Q: Are you able to help consolidate our family household budget?

A: We can certainly help you with this. If you click on the tax tips/useful info tab within this website (once you are registered and logged in as a user) click on and print out the Budget Planner and Loan Questionnaire. Then if you complete it to the best of your ability and email it to me on This e-mail address is being protected from spambots. You need JavaScript enabled to view it I will then review and be in contact with you to discuss further and see what we can do to help to improve your situation.We have been working with a number of our clients on both of the above projects as we have had a strong demand for the service from our clients. They have proved to be very popular and successful with those clients and they are loving it as they can see the value we are adding by being more involved in guiding them through the challenges of these uncertain economic times.

Q: Will interest rates keep going up? Should we fix interest rates?

A: The governor of the Reserve Bank recently indicated that official interest rates could be moving higher sooner rather than later. I provide an example on what we can do for a client. Our client had a variable home loan that they were considering fixing as they were concerned about the reported interest rate hikes by the Reserve Bank and possible further interest rate increases in the future.
After consulting with our finance aggregator, MTK Accounting Services advised our client that, by fixing half of their home loan and leaving the other half variable, it would give them some certainty about monthly loan repayments as well as providing a degree of flexibility by leaving a portion of their home loan on a variable rate.
Our client agreed to move forward with our advice. They now know what their monthly repayments are going to be for the fixed part of the loan giving them peace of mind should there be any further interest rate movement. By leaving the other half of their home loan on a variable rate, our client is able to make additional repayments to the home loan without penalty and take advantage should interest rates reduce in future years.
 

Q: Do you believe that the economy will pick up in 2010?

A:  Although Australia has not ‘technically’ been in recession, I feel it’s fair to say that it has been a recession in all but name. One thing we can take from history is that whilst no-one expected a fall of such severity, equally no-one will expect the magnitude of the ensuing rise that will surely come.
The key is to be ready for it.
People and businesses that invest in themselves DURING the recession are likely to increase their wealth above the average of all people and businesses in the post-recession economy.
What could you be doing now to position yourself?
Everyone’s needs are different and so I have taken the view that the best way in which I can assist you as a valued client is to offer a meeting with you, at no cost and no obligation. I’d like to find out more about the challenges you are experiencing and the opportunities you see for yourself and importantly, to act as a sounding board and objective perspective for you. I hope this has helped in some respect.

 Q: When does 50% small business tax break run out? Please provide example on how this works.

A: The 2009 Federal budget resulted in some changes that could provide small businesses with a 50 per cent tax deduction on new car or equipment purchases. To provide you an example on how it works. Our client had a business-registered motor vehicle that they were looking to replace. They also had substantial profits within the business which required some carefully structured tax planning to minimise their year-end tax liability.
At MTK Accounting Services we advised our client that, by taking advantage of the 50 per cent Investment Tax Break, they would be able to achieve the goal of acquiring a new vehicle as well as saving a substantial amount in tax.
As a result of our tax planning, our client saved $7,500 in company income tax ($50,000 purchase price x 50% tax break @ 30% tax rate). Additionally, our client achieved their goal of replacing an ageing motor vehicle and now commutes in a brand new, reliable vehicle which minimises any risk of business interruption due to vehicle breakdown