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Got a large, overdue tax debt with the Australian Tax Office (ATO)? Then best listen up, because certain tax debt information can now be reported to credit reporting bureaus (CRBs).
A new Australian law means the ATO will be able to disclose the tax debt information of a business to CRBs when certain criteria are met.
The ATO will only disclose tax debt information if the business meets all of the following criteria:
– it has an Australian business number (ABN), and is not an excluded entity
– it has one or more tax debts, of which more than $100,000 is overdue by more than 90 days
– it is not effectively engaging with the ATO to manage its tax debt, and
– the Inspector-General of Taxation is not considering an ongoing complaint about the proposed reporting of the entity’s tax debt information.
The ATO says the purpose of this law is to encourage businesses to engage with them to manage their tax debts and, where a business is unable to pay a tax debt in full by the due date, enter into a sustainable payment plan that’s agreed upon between the two parties.
The ATO adds that the law is also to support more informed decision making within the business community by making large overdue tax debts more visible.
Finally, the ATO says the law will reduce the unfair advantage obtained by businesses that do not pay their tax on time and do not engage with the ATO in managing their tax debts.
The ATO will notify a business in writing if it meets the reporting criteria and give it 28 days to engage with the ATO and take action to avoid having its tax debt information reported.
Get in touch with the ATO – you may be able to agree on a payment plan.
That said, not everyone enjoys the ATO hovering over their shoulder. If that includes you, it’s definitely worth also getting in touch with us to explore your options with business loan lenders.
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.
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The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new record low of 0.75%. But will the banks pass on the interest rate cut in full to you?
RBA Governor Philip Lowe said this third rate cut in five monetary policy meetings was made to support employment and income growth.
“The Board also took account of the forces leading to the trend to lower interest rates globally and the effects this trend is having on the Australian economy and inflation outcomes,” he said in a statement.
“It is reasonable to expect that an extended period of low interest rates will be required in Australia to reach full employment and achieve the inflation target.”
The RBA previously cut the official cash rate on July 2, just one month after making its first rate cut in almost three years (since August 2016).
Now the real question is: will you benefit?
This little infographic by the ABC makes for pretty interesting reading.
It shows just how much of the last two RBA rate cuts each of the big four banks passed on to its customers in June-July.
Indeed, not one of the big four banks passed on both rate cuts in full, with each bank passing on somewhere between 0.40-0.44% (out of 0.50%).
As such, it will be worth keeping an eye on just how much of this most recent rate cut your lender passes on, not to mention how that stacks up against the competition.
With three RBA cuts so close together, it can get a bit confusing as to just how much of these cuts your lender is passing on to you.
The good news is we’re following the market closely and can tell you which lenders pass this third rate cut on to their customers in full, and which lenders don’t.
So if you’d like to find out, then please get in touch – we’d love to help break it down for you.
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.
Marge, Marge, the rains are ‘ere! Home prices have recorded their first rise since October 2017, with national dwelling values increasing 0.8% over August, according to the latest CoreLogic report.
Housing values across capital cities rose by 1%, with Sydney (1.6%), Melbourne (1.4%), Canberra (0.8%), Hobart (0.5%) and Brisbane (0.2%) leading the way.
While the lift in annual housing values is substantial, the recent growth is a continuation of the trend seen throughout the year whereby value falls were consistently losing momentum, and have now started to rise.
Indeed, while Adelaide (-0.2%), Perth (-0.5%) and Darwin (-1.2%) recorded losses, the figures are a substantial improvement on what the three cities recorded over the last quarter and year.
Likewise, while the combined regional figure was -0.1%, this was much better than the quarter (-0.6%) and annual (-2.9%) figures recorded for that market.
The significant lift in values in August aligns with a consistent increase in auction clearance rates and a deeper pool of buyers at a time when the volume of stock advertised for sale remains low, says CoreLogic research director Tim Lawless.
“It’s likely that buyer demand and confidence is responding to the positive effect of a stable federal government, as well as lower interest rates, tax cuts and a subtle easing in credit policy,” says Lawless.
“While the recovery trend is still early, it does appear that growth trends are gathering some pace, particularly in the largest capital cities.”
