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
How a home loan offset account can save you tax
You’ve got surplus cash and a big mortgage. You are trying to decide whether to put the excess cash into super or pay off the mortgage. If you decide on paying off the mortgage there’s another thing to consider. While you’re living in your home, paying off your mortgage is reducing a debt on which the interest is not tax … 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
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