Yes you will need a receipt for any aggregated claims totally over $200. If the aggregated claim is under $200 and the individual item to be claimed is under $10 the requirement to obtain a tax invoice from the supplier does not apply.

You will also need to make sure that the receipt has the words TAX INVOICE otherwise it is considered by the…[Read more]

Why do i support those who are fortunate contributing a fair share to taxation to assist those who are not. Well it is probably because I am a socialist at heart.

I am one of the few fortunate souls whose parents benefited from family benefits while I was growing up (which enabled my mother to stay at home and raise a family) because my father…[Read more]

Enjoying the DaVinci Code at the moment. I have a passion for conspiracy theories fiction. Also a great fan of Patricia Cornwell (crime novelist).

Sounds like Greed may just be a disgruntled retrenchee having finished there time in the transit lounge.

We are all public servants in some form (i provide management consulting advice to clients – so i serve my clients – who happen to be part of the public). lol.

Or maybe Greed is Henry Kaye who is disappointed that the current market is not…[Read more]

Yes it is sad but the government taxes us soo much it is incredulous. I have already made my plans to move to New York City in 2006. Finish up my current projects and then move to a city that offers the same money, same rental (income % wise to Australia), but much lower taxes. And then save and convert my USD to Aussie dollars.

My plan is to…[Read more]

I don’t think the government will touch negative gearing as it caused too many problems the last time it was done under the Keating Government. Negative gearing is also allowed for other types of investment such as shares so I doubt whether they would try anything.

However I do think that the 2.5% capital allowance could be scrapped. I think…[Read more]

Marisa,

That to me would be a sign to stay cautious. The majority of NSW property investors (in fact I could probably make the same comment about property investors in general) are like lemmings. When one decides to jump over the cliff the rest follow. Sounds like the cliff has moved from the eastern seaboard to the western one.

GMH,

I agree. I used to live in Dural before moving into the CBD and I have a lot of friends out that way and every time I am out there I am amazed at the number of for lease signs. I thought the Castle Hill, Glenhaven, Cherrybrook area was the sort of place for ones PPOR but the number of for lease signs has me perplexed. Loved the area but…[Read more]

Melbourne apartments.

Enough said.

Initially I had just written the first two lines but thought I should expand. The latest statistics are showing a decline in apartment prices in Melbourne and this has been happening for a short time now.

For a property in the high 300’s you are going to be struggling to get a positively geared property. The…[Read more]

The ATO’s current ‘Rental Properties’ guide states (at page 4) that the costs of acquiring or disposing of a rental property (including stamp duty on the property transfer) are not deductible (but may be included in the property’s cost base for CGT purposes).

However, it also notes that the costs of preparing and registering a lease and the cost…[Read more]

Yep the case has been decided by the High Court and has been held to be an illegal tax scheme.

Anyone who has split loans and capitalised the interest on their home against their investment property and claimed the total as a deduction will need to make amended returns.

Another hit for the investors.

GreatPig,

The last paragraph of my response answers your question. “Although, arguable, this may constitute a breach of duty by the trustee and the appointer could change the trustee, it is best not to give the trustee in bankruptcy the opportunity. The shareholders could be your children (if aged 18 or over), your wife or parents, or maybe even…[Read more]

Even if a company is the trustee, the directors of the company can be made personally liable for the liabilities of the trust under S 197 of the Corporations Act 2001 where, for some reason, the company is not entitled to be fully indemnified out of the assets of the trust (for example, where the company acts beyond its powers)

A director may…[Read more]

IN the current climate I would keep doing what you are doing and save, save, save. Look at getting rid of your car if you don’t need it and then sit on your cash for at least another year. The market has peaked and now is not the time to be buying property. There is always a time to sit on the sidelines and watch the game unfold. Now is this…[Read more]

I don’t see value in Kellyville to be honest. There are some things going for it and that is particularly the Norwest Business Park which is attracting a number of large businesses and the associated employment opportunities. The M2 has also reduced the travel time to the City which has also bought with it the associated benefits.

I personally…[Read more]

Just be careful of the value shifting provisions. If a taxpayer operates a business through a company, unit trust or hybrid trust and a family member (or any other person) is admitted to the business, then the general value shifting rules may apply. Generally, the GVS rules will not apply where the business is carried on through a discretionary trust.

Sebastian,

No problems. The world of companies and trusts are actually quite complex. Some people think they are simple but then add a family member later on and get caught out by the value shifting provisions. Nasty.

Ok. Let’s assume you want to create a family trust then http://www.lawcentral.com.au has a good family trust deed that you can use to…[Read more]

$2,000 would be about right. To establish a company with ASIC will cost you about $1,900 and a trust deed will cost about $300. However I doubt that this would also include advice regarding income streaming, asset protection, etc. This would only be the cost of establishing a company and trust deed.

Sebastian,

Basic means just that. They cover general situations. You will fill out information as you go along. However if you know nothing about trusts then I suggest you see an accountant and/or lawyer. These documents will be effective for most individuals but without knowing your personal circumstances it is difficult to know whether they…[Read more]

The structure depends on your circumstances and only a qualified accountant and/or lwayer can work through this with you. However establishing a discretionary trust with a company as the corporate trustee will provide both income distribution and asset protection. If the trustee is a company then the discretionary trust will have limited…[Read more]