2019 Federal Budget Changes

2019 Federal Budget Changes

The Federal Budget has made changes to the instant asset write-off for small businesses. The new bill has been passed by parliament, but the changes will only come into play in the 2019 financial year once royal assent has been received.

Changes to the Federal Government Tax Break

  • The threshold for tax deduction for assets has been increased from $20,000 to $30,000.
  • Previously only small businesses qualified, but now medium-sized businesses will also be eligible for the instant asset write-off.
  • The annual business turnover which had to be less than $10 million has now been raised to $50 million.

What this means for businesses in the short term who purchase new or used assets (including motor vehicles) up to $30,000 before 30 June 2019, is they will see their taxable income reduced by $30,000. This will provide a significant reduction in their tax bill for the 2019 financial year.

There will be a three-tiered system to determine eligibility:

  • 1st Tier
    Threshold: $20,000
    Assets acquired prior to 29 January 2019 that are depreciable
  • 2nd Tier
    Threshold: $25,000
    Assets first used or installed between 29 January 2019 and 2 April 2019
  • 3rd Tier
    Threshold: $30,000
    Assets first used and installed after 2 April 2019 Federal budget announcement and prior to 1 July 2020
2019 Federal Budget

Amendments to the Luxury Car Tax (LCT)

Businesses that qualify as primary producers and tourism operators are currently eligible for a partial refund of the luxury car tax (LCT) on 4-wheel or all-wheel drive cars, up to a maximum of $3,000. The Government has also reformed these indirect taxes and grants available for any vehicles acquired on or after 1 July 2019.

In the 2019 financial year, they be able to apply for a refund of any LCT that they’ve paid for. The refund will be capped at $10,000. An additional $60 million will be contributed towards the Export Development Grant Scheme over the next 3 years.

Is your equipment in need of an upgrade?

If your business has an ABN we can help you secure these concessions through our low doc loan options. Low doc loans allow you to secure the funds you need without the need to provide financial statements. We can still offer you low interest rates as if the financials were supplied.

Let us help you organise the finance in time for you to claim the tax deductions, so that your cash flow is not compromised. Contact your Pacific Finance Australia Broker on 08 9321 2120 or send us an email via info@pacificfinance.com.au for more information.

Finance Broker

Importance of having a Finance Broker behind you

Why should you use a Finance Broker?

Pacific Finance Australia takes the hard work out of securing finance. Whether it’s for your home, car, investment property, a loan for your business or simply consolidating your debt, we make the process as seamless as possible by doing all the legwork for you. Having a Finance Broker on your side is vital, especially in this constantly evolving finance industry. The big banks have recently lifted their lending standards, thus making the process more complex and harder to secure loans.

The benefits of having a Pacific Finance Broker.

Pacific Finance Australia in a privately-owned broking firm that does not work for the banks. By having a Pacific Finance Australia Broker on your side, you will have-

Numerous options to choose from 

Options are key when it comes to your finances. Your Broker analyses numerous finance products from various lenders Australia-wide to find one to suit your unique needs and lifestyle. By going with the sole finance option from your nominated bank, you are limiting yourself to just the one lender. This one option might not necessarily be the right fit for you.

Access to the most competitive rates

With a Pacific Finance Broker, you can gain access to our wide panel of over 30 lenders, offering you the Australian market’s most competitive rates. Some specialized lenders work exclusively with Brokers and you would not be able to access these lenders without a Broker.

The opportunity to refinance

If you’re currently stuck in a loan which does not fit your financial situation, our Brokers can help you refinance your current loan.  We can help you find a solution that fits your financial and lifestyle needs better.

No need to worry about paperwork 

You can say goodbye to tedious paperwork, as our Finance experts will do all the legwork for you. We will guide and support you through the entire process from pre-approval through to settlement. Your Broker will keep you up to date on the progress of your loan.

The power to negotiate

You should always get the best bang for your buck! Our Brokers can do a comparison of various loans, thus giving you flexibility with your finance options. We have established long-term relationships with all the major financiers and will do the negotiating on your behalf to make sure you get the best price.

More time to shop around

Our Finance specialists help you understand your obligations now and in the future, by explaining how much you can borrow as well as what your future repayments will be. By getting a pre-approval in place for you, we can help ease the stress of not knowing if you can afford your new vehicle, home or equipment needed for your business. Your finances will be ready to go as soon as you find the perfect asset with a pre-approved loan.

Access a Pacific Finance Broker.

Our ultimate goal is to get you the best deal when it comes to your financial needs. The Brokers at Pacific Finance Australia can give you an obligation free review of your finances and existing loans and can even recommend strategies to save you money in the long run.

Find the right loan option for yourself today by tapping into our Broker’s expertise and save yourself the time and energy that goes into securing finance. Our team of Brokers are specialized in various fields, ranging from home and investment property loans to equipment and commercial finance and even cash flow solutions for your business. Speak with one of our specialists by calling us on 08 9321 2120 or by sending us an email at info@pacificfinance.com.au for more information.

 

The Diverse Shopfitters Journey

History of Diverse Shopfitters

Diverse Shopfitters was built from the ground up by John Gullotto in 1986. Even though he was only 19 years old at the time, John’s vision and determination have seen the company grow steadily over the years. It is now home to over 45 full-time employees. What started off as shop fit-outs for one-off boutique clients has now grown to award-winning fit-outs and commercial joinery services for a host of national and international brands.

Delivering creative, cost-effective fit-out solutions that work

30 Years & Counting…

John has a long-standing relationship with Gary Watkins, more commonly known as “Spider”. John signed his first finance deal with Spider in 1988. Now, Tim Edwards has taken the reigns and has recently helped John secure the funds they needed. This has allowed them to expand their workshop in Welshpool, as well as import a high-quality saw from Austria. The recently completed workshop expansion added a further 1000m2 to the shop floor and has resulted in a huge increase in production capacity and efficiency.

Diverse Shopfitters has brought to life a huge number of stores Australia-wide.

Diverse Shopfitters complete approximately 180 projects around Australia each year. WA is currently experiencing a surge in shopping centre expansions and the company is in a strong position to secure a significant share of the fitout work on offer. It is a busy time for Diverse Shopfitters. Recent developments at Westfield Carousel saw Diverse fitting out seven stores simultaneously in addition to ten fitouts secured at the soon to open Perth Airport DFO. On the commercial joinery front, the company has been involved in several large scale projects including joinery supply and fitout of bars, changing rooms and the Chairman’s Club Lounge at Perth’s new Optus Stadium. As testament to the quality of their services, Diverse won back to back ASOFIA WA Fitout of the Year Awards for 2015/16 and 2017/18.

The Finance

Different types of loans have been put in place for Diverse Shopfitters over the years. From equipment loans to vehicle fleet finance and the most recent commercial facility, John has increased his workshop from 980sqm to 1896sqm.

A new Schelling Panel Saw was financed via a Trade Facility and Letter of credit, allowing the equipment to seamlessly be imported into Australia from Austria. This equipment will not only increase their production capacity but will also save them money by being more efficient with their production process. By sourcing equipment from overseas, they’re able to access the best equipment from across the world and offer their clients a great service.

Embark on a new journey

Let us be part of your business journey. Allow our specialists to help you secure the funds you need to take your business to where it needs to be. Contact your Pacific Finance Australia Broker today on 08 9321 2120 or send us an email via info@pacificfinance.com.au to see if we can be of assistance.

 

“We’ve been working with Pacific Finance Australia for years for our equipment and fleet financing. Tim was able to immediately understand our needs and offer finances and terms that worked for our situation and have helped us to take the business to the next level.”
John Gullotto, Director of Diverse Shopfitters 

good debt vs bad debt

Debt – The good & the bad

Debt is a simple fact of everyone’s life – we all have a mix of both the good and the bad kind. Good debt can help you grow your wealth in the future and give you financial stability, while on the other hand, bad debt can only cost you money. Understanding the difference between the good and the bad is very important, especially when trying to improve your financial position.

What is good debt?

It involves the collection of assets – real estate, a professional qualification, investing in shares or funds or even assets for your business. They are good investments for the future as they may add value with time and thus generate wealth for you and your family. In some cases, the interest charged on these assets can also be tax deductible. This kind of debt that appreciates over time can put you in a better financial position.

What is bad debt?

This includes cars, consumables, personal loans, payday loans, and credit cards. Anything that depreciates in value over time is considered bad debt as they do not generate income. They have no future benefits to reap. This kind of debt can also have a negative effect when it comes to taking out a home loan.

It’s not too late to change!

If you already have bad debt, it’s not the end of the world – you can still work it off to put yourself in a better financial situation. When taking out any major loans, you will also have to disclose your credit card limit, even though you might not have reached it yet. It is also important to be aware of the hidden fees, early payout fees and application fees that come with these kinds of products. A better way of dealing with all this bad debt may be to consolidate it all into a single loan so that you can pay it off at a lower interest rate. The sooner you pay off your bad debt, the quicker you can eliminate it from your life.

