Macquarie EOFY Update

Please see the following update from Macquarie, highlighted below:

1. Commercial Vehicle upgrade - extension

  • We've extended our special offer for your existing Macquarie commercial clients who might like to upgrade their commercial vehicle/s or equipment.
  • This campaign has been extended in-line with the government's instant asset write-off threshold for eligible assets to up to $150,000 for eligible business.

Reminder - clients can upgrade their commercial vehicle or equipment loan, discounting their current payout when they take out a new Macquarie commercial loan.

  • To take advantage of this offer, your clients will need to be an ABN holder
  • Satisfactory credit history with no accounts in arrears, and not currently on a payment pause.
  • Use our replacement/streamline policy to obtain faster turnarounds for your clients.

2. Credit - EOFY Cut-off's

  • Cut off, COB Thursday 25th June.
  • Current deal pick up time = 8 hrs
  • To ensure that the deal gets approved, make sure you are providing quality clean submission and remember the extra requirements for Bank Statements for new lending. Better quality input into our systems creates a better experience.
  • ACD turned back on for Consumer, top tips, make sure LVR is within our appetite, asset vehicle is entered into MacLease and all fields are completed correctly.

3. Settlement - Cut-off's

  • Extended hours 8:30 to 6:30 pm Monday to Friday
  • Also working Saturdays
  • 1 pm cut off leading up to EOFY for same-day settlements,
  • Emphasis quality/clean deals mean faster turnarounds
  • Please see attached checklists that have been sent to all individual brokers with top tips on assisting both commercials and consumer deals.

Additional Key Points for Consideration

Private sale - invoice requirements

  • Only applicable for private sales, not required for sale and buybacks or other sale types.
  • Invoice must contain the same information as the dealer invoice (tax is dependent on GST status).
  • If a lender payout is involved, a payout letter is required.
  • Bank deposit slip or bank statement (not older than 3 months) is required to confirm vendor banking details. Bank logo, account name, BSB/acct number must be clearly visible.
  • Other requirements are covered in the settlement checklists.

Top tips for a fast settlement

  • Asset tax invoice - do the details on the tax invoice match what's been entered in MacLease and is the VIN included?
  • Contract docs - ensure all pages have been signed correctly by the relevant parties and adhere to NCCP for consumer loans. Please ensure ELN/EAN numbers are visible on all scanned documents - part documents and separate pages will not be accepted.
  • Supporting docs - do you require any supporting docs and are these dated correctly? Please prioritise credit-related documents as these need to be reviewed by the credit team.
  • Drivers Licence - ensure the applicant's current address is displayed and this address matches what is recorded in MacLease.
  • Brokerage invoice - submit your invoice (this must equal the commission value in MacLease + GST).
  • For private sale - please submit a vendor invoice (noting GST if the vendor is registered for GST).
  • Auto approvals - if an application is auto-approved and income verification is required, send the relevant payslips to leasingcredit@macquarie.com
  • Settlement cut-off time is 12:00pm (midday) AEST for same day settlement.

Top tips for providing quality submissions

Macquarie would also like to offer some tips to help you through this busy period - quality submissions mean faster turnaround times for you and your clients.

  • Streamline applications - Please refer to Vehicle Lending Handbook (pages 12-16) for all streamline policies and the requirements for each policy. If it's a replacement or refinances of another lender or new to the , don't forget to provide bank statements from 1 January 2020 onwards showing credits or deposits evidencing consistent trading income.
  • Commercial full assessment - Where the application is not streamlined, see Vehicle Lending Handbook (page 17) for a checklist on all documents required for us to complete a full assessment transaction. Don't forget to provide bank statements from 1 January 2020 onwards showing credits or deposits evidencing consistent trading income.
  • Policy update - For a refresher on some of the changes that have been made since March this year, including products, asset types and credit appetite, take a look at pages 9-11 of the Vehicle Lending Handbook.
  • Bank statement requirements
    • The date range should cover from 1 January 2020 to within 14 days of the time of settlement.
    • The statements must show the account holder's name - this must match the borrower's name.
    • Individual transactions must be itemised and have a running account balance.
    • The statements provided can't be filtered in any way.
    • Statements provided from aggregations services (for example Bankstatements.com) are acceptable.

See Vehicle Lending Handbook

Settlement Checklist Commercial

Settlement Checklist Consumer

ANZ Rate Change

Effective 6 June 2020, the new interest rate for a 2- or 3-year fixed interest rate term on a secured ANZ Business Loan is 2.95%.

  • This promotion applies to the ANZ Business Loan (ABL) only. Excludes Business Mortgage Loan (BML), Agri Finance Loan and Asset Finance Loans
  • The promotion end date is 30 September 2020
  • New promotional flyers are attached

The attached updated flyer can be provided to customers who want more information to read or take away. Please ensure you delete any previous flyers and only use the updated version provided with this communication.

*WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

Latest Housing Stats

One of the most significant trends in the Australian property market is the movement towards higher density living. This is highlighted by the latest government figures that reveal over 40 per cent all residential building approvals in Australia are now for higher density dwellings such as apartments, townhouses, villas and duplex housing.

Rent figures produced by the ABS show that during April 2020 some 6,316 higher density dwellings were given building approvals compared to 8,864 building approvals for stand-alone houses. Of the total 15,400 residential building approvals during April 2020, some 41 per cent where for higher density homes.

In some areas of Australia, the level of higher density homes being approved for construction was much higher than this overall national average.

For example, in New South Wales,54 per cent or over half of all dwellings given building approvals during April 2020 where higher density homes.

These are very significant figures as they highlight the quiet revolution that has occurred in the property market in Australia during recent years with a major shift towards higher-density housing in Australia. For example, just two decades ago, the medium/high-density component of multi-unit commencements (units of three storeys or more) accounted for just 5 per cent of total housing commencements compared to around 25 per cent today. There have been several key reasons why higher density living has become increasingly popular in Australia.

Firstly, the Government is encouraging great higher-density construction, especially in the near city area to reduce the cost of urban sprawl. Various planning strategies have been implemented, and with infill sites predominantly accommodating mid and higher density dwellings, the policy focus has enabled the supply of multi-unit dwellings to greatly expand.

Secondly, there is a greater concentration of employment opportunities in urban areas than in the past and this is encouraging more people to live in inner and near city areas. Also, people want to live close to amenities with a higher level of this social infrastructure that is generally found in the inner city.

Thirdly, families are generally getting smaller, so they are requiring low maintenance housing such as apartments rather than detached homes on large lots. Baby boomers who are entering their retirement years also want to stay in their local area but in low maintenance homes and this trend is also encouraging higher density living.

Finally, for some households, multi-unit dwellings represent a more affordable option to detached houses. Housing affordability pressures, principally related to the price of serviceable residential land, have forced the market to make more intensive use of available land. This financial pressure has resulted in more dwellings in each area than there has been in the past.

This movement towards higher density living is particularly significant for property investors because over the coming years they will be purchasing this type of product as it becomes even more popular with consumers. Investors who are planning to purchase a higher density home such as an apartment should consider the significant tax depreciation benefits associated with this type of property purchase. While there are many issues concerning the depreciation entitlements on properties, in most cases, strata style homes such as new apartments provide a higher rate of depreciation than houses - all being equal. Buying a new apartment, for example, can provide a taxpayer with considerable depreciation benefits because of the significant tax benefits they offer through depreciation. Some DEPPRO clients are achieving that tax benefits obtained through depreciation can be equivalent to 60% of the total purchase price of the property. In some cases, these tax benefits can total $300,000 based on a purchase price of $500,000

A key part of ensuring that the investor obtains their full tax benefits is to have a professional depreciation professional prepare a comprehensive depreciation schedule.

ATO Warning

The 14 million Australians who are expected to soon lodge their 2019/2020 tax return have been warned by the Australian Tax Office (ATO) they will closely monitor tax returns involving unsubstantiated work-related expenses and rental deductions.

This warning related to rental properties will have a major impact on many Australians lodging their tax returns due to the high number of people who own investment properties.

The ATO estimates that a total of 2,097,392 Australians owns 1 or more investment properties which means that 8.7% of the Australian population can classify themselves as property investors,

Penalties imposed by the ATO can be financially very severe so it important that property investors minimise the risk of errors when lodging their tax returns.

Previous audits of rental expenses by the ATO have found the following three common errors made by taxpayers lodging their tax return:

  • Failure to undertake a physical inspection of the investment property when preparing a tax depreciation report.
  • Claiming rental deductions for properties not genuinely available for rent.
  • Incorrectly claiming deductions for properties only available for rent part of the year such as a holiday home,

Property investors should use the services of a professional tax accountant to help minimize mistakes when lodging their tax claim as the penalties for wrongly claiming tax deductions can be very high.

They should also use other professional services such as engaging the services of a quantity surveyor company that is compliant with ATO guidelines.

For example, it is critical that the quantity surveyor company undertakes an onsite inspection of the investment property when preparing a tax depreciation report. This report is a 'once-off' and will outline the number of tax benefits you can claim on an annual basis. Anyone considering employing a tax depreciation company should ensure that they are a member of the Australian Institute of Quantity Surveyors (AIQS). DEPPRO is a long-standing member of AIQS. Unfortunately, a growing number of tax deprecation companies are not undertaking a physical inspection of properties to cut costs and this failure could result in serious problems for their clients if they are audited.

Obtaining a tax depreciation report that is compliant with ATO guidelines is a small price to be paid that will give investors peace of mind while at the same time deliver a significant cash flow boost that can be as much as 60% of the purchase price of the investment property.