TerryW is now working with House of Wealth who have opened a Sydney office.  Those prices are crazy.

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]

jeloveaI haven't had any experience with Carly Crutchfield but my experience with a lot of these seminar hosts is that in practice it is extremely difficult to implement their strategies.  Now the next thing you will be saying is "<moderator: delete language> so you are telling me I wasted $6k" well no.  i'm sure you've learnt a lot from the c…[Read more]

I just reread the post and saw the comment "no stamp duty if transfer to SMSF".  In NSW this is not the case at all.  The transfer would be a dutiable transaction and would be subject to stamp duty.  Barca no disrespect but it is obvious you have a little knowledge but as they say a little knowledge can be dangerous.  The advice you have given is…[Read more]

I don't think it is picking holes because if you were to transfer the residential property then not only would you have a CGT event which you would need to pay tax on you would also have a non complying fund which would either need to rectify the situation or risk being taxed at 45% on the value of the funds assets.

A superannuation fund fits into the general definition of a trust. Assets are held in the fund for the future benefit of the named recipients of the fund. However, members of a superannuation fund do not have the same rights of entitlement as beneficiaries in a trust generally do. The reason for that distinction is that members of a…[Read more]

Richard,Yes Justin Frohnert summarised it well.  http://www.superliving.com.au/StoryView.asp?StoryID=122512

Just to clarify Section 67(4A) of the SIS Act which covers the new legislation states at subsection (ii)  "(ii)  is not an asset the RSF trustee is prohibited by this Act or any other law from acquiring;                             is held on trust so that the RSF trustee acquires a beneficial interest in the original asset or the replacement"The…[Read more]

Time for me to do as many have done before and keep my knowledge to the Somersoft crew. Once someone starts attacking people in the profession I say goodbye. Good luck.

Lisa,

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]

Brenda it depends on when the asset was purchased. The sale of your rental property will include depreciating assets and a balancing adjustment will happen to those assets.

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]

Misty,

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

How boring life would be if we always stayed on topic. Ohh sorry this is off topic.

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

A company who has an in-house childcare centre can provide childcare to employees and these will be classified as exempt fringe benefits provided the criteria is met.

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]

Terry,

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]

The only caveat (no pun intended) I would apply is to seek legal advice. None of the people posting, including me, in relation to this message has, in my opinion, legal qualifications nor are we practising solicitors or barristers.

Terry,

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]

Wake,

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.

Ordinarily I wouldn’t make a comment but making such a derogative comment towards someone (calling them a moron) deserves a comment.

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]

Cata,

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]

It is very important that people who operate through trust structures understand the notion of the trustees right to be indemnified against the assets of the trust. This is an important part of every state’s law and basically holds the premise that where the trustee is sued and is found to be liable then that trustee has the right, and the…[Read more]