Take advantage of the potential benefits when you prepay

04/06/2008

With the end of financial year less than four weeks away, now is the time to prepay up to 12 months interest on your BT Margin Loan. By paying next year’s interest before June 30, you may be able to take advantage of the following benefits:

  • Lock in a great rate to protect against rising interest rates
    By choosing to prepay the interest on your margin loan, you can lock in an interest rate that protects you from any interest rate rises that may occur in the next 12 months.

  • Potential tax deductions
    Prepay before June 30 this year and you may be able to claim the cost of up to 12 months interest as a tax deduction in the current tax year, provided you maintain the margin loan for the period over which your have prepaid your interest.

  • Easier cash flow management
    By prepaying now, you won’t need to worry about making any interest payments on your margin loan until this time next year – provided you keep your loan balance at or below the prepaid loan balance. This means you can plan and manage your cash flow more effectively.

To take advantage of these potential benefits, find out how you can prepay the interest on your margin loan with BT.

Like to know more?

Want to know about other potential tax and investment strategies? Westpac and BT have developed a guide to practical equity investment solutions, including:

  • The benefits of a regular gearing plan with your BT Margin Loan
  • How you can build your portfolio and avoid margin calls
  • How using a Self Managed Account can give you more control over your investments.

For your free copy of “Tax and investment strategies in times of volatility” speak to your financial adviser or order a copy online (opens Westpac website in a new window).


The taxation position described is a general statement and should only be used as a guide. It does not constitute tax advice and is based on current tax laws and their interpretation. Your individual situation may differ and you should seek independent professional tax advice on any taxation matters.

This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs.