Found an account transaction error? Don’t foot the bill

Most of us have found ourselves in a sticky situation where we’ve spotted an unauthorised or mistaken transaction on our bank account or credit card statement. Here’s how to avoid footing the bill.

The average Australian makes about 480 electronic transactions each year – and that number is rising quickly.

Amongst these daily transactions, both mistakes and unauthorised transactions occur.

It’s therefore important that you spend a bit of time each week or month quickly reviewing your transactions for discrepancies.

Because as we’ll explore below, the sooner you inform your bank, the better your chances of getting a refund.

How mistaken and unauthorised transactions occur

Everyone is guilty of making the occasional typo.

The thing is, though, that if you slip up when typing in a BSB or account number, you can end up paying the wrong person or company.

Sometimes it might not even be your fault. The person you’re paying might have accidentally supplied you with the wrong number.

An ASIC report shows that 83% of mistaken transactions are due to somebody typing in the wrong number, while the other 17% are due to people selecting the wrong payee.

Meanwhile, unauthorised transactions occur when funds are transferred from your account without your knowledge or consent, by someone who has access to your account.

The ePayments Code

Ok, so you’ve found an anomaly in your bank or credit card transactions? Here’s the good news.

Users of electronic payment facilities in Australia are protected by the ePayments Code, which covers electronic payments including ATM, EFTPOS and credit card transactions, online payments, internet and mobile banking.

Most banks, credit unions and building societies in Australia – as well as consumer electronic payment facilities, such as PayPal – subscribe to the code.

How does the code protect you against transaction errors?

The sooner you report a transaction error, the better.

If you report the error within 10 business days the Financial Ombudsman says the funds will be returned to you – so long as your account institution believes the mistake is genuine.

If you report the problem between 10 business days and seven months, you should still get your money back if the funds are still in the recipient’s account.

The recipient will have 10 business days to show they are entitled to the funds. But if they can’t, the funds get returned to you.

If it has been longer than seven months then things start to get a little messy.

Basically, if the money is still in the recipient’s account, you’ll only get the money back if the recipient agrees.

It’s important to note that BPAY payments are not covered by the ePayments Code, as BPAY uses a different process to resolve mistaken payments.

You should still contact your financial institution though, as they may be able to advise you of steps you can take to recover the funds.

Getting your money back after an unauthorised transaction

While the process for resolving an unauthorised transaction is different, once again speed is key. So report it to your bank immediately. After all, you also want to prevent any more unauthorised transactions.

According to ASIC, you are likely to get your money back if:

– a forged, expired, faulty or cancelled PIN or card was used
– the transaction was fraudulently made by an employee of your financial institution
– the transaction took place before you received your card, PIN or password
– a merchant incorrectly debited your account more than once
– the transaction occurred after you told your financial institution that your card was lost or stolen, or that someone else may know your PIN or password
– it’s clear you haven’t contributed to the loss.

Meanwhile, you’re less likely to get your money back from an unauthorised transaction if you acted fraudulently, accidentally left your card in an ATM, didn’t keep your PIN or password secret, or unreasonably delayed telling your financial institution that your card was lost or stolen.

Reporting the issue

Before you report a mistaken or unauthorised transaction, check to see if your bank or payment service provider has subscribed to the ePayments Code by looking here.

If they have, get in touch with them straight away. And don’t forget to request a reference number so that you can verify that you made the report if required at a later date.

If they are not a subscriber, feel free to still raise your concerns with them. They may have an internal policy in place.

Final word

Mistakes happen. To err is human. People make tipos all the time.

The two most important things you can do to protect yourself are to regularly review your accounts, and instantly inform your financial institution of any account anomalies you spot.

Oh, and if you happen to be on the receiving end and find unexpected funds in your account, resist the temptation to spend it as there’s a good chance you’ll have to pay it back.

Instead, get in touch with your bank or financial institution and let them know what’s occurred.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

5 ideas to help first home buyers break into the property market

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While housing affordability is improving across the country, for many young first home buyers cracking into the property market can feel like breaking into a fortress. Here are five ideas that can help bust down that door.

Housing affordability for new mortgage borrowers in Australia will continue to improve over the next 12 months because of declining housing prices, shows the latest research from Moody’s Investors Service.

That said, there’s no denying that hopeful first home buyers have a much harder time breaking into the market than those who house-hunted in decades past.

