SMSF Properties – what can and cannot be done to them?

Borrowing by a self- managed superannuation fund (“SMSF”) to purchase property, whether it be residential or commercial, is not a new investment strategy however care needs to be taken when trustees wish to start to make alterations and improve these properties.  What is the current legislation? Current Limited Recourse Borrowing Arrangements (“LRBAs”) allow for an SMSF to borrow money to … Read More

NSW Property Surcharge on Discretionary Trusts

If you have a Discretionary Trust (commonly known as Family Trust) and you have residential properties located in NSW within your Trust, then we suggest that you read this article in full. The NSW Government has recently made changes to the definition of “foreign persons” for the purposes of assessing duty and land tax liabilities. If you have a Discretionary … Read More

What does the budget mean for superannuation?

It has been a fortnight since the 2016 Federal Budget was delivered by the Turnbull government and unlike previous years, there were many proposed changes to superannuation. With such significant superannuation reforms in an election year, there is a lot of water to go under the bridge until they actually become law, however this means greater planning will be required … Read More

Foreign income in the ATO spotlight – the aftermath of project DO IT

If you’re an Australian resident for tax purposes, you are taxed on your worldwide income, so you must declare any foreign income in your income tax return. Foreign income includes: Foreign pensions and annuities Foreign employment income Foreign investment income Foreign business income Capital gains on overseas assets Project DO IT was an amnesty offered by the ATO to allow … Read More

Foreign buyer crackdown

  The Australian Tax Office (ATO) has ramped up its efforts to hunt down foreign buyers of Australian real estate, with the employment of 50 compliance officers who will investigate potential breaches of the law by cross checking the records of approximately 11 million people to find illegal owners. The ATO is responsible for overseeing foreign property investment and is … Read More

Have you registered for land tax?

  Depending on where the property is situated, land tax may be applicable to you. Land tax is a state tax levied on the owners of land in all states of Australia except for the Northern Territory. Each state has their own rules, rate of tax and exemption threshold, but for the purpose of this article, the focus will be … Read More

Insurance cover – should it be held inside or outside of super?

Deciding whether to have your insurance held within super or outside super is not an easy decision so it’s best to be well informed before taking out a new policy or reviewing an existing one. There are 3 types of insurance cover that can be held inside super: Life insurance Total and permanent disability (TPD) insurance – “any” occupation only … Read More

Share trading versus share investing

  Taxpayers are subject to different tax treatment for gains and losses on shares depending on whether they are considered to be a “share trader” or a “share investor”. Some of the key differences in the tax consequences include: Share investors are eligible for the 50% general CGT discount when they sell shares that they have held for more than … Read More

Can I transfer listed shares in my name to my SMSF?

  Yes you can – the proposed ban on off market share transfers to SMSFs was never legislated, so this green light still exists. The advantage of having your SMSF own the shares is the flat tax rate of 15% on the dividends and capital growth (10% if held longer than 12 months) and if you’re already taking a pension, … Read More