income earners

From 1 July 2022 the 19 % tax bracket will increase from $41,000 to $45,000; with an increase in the low income tax offset from $645 to $700.

Reduction in key marginal tax rate

From 1 July 2024, the current 32.5 per cent marginal tax rate will drop to 30 per cent for income between $45,000 and $200,000.

Minimisation of bracket creep

The Government estimates that from 1 July 2024 94 per cent of taxpayers will have a marginal tax rate of no more than 30%.

Greater superannuation flexibility for retirees

Changes to voluntary super contributions

Australians aged 65 and 66 will be able to make voluntary super contributions without meeting the Work Test, removing the need for people of this age to work a minimum 40 hours over a 30-day period.

Increasing age limit for spouse contributions

The age limit for people to receive contributions made by their spouse on their behalf increases from 69 to 74 years.

Extended access to bring-forward arrangements

People aged 66 and under will now be able to make 3 years worth of non-concessional contributions to their super in a single year capped at $100,000 a year.

Small to medium business

Increase in instant asset write-off

The threshold for the instant asset write-off increases to $30,000 from $20,000. It has also been broadened to include businesses with up to $50 million in turnover, making it available to around 3.4 million Australian businesses.

Pensioners and welfare recipients

Energy Assistance Payment

Over 3.9 million eligible Australians will automatically receive a one-off payment of $75 for singles and $125 for couples (combined) to assist with their energy bills. This payment will be exempt from income tax and not counted as income for social security purposes.

Please contact Integrity One if we can assist you with this or any other financial matter.

Phone: (03) 9723 0522

Suite 2, 1 Railway Crescent
Croydon, Victoria 3136

Email: integrityone@iplan.com.au

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This information is of a general nature and does not take into consideration anyone’s individual circumstances or objectives. Financial Planning activities only are provided by Integrity One Planning Services Pty Ltd as a Corporate Authorised Representative No. 315000 of Integrity Financial Planners Pty Ltd ABN 71 069 537 855 AFSL 225051. Integrity One Planning Services Pty Ltd and Integrity One Accounting and Business Advisory Services Pty Ltd are not liable for any financial loss resulting from decisions made based on this information. Please consult your adviser, finance specialist, broker, and/or accountant before making decisions using this information.