What we can offer you

We can offer you an obligation free review of your finances and help you consolidate all your debt into a single loan. You might be able to shrink those monthly repayments and free up some extra cash. To read more about our debt consolidation options, please click here.

We also offer business finance loans for everything from computer and office equipment, to truck, farming and earthmoving equipment loans. With loans starting from $5,000 and over 30 lenders to choose from, you’ll be sure to get the most competitive rates the market has to offer. To read more about our equipment loan options click here.

Start dealing with your debt by speaking to one of our finance specialists today!

Contact your Pacific Finance Australia Broker on 08 9321 2120 or send us an email via info@pacificfinance.com.au

business finance

Pietro Gelateria’s business finance solutions: It’s best served cold

Pacific Finance Australia Broker – Wade Bunter helped Mathew Fleay owner of Pietro Gelateria secure a business finance loan for his gelato equipment this July. Pietro Gelateria is a new up and coming gelato parlour nestled away in the Park Centre Mall in Vic Park.

business finance

Pietro Gelateria: About the owner

Mathew Fleay, Sicilian by descent, wanted to bring part of the Italian daily culture down to Perth. He abandoned his career and took off to Italy to study the art of making gelato from the best. Mathew has a degree in geophysics but has always worked in hospitality. He was working as a restaurant manager, however, he preferred the idea of working and earning for himself. He has always enjoyed gelato, especially on his trips to Italy and realised there was nothing in Perth that could compare to the traditional Italian gelato.

Mathew realised this was an area he could capitalise on. Pietro Gelateria brings you traditional Italian gelato techniques combined with contemporary flavours all prepared in store. You will always be in for a treat with their ever-changing flavours.

business finance

About the business finance

Mathew was able to secure a business finance loan for equipment that he already owned. He was able to refinance his equipment loan – gelato display units, gelato machine and freezers as well as all his production equipment.

business finance

Discover the power in business finance

Mathew came to Pacific Finance Australia for cost-saving solutions. He soon learned that he could refinance his ongoing equipment loan to put himself in a better financial situation. This decision has allowed him to grow his business even though he has only been trading for 18 months.

We can assist in taking your business to where you want it to be – it does not matter if you’re a start-up business or a well-established company. Make your dreams a reality today. Contact your Pacific Finance Australia Broker on 08 9321 2120 to find out how we can assist with your financial needs.

 

“Refinancing my equipment leases through Pacific Finance Australia was easy and straight forward. I am glad to have used their services to improve my financial situation”
– Mathew Flaey, owner of Pietro Gelateria 

your broker behind you

Your Broker Behind You

#FindaFairerDeal

At Pacific Finance Australia, we take pride in helping you find a fair deal when securing your home or investment property. Even though Kyal and Kara from The Block know exactly what goes into renovating a home when it comes to finding a fair deal they always turn to their Mortgage Broker!

your broker behind you

Why use a Broker?

Buying a home – whether it be your very first home or an investment property can seem like a daunting prospect. At Pacific Finance Australia, our Brokers will do all the leg work for you. We look at a wide range of lenders Australia-wide, including all the major banks and credit unions to find the best deal for you. Let us make your purchase a rewarding experience.

Deloitte Access Economics has done up a report on the Value of Mortgage Broking. These are some of the highlights:

  • Providing you with choices – the average Mortgage Broker has access to 34 lenders and uses an average of at least 10 lenders on their panel.
  • Contributing towards the Australian economy – the mortgage industry contributes $2.9 billion each year thus supporting more than 27,000 full-time jobs.
  • Offering you competitive rates – Mortgage Brokers drive competition by giving you access to lenders beyond just the major banks and their affiliates.
  • High satisfaction levels – more than 90% of customers are happy with their Mortgage Brokers performance.
  • Lowering rates – the Mortgage Broker channel has contributed to a fall in lenders’ net interest margins of more than 3 percentage  point over the last 30 years.

To read the full report, please visit The Value of Mortgage Broking.

Check out some of the behind the scenes footage with Kyal and Kara from The Block – Watch the videos here

Read about some of our clients’ experiences and how having a broker behind you can help you secure the funds you need – whether it be for personal or business purposes.

Your Broker Behind You 

our Broker Behind You - Joel Quartermaine

Furnace Solutions

Joel Quartermaine helped Furnace Solutions secure finance for special mining-related equipment sourced from Ireland. This has allowed Ben to take his company to the next level and become an industry leader.