In fact, the dwelling price to income ratio showed a 78% increase between 1980 and 2015.

With that in mind, here are five tips to help you bang down the property market front door.

1. Consider “rentvesting”

Rentvesting is a term used to describe the act of renting a property in the neighbourhood you’d like to live in, while purchasing an investment property in a more affordable neighbourhood and renting it out to a tenant.

That way, you’re able to live where you want while building equity in a home at the same time.

This tactic has become so popular in recent years that conventions, seminars and dedicated property investment businesses have begun popping up to help people do it effectively.

2. Take advantage of government schemes and incentives

Government schemes and incentives, such as the First Home Owners Grant (FHOG), can be a great way for first-time home buyers to offset some of the cost of purchasing their first home.

Similarly, many states and territories offer stamp duty discounts for first home buyers, which can also save you thousands of dollars.

Each state and territory has different rules around who is eligible to apply for them, but by and large, they make buying your first home more affordable.

3. Live at home while you save for a deposit

As unappealing as it may first seem to live with your parents while saving for a home, the idea becomes a lot more digestible when you consider that the national median rental price in Australia is $450 a week.

That’s $23,400 a year.

If you include all the money you’ll save by splitting food and utility costs (including water, gas, electricity, internet and phone bills) with your parents, you could save up to $30,000 a year.

4. Share the cost of ownership with a friend

If the property you want is out of your reach, why not consider going in on it with a friend or relative?

Splitting the cost of a home purchase with another person can allow you to build equity in the home of your choice, without overstretching your resources.

Just keep in mind that you’ll want to speak with a lawyer and draw up an agreement regarding ownership and mortgage liability, plus things like how maintenance costs will be met and what happens if someone wants to sell in future.

5. Rent a room in your house out to a tenant

If you want to own the property you live in and don’t want the mess that can come with sharing ownership with another individual, then renting out a room in your house can be another great option.

By renting out the room for $200 a week you can make $10,000 a year – plus you’ll save on utility bill costs.

If you’re not too fond of having a full-time housemate, consider creating a guestroom and leasing it out on Airbnb.

Just be sure to take out appropriate insurance and keep accurate records of the income you earn from Airbnb as the ATO is cracking down on undeclared income from the platform.

Final word

The Australian housing market may have cooled off in recent months, but pricing is still high enough that it can be very challenging for first-time home purchasers to break into the market.

By getting creative with some of the tips in this post, you’ll stand a better chance at turning your dream of owning your first home into a reality.

If you’d like any other help cracking into the property market then please get in touch – we’d love to help out any way we can!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

7 simple ways to protect your home these Easter holidays

The Easter holidays are a great time to get away with the family. Unfortunately, this means they’re also a prime time for burglars to target your unoccupied home. Here are seven simple ways to deter uninvited guests from entering your property these holidays – sorry Easter Bunny!

Get this: in 2017 there were 225,900 recorded burglaries in Australia. That’s one every three minutes.

As we all know, the holiday season is a prime time for burglars to strike as it’s much more likely that you’ll be far, far away from your property.

And let’s be honest – with the holidays only a few days away it’s probably a little too late to install a state-of-the-art home security system.

So here are seven simple last-minute strategies you can implement to deter burglars.

1. Lock up properly

Ok, we admit this one sounds awfully simple, but according to a 2015 study of people who were pinged for break and enter offences, the number one reason a house was targeted (70%) was that homeowners left windows or doors unlocked.

And it makes sense when you think about how rushed holidaymakers can get.

For example, it’s all-too-easy for one family member to lock the back door, and then another to remember at the last minute that they forgot their surfboard in the back shed, and then neglect to lock the door on their way back through.

Therefore, the very last thing you should always do before driving away on holidays is to conduct one last double check of the house to ensure every window and door is locked and, where possible, dead-bolted.

2. Install a smart security camera (or a fake one!)

The last thing a burglar wants is their crime caught on camera. Thus, installing a security camera or two around the outside of your premises can act as a strong deterrent.

You can pick up a smart camera for about $160 and view all the footage online.

If the budget is a bit tight, you can buy an imitation camera for $14. It won’t record and catch the criminal in the act, but it might deter them from taking the risk in the first place.

3. Beware of the dog

Man’s best friend is a burglar’s worst nightmare.

For about $10 you can buy a ‘beware of the dog sign‘ and scare away any burglars who fear our furry friends.