Lawless says while he had previously believed the housing market recovery would be a “slow and steady one”, this might not necessarily be the case.
“With housing credit restrictions easing and mortgage rates likely to reduce further, this rebound could potentially turn into a ‘v-shaped’ recovery,” Lawless says.
“At the outset, it appears that a rapid recovery would confirm that low interest rates and a loosening in credit policy is reigniting some market exuberance.”
The spring selling season will be a timely test of the market’s depth.
“A key contributor to the housing recovery has been the increase in buyers, but also a lack of advertised stock. As stock levels continue to rise throughout spring, we will get a much better understanding of the depth of the current recovery,” Lawless says.
“As listing numbers and auction volumes rise, clearance rates may soften if buyer demand doesn’t lift to match the increase in supply.”
These latest figures indicate that the housing market recovery is underway, so if you’re interested in making a purchase, then please don’t hesitate to get in touch.
As mentioned above, spring tends to bring more properties onto the market, so if you’ve got your eye on one, let us know and we’ll be happy to help you obtain finance for it.
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.
Ever been tempted to tell the boss you’re leaving to start your own business? You’re not alone. In fact, more than nine million Aussies dream about becoming their own boss.
However, the biggest hurdle for 60% of those people (5.4 million) is ‘access to money’, according to research commissioned by the Australian Banking Association (ABA).
The percentage is even higher for women and young people. Indeed, two-thirds of women and people aged 18 to 34 believe access to finance is stopping them from fulfilling their entrepreneurial dreams.
It’s fair to say there’s no shortage of entrepreneurial self-promoters plugging their brands on Instagram and LinkedIn these days, which could give you the impression that plenty of people are reaching out for business finance.
But small business loan applications have actually declined by 33% since 2014, according to the ABA report.
That is despite 94% of small business loans being approved by lenders, not to mention record low interest rates.
“There could be many reasons for the downturn, including people believing that they won’t get a loan, thinking it takes too long, deeming the application process is too complex, or they’re simply borrowing money from other sources,” acknowledges ABA CEO Anna Bligh.
Well, besides obtaining access to the initial capital that’ll allow you to become your own boss, business finance can also allow you to grow your business more quickly.
That’s important, because the bigger your business, the better its chance of survival.
For example, while almost two-thirds of businesses in Australia are sole traders, only 60% of sole traders who were operating in June 2014 were still in business by June 2018.
That number increased to 70% for businesses with 1-4 employees, 78% for 5-19 employees, and 82% for 20+ employees.
Meanwhile, the main reasons businesses seek finance are to maintain short-term cash flow or liquidity (40%), to ensure the survival of business (32%) and to replace equipment or machinery (24%).
To help prospective small business owners the ABA has created an educational website, which includes a suite of resources demystifying business financing.
Once you think you’re ready to apply for finance, get in touch. As the ABA points out, one of the key benefits of using a finance broker like us is that we handle the paperwork and assist you every step of the way.
And because we have developed professional relationships with lenders, we may also be able to reduce the processing time for your application.
Last but not least, we can review your current financial position, as well as your business case, to help match your funding needs to finance available in the market.
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.
Scams involving identity theft have cost Australians at least $16 million this year, and that figure is likely to be just the “tip of the iceberg”, says the Australian Competition and Consumer Commission (ACCC).
Worryingly, four in every 10 Scamwatch reports so far in 2019 have involved an attempt to gain information or the actual loss of a victim’s information.
“If you think scammers might have gained access to your personal information, even in a scam completely unrelated to your finances, immediately contact your bank,” says ACCC deputy chair Delia Rickard.
“Timeliness in alerting your financial institution is absolutely crucial.”
Identity thieves can empty victims’ bank accounts, take out tens of thousands of dollars in bank loans under victims’ names, and purchase expensive furniture or electronics under ‘no-repayments for 12 months’ schemes.
“Identity thieves can make victims’ lives a nightmare. They’ll change the victims’ phone carrier so they lose service and set up mail redirections so they’re in the dark about what’s going on,” says Ms Rickard.
Here’s the really scary bit, though.
You might not even know you’ve fallen victim to identity theft until the day you have difficulty obtaining finance due to an inexplicably bad credit rating, points out ASIC.
This is why it’s important to regularly check your credit report, which you can do for free every year via MyCreditFile.com.au (Equifax) or CheckYourCredit.com.au (illion).
ASIC says if you’re a victim of identity theft you should tell the credit reporting agencies so they can note it in your file.
“Check your credit report to see what companies have checked your credit history recently, and let them know not to authorise any new accounts in your name,” ASIC adds.
You can also consider placing a temporary ban on your credit report to give you time to report the matter to police, and then send the police report to the credit agencies.
While the freeze is in place (initially 21 days, but it can be extended), the credit reporting agencies cannot share your credit report with credit providers without your consent.
If you can prove you weren’t responsible for the fraudulent transactions then you’ll hopefully be able to get your credit score fixed.
Some of the common ways that scammers obtain personal or banking information include:
– phishing emails and text messages which impersonate banks or utility providers seeking your login details
– fake online quizzes and surveys
– fake job advertisements
– remote access scams in which the scammer has direct access to everything on your computer
– sourcing information about you from social media platforms
– direct requests for scans of your driver’s license or passport, often in the course of a dating and romance scam.
“No one is really selling an iPhone for $1, or rewarding the completion of a survey with expensive electronic goods or large gift vouchers. They’re scams to get your valuable personal information,” says Ms Rickard.
Be alert to the signs of identity theft, says Ms Rickard.
“If your mobile phone suddenly loses coverage, you haven’t received expected electronic or physical mail, or you receive unexpected notifications from a financial institution, call your bank,” she says.
If you have been the victim of identity theft, contact IDCARE on 1300 432 273. IDCARE can guide you through the steps to reclaim your identity.
People can also report a scam to the ACCC via Scamwatch.
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.
Whenever the Reserve Bank of Australia (RBA) changes the official cash rate we all hear about how it will impact home loans. But it affects many other areas of finance and the economy, which we’ll look into today.
The RBA has cut the official cash rate to a new record low of 1%, just one month after lowering it to 1.25% – which was the first rate cut in almost three years (since August 2016).
Now, whenever this happens we all hear about what it will mean for mortgage-holders.
But it also has a flow-on effect for many other areas of finance, which we’ll look into below.
If you’ve got a large chunk of your money in a savings account and you’re trying to save for a first home deposit, the latest two RBA rate cuts probably aren’t the best news for you.
That’s because you want your savings account to have the highest interest rate possible and a cut in the official cash rate will likely mean a reduction in interest you earn on your savings.
If you are worried interest rates are going to be cut further, and you want to lock in a rate for a particular length in time, you can look into a term deposit account.
Alternatively, if you think now is a good time to jump into the property market, feel free to give us a call and we can run you through your financing options.
If the RBA cuts the official cash rate, the interest rates on car loans generally go down too.
The bad news is that if you have already taken out a car loan it usually has a fixed interest rate for the period of your loan term.
The good news is with interest rates at an all-time low, if you’re thinking about buying a new car or refinancing an existing car loan, now might be the time to lock a rate in.
Changes to the cash rate affect interest rates on all kinds of loans, including commercial and business loans, asset and equipment finance, investment loans.
If you’re thinking about taking out any type of loan, or weighing up the pros and cons of refinancing, give us a call and we can give you the lowdown on the new landscape.
Yep, the official cash rate generally has an effect on the interest rate on credit cards too.
That’s because lowering the interest rate is meant to encourage people to spend more – including on plastic – which in turn can give the economy a boost.
If you’re someone who has been guilty of spending a little too much on your credit card, however, get in touch – we can help you look into consolidating it with other debts that are ripe for refinancing now.
Basically, it comes down to this: if you have an existing or prospective debt and you want to see how it all stacks up on the back of the two consecutive RBA rate cuts, then get in touch.
We’re following the market closely and can tell which lenders are passing on the rate cuts to their customers, which lenders aren’t, and present you with refinancing options.
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.
Yes, we’re well aware that this may sound like an oxymoron to some! But cheeky jokes aside, this is a question we’ve been increasingly receiving. So today we thought we’d look into what good corporate social responsibility means, and how you can find it in a bank.
