Negative Gearing and Property
Our expertise and experience in dealing with a large property investor client base will ensure that we can confidently assist you in understanding and commencing on your path to using this well established wealth creation strategy to build long term wealth.
Negative Gearing
Negative gearing is a form of financial leverage whereby an investor borrows money to acquire an income producing investment property and expect the gross income generated to be less than the costs of owning and managing the property. Such costs include depreciation and interest charged on loans. Therefore, the primary benefit of a negatively geared investment for tax purposes is measured by the resulting tax savings it produces to the sole owner or joint owners.
The real benefits of negative gearing are only realised when you combine the correct tax and financial advise with a suitable property in the right location, funded by the most appropriate loan. You should always seek expert advise and make sure the purchase is within your budget and one that is expected to deliver long term financial benefits as well as been supported by annual taxation benefits.
Tax Variations ( PAYG Withholding Tax / Sec1515 )
If you have an Investment Rental Property which results in a substantial annual Net Rental Loss and you would normally recieve the tax benefit by way of a sizeable tax refund at the end of the financial year, when lodging your tax return we can prepare and lodge a PAYG Withholding variation on your behalf.
This results in less tax being deducted from your wage during the year, therefore your net wages/salary is greater, which can help support some of the cash flow requirements of maintaining the loan repayment or annual running costs of the property.
Depreciation and Building Write-off Allowance Schedule
If you need or would like to have one prepared for a property you have built, purchased as new, or near new, we recommend that you have a proper set of Tax Depreciation compliant schedules prepared by a licenced Quantity Surveyor.
These schedules will provide the necessary information required for the preparation of your taxation return with a rental property. It will also ensure that you maximise your tax deductions for the investment rental property.
The following list of Quantity Surveyors are provided purely as guide for your assistance.
Superannuation (SMSF) & Financial Planning
Our network partner JBS Financial Strategists PL offer a wide range of services, and their professional team can provide expertise and advice to those already with a DYI SMSF or those wishing to set one up for the first time.
Self managed super funds
Are you Interested in setting up your own DIY Self Managed Superannuation Fund?
If you would like to discuss the pro's & cons, costs and all aspect associated to the establishment, implementation, compliance and ongoing administration of a Self Managed Super Fund, please call us and we can assist you with this.
OR
Click here - for You Tube Video on the Benefits of SMSF & DYI Funds
Click here - for You Tube Video on DYI Super V's Super Wrap Accounts
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Refer to the following seleted ATO publications which can help answer some or all of your questions related to SMSF. Click on the subject Titles for PDF file.
Thinking About a SMSF - NAT72579 PDF
Setting Up a SMSF - NAT71923 PDF
How Your SMSF is Regulated - NAT71454 PDF
SMSF Statistics
The number of Australians choosing to manage their own super through a self managed super fund (SMSF) is larger than you might think. As at June 2012 there were over 478,000 SMSFs with a total of over 900,000 members, with $439 Billions in Funds under management.
Starting a DIY SMSF
Establishing an SMSF can provide an alternative retirement saving vehicle and can give you greater control and flexibility. The ability to choose your own strategy and investments, as well as the tax benefits of superannuation, make SMSFs a unique investment tool.
Before you decide to establish an SMSF, it’s important to consider a few key issues:
- Financially, SMSFs are generally only worth establishing if you have a significant level of assets as there are cheaper options, such as establishing a regular personal superannuation account
- The administration and record-keeping of an SMSF is onerous, extensive and rigorously monitored by the Australian Taxation Office, although it is possible to get assistance with this from professional administration providers
- All trustees are legally liable for the fund.
SMSF & FINANCIAL ADVISOR
SMSFs can be complex, but an authorized and specialist Financial Planner is dedicated to making them simple to understand. If you would like to find out whether an SMSF may be appropriate for you, why not ask us about the network partners who may be able to help you out.
- Establishment of the Fund including;
- Provision for Super Trust Deeds
- Set up of Corporate or Individual Trustee's
- Completion and Lodgment of Initial Compliance Documents
- Detailed Investment Stratergy
- Assist in Rollover of Fund Monies to DIY Fund from other Funds
- Investment Guidelines
- Assisting in the drafting of Binding Death Benefit Nominations
- Pension Strategies and Minutes
- Transition to Retirement Strategies
- Compliance Documents for ongoing maintenance of the Fund
- Trustee Responsibilities
- Administration
- Financial reports up to Audit Stage
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