Active vs passive assets and the small business CGT concession

The small business capital gains tax concessions are extremely valuable, and for small business owners who need to dispose of assets that have risen in value during the time they have owned them, accessing these concessions can mean greatly reducing any consequent tax liability, even to zero. But to access the CGT concessions some conditions […]

Getting a tax valuation from the ATO

We all know that the ATO is the guardian of the tax laws, administers tax regulations and can provide advice and guidance on how they apply. But not every personal situation fits neatly with the tax laws as they stand. Sometimes, an individual may need help understanding and meeting their tax obligations. In such circumstances, […]

Renting out part or all of your home

Generally, if you rent out part or all of your home, the rent money you receive is  assessable. This means that you must declare your rental income in your income tax return, but you can also claim deductions for any associated expenses. However, be warned. If you rent put part of your home, such as […]

CGT property withholding rules

New withholding rules on the sale of property by foreign residents have been introduced – which essentially makes purchasers tax collectors. The government says this has been necessary as foreign investment in Australia, including in residential real estate, is increasing at an unprecedented rate. The rules will apply where real property contracts are entered into […]

Your practical CGT framework

The term “capital gains tax” (CGT) is perhaps the biggest misnomer in tax. It is not its own, separate tax on capital gains per se.  For an individual, it is included as part of that person’s assessable income and subject to tax at their marginal tax rate. When a taxing point for CGT happens (referred […]

Property developers warned on structures that muddy income/capital divide

The Tax Office has warned property developers against using trusts to return the proceeds from projects as capital gains instead of income, warning that it has found many instances that had subsequently been shown to be contrived arrangements to allow developers to inappropriately claim CGT concessions. In a statement, the Tax Office said it had […]

CGT exemption for two homes

It is generally accepted that an exemption to capital gains tax applies to the family home, or “main residence”, and the exemption usually applies for only one home at any given time. But there is a rule  that allows for a taxpayer to have two main residences and still maintain that CGT-free status for both […]

Foreign and temporary residents — there’s no longer any CGT 50% discount

Individuals are generally entitled to a 50% discount on a capital gain where a CGT asset (such as a property) is disposed, provided that the asset is held for at least 12 months. However a recent change has altered the tax treatment for some taxpayers. By way of background, foreign and temporary residents are required […]

The taxation of capital gains

When you make a bit of money from selling an investment, this will give you a “capital gain”, or to put it a little more succinctly, a capital gain is the difference between the price you paid for an investment and the money that is made from selling it. The investments or assets that you […]

Why you need to think about estate planning

They say there are two things that are certain in life – taxes and death. Daunting as the latter may be, it is vital to devise an estate plan. All it takes is good advice, advanced planning and some serious thought. A complete estate plan will allow you to protect your hard-earned assets, determine who […]