Property Investment with your Self-Managed Super Fund
For most of us superannuation represents a significant proportion, if not all, of our savings for retirement. With the many recent changes to the legislation governing Self-Managed Superannuation Funds (SMSF’s), investing with superannuation has become more attractive and more people are taking active steps towards managing their own superannuation through SMSF’s.
There are many benefits to setting up a SMSF; one of the most important is the ability to use your superannuation to now purchase investment properties. Making the most of this option provides significant tax and capital gains tax concessions, as well as great leverage as the major banks are now proving lending of up to 70% of the purchase price of the property. Essentially this means you can own an investment property for 10, or more, years and not have any capital gains tax to pay on it if you chose to sell it when you retire.
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Self-Managed Super Funds
In Australia more than 14 billion dollars a year is being moved from industry or employer superannuation to self-managed super funds (SMSF) by individuals that enjoy the control operating their own super fund gives them. Nonetheless, it is vital to recognise that the sense of control operating a self-managed fund provides comes with the burden of greater responsibility. A self-managed super fund differs from other kinds of super funds because the members must also act as trustees; they have to take on the administration of the fund.
Small Business Depreciation - Changes From 1st July 2012
What happened after 1st July 2012
- The small business instant asset write-off threshold has increased from $1,000 to $6,500
- Small businesses can claim an accelerated initial deduction for motor vehicles acquired in 2012-13 and subsequent years.
- The long life small business pool and the general small business pool have been consolidated into a single pool to be written off at one rate.
Australian Tax - A Brief History
The first taxes in Australia were raised to help pay for the completion of Sydney's first gaol and provide for the orphans of the colony. Import duties were put on spirits, wine and beer and later on luxury goods. When the first Governor, Governor Phillip, arrived in New South Wales in 1788, he had a Royal Instruction that gave him power to impose taxation if the colony needed it.
Tax Accountant Cranbourne
At MAS Tax Accountants Cranbourne we get a lot of questions regarding what you can claim on your tax return. In addition to the common work related expenses such as travel, car, phone, uniforms, laundry, tools, etc. Taxpayers across various industries can claim few other deductions that are specific to their industry which might not be an eligible tax deduction in other industries. Few examples of the expenses listed below are very specific to the particular industries and does not apply uniformly across other industries.
Capital Gains Tax Overview
A capital gain occurs when you sell a capital asset for more than what you paid for it.
Most property is considered a capital asset. You have to pay for the capital gain made in
current income tax year.