Introductory Rates & Interest Free Periods
Consumers are enticed to transfer balances owing on credit cards, but need to be aware of all the costs, not just the benefits.
During the promotion period:-
- a lower interest rate may apply, and/or
- fees, and charges may be lower, or may be waived altogether
The credit provider must take care that consumers are not misled about the details of the offer – The Corporations Act, the ASIC Act and National Consumer Credit Protection Act, are in place to ensure a balanced message and consumers have a realist impression of the overall costs.
If an advertisement includes details of a discounted interest rate, or discounted/waived fees, the advertisement must also make clear with equal prominence, the period for which the discounted rate applies.
The advertisement must also state what the interest rate revers to after the promotional period.
Pose yourself questions such as:-
- can I pay off the debt during the promotional free period?
- will the rate after the promotional period be higher than the current rate?
- can I change my habits to avoid future credit cards interest?
There is no substitute for careful reading or asking for a second opinion from your accountant before you sign up.
AcctWeb
Hot Issues
- GST fraudsters to face ‘full force of the law’: ATO
- Social media scams dominate losses in 2024
- Managing your business’s tax debts
- Warning on ATO data matching “lifestyle” assets and your business
- ATO issues alert on guarantee arrangements and Division 7A
- E-Commerce Laws You Must Know To Run An Online Business
- Resources and Tools to help our Clients build their future
- Most Powerful Economies in Europe | 1960-2024
- ATO reveals small business hit list to combat tax debt
- What are the FBT implications of Employee Christmas Parties and Gifts?
- Assess a business before you buy it
- Christmas Parties and Taxi Fare/Rideshare – FBT implications.
- Practitioners cautioned on ATO’s top target areas for GST
- ATO to target growing businesses in latest compliance blitz
- Our SG compliance results are here
- Top 20 Most Watched Christmas Movies ever - pre covid
- A Unique Advent Calendar
- Businesses ghosting the ATO targeted in debt collection blitz
- Claiming the tax-free threshold: getting it right
- Aussies tired of ‘dodgy tax criminals’, warns ATO
- Protect your small business by following these essential steps.
- Super guarantee a focus area for ATO business debt collection
- Controversial ‘Airbnb tax’ set to become law
- Withholding for foreign residents: an ATO focus area
- 1 in 3 crypto owners confused about tax, study reveals
- 20 Years of Silicon Valley Trends: 2004 - 2024 Insights
- ATO reveals common rental property errors from data-matching program
- New SMSF expense rules: what you need to know
- Government releases details on luxury car tax changes
- Treasurer unveils design details for payday super
- 6 steps to create a mentally healthy and vibrant workplace