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Labor's negative gearing and CGT changes
Labor's negative gearing and CGT changes will start 1 Jan 2020
In an address to the Financial Services Council BT Political Series, Shadow Treasurer Chris Bowen has announced that Labor's reforms to negative gearing and the Capital Gains Tax (CGT) discount would commence from 1st January 2020. "This of course means that any investment undertaken prior to 1st January 2020 will be fully protected by our grandfathering arrangements. That is, all investments made before the 1st January 2020 will continue to enjoy the current negative gearing and capital gains tax concession arrangements. This gives investors adequate time to plan and invest this year before the new rules come into force."
Mr Bowen said the negative gearing changes "will buttress some of this weakness by targeting tax concessions at new residential construction". He said a 1st January 2020 start date allows for around 7 months, being a sufficient amount of time to get the legislation in place before the changes are due to come into effect. He said Labor announced its reforms to negative gearing over 3 years ago and has "withstood the shrill scare campaigns and the apocalyptic warnings".
Fake ATO Scams
· Scammers fake ATO phone numbers
There is a current scam involving pre-recorded robocalls impersonating the ATO and threatening immediate arrest for an unpaid tax debt. The scammers use a technology known as 'spoofing' to show a genuine ATO number on the caller ID.
ASIC Scam Alert
ASIC have published a Scam Alert to advise all ASIC customers of emails circulating with links which can either have an invoice with fake payment details to renew your registrations or it can infect your computer with malware. For further details and for a list on what to watch out for, visit ASIC at: https://asic.gov.au/online-services/service-availability/scams-targeting-asic-customers/#warning-signs
Here you will also find an example of a recent scam email. If you suspect that you may have been scammed, please contact A Grade Tax on (02) 4731 1405.
Tax Deduction for Personal Super Contributions
Prior to the end of the financial year, there is an opportunity to claim a significant tax deduction for contributions to taxpayers personal superannuation.
To ensure that the contributions are deductible, what do we need to consider?
Notice of intention to claim a tax deduction
To qualify and claim the deduction, a notice of intention must be received and accepted by the superannuation fund prior to the lodgement of the member's income tax return or 30 June of the year following, whichever occurs first.
In some circumstances it may be necessary to lodge a notice of intention earlier. If you have a member planning to rollover or withdraw their benefits or seeking to commence a pension, lodgement and acceptance of the notice must occur before these events take place.
Timing
In order for a contribution to be allocated in the current financial year payment must be received by the superannuation fund. This is important for ensuring deductibility and the allocation towards a members contribution cap in this financial year.
CAUTION: 30 June 2018 falls on a Saturday! The timing of contributions is therefore crucial to ensure that they are received by the member's superannuation fund by no later than 29 June 2018.
Some superannuation funds have a cut off date just prior to the end of financial year to ensure that contributions received are processed and allocated in the current year. Please check with the relevant superannuation fund.
Depreciation - the tax deduction lots of property investors forget to claim!
There are lots of property related tax deductions that all investors claim: council rates, water rates, property management fees, repairs. But depreciation is one that many claims people don’t even know about.
Think of it as compensation for wear and tear. Buildings suffer wear and tear, and so do their contents. If you are renting out a property, you can claim this as a tax deduction.
To claim depreciation, you need a Quantity Surveyor to put together a document called a Depreciation Schedule. It sets out how much you can claim every year as a deduction.
Depending on when your property was built, the Quantity Surveyor will estimate the construction cost at the time it was built and they will put a value on it. You will claim this at 2.5% per year.
You can even claim depreciation on renovations done by a previous owner.
Tax Time 2017 Income Tax Return Checklist
The time has now come to complete your 2017 Income Tax Return. Please ring for an appointment to complete your Tax Returns this year with either Donna, Tynna, or Max.
Taxation Advice
It is important that anyone considering an investment proposal seeks our advice with regard to the taxation consequences and options available to minimize taxation. For example, there can be very significant tax advantages available by holding an investment in a Self Managed Super Fund rather than your own name.
We provide a full range of taxation services including:
- Advice regarding the best tax structure for the formation of new businesses. It is always best to discuss your new business proposal before committing to any new venture.
- Company & Family Trust returns.
- Formation & administration of Self Managed Super Funds.
- Investment property tax advice.
- Bookkeeping.
- Our mobile lending service offers a wide range of finance options for home & investment loans plus vehicle financing.
Please review the above PDF of our checklist and tax tips, to assist with the preparation of your returns.
Kind regards,
Max Connelly
B.Comm (NSW Uni.) FIPA JP
Changes for Investment Property Owners from 1st July 2017
Do you own an Investment Property? If the answer is YES, expect some big tax changes with new rules coming into force on 1st July 2017.
If you purchased a property that had installed fridges or dishwashers, you were entitled to claim tax deductions by depreciating them. Owners are now only entitled to claim things they have purchased themselves.
If you have an Interstate or Overseas Investment Property, you are no longer allowed to claim any trips to visit your property against tax.
So if you are planning on visiting your Overseas or Interstate Investment Property soon, we suggest a short trip to inspect it before 30th June 2017.
If you would like to schedule an appointment for Tax Advice regarding your Investment Property, please contact A Grade Tax on (02) 4731 1405.
Are you struggling with an outstanding ATO Debt?
Whether you are a Business, Superannuation Fund, Trust, Partnership, Sole Trader or just an individual and you have an outstanding ATO debt but are finding it hard to make ends meet, we may be able to assist you with establishing an ATO Payment Plan.
We are happy to help where we can. Contact us on: (02) 4731 1405 to discuss your options.
Are you withholding the right amount of Tax from your Employees or other Payees?
The ATO have produced a range of tax tables to assist you with your calculations on how much you need to withhold from payments you make to your employees or other payees.
For the most up to date Tax Tables, visit the ATO at: https://www.ato.gov.au/Rates/Tax-tables/
Here you will also find a link to a tax withheld calculator that does the work for you by calculate the correct amount of tax to withhold.
If you would like more information or would like to organise an appointment for Tax Advice with one of our business specialists, please call us on (02) 4731 1405.
Have You Been Scammed?
The ATO are stressing for you to be aware of any emails, phone calls, faxes or SMS’ you receive, claiming to be the ATO.
If you have been contacted by the ATO advising you that you have a debt outstanding, we strongly advise that you contact us on (02) 4731 1405 so we can clarify this information for you.
If you would like to verify or report a scam to the ATO, or you would like to see some examples on what to look out for, please visit the ATO at: https://www.ato.gov.au/general/online-services/identity-security/verify-or-report-a-scam/#Phonescams
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