Property Development, Tax (& everything in between) Day

Using a single case study threaded throughout the day, each presenter will walk through not only the essential technical details of managing client requirements, but the practical application – the decision points, timing issues, calculations, and the ‘red flags’ that tell you it is all about to go wrong.

Our case study characters, Mr & Mrs Smith, will seem like they belong in Days of our Lives by the time we finish with them. We’ll walk them, and the audience, through the typical issues and problem areas that Mum & Dad developers face, the interaction between the tax and legal requirements, and the likely outcomes of important decisions at a granular level.

One day only. Don't miss it.

Total 6.25 CPD Hours (est.)

Dates & Details

Thursday, 30 November 2023

DoubleTree by Hilton Melbourne
270 Flinders St, Melbourne VIC 3000

Time
8:30am registration
9:00am - 5:00pm property tax day

FAAA accreditation pending

The property subdivision decision

w Michael Carruthers

One-off and Mum & Dad projects are common. Michael Carruthers sets the scene for our typical Mum & Dad case study, Mr & Mrs Smith. We'll walk through the decision points and issues that Mr & Mrs Smith face at every turn:

Why the revenue / capital distinction matters so much
The practical factors that need to be taken into account to reduce the risk of ATO challenge
The unexpected outcomes that can arise from partitioning arrangements
Switching from capital to revenue account
How to calculate the capital gain or loss from the project or figure out the profit that should be taxed on revenue account
When the main residence exemption can and cannot be applied
How to determine whether a client needs to register for GST
Claiming GST credits and the GST adjustment rules

Using option arrangements for property transactions

w Neil Brydges & Michael Carruthers

Clients and developers often enter into option arrangements but this can present some unique challenges. In this targeted session we explore the tax and legal issues that need to be considered before clients enter into an option agreement.

Common problem areas and how to structure option arrangements well
Timing issues under the CGT rules
Undertaking CGT calculations
Applying the GST rules to option arrangements

Sleeper issues for property owners

w Craig McCormick

There have been a series of changes over the last few years that impact on the viability and cashflow outcomes of property development projects and for clients who are building or buying rental properties. We show you how easy it is for our hapless clients, Mr & Mrs Smith, to fall foul of the recent changes:

Recent integrity rules and the unexpected outcomes that clients (and some practitioners) might not be aware of
Holding costs for vacant land
- The complex interaction between the general deduction rules in section 8-1 and the specific integrity rules in section 26-102
- The treatment of costs incurred while renovating or repairing a rental property
- Understanding the exceptions to the rules
- Common problem areas
Depreciation deductions
- When depreciation deductions are denied
- Inherited properties and other related party transactions that can lead to adverse tax outcomes
- Renting out a former main residence
- The flow-on impact when a property is sold

Common legal issues that impact on the tax outcome

w Neil Brydges

Mr & Mrs Smith are at the precipice of a world of pain. Neil Brydges, Principal, and Edward Hennebry, Senior Associate of Sladen Legal walk you through:

Determining when a contract has been formed when it contains conditions
When a heads of agreement could be treated as a contract
Partitioning arrangements
The use of back-up clauses in contracts to manage tax exposures and whether this is effective
What needs to be done to show that a property (or interest in a property) is held in trust for someone else (e.g. parent holding legal title to property that the adult child lives in / pays off etc.)

GST, property and the margin scheme

w Simon Calabria

The GST rules contain a number of concessions and special rules that are often relevant in the context of property development projects. We walk through the key issues, the process and outcomes with a special focus on the margin scheme:

When the margin scheme can be used to reduce the GST liability on sale of property
How to calculate the margin
When do you need a valuation and what are the requirements?
The complex rules that can apply to properties that have been inherited, acquired from a related party or acquired GST-free
Applying the margin scheme to property that has been subdivided or amalgamated
Applying the GST rules to mixed use properties (e.g. properties that contain residential and commercial components)
Determining whether an adjustment event has been triggered and how to calculate the GST adjustments when there is a change in use or intention with respect to a property that has been developed

Principal Lawyer, Sladen Legal

Neil Brydges

Neil is a principal in the business law area, with a particular focus on taxation advice and disputes.

Taxation law is a complex area. Neil’s aim is to provide technical expertise to clients, commercially applied and in a friendly and approachable manner.

Neil’s practice involves advice, audits, disputes, and transactions. The client mix includes both family groups and business enterprises. Neil also regularly assists professional advisors, including tax agents, accountants, and financial advisors, to understand complex legal issues and help them to better assist their own clients.

Neil is a Chartered Tax Advisor with The Tax Institute and accredited as a specialist in taxation law with the Law Institute of Victoria.

Since 2019 Neil has been named one of Australia’s “Best Lawyers of the Year” in the practice of tax law. Neil has also been recognised in Doyles Guide as a recommended tax lawyer since 2021.

Tax Director, Knowledge Shop

Michael Carruthers

Michael is an adviser, author, in demand presenter, mentor to Knowledge Shop’s technical team, and is well known for his capacity to translate highly technical information into tangible and useable advice for the profession. He has a knack for seeing through the complexity and helping advisers work through highly technical issues with certainty and accuracy.

Michael works with advisers every day to help them negotiate and implement the constant tide of change impacting the industry.

He is a member of the advisory panel for the Board of Taxation and is a member of the reference group for the Board’s review of small business concessions. He was also an expert panel member for the Board’s review of tax impediments facing small business.

Director, Webb Martin Consulting Pty Ltd

Simon Calabria

Simon is a highly regarded tax adviser with over 30 years of tax experience, specialising in Indirect Taxes (GST, WET), Corporate and International Tax. He mainly deals with transaction-based matters including the related structuring.

With exposure to a diverse client base, from individuals to multinationals, Simon brings a practical approach when solving tax technical issues. He has been advising on GST matters from its implementation in Australia and regularly provides advice in relation to GST and property matters.

General Manager, TaxBanter

Craig McCormick

Craig is an experienced finance and management professional with a background in leading high performance teams and driving business performance. He is responsible for leading the TaxBanter business across its Australian national operations which covers every state and territory and major regional centres.

Craig’s prior experience includes a national leadership role with a large mid-tier accounting group and CFO roles with high growth companies and management roles with large global listed groups.

Outside of work, Craig is a volunteer surf lifesaver and enjoys spending time with family and friends. He also participates in triathlons and distance running.

Training

Property Development, Tax (and everything in between) Day

The right decisions from the start to the end of a property development project

Register Melbourne

Our line-up