Now, obviously it won’t work with all burglars, but here’s what a four-time convicted burglar had to say: “That ‘Beware of Dog’ sign? Not even going near it”.

Go all-in on your bluff by buying a large dog bowl for $10 and putting it under a tap near the side gate.

4. Motion sensing outdoor lights

Picture this. It’s the dead of the night and you’re a burglar edging your way around the backyard of an unknown premises when, all of a sudden, a spotlight turns on and lights up your immediate area.

What would you do?

Now, I’m definitely no mastermind cat burglar, but if I were, I’d hightail it straight out of there!

You can buy a sensor security light that operates on solar for $73, or ones that run off the grid for $27. Both take about 15 to 20 minutes to set up.

5. Know what burglars are targeting

Below is a list of the top ten items most likely to be stolen by burglars, according to insurer Budget Direct.

The good news is that most of these items are quite small so they can be locked up in a home safe, or tucked away in a nice secure hiding spot (just not under the mattress!).

1. Cash
2. Laptops
3. Jewellery
4. Cameras
5. Phones
6. Wallets, handbags, purses
7. Identification documents
8. Televisions
9. Computer and video game equipment
10. Watches

6. Ensure your home and contents insurance is up-to-date

This will take about 15 to 30 minutes but it will definitely be worth your while, should a burglar strike.

Call up your insurance provider, or check your email, to ensure your policy is still in place and that you’re adequately insured.

If you’re not happy with your current policy, spend a bit of time comparing what else is on the market.

You might even save yourself a few dollars to help pay off some of the other tips on this list!

7. Say g’day to your neighbour

Before you leave for your holiday be sure to pop around to your neighbour’s place and let them know you’ll be away for a little while.

If they’re not going away themselves, ask them to keep an eye on your place while you’re gone, and to ensure your letterbox doesn’t overflow with mail.

Have a great holiday!

Whether you’re heading to your favourite local campground, travelling interstate, jet-setting overseas, or simply unwinding around the house, we hope you’ve got a great break lined up!

If there’s anything you need from us when you get back, please get in touch, we’d love to help out!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

Making the most of the instant asset write-off

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Cash flow is like your daily hit of caffeine. You don’t really notice how important it is for your business until you’ve got to try and operate without it. Today we’ll look at how the recently expanded instant asset write-off initiative can help out in that area.

Budget week is always hectic.

You’re bombarded with dozens of different promises and initiatives – so much so that it’s near impossible to keep track of them all, especially ahead of an impending federal election.

So today we’re going to home in on an initiative that was put into place by the government within 24 hours of the budget being released – the instant asset write-off increase.

What is the instant asset write-off?

Haven’t heard of instant asset write-off yet? You’re not alone. Research shows just half of businesses know about it.

The instant asset write-off allows small and medium businesses to claim immediate deductions of up to $30,000 for new or second-hand depreciable asset purchases.

This can include things like vehicles, tools and office equipment.

Now, the initiative has been around since 2015, but the threshold was recently increased from $25,000 to $30,000 for purchases made from April 3, thanks to the federal budget.

That means your business is eligible to claim an immediate deduction for the business portion of each asset that costs less than $30,000 if:

– you had a turnover less than $50 million (increased from $10 million after budget night), and

– the asset was first used (or installed ready for use) in the income year you are claiming it in.

Assets that cost $30,000 or more can’t be immediately deducted.

How can it help with cash flow?

Before you go out and buy a $29,990 company car, there are a few things you’ll need to consider.

The first of which is what impact this purchase may have on your cash flow.

Now, the good news is we can help you obtain a business loan that will take into account your business’ current cash flow situation.

The even better news is that by using the instant asset write-off initiative, you can get the entire depreciation deduction back next tax year, which is just around the corner in July.

That’s much better for your business’ cash flow than the old fashioned way where you’d only be able to claim a small proportion each year.

These funds can then be used to further expand other parts of your business – so it’s definitely worth thinking about before the financial year ticks over on June 30.

Other key considerations

It’s important to keep in mind that “write-off” doesn’t mean “free asset”.

Basically, this initiative allows you to immediately claim all the tax deductions you would have claimed over the life of the asset.

As we touched upon earlier, getting this cash back sooner means you can re-inject it straight back into other parts of your business.

