Holiday home expenditure
by Jaimie Ruberto

 

If you bought a holiday home after August 20, 1991, that is not available for rent, you cannot claim a tax deduction for any expenditure related to this property.

However, some items of expenditure can be added to the original cost of the property. This could eventually save a lot in capital gains tax (CGT).

 

The cost base of a CGT asset comprises:

 

  1. Money or property given to acquire the asset
  2. Incidental costs of acquiring the CGT asset: 

    a. services of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant, or legal adviser

    b. transfer, stamp duty or similar duty

    c. advertising or marketing (but not entertainment) to find a seller or buyer

    d. valuation or apportionment to determine your capital gain or capital loss

    e. search fees (such as fees to check land titles and similar fees, but not travel costs to find an asset suitable for purchase)

    f. conveyancing kit (or a similar cost)

    g. borrowing expenses (such as loan application fees and mortgage discharge fees)

     

  3. Costs of owning the asset

    These can include council rates, water rates, land taxes, body corporate fees, repairs, and insurance premiums. Non-deductible interest on borrowing to finance a loan for the CGT asset and on loans used to finance capital expenditure to increase an asset’s value are also considered third element costs.
     

    If you have owned the property for a long time, you probably don’t have all these records on hand. However, you can contact the council, the water provider, the State Revenue Office, the body corporate and your insurance provider which should be able to provide a list of these expenses.
     

  4. Capital costs to increase or preserve the value of your asset or to install or move it

    These include costs for the purpose or the expected effect of increasing or preserving the asset’s value. i.e., costs of applying for zoning changes. It also includes capital costs that relate to installing or moving an asset of the property.
     

  5. Capital costs of preserving or defending your ownership of or rights to the asset

    Maintaining a record of these expenses can significantly reduce the CGT payable when you sell your property.

     

ATO’s small business focus for 2022 income year

 

The ATO announced that it will be focussing on the following matters for small business tax returns for the 2021/22 year:

  • Deductions that are private in nature and not related to business income, as well as overclaiming of business expenses (especially for taxpayers running a homebased business).
  • Omission of business income (e.g., income from the sharing economy or new business ventures).
  • Record keeping – including insufficient or non-existent records that are needed to substantiate claims.

 

Newsletter - July 2022 Edition

 

18 July

Holiday home expenditure
by Jaimie Ruberto

 

If you bought a holiday home after August 20, 1991, that is not available for rent, you cannot claim a tax deduction for any expenditure related to this property.

However, some items of expenditure can be added to the original cost of the property. This could eventually save a lot in capital gains tax (CGT).

 

The cost base of a CGT asset comprises:

 

  1. Money or property given to acquire the asset
  2. Incidental costs of acquiring the CGT asset: 

    a. services of a surveyor, valuer, auctioneer, accountant, broker, agent, consultant, or
        legal adviser

    b. transfer, stamp duty or similar duty

    c. advertising or marketing (but not entertainment) to find a seller or buyer

    d. valuation or apportionment to determine your capital gain or capital loss

    e. search fees (such as fees to check land titles and similar fees, but not travel costs to
        find an asset suitable for purchase)

    f. conveyancing kit (or a similar cost)

    g. borrowing expenses (such as loan application fees and mortgage discharge fees)

     

  3. Costs of owning the asset

    These can include council rates, water rates, land taxes, body corporate fees, repairs, and insurance premiums. Non-deductible interest on borrowing to finance a loan for the CGT asset and on loans used to finance capital expenditure to increase an asset’s value are also considered third element costs.
     

    If you have owned the property for a long time, you probably don’t have all these records on hand. However, you can contact the council, the water provider, the State Revenue Office, the body corporate and your insurance provider which should be able to provide a list of these expenses.
     

  4. Capital costs to increase or preserve the value of your asset or to install or move it

    These include costs for the purpose or the expected effect of increasing or preserving the asset’s value. i.e., costs of applying for zoning changes. It also includes capital costs that relate to installing or moving an asset of the property.
     

  5. Capital costs of preserving or defending your ownership of or rights to the asset

    Maintaining a record of these expenses can significantly reduce the CGT payable when you sell your property.

     

Holiday home expenditure
by Jaimie Ruberto

 

If you bought a holiday home after August 20, 1991, that is not available for rent, you cannot claim a tax deduction for any expenditure related to this property.

However, some items of expenditure can be added to the original cost of the property. This could eventually save a lot in capital gains tax (CGT).