What do you look for when pairing with a bank?
An attractive rate? Convenience? Low fees? High transparency?
What about good corporate social responsibility?
In the wake of the Banking Royal Commission, it’s a question we’re seeing pop up more and more.
In fact, even before the royal commission a report found that 4 in 5 Australians would consider moving their investments to another provider if their current provider engaged in activities not consistent with their values.
So, as property is likely one of your biggest investments, today we thought we’d take a look at what exactly corporate social responsibility means and how you can find out if your bank embraces it.
Corporate Social Responsibility (CSR) is generally understood to mean that corporations have a degree of responsibility not only for the economic consequences of their activities, but also for the social and environmental implications, according to the Australian Human Right’s Commission.
Some lenders sponsor rescue helicopters, many provide community grants, while others throw their support behind social causes.
If you’d like to know what type of CSR work your bank does, simply google your bank’s name + CSR. The more recent the result the better, especially in the wake of the banking royal commission.
That said, as Dr Stephanie Schleimer from the Griffith Business School points out to the ABC, “CSR reports are not meant to be glossy brochures that look like advertising.”
In other words: it’s one thing for banks to make a snazzy list of their CSR activities, it’s entirely another for them to make a meaningful impact.
Well, you see, if you google “banks ranked corporate social responsibility” you’ll find…
Huh, not much. Basically banks tooting their own horn in their own reports.
Not to worry.
Maybe, if you try googling “best bank CSR” you’ll find… Nevermind…
You see, this is where it gets a bit tricky.
What you consider ethical, or to be a bank displaying strong CSR principles, will be completely different from the next person.
It’s a bit of a case of horses for courses, if you will.
Absolutely! Come and have a chat with us.
Everyone’s ethical compass points a slightly different way, so we can give you a pretty good idea of lenders on our panel that are making efforts in the areas of CSR that you may identify with.
It’s definitely a topic we’re seeing come up more frequently, so rest assured we’re watching this space closely.
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.
Tax time is just around the corner, which means ATO impersonators are pulling out their bag of tricks to try and scam you. Here are the main scams currently doing the rounds.
It’s fair to say that no one likes getting on the wrong side of the ATO. And this is one of the main reasons why ATO tax scams are so effective.
The other main reason is that these scams are becoming increasingly sophisticated and tech-savvy.
Not only do they look more convincing, but they’re also reaching more people through a wider number of distribution channels, such as SMS, robo-calls, and emails.
Below we’ve outlined some of the latest scams to ensure your monthly budget, mortgage repayments or savings account doesn’t get thrown into disarray.
The scam: a scammer pretending to be from the ATO sets up a three-way phone call between themselves, the victim and another scammer, who pretends to be an accountant who works at the same practice as the victim’s tax agent (the fake tax agent advises that the victim’s actual tax agent is currently unavailable).
The two scammers then work together to convince the victim that they owe thousands of dollars to the ATO, and that they need to immediately pay off the debt to avoid going to jail.
They’ll then ask the victim to pay using unusual methods of payment such as iTunes, Bitcoin cryptocurrency, store gift cards or pre-paid visa cards.
Avoid being scammed: know the status of your tax affairs by checking your details via myGov. Or hang up and independently call your tax agent or the ATO on 1800 008 540.
Extra tip: a variation of this scam is when the scammer offers a tax refund but advises that you have to provide a personal credit card number for the funds to be deposited into. Instead of the scammer depositing money they’ll instead steal funds from these cards.
The scam: scammers are texting people informing them that they are due to receive a tax refund.
However, if you click on the link it will take you to a fake ‘Tax Refund’ form, where it will ask you to fill out your personal information (which the scammers will then steal!).
Avoid being scammed: the ATO doesn’t have an online ‘Tax Refund’ form and will never send you an email or SMS that asks you to access online services via a hyperlink.
Extra tip: all online management of your tax affairs should be carried out via your genuine myGov account, which you should only ever access by typing out my.gov.au into your URL address bar.
The scam: the ATO is reporting an increased number of scammers contacting people using phone numbers that make it look like they’re genuinely from the ATO.
The numbers that have been appearing most frequently are 6216 1111 and 1800 467 033, but numbers for individual ATO staff members have been used as well.