“Pacific Finance ensures purchasing new equipment to expand our business is simple. Their efficient and professional service allows me to focus on my business rather than the maze of finance. I would highly recommend Pacific Finance Australia to any business owner.”
Ben Burchill, Director of Furnace Solutions

Read more…


Your Broker Behind You - Wade Bunter

Pietro Gelateria 

Wade helped Pietro Gelateria finance all their gelato equipment and freezers for their hip new gelato parlour in Vic Park. Though Mathew, owner of Pietro Gelateria came to Pacific Finance Australia for cost-saving solutions, he soon learned that he could refinance his equipment and put himself in a better financial solution.

“Financing my equipment leases through Pacific Finance Australia was easy and straightforward, and I am glad to have used them to improve my financial situation”
– Mathew Fleay, Owner of Pietro Gelateria 

Read more…


Your Broker Behind You - Yarri

Yarri – Restaurant & Bar 

Tim Edwards and Richard Birchall helped Yarri – Restaurant and Bar finance their restaurant fit-out. Even though Yarri is a relatively new restaurant, it has already made it on to Australia’s top 100 restaurants list. Tim and Richard helped the owners of Yarri finance everything from point of sales systems and iPads to refrigeration at the venue. Other items financed include glassware, crockery, tables and chairs, pots and pans, meat slicers, food processors, vacuum packaging and even the beer taps.  With the right finance options, these three entrepreneurs were able to make their dreams come true.

Read more…


Your Broker Behind You - Rod Beeton

Rod Beeton helped Justin and Karlie refinance their home loan at a better rate than they originally had.

“Thanks for your assistance with our mortgage. Moving from an unhelpful lender to Macquarie Bank was made painless and easy with your services. We’d recommend Rod to anyone for refinancing, or for new home loans. Many thanks.”
Justin & Karlie Mooney

Woodworking

Woodworking Exhibition 2018

 

Pacific Finance is a great supporter of equipment manufacturers and resellers, especially within the Woodworking industry, having helped finance many panel saws, beam saws, edgebanders and CNC machines for their clients over the years.

Pacific Finance Director – Joel Waddell recently attended the Australian Woodworking Industry Suppliers Association exhibition at the Sydney Exhibition Centre. It was held from the 4th-7th of July 2018.

The exhibition was targeted at furniture manufacturers, cabinet makers, kitchen manufacturers, door, window and moulding manufacturers, joinery manufacturers, architects, designers, shop and office fitters, builders and other wood, timber and panel processing industries.

The exhibition featured all the major equipment manufacturers from around the world including Masterwood, Paolini, Holzher, Biesse, Altendorf, Woodtron, SCM and Homag.

The level of robotics and automation on display was a real feature of the show, with these machines increasing speed, safety and accuracy within the woodworking industry.

If you are an equipment supplier or client looking for an easy finance solution for your equipment contact your Pacific Finance Broker on 08 9321 2120 or send us an email via info@pacificfinance.com.au 

GST to offset your home loan

Using your GST to offset your home loan

Are you a sole-trader and currently paying off your mortgage? If you are, you can use your GST to potentially save thousands on your current home or investment property loan.

How GST can help you offset your mortgage

If you work under an ABN that is registered for GST, the ATO will require you to complete your business activity statements (BAS) every quarter. As a business owner, you will be holding tax charged on your sales on behalf of the ATO until they are due.

If you keep this withheld GST in an offset account, you can potentially use it to offset your home loan and save on interest paid over the term of the loan. This means that instead of paying interest on the full outstanding loan balance, you will only pay interest on the balance of the outstanding loan, less the balance of the funds held in your offset account.

For example, let’s say you’ve taken out a mortgage for $500,000 at an interest rate of 3.90% over a 30-year loan term. You have an average of $50,000 in GST sitting in your offset account. This means you can save a total of $95,474.13 over the term of your loan and pay off the loan 3.5 years faster than initially anticipated.

Start paying your loan off faster and save more by utilising your GST

After all, it is just sitting in your account until it is due anyway. Use our home loan offset calculator below to calculate exactly how much you could be saving on your current home loan.

For more information on offset accounts please speak to our Pacific Finance Australia Brokers on 08 9321 2120. Alternatively you can also send us an email via info@pacificfinance.com.au

downsizer superannuation contribution

Downsizer superannuation contributions

The new downsizer superannuation contribution rules may apply to you if you’re over 65 and have owned a property for at least 10 years.

What is the downsizer superannuation contribution policy?

On 1st July 2018, the new downsizer superannuation contribution rules came into effect. These rules provide an option for those over the age of 65. It does not matter whether are still working or not. You can contribute funds from the sale of your home to super. This contribution can be made whether you have already used up your non-concessional caps or have more than $1.6m in super.

Maybe you’re in a large double-storey property, or maybe your kids have left the nest. Maybe you’re thinking that now is the time to downsize to a smaller unit, apartment, or retirement village. You can contribute a maximum of $300,000 per person from the proceeds of selling your property. If you’re a couple you can make a combined contribution of up to $600,000 into your superannuation.

downsizer superannuation contribution

Downsizer superannuation contribution rules 

There are some rules and guidelines around this –

  • You or your spouse must have held the dwelling at all times for 10 years leading up to the date of sale
  • The property doesn’t have to be a main place of residence for the full 10 years—just a portion within the ten years can qualify if you have maintained ownership
  • You have to make the contribution within 90 days from the change of ownership; and
  • The contract of sale is entered on or after 1 July 2018.

This is a great opportunity to have the funds inside super where all earnings are taxed at a maximum rate of 15%. Outside super your tax rate may be significantly higher. Now is a great time to reach out to your financial adviser to discover how you can take advantage of the downsizer contribution and work out a strategy tailored to your retirement goals.

Pacific Finance Australia can put you in touch with our in-house Financial Adviser – Luke Watson

Luke Watson

Luke is a qualified Financial Adviser with 10 plus years’ experience in the Investment Industry. He has an excellent understanding of Market Operations, Financial Planning, Life Insurance and Large Capital Investment. Luke can work with you to identify a long-term strategy to help you meet your retirement goals.

Contact your Pacific Finance Australia Broker today on 08 9321 2120 or send us an email at info@pacificfinance.com.au for more information.

pay off your home loan quickly

5 Ways to pay off your home loan faster

A home loan is one of the biggest investments you will make in your life. It’s a debt burden that most people are stuck with and would like to eliminate as soon as possible. That’s why Pacific Finance Australia has put together a list of ways you can pay off your home loan more quickly.

Making payments more frequently

It’s better to be making fortnightly repayments as opposed to monthly. That’s because when you pay fortnightly, you’re making 26 payments a year. If you were to instead split your monthly repayments in half, you would only be making 24 payments each year—two for each month. By structuring your loan with fortnightly payments, however, you’re paying down the equivalent of 13 months every year.

Since the repayments are individually smaller, you’ll hardly feel the difference and it should not impact your disposable income. Over the term of the loan however, this will make a huge difference and you will end up paying it off much earlier and with less accumulated interest than you anticipated.

Consolidating your debts

When you take out a personal loan or have a credit card, the interest rates you pay are much higher than the interest on your home loan. By consolidating your debt into your home loan, you are paying less in interest across all your loans. This can help you free up cash to make extra repayments to your home loan instead, which will benefit you in the long run.

Paying less interest and fewer fees makes the idea of consolidating your credit card debt into your home loan attractive, but you have to make sure you structure the consolidation in a way that doesn’t end up costing you more. As most home loans are for a period of 30 years, and credit card debts are for the length of time that it takes you to pay it off, you may end up paying more as you will be paying off your smaller debt for a longer period of time.

Offsetting your home loan

An offset account is a popular feature available on eligible everyday transaction accounts and eligible home loans. An offset account and the home loan are usually linked to reduce the overall interest on your mortgage or investment loan. By maintaining savings in an offset account with your mortgage provider, the interest you would normally receive on those savings instead goes to offsetting some of the interest payments that you would otherwise accrue on your home loan.

For example, you have a 30-year mortgage worth $300,000 and an interest rate of 3.90%, and you also maintain a $20,000 offset savings account with the same lender. Then the interest earned on that $20,000 could potentially save you $40,085.37 in mortgage interest repayments over the life of the loan.

Switching to a lender with a better rate

By seeking help from financial brokers, you may be able to find a lender better suited to your needs with a lower interest rate. With a lower interest rate, you could make the same repayments but end up paying off your loan a lot sooner. Do be aware though, that some lenders have exit fees on the loan so keep that in mind before making the big move.

Paying off the upfront fees

When you go to take out a loan, some lenders will allow you to borrow the upfront costs and mortgage fees. Be aware that by financing these costs, you’re just adding to the amount that you’re borrowing and will, therefore, take longer to pay it off—accruing interest all the way. If you can avoid financing your upfront fees with additional debt, you’ll reap the benefits in the end.

 

If you require further information or need assistance with your home loan, please contact the finance specialists at Pacific Finance Australia on 08 9321 2120 or send us an email at info@pacificfinance.com.au