May 2015 Newsletter

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WHAT TO BEWARE OF IN A HOT PROPERTY MARKET

Over the past 12 months, you have probably read and heard about the hot property market, with unprecedented auction clearance rates and large increases in prices.

This can lead to some problems if you have bought a property and you intended to borrow the money from the bank to fund the purchase.

Click here to read more about what to watch out for.

INTEREST RATES − HOW LOW CAN THEY GO?

This month’s announcement by the RBA to cut interest rates to historically low levels, has seen mixed reactions from Australia’s lenders, with some passing on the full rate cut, whilst others only some.

While it is in our nature to all try to forecast where we think rates are going to go from here, it is difficult to get it right. Even the so called experts rarely get it right.

Click here to find out what you should be asking yourself right now.

HOW YOU COULD END UP PAYING MORE STAMP DUTY ON YOUR COMMERCIAL PROPERTY

When you are looking to buy a commercial property i.e. factory or office space, you should consider applying the Going Concern GST exemption.

This is the exemption that allows the transaction to be GST free as it is the sale of a business or a business related asset (like a commercial property).

Click here to read about the advantages.

EARNOUT ARRANGEMENTS ON SELLING YOUR BUSINESS – FINALLY SOME GUIDANCE FROM THE ATO

It’s been 5 years in the making, but Treasury has released exposure draft legislation to implement look-through CGT treatment for the sale and purchase of businesses involving “earnout rights”.

It is common in the sale of a business, in order to decrease the buyer’s risk, to include provisions that adjust the sale price of a business depending on subsequent performance of that business. These post transaction payments are called earnouts. The tax implications of earnouts have been in limbo for a number of years.

Click here to read our article in full.

QUOTE

One of the marks of successful people is they are action oriented. One of the marks of average people is they are talk oriented.

– Brian Tracy