News

The investment option that can hide unexpected GST

The investment option that can hide unexpected GST

November 6, 2020

New residential property is a popular investment for many, and can be especially so for self-managed superannuation funds, however the ATO is concerned that not every investor in residential property is fully aware that it is an option that may bring with it unexpected GST obligations. The ATO says that from 1 July 2018, most…

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Rental property Tax approach adjusts for COVID 19

Rental property: Tax approach adjusts for COVID-19

August 3, 2020

The COVID-19 pandemic has placed property owners, and tenants in many cases, in unfamiliar territory. Many tenants have been paying reduced rent or ceased paying because their income has been adversely affected. While rental income may be reduced, owners will continue to incur normal expenses on their rental property and will still be able to…

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Damage or destruction of a rental property

Damage or destruction of a rental property

March 3, 2020

What happens if your property is damaged from the results of a natural disaster, or by tenants? Such a situation can affect the types of expenses you claim and the income you need to declare for your rental property. Declaring income If you receive a payout for damage to your rental property as a result…

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Selling taxable Australian property

Selling taxable Australian property. Need a clearance certificate from the ATO?

March 3, 2020

Photo by Tierra Mallorca on Unsplash If an Australian resident is considering selling property, they should apply for an ATO clearance certificate. If a property vendor does not apply for a clearance certificate and present it to the purchaser, the purchaser is required to withhold 12.5% of the purchase price for CGT purposes on properties…

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First Home Super Saver scheme

What you need to know about the First Home Super Saver scheme

February 4, 2020

Photo by Sandy Millar on Unsplash The First Home Super Saver (FHSS) scheme was introduced a couple of years ago with an aim to reduce pressure on housing affordability. The scheme allows eligible taxpayers to save money for their first home inside the superannuation system. The government says this concessionally taxed environment will help first…

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CGT when spouses have different main residences

CGT when spouses have different main residences

October 1, 2019

It can sometimes be the case that spouses can have different main residences at the same time. When this occurs, special CGT rules apply to in effect provide only one CGT main residence exemption over this period. However, important decisions and choices may need to be made to optimise the tax outcome in this case…

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Property development and tax

Property development and tax

September 2, 2019

The ATO seems to be always looking over the shoulder of property developers to make sure they are complying with their tax obligations. The considerations facing the ATO can include whether an agreement to develop and sell land is a “mere realisation” or a disposal either in the course of a business or as part…

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CGT exemption on inherited homes

CGT exemption on inherited homes

September 2, 2019

Inheriting a home or a legal interest in one could be the largest windfall gain that many Australians ever experience. From a tax law perspective, when someone dies a capital gain or loss does not apply when a property passes: to the deceased person’s beneficiary to the deceased person’s executor or other legal personal representative…

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Rental property owners Top 10 tips to avoid common mistakes

Rental property owners: Top 10 tips to avoid common mistakes

September 2, 2019

The ATO is reminding rental property owners that each year it sees some fairly common mistakes being made with tax claims, and the outcomes that result, in regard to investment properties. It has therefore released a list of the top 10 stumbles, and how best to avoid them. 1 APPORTIONING EXPENSES AND INCOME FOR CO-OWNED…

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Rental travel expenses mostly off the table

Rental travel expenses mostly off the table

March 1, 2019

The ATO recently highlighted significant non-compliance with the rules prohibiting taxpayers claiming travel expenses related to residential rental properties. Late last calendar year, the ATO revealed that it had identified 26,000 taxpayers who had incorrectly claimed deductions for travel to rental properties during tax time 2018, despite recent changes to the law in this area.…

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