News

Renting out part or all of your home

Renting out part or all of your home

November 6, 2018

If you rent out part or all of your home, the rent money you receive is generally regarded as assessable income. This means: you must declare your rental income in your income tax return, and you can claim deductions for the associated expenses you may not be entitled to the full main residence exemption from…

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Why now is the time to consider refinancing your home loan.

July 19, 2018

While interest rates have been at historic lows, 966,000 Australian households are estimated to be in mortgage stress and default (Digital Finance Analytics – DFA). DFA Principal Martin North says ‘the expectation is that in the next few months stress will continue to rise as mortgage rates rise’. In recent weeks, we’ve seen banks starting…

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Rental property owners lose some deductions

February 2, 2018

Legislation that came into law in the last half of 2017 makes a reality measures first announced with the 2017 Federal Budget. The “housing tax integrity” bill solidifies the government’s intention to deny all travel deductions relating to inspecting, maintaining, or collecting rent for a residential investment property. As well, second-hand plant and equipment that…

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ATO waves a red flag on deductions for holiday rentals

ATO waves a red flag on deductions for holiday rentals

July 4, 2017

Just when many Australians are considering getting away for a mid-winter break, the ATO is reminding taxpayers that it is paying close attention to rental properties located in popular holiday destinations around Australia. The ATO recently issued a statement saying that last year it identified a large number of mistakes with deductions for rental properties,…

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The CGT implications of subdividing and building on the family property

The CGT implications of subdividing and building on the family property

May 2, 2017

Given the state of the property market in Australia these days, a not-uncommon situation can arise where a residential property owner seeks to demolish and subdivide the block containing the family home and build residential units. If you have the available land of course, the above is a solid strategy. However it can cause headaches…

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Renting out part or all of your home

Renting out part or all of your home

August 1, 2016

Generally, if you rent out part or all of your home, the rent money you receive is assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any associated expenses. However, be warned. If you rent out part of your home, such as…

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Real estate: Buyers turned into tax collectors

Real estate: Buyers turned into tax collectors

July 3, 2016

New withholding rules on the sale of property by foreign residents have been introduced. This essentially turns property buyers into potential tax collectors. The government says this change of rules has been necessary as foreign investment in Australia, including in residential real estate, has increased, and is continuing to increase, at an unprecedented rate. The…

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Rental properties: ATO focus on “initial repairs”

March 8, 2016

The ATO is focusing on claims that investment property owners make for repairs to rental residences that it deems to in fact be “improvements”. The scenario where investment properties have work done on them often happens shortly after the property is purchased, and has led to the term “initial repair” being commonly used when discussing…

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Building a new home? Is it exempt from CGT?

Building a new home? Is it exempt from CGT?

December 4, 2015

There is a concession in the CGT exemption rules that can allow a taxpayer to treat a property as their “main residence” even though it does not yet have a habitable dwelling. It is a widely recognised fact that capital gains tax (CGT) exemption applies to a taxpayer’s principal or main residential property. And one…

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Property transactions: Got an appropriate valuation?

Property transactions: Got an appropriate valuation?

November 4, 2015

Be aware of how the use of valuations can affect your annual tax bill. Estimates are most commonly used in apportioning expenses between private and business use. More important however is the use of valuations to work out the cost of transactions that are not at arm’s-length or when no actual cash changes hands. A…

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