Category: General

The ATO has extended its 30 June 2016 deadline to 31 January 2017 for SMSF trustees to review limited recourse borrowing arrangements (LRBA) for non-arm’s length income. The Tax Office issued the Practical Compliance Guide 2016/5 in April to provide guidance for SMSF trustees to ensure LRBA arrangements are on terms that are consistent with…

Self-managed super funds (SMSF) have until 30 June 2016 to conform to the ATO’s new rules on related party loans. A guidance paper released by the Tax Office stated that related-party loans e.g. family trusts or private companies to SMSFs now must be at interest rates of 7.75 per cent for shares and 5.75 per…

The ATO has begun issuing letters to rental property owners in popular holiday locations whose rental income was lower than expected. In the lead up to the end of financial year, rental property owners are being reminded by the Tax Office to only claim deductions for the periods when their property was rented or genuinely…

Now is the time for property investors to take advantage of the tax strategies available to them. Travel The cost of travel to inspect or maintain rental properties or to collect rent is an allowable deduction. Travel expenses can be claimed for preparing the property for new tenants (except for the first tenants),inspecting the property…

The ATO is targeting those who rent out their property for a few weeks during the year but claim a full year’s worth of tax deductions. The tax office will be paying close attention to rental property owners, especially those who own a holiday home, who incorrectly claim for initial repairs to recently acquired rental…

It is never too early to focus on your tax planning in order to minimise tax, reduce risk and be prepared financially. Effective tax planning is something that should be considered year round and making it a priority can result in you paying less tax liability. Preparing and updating a forecast of income and outgoings…

If your negatively geared property is beginning to create some serious cash flow problems, there is a way you can access the large tax breaks it provides before the end of the financial year. Specifically structuring an investment property to take advantage of negative gearing is a popular strategy for investors wanting to achieve significant…

Savvy Australian property investors can save a large amount on their tax bill by deducting associated expenses. Negative gearing allows property investors to claim any shortfall between their income and expenditure on an investment property as a deduction against their total taxable income. Most property investors are aware of the usual expenditure deductions that they…

Purchasing property with a partner can be an exciting time in life, however, it is important not to overlook what kind of method of ownership you should use. When two or more people purchase property together, they can own the property as joint tenants or tenants in common. Joint tenancy allows for two or more…

When renovating an investment property, it is important to keep in mind the taxation deductions available such as depreciation and capital works deductions. Investors seeking to renovate property that is used for income-producing purposes need to be aware of the tax-deductible expenses that can be claimed as a deduction, either immediately or over several years.…