Survey shows older Australians fear new taxes on death, inheritance and the family home

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Household Capital, a leading Australian provider of home equity retirement funding, said today the results of its latest quarterly survey of older Australians showed 78% of retirees were concerned, or very concerned, about about the federal government implementing an inheritance tax. “We are heading into a federal election where more than 50% of eligible voters... Read more continue reading

ATO shoots itself in the foot: tax return must be signed by Administrator

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The ATO refuses to accept a tax return from an intestate deceased estate unless it is signed by the Administrator of the estate. But what if there is no Administrator? Townsends’ Dominique Perry explains. Jane passed away in her early eighties. Almost everything of any value that she owned she held as joint tenant with... Read more continue reading

Where does a company ‘reside’ for tax purposes?

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Australia levies tax on its residents. But how can a company ‘reside’ anywhere for tax purposes? And can a company ‘reside’ in Australia if its directors and or shareholders are overseas? Section 6(1) of the Income Tax Assessment Act 1936 (Cth) defines a “resident of Australia” to include a company that has not been incorporated in Australia, so... Read more continue reading

Top 5 EOFY tips for financial advisers

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With the end of the financial year just around the corner, top of mind for many financial advisers is the indexation of superannuation caps and thresholds, which includes an increase to the ‘preservation age’ relating to when Australians can access their super, as well as the qualifying age for the age pension. Usually a mundane... Read more continue reading

Tax-managing a RAFI portfolio busts the ‘low turnover is tax efficient’ myth

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Superannuation funds moving to a rules-based equity management approach could improve their performance by more than half a percentage point a year by genuinely focusing on after-tax, not pre-tax, returns. The savings from an after-tax focus can be generated without changing the risk profile of the equities strategy. New research by Raewyn Williams, Managing Director,... Read more continue reading

Tis the season to reconsider holiday home liabilities

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The fast-approaching Christmas holiday season is a good time for property investors to reassess their capital gains tax (CGT) obligations and associated cost base – and in particular, whether a holiday house is a wise investment at all, according to HLB Mann Judd Sydney tax partner, Peter Bembrick. “While holiday homes are very popular at... Read more continue reading

Franking credit opportunity before 30 June for share fund investors

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The end of this Financial Year presents savvy Australian share fund investors with the opportunity to top up their franking credits pool and reduce their tax bill. Franking credits collected by many Australian share funds are frequently not recognised in the Fund’s unit price, in which case Credits are often only distributed at Financial Year... Read more continue reading

Tax refunds go begging and building wealth through super or gearing

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Australian taxpayers need to be preparing for the upcoming End of Financial Year period now if they are to maximise their tax planning strategies and receive an optimal tax refund in the 2019/20 financial year. Lodging a tax return sooner rather than later not only ensures any refund is received sooner, but also reduces any... Read more continue reading

Airbnb is a good income earner but what about the CGT?

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Airbnb can create extra income for you and your family, however this can cause some adverse tax consequences. “First of all the income will need to be included in your tax return each year that you earn income from your property. However, a big potential down side is that if you use your principal place... Read more continue reading

Last minute tax tips

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Although there are just a few weeks to go before the end of the financial year, there are still steps that can be taken to minimise tax liabilities, said Peter Bembrick, tax partner with HLB Mann Judd Sydney. “It’s not too late to take action to reduce your tax bill – after all, there’s no... Read more continue reading