(short Takes)
The Age
Sunday October 10, 1993
Good news and bad on OST funds INVESTORS in the former OST funds, now partially frozen and managed by IOOF, will meet in Melbourne this week at an information meeting called to inform members of their funds' progress.
The three-year partial freeze of the former OST Accumulator, Deferred Annuity and Mortgage Bond has been extended by a further three years after a review by IOOF and the friendly societies' regulator, the Victorian Financial Institutions Commission.
At the meeting, IOOF will report on the progress of the funds over the past three years and explain its plans for the future.
IOOF's managing director, Mr Martyn Pickersgill, said that of the 114 mortgages held by the OST funds when IOOF took over in 1990, only 17 were left. These properties were cash-flow positive and providing returns.
``Despite an extension of the partial freeze, IOOF believes the expected boost to tourism will add value to the properties mortgaged under the funds," he said.
The Melbourne meetings will be on Thursday at the Rialto theatre, Plaza Level, 525 Collins Street, at 11am, 1pm or 3pm. Interstate meetings will be held next week.
Direct debits to tax office THE tax office is expanding its electronic payments system so that, instead of sending cheques to pay their tax bills, taxpayers can have the money debited directly from their bank accounts.
The system, which will be optional, will allow taxpayers to have tax payments drawn directly from their bank accounts and to have tax refunds directly credited to their bank accounts.
Taxpayers who want to use this system will be able to do so by providing their tax agent with a written authority. The tax agent will transmit the authority to the tax office via the electronic lodgement service. The tax office will forward the transaction to the bank, building society or credit union nominated by the taxpayer.
A pilot program allowing companies to have their liabilities directly debited will begin in Melbourne and Sydney from December. If the pilot is successful, all taxpayers who lodge their returns electronically will be able to use the direct debit and refund service from July 1994. The tax office wants all refunds directly credited to bank accounts from July 1996.
Cutting car costs COULD it happen here? The `New York Times' wire service reports that after refinancing their mortgages and trading in high-interest credit cards, some Americans are starting to swap car loans.
``In the rush to reduce interest costs, most people have overlooked the savings possible in refinancing their automobile loans," said the report. ``Many are finding that they can save hundreds of dollars.
``Most lenders have been low-key about refinancing because there are few fees, so few profits. Some even refuse to exchange new loans for old because they would lose money.
``As with mortgages, interest rates on auto loans have plummeted.
Three years ago the average interest rate for a new car loan was just under 12 per cent. Today it's about eight per cent, and many lenders even undercut that.
``One obstacle: some lenders won't refinance auto loans that they've issued. That's because they'd be replacing a higher-paying loan with a lower-paying one. In those cases, you'll have to shop around.
A spokesman for National Australia Bank, Mr Haydn Park, said it was hard to tell whether Australians were refinancing car loans. He said the bank kept track of refinancing generally, but did not have specific records for car loan refinancing.
© 1993 The Age
