One of the common things I hear at tax time by those who have a rental property is “show me the money” – well I don’t hear it like that but essentially that’s what is meant!

The final outcome on your tax return when you have a rental property is dependent on your individual property circumstances as well as your other circumstances all combined – it is impossible for me to suggest a likely outcome in this forum simply because everyone is different…

But one tool you can use to increase your rental deductions is known as rental depreciation.  A rental depreciation report must be prepared by a Quantity Surveyor (so please don’t ask me to do it for you…) and you should arrange one of these reports as soon as possible after the purchase of your rental property.  Note: Real estate agents, property managers and valuers are unable to prepare this report either, it must be done by a quantity surveyor.

As your accountant, I will include this depreