Phone: (03) 9563 4688

Email: office@aubreypaton.com.au

Address: 17D Chester Street, Oakleigh VIC 3166

find:
Hot Issues
Bushfires 2019–20 (ATO)
Accounting profession responds to bushfire crisis
Helping your business survive a natural disaster - ATO
Single Touch Payroll (STP) – now ensure super is paid on time.
Beware of Australian Taxation Office (ATO) impersonation scams
Australia by the Numbers
‘Visible, valued and owned’: ATO outlines super priorities for new year
Introductory Rates & Interest Free Periods
Our Advent calendar for 2019
Tax Office sounds warning on 8 types of super schemes
Don’t forget sharing economy income
Impress your friends with your knowledge!!
Salary sacrificing and the superannuation guarantee
Why so much super “stuff” this year?
Reverse Mortgage?
How the gig economy could create hidden tax issues for contractors and employers
15,000 tip-offs as ATO black economy hotline rings hot
What happens when interest rates hit the floor?
Director Penalty Notices (DPN)
Synchronised global economic slowdown
STP to be increasingly monitored
6 new accounting related videos
GDP by country since 1800
Information needed to be the BBQ expert.
Articles archive
Quarter 4 October - December 2019
Quarter 3 July - September 2019
Quarter 2 April - June 2019
Quarter 1 January - March 2019
Quarter 4 October - December 2018
Quarter 3 July - September 2018
Quarter 2 April - June 2018
Quarter 1 January - March 2018
Quarter 4 October - December 2017
Quarter 3 July - September 2017
Quarter 2 April - June 2017
Quarter 1 January - March 2017
Quarter 4 October - December 2016
Quarter 3 July - September 2016
Quarter 2 April - June 2016
Quarter 1 January - March 2016
Quarter 4 October - December 2015
Quarter 3 July - September 2015
Quarter 2 April - June 2015
Quarter 1 January - March 2015
Quarter 4 October - December 2014
Quarter 3 July - September 2014
Quarter 2 April - June 2014
Quarter 1 January - March 2014
Quarter 4 October - December 2013
Quarter 3 July - September 2013
Quarter 2 April - June 2013
Quarter 1 January - March 2013
Quarter 4 October - December 2012
Quarter 3 July - September 2012
Quarter 2 April - June 2012
Quarter 1 January - March 2012
Quarter 4 October - December 2011
Quarter 3 July - September 2011
Quarter 2 April - June 2011
Quarter 1 January - March 2011
Quarter 4 October - December 2010
Quarter 3 July - September 2010
Quarter 2 April - June 2010
Quarter 1 January - March 2010
Quarter 4 October - December 2009
Quarter 3 July - September 2009
Quarter 2 April - June 2009
Quarter 1 January - March 2009
Quarter 4 October - December 2008
Quarter 3 July - September 2008
Quarter 2 April - June 2008
Quarter 1 January - March 2008
Quarter 4 October - December 2007
Quarter 3 July - September 2007
Quarter 2 April - June 2007
Quarter 1 January - March 2007
Quarter 4 October - December 2006
Quarter 3 July - September 2006
Quarter 2 April - June 2006
Quarter 1 January - March 2006
Quarter 4 October - December 2005
Quarter 3 July - September 2005
Quarter 2 April - June 2005
Quarter 1 January - March 2005
Quarter 4 October - December 2004
Quarter 3 July - September 2004
Quarter 2 April - June 2004
Quarter 1 January - March 2004
Quarter 4 October - December 2003
Quarter 3 July - September 2003
Quarter 2 April - June 2003
Quarter 1 January - March 2003
Quarter 4 October - December 2002
Quarter 3 July - September 2002
Quarter 2 April - June 2002
Quarter 1 January - March 2002
Quarter 4 October - December 2001
Quarter 1 of 2002
Articles
Business Losses deduction denied
School Building Funds
Superannuation Guarantee - 'Ordinary Time Earnings"
Excellent Salary Sacrifice Contribution
Self Education Deductible
Salary Sacrifice arrangements
Generic domain names auction
Interest rates - fixed or variable?
Interest - Disgrace or Just Plain Theft
No ABN quoted?
Unsure about an ABN quoted to you?
New CGT Asset Register
Coles Myer Shares in super funds
Fringe benefits at Christmas
Interest rates - fixed or variable?
Interest rates are about the lowest the have been in decades. Is it time to change from variable to fixed?

This is a financial question and not one able to be answered by your accountant.
However as a Protax financial planner I can give you some ideas for you to consider.

The variable rates have been declining consistently for about five(5) years and are at very low historical levels. They are extremely low in United States and Japan.  This is in response to Reserve Banks trying to maintain investment and consumer demand when economies were seen to be faltering.  If the economy rebounds then interest rates rise as the reserve banks try to keep it from too rapid an improvement.

So bankers have to predict what interest rates will be over the next few years - if they are offering a 3 year fixed rate then they predict what it will be during that period so that they can still be profitable on that loan.

Since many bankers are predicting increasing rates during this next five (5) years they have already started to increase their fixed rates.  It is far too late to fix it when the variable rate starts to rise!  The first sign I saw was when 10-year bond rates rose in March 2001.  For some, the time to fix has been any time after that.

If the Reserve Bank does not cut rates at its next meeting then I suggest that might be the trigger, to be able to say that fixed rates will not get any lower for some years.

In my view if you have suitable situation to benefit from fixing part of a loan, then current rates offered either side of 6% are quite attractive.  Flexibilty usually suffers when converting to fixed rates - but the cost saving can be substantial.

An application fee of $350 to $600 is normal and should be included in your cost-benefit analysis of whether you will gain.

Give me a call to discuss your circumstances.
    


18th-January-2002