Also, say the asset will be used 80% of the time for business purposes and 20% for personal usage (examples might include a laptop or a car) then you can only claim deductions for 80% of the asset.

It’s also worth noting that if for example, you buy a $40,000 ute, half of which will be for used work and the other half for play, the asset won’t be eligible for you to immediately write-off the $20,000 business proportion.

Finally, you can take advantage of the instant asset write-off multiple times – the cap is $30,000 per purchase, not overall.

This means you can buy multiple assets that are worth under $30,000 each.

Final word

As we touched upon earlier, for many businesses it can make more sense to take advantage of these changes towards the back end of the financial year.

So if you’d like help obtaining finance that’s friendly on your business’ cash flow then please get in touch. We’d love to help out.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

How to welcome a baby into the family and stay on budget

Welcoming a baby into your family is one of the most joyous occasions of your life. But just like anything worth celebrating (such as your wedding day or buying your first property), it’s not without its expenses.

How quickly they grow! The bills, that is.

Did you know it costs roughly $300,000 to raise a child from birth to age 17?

If you break that down, that’s $1470 a month.

This can put a significant strain on your monthly budget and mortgage repayments.

Rest assured, however, there are several steps you can take in advance to minimise the impact on your new family’s bottom line.

1. Obtain the essentials in advance

The upfront expenses are really going to whack your budget hard. So it’s best to obtain the items you’ll need well in advance to spread the cost.

Of course, you can purchase a brand new bassinet, playpen, clothing, car seat, cot, stroller, toys, high chair and changing table.

But chances are you don’t really need that fancy, brand new $1,000 cot. Focus on your needs instead of your wants, because wanting can quickly add up.

There’s absolutely nothing wrong with obtaining gently-used items second-hand, either at a substantial discount through trading websites or for free from a family member or friend. Remember that bub outgrows everything quickly anyway.

2. Check into paid paternal leave and corporate leave

If you worked before having your baby and made under $150,000 annually, you could be eligible for the government’s Paid Parental Leave program.

You do have to apply, but you get 18 weeks of minimum wage benefits (amounting to $719.35 per week before taxes).

There’s also a two-week partner and dad pay option available, and take time to check into your company’s leave programs.

3. Get on childcare waiting lists

Unless you plan to stay home with your children or have family members who will help provide childcare, get your name wait-listed at several childcare facilities.

Availability is a huge issue, so getting on the lists quicker will help in the long run. You can use the Childcare Subsidy Estimate Calculator to figure out if you’re eligible for entitlements.

4. Update your life insurance

It’s common for Australians to have total and permanent disability and death benefits through their super fund.

However, while the life insurance coverage may have been adequate pre-children, there’s a good chance it won’t be enough for a single parent to comfortably raise a child.

Additionally, you don’t want to fall into the trap of just insuring the breadwinner in your family. Everyone should have coverage in case something happens to one, or both, of the parents. This can be a complicated area to navigate alone though, so be sure to seek financial advice.

5. Make a will

Even if you don’t have significant assets or debts, you need a will if you have children.

Not only does a will specify what your family does with your belongings (including your super and insurance), but it also specifies who makes decisions if you can’t make them yourself, any wishes you may have, and who will take over raising your child or children if both parents pass.

6. Prioritise existing debt

If it’s possible before the baby comes, prioritise your existing debt and work on paying it down – or off – before the baby is born.

Once the baby arrives, you may not have a whole lot of spare cash to put toward any existing balances. Consider consolidating your debts or speaking to us about refinancing your loans or mortgages to one with a lower interest rate.

7. Update your monthly budget

One of the best things you can do is update your monthly budget with your newest family member in mind. It’s also great to start living on this budget before your bundle of joy arrives – start practising living on less.

You can update (or create) your budget using ASIC’s Budget Planner. Don’t forget to include your quotes for childcare and any new miscellaneous expenses you’re likely to incur.

8. Start an emergency fund

If you don’t have an emergency fund, start one. You’ll want to have at least three to six months worth of living expenses saved, with the goal of at least a year’s expenses.

This can provide a buffer that you and your family fall back on if you run into unexpected expenses like an accident, the car breaking down, or something in the house needing immediate replacement.

Final word

The last thing you want during this happy time is to worry about your finances. That’s why it’s so important to prepare as early as possible.

If you’d like help with any of the steps above, then please get in touch. We’d love to help make sure that your first few months as a new family are enjoyable ones!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.