RBA Rates stay low

In the previous meeting, RBA governor Philip Lowe said that the Australian economy is recovering well and there’s been positive news on the employment over the recent months. “In Australia, the economic recovery was well under way and had been stronger than expected previously. There had been strong growth in employment and a welcome decline in the unemployment rate to 6.4 per cent,” Lowe said.

The COVID-19 support measures such as the JobKeeper wage subsidy, HomeBuilder scheme and loan repayment deferrals ended in March but will likely have a minimal overall impact on the housing market according to realestate.com.au chief economist Nerida Conisbee. “We can see that the economy is well on track and the conditions are very strong at the moment,” she said.

The cash rate is the lowest it’s ever been, and it will likely remain at a record low for the foreseeable future. If you’re looking to enter the property market, we can help you find a competitive loan to suit your needs. 

Best Interests Duty (BID)

This new legal requirement is being introduced as a result of the recent Royal Commission into the finance sector.  Its goals are as follows:

  • To improve customer outcomes
  • To ensure brokers act in the best interests of their customers
  • To reduce the potential for conflicts of interest to impact the assistance customers receive from brokers.

BID comes into effect from 1 January 2021 and will be incorporated into brokers processes and procedures from that date.

Changes to Covid-19 Support

The Government has announced extensions to the Covid-19 support packages for Jobkeeper and Jobseeker for qualified businesses and individuals.  The Jobkeeper support will move to a 2 tier reduction in payments model after September 2020, which will require business to justify their reduction in GST turnover to qualify.  Jobkeeper will also provide a reduced payment for casual employees who work less than 20 hours per week.

For Jobseeker recipients,  the extra amount paid due to Covid-19 is being reduced after September to $250 per fortnight bringing the total payment down from $1,115 to $815.  Recipients will be allowed to earn up to $300 per fortnight before the payment is affected.

Further details are available on the ATO’s website.

 

Need help in managing your finances?

Here is a great collection of financial calculators which can help you make the difference in managing your money and finances.  Broadly, they cover money management, debt reduction, future planning and wealth creation/growth.  This links to a government developed website so you don’t have to worry about their effectiveness!  

Click on: MONEYSMART

Covid-19

If you’re suffering hardship due to the effects of the COVID-19 pandemic virus, the banks are offering various levels of support for their customers.  Before you contact them, talk to us, as there may be other options open to you.  We’re here and happy to help!

If you need financial assistance visit the ATO’s website to explore the COVID-19 options the Australian Government is offering.