Content kindly supplied by Two Acre Finance
We know that even the smallest changes can have a big impact on your finances. So we're here to help you review your options.
Over the past few days, the government has announced a number of measures to provide support to individuals and business owners facing hardship due to Coronavirus (check it out here).
Coupled with the rate cuts by the RBA, this means there are plenty of options out there right now. We're here to help you make sense of them
so you can make decisions based on facts – not fear.
"We know that many of our clients are incurring higher rates of interest and could be eligible for lower rates or benefit from
refinancing to help cushion the blow right now. Equally, many of our small business owner clients may need access to funds quickly in
order to keep things moving during this uncertain time," says Amanda Hardy, Director of Two
Acre Finance.
"If you're wondering how to manage your loan repayments or access unsecured business loans during COVID-19 we've got your back. We're
here to help review the options available to you."
The banks have always had the ability to offer repayment holidays during times of hardship and this time is no different.
While the option to pause your mortgage may be enticing right now, it's important to think six months ahead.
Are there renovation plans or future purchases on the cards? Do you want to have the flexibility to change your loan down the track to take
advantage of cheaper interest rates if they arise?
Pausing your loan repayments may have an impact on your future borrowing ability. When this time has passed, and it will pass, you'll need a
repayment history and good credit history in order to access funds.
The good news is, there are other options available to you if you are experiencing hardship:
We can help with all of this. But if none of the above is an option for you right now, and you need support pausing your mortgage
repayments, we can also help with that.
Two Acre Finance are opening their calendars this week for free loan
review consultations as a way to help you take control of your finances during this trying time.
Small business is the heart of our economy and the government has acknowledged that in its stimulus
package.
There is an opportunity for small businesses to access lending with six months interest free with the government as a guarantor.
Plus, to help keep loans affordable, the RBA has guaranteed a 0.25% rate for three years to banks lending to small business. This
means lower interest rates on business loans for the next three years. We’ve already seen some business loan interest rates reduce by up to
4%.
Small businesses will also be able to temporarily access credit without the usual headaches of having your income and expenses scrutinised
as responsible lending obligations are relaxed. This means small businesses can get access to loans quickly and efficiently.
On 31 March 2020, the Fringe Benefits Tax (FBT) year ends. With the ever increasing budget deficits, the ATO will be reviewing whether all employers who should be paying FBT are, and that they are paying the right amount. Who needs to lodge a FBT return? Find out here.
With the borders between the State and Territories all but open and 2021 in sight, there is a hunger for a return to normal. With Australia's desire to ‘get on with things,' sentiment reached its highest level since November 2013 and Christmas spending is expected to be consistent with previous years.
Stimulating investment is high on the Government’s agenda. To encourage spending, the 2020-21 Budget introduced a measure that allows businesses to immediately deduct the cost of new depreciable assets and the cost of improvements to existing assets in the first year of use.
