Knowledge Shop Blog

August 2017 Tax Round Up - deduction limits for residential property, housing super measures

New super initiatives for housing, limitations on deductions for residential rental property, the removal of the main residence exemption for non-residents, and so much more. 

 

Treasury and the ATO have been busy this month with a raft of exposure drafts enabling key budget measures for housing.  And, new guidance from the ATO for expiring sub trust arrangements put in place to manage Div 7A complications for UPEs, and professional sportspeople and personal services income.

Members can download the full August 2017 Tax Round Up from the member-only website. To see what Knowledge Shop membership offers, call Julie on 1800 800 232 or take a tour online.

 
 
 
 
 
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Wistia video thumbnail - August 2017 Tax Round Up - deduction limits for residential property%2C housing super measures
 

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Join Michael Carruthers (Tax Director, Knowledge Shop) Matt Pack (Director, Hayes Knight), and Lisa Armstrong (MD, Knowledge Shop) for just the juicy bits of change for accountants and advisers.

There is a raft of exposure drafts enabling Budget measures this month. We explore:

  • Limits on deductions for residential rental properties – the rules preventing deductions for travel expenses, and limitations on depreciation deductions claimed for second hand assets, including the implications for ‘off the plan’ properties
  • The superannuation concessions for housing:
    • How the First Home Super Saver Scheme works
    • Concessions for over 65s contributing the proceeds of the sale of their home to super
  • No more main residence exemption for non-residents – the black and white rules excluding non-residents from accessing the main residence exemption – including the implications for deceased estates and the grandfathering provisions
  • And, from the ATO:
    • Income splitting and professional sportspeople – the safe harbour provisions and how they work
    • Expiring sub-trust arrangements and Division 7A – Back in 2009 the ATO changed its approach and indicated that unpaid present entitlements (UPEs) owed by a trust to a related company could be treated as loans for Division 7A purposes. One way of preventing a UPE from being treated as a Division 7A loan is to put in place a complying sub-trust arrangement. Where this option has been used for arrangements entered into on or before 30 June 2011 the 7 year period would be expected to end in the 2017 or 2018 income years. This new guidance explores what can be done if the principal of the loan has not been repaid.

Enjoy!

 

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The information in this document has been prepared by BT Portfolio Services Ltd ABN 73 095 055 208 AFSL 233715 (BTPS) and is current as at 1 January 2018. The information provided is factual information and does not take into account your personal needs, objectives or circumstances and therefore, before acting on it, you should consider whether it is appropriate for you. BTPS operates Panorama Investments. BT Funds Management Limited ABN 63 002 916 458 AFSL 233724 (BTFM) is the trustee and issuer of Panorama Super, which is part of Retirement Wrap ABN 39 827 542 991. Westpac Financial Services Ltd ABN 20 000 241 127 AFSL 233716 (WFSL) is the responsible entity and issuer of interests in BT Managed Portfolios. Westpac Banking Corporation ABN 33 007 457 141 AFSL and Australian credit licence 233714 (Westpac) is the issuer of the BT Cash Management Account (BT CMA). Together, these products are referred to as the Panorama products. A Product Disclosure Statement or other disclosure document (PDS) for the Panorama products can be obtained by contacting BT on 1300 881 716 or by visiting www.panorama.com.au. You should obtain and consider the relevant PDS before deciding whether to acquire, continue to hold or dispose of interests in the Panorama products. In addition, BTPS is the provider of the Panorama SMSF Establishment Service. The Guide and Terms and Conditions for this service are available by contacting BTPS. BTPS, BTFM and WFSL are subsidiaries of Westpac. Apart from any interest investors may have in Westpac term deposits, Westpac securities or the BT CMA acquired through the Panorama products, an investment in, or acquired using, the Panorama products is not an investment in, deposit with or any other liability of Westpac or any other company in the Westpac Group. These investments are subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. Westpac and its related entities do not stand behind or otherwise guarantee the capital value or investment performance of any investments in, or acquired through, the Panorama products.

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