The scammer will usually claim the potential victim has an outstanding tax debt and threaten them with arrest if it’s not paid immediately. Sometimes voicemail messages are left.
Avoid being scammed: remember that the ATO will never threaten you with arrest, demand immediate payment, refuse to allow you to speak with a trusted advisor or tax agent, or present a phone number on caller ID.
Extra tip: never call a scammer back on the number they provide. If you are in any doubt about an ATO call, hang up and phone the ATO directly (on 1800 008 540) to check if the call was legitimate.
The scam: scammers are emailing people from a fake myGov email address, asking them to fill out an application to receive a tax refund – similar to the SMS scam above.
This scam is currently tricking victims because it displays the ATO’s myGov logo and the links look as though they’ll send you to the myGov website (spoiler: they don’t).
Avoid being scammed: do not click anywhere in these emails as they contain malicious links. As mentioned in the SMS scam, the ATO doesn’t have an online ‘Tax Refund’ form.
Extra tip: if the bottom of the suspected scammer’s email contains a line that says ‘If you feel you received this email by mistake or wish to unsubscribe, click here’, don’t click. It’s most likely another nefarious link.
If you ever suspect that you’re being scammed, don’t feel obliged to stay on the phone to be polite.
Simply hang up the phone straight away (or close the email) and either check your myGov account or directly contact your accountant or financial adviser.
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.
What would you say if we told you that you could potentially increase your rental returns by up to 30% simply by ticking a box? You’d probably call us ‘barking mad’.
But according to new research by Domain Group data, median asking rents for pet-friendly properties are higher than for homes that don’t allow pets in almost every capital city.
Take Melbourne’s inner city, for example, where just 1% of apartments allow pets.
The median rent for pet-friendly apartments is $550, whereas the median rent for apartments that don’t allow pets is $422.50. That’s a $127.5 difference, or 30%. Think about how much quicker that could help you pay off your home loan.
It’s a similar trend around the nation, too.
In many Sydney suburbs the median rent difference ranges from 12-26%, Brisbane’s southern suburbs have a difference of 13%, and so too do Perth’s western suburbs.
When it comes to the difference in house rental prices, Brisbane’s inner city leads the nation where houses allowing pets fetch 21% higher rent. Meanwhile, the Canberra suburb of Gungahlin (13%) slips into the nation’s top five among a number of Sydney suburbs.
The recurring theme seems to be that the lower the proportion of properties advertised as pet-friendly, the higher the difference in median rental prices.
“We definitely see an increase in rents when properties are pet-friendly,” one Sydney real estate agent told Domain. “Hands down it’s the biggest inquiry we get for any property.”
Here’s what a Brisbane real estate agent added: “I love to give out a property which is pet-friendly because I know I’ll have a bigger pool of people coming through and the take-up is much faster.”
Ok, so not every property is suitable for a pet. Not to mention that some strata bylaws don’t allow pets.
But if it’s something you’re interested in looking into, here are some important factors to keep in mind.
– Put in place a pet agreement: Have your tenant sign an agreement that outlines how many pets are allowed, what breeds, and what rooms they cannot enter (ie carpeted rooms). It can also stipulate that the pet should not annoy neighbours, not damage the property and that the tenant should take pest control precautions to keep the property free of fleas.
– Ask for a pet reference: There’s a good chance that the people moving into the apartment have rented another property before. Therefore be sure to ask their previous property manager how the pet behaved at that premises.
– Insurance and tax implications: While the tenant will be liable for most property damage (except general wear and tear), it’s worth double checking your landlord insurance policy to see what you’ll be covered for. And when it comes to footing the bill for general wear and tear, the good news is that it can be deducted from your rental income come tax time.
As you can see, there are some pros and cons to weigh up.
Sure, advertising your property as pet-friendly when seeking a new tenant can increase your rental return, but you’ll want to ensure you’re welcoming a pet into your investment that won’t be destructive or keep the neighbours up at night.
If you’d like to find out any other tips about potentially increasing rental returns on your property, then don’t paws for thought – give us a call right meow!
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.
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.
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.
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.
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.
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.
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.
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.
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