 

The cost base of a CGT asset comprises:

 

  1. Money or property given to acquire the asset
  2. Incidental costs of acquiring the CGT asset: 

    a. services of a surveyor, valuer, auctioneer, accountant,
        broker, agent, consultant, or legal adviser

    b. transfer, stamp duty or similar duty

    c. advertising or marketing (but not entertainment) to find a
        seller or buyer

    d. valuation or apportionment to determine your capital gain
        or capital loss

    e. search fees (such as fees to check land titles and similar
        fees, but not travel costs to find an asset suitable for
        purchase)

    f. conveyancing kit (or a similar cost)

    g. borrowing expenses (such as loan application fees and
        mortgage discharge fees)

     

  3. Costs of owning the asset

    These can include council rates, water rates, land taxes, body corporate fees, repairs, and insurance premiums. Non-deductible interest on borrowing to finance a loan for the CGT asset and on loans used to finance capital expenditure to increase an asset’s value are also considered third element costs.
     

    If you have owned the property for a long time, you probably don’t have all these records on hand. However, you can contact the council, the water provider, the State Revenue Office, the body corporate and your insurance provider which should be able to provide a list of these expenses.
     

  4. Capital costs to increase or preserve the value of your asset or to install or move it

    These include costs for the purpose or the expected effect of increasing or preserving the asset’s value. i.e., costs of applying for zoning changes. It also includes capital costs that relate to installing or moving an asset of the property.
     

  5. Capital costs of preserving or defending your ownership of or rights to the asset

    Maintaining a record of these expenses can significantly reduce the CGT payable when you sell your property.

     

Holiday home expenditure
by Jaimie Ruberto

 

If you bought a holiday home after August 20, 1991, that is not available for rent, you cannot claim a tax deduction for any expenditure related to this property.

However, some items of expenditure can be added to the original cost of the property. This could eventually save a lot in capital gains tax (CGT).

 

The cost base of a CGT asset comprises:

 

  1. Money or property given to acquire the asset
  2. Incidental costs of acquiring the CGT asset: 

    a. services of a surveyor, valuer,
        auctioneer, accountant, broker,
        agent, consultant, or
        legal adviser

    b. transfer, stamp duty or similar
        duty

    c. advertising or marketing (but not
        entertainment) to find a seller or
        buyer

    d. valuation or apportionment to
        determine your capital gain or
        capital loss

    e. search fees (such as fees to
        check land titles and similar fees,
        but not travel costs to find an
        asset suitable for purchase)

    f. conveyancing kit (or a similar
        cost)

    g. borrowing expenses (such as
        loan application fees and
        mortgage discharge fees)

     

  3. Costs of owning the asset

    These can include council rates, water rates, land taxes, body corporate fees, repairs, and insurance premiums. Non-deductible interest on borrowing to finance a loan for the CGT asset and on loans used to finance capital expenditure to increase an asset’s value are also considered third element costs.
     

    If you have owned the property for a long time, you probably don’t have all these records on hand. However, you can contact the council, the water provider, the State Revenue Office, the body corporate and your insurance provider which should be able to provide a list of these expenses.
     

  4. Capital costs to increase or preserve the value of your asset or to install or move it

    These include costs for the purpose or the expected effect of increasing or preserving the asset’s value. i.e., costs of applying for zoning changes. It also includes capital costs that relate to installing or moving an asset of the property.
     

  5. Capital costs of preserving or defending your ownership of or rights to the asset

    Maintaining a record of these expenses can significantly reduce the CGT payable when you sell your property.

     

Downsizer contributions age changes from 1 July 2022 from 1 July 2022

 

People aged 60 years and over will be eligible to make downsizer contributions of up to $300,000 per person ($600,000 per couple) from the sale proceeds of their home into their super. For downsizer contributions made prior to 1 July 2022, eligible individuals must have been aged 65 years or older at the time of making their contribution. Eligible downsizer contributions do not impact or count towards the member’s concessional or non-concessional super contribution caps

 

During the 2022 Federal election, the previous Coalition Government announced it would support a further reduction to the downsizer eligibility age to 55 years. However, this announcement has not become law. Accordingly, contributions received on or after 1 July 2022 from members who are 55 to 59 will:

 

  • Be ineligible for treatment as downsizer contributions; 
  • Generally, count towards either the member’s non-concessional or concessional superannuation contributions caps. Super guarantee contribution due date for June 2022 quarter

Super guarantee contribution due date for June 2022 quarter

 

The due date for employers to make super guarantee contributions for their employees for the June 2022 quarter is 28 July 2022. Note that the super guarantee rate in relation to salary and wages paid on or before 30 June 2022 is 10%.

KnPeople

 

Training Day

Some shots from knp's training day held on July 1st. After a long time apart, the whole team really embraced the opportunity to connect and work together as a team.

 

The team was involved in participating in numerous group activities throughout the day.