SMSF with one property and assuming it has borrowings and therefore a warrant trust no more than $3,300 including audit
Unit Trust about right
DT with one property no more than $1,320 including GST
Company with one property no more than $1,320…[Read more]

I am curious as to what strategies, mentioned by Dale in his book Trust Magic, in your opinion are bordering on tax avoidance with specific reference to relevant legislation and High Court cases.

You state “but I would advise anyone who has read this book not to take his advice on board”. Which advice specifically ? The advice on the use…[Read more]

You work out the balancing adjustment by comparing the assets termination value (that is, the proceeds from the sale of the asset) and its adjustable value at the time of the…[Read more]

There are provisions in the Act that discuss this scenario and the main residence exemption. Discuss with your accountant.

These changes were announced in the budget and therefore come into effect from 1 July like all other changes to tax rates.

Given that you are using gross dollars to pay for the benefit and they are exempt benefits then it is a tremendous advantage who don’t. Usually only appropriate for medium to large…[Read more]

I’m at the stage now where I don’t try to convince anyone anymore. I simply put forward the facts and let them decide. Strangely enough all of my high net worth clients (client worth over $5M in my opinion) all operate through a variety of trust structures for a variety of reasons.

If you don’t think trusts are useful then don’t use…[Read more]

Very appropriate advice. I was reading an article the other weekend and it was discussing a company that provided contracting services to major companies and overextended themselves and eventually went into liquidation with massive unpaid PAYG tax liabilities.

One of the employees had been working for 13 months with the company when they…[Read more]

You would need a lot more facts to make a decision. Best to discuss with an accountant who has an indepth knowledge of GST.

As a starting point they should consider Miscellaneous Taxation Ruling MT 2000/1 and Goods and Services Tax Determination GSTD 2000/8.

Your comments are like the pot calling the kettle black. Hardly appropriate to make such comments when you yourself misspelt seriouls y (sic) and wouldnt includes an apostrophe.

I think Dale was using his own…[Read more]

It wasn’t directed at you. In general I have found your advice to be good and refreshing.

I had a very heated discussion with an inexperienced accountant about the very issue on Friday and until I had a partner from one of the large law firms in Sydney ring that accountant to advise them I was in fact correct and if continued allegations…[Read more]

Yes there are deeds which can be purchased online…[Read more]

It is more paperwork and their legal team does need to analyse the deeds so it…[Read more]

You could try Nick Moustacas at Strategic Wealth Management who is located in Bligh Street, Sydney.

Alternatively we are located at Norwest Business Park but a bit out of the way from Innery Sydney.

Based on Section 104.10 it would be the 29th June as the date of disposal.

If finance was not approved then obviously the disposal would not occur (as the purchaser wouldn’t have funds to purchase the asset and the sale would fall through) and CGT Event A1 (dealing with disposals) would not apply.

(3) The time of the event is:

(a) when you enter into the contract for the * disposal; or
(b) if there is no contract—when the change of ownership occurs.

So if you enter into the contract for disposal in say April 2006 then this is the date of disposal of the CGT asset. If you have a long…[Read more]

You may not know but we have a new office in Norwest Business Park in Bella Vista in conjunction with our Central Coast office.

Mike

Taxation Ruling TR 92/3 provides guidance in determining…[Read more]

That’s a fair request. Being charged $330 to answer that simple question is, in my opinion only, not reasonable. I now know it’s not me because noone has called to ask me that question.

Gross, no blatant advertising for my firm. Just making comments on the fees. $330 – $550 per hour is the standard charge out rate for partners in…[Read more]

I could very well be the person who quoted $330 for the hour consultation as I do charge that. Fees are always a difficult thing. If your accountant is well versed in trusts (hybrids, unit and discretionary trust), understands family trust elections and interposed entity elections and is able to ensure that you are structured well…[Read more]

This is totally incorrect. As per my previous post the income is deemed to have been received for CGT purposes when the contracts have been exchanged NOT when settled. When the income is received is irrelevant.

Read Section 104.10 of the Income tax Assessment Act 1997. The example provided in the legislation makes it abundantly…[Read more]

You are wrong. Under Section 104.10 of the ITAA 1997 CGT event A1 happens if you dispose of a CGT asset. Section 104.10 is included below with relevant sections and examples in bold. Note this is taken directly from the Act.

You dispose of a CGT asset if a change of ownership occurs from you to another entity, whether because of some…[Read more]

Just wanted to clarify one point. Even with a hybrid trust any losses incurred by the trust are still retained in the trust and carried forward (provided they meet the trust loss rules). These losses are not distributed to the unit holders as you seem to suggest.

For clients who have purchased a new residential unit and if it is not…[Read more]

You can certainly sell property in a company structure without actually selling the shares. However any capital gains made will be taxed at the company tax rate of 30% and the 50% CGT Discount cannot be applied as companies do not receive this concession.

The next issue is how to get the funds out of the company. Do you pay out a…[Read more]

Between this forum and Somersoft I doubt you couldn’t find an answer to a question in the public forum. Of course if…[Read more]

Then when I get to London I get to enjoy another Christmas Day. Two Christmas’s in one year. A bonus !!!

You will need to determine whether it is a mere realisation of a capital asset or something more. Cases to consider include Scottish Australian Mining Co Ltd v. Federal Commissioner of Taxation , FC of T…[Read more]

You like to “but and hold”. Sounds like some sort of kinky sexual fetish to me.

Our dentist friend told me you were currently cruising around the Asian countries. Last time I heard you were in Japan. Business or pleasure ?

That’s a good point. It’s easy to look at yourself and forget that their are others who have low self esteem, weak characters, etc and are unable to bargain for themselves. In that respect unions do have a role for the weaker person.

However I urge caution. The last 2 times I mentioned binding financial agreements to my partner(s) at the time the relationship started to go sour. They thought it was extremely unromantic and I was admitting…[Read more]

That is assuming the purchaser agrees to the margin scheme being used. Assuming that the properties are going to be used for residential purposes then the purchaser is probably not seeking an input tax credit and therefore won’t be concerned whether the margin scheme is applied or not.

If however the terraces are used for commercial…[Read more]

You can certainly transfer property in-specie to a trust but the market value substitution rules will come into play.

If the property is your main residence, and has always been your main residence, then CGT is not an issue as you will obtain the main residence exemption.

Depending on the State you live in will determine whether stamp…[Read more]

We have closed a number of SMSF for clients with under $50K as the establishment costs (around $1,200-$1,500) ongoing accounting costs (around $1,200 – $1,500 per annum), annual audit costs (around $500 – $600) for the majority of people is more than the ongoing fees you…[Read more]