Chloe talks about crunching down before the May deadlines, what to watch out for and steps you should be taking for EOFY preparation.
When you buy an investment property, it’s assumed that all costs associated with the property will be a tax deduction, unfortunately, this is not always true.
An expense is deductible when it is incurred and to the extent that it relates to producing assessable income. Some of these expenses may include:
- Advertising for tenants
- Utilities & Taxes
- Loan Interest
- Agents’ Commissions
All of the above are common rental property expenses incurred in relation to rental income received.
Data feeds are something that you have most likely heard us talk about for quite some time. These third party authorities have a huge impact on how we look after you and your fund and the level of accuracy and efficiency we can deliver.
Probably the most important misconception is that when you sign a third party authority form, we have “access” to your account or we can transact on the account on your behalf. This is absolutely incorrect – to confirm:
A third party authority does not provide us with the ability to conduct any transactions on your behalf or access to login to your accounts.
Whilst there haven’t been any major tax reforms within Super for quite some time, the landscape has definitely shifted in terms of compliance and issues surrounding advice.
So what changes are coming into effect this year?
- Abolishment of the Accountants Exemption
This is probably one of the biggest changes to disrupt the financial services industry. One of the few legitimate exemptions that currently applies to accountants is the ability for them to recommend the establishment, or wind-up, of an SMSF. This exemption will be removed from 1 July 2016 meaning that an accountant or SMSF administrator cannot provide this advice. Superfund Partners is an SMSF administration and advice business – these changes will have minimal impact on us and our clients.
The real change that existing SMSF trustees will notice will be that the (unlicensed) accountants they work with will become very wary and cautious of what advice and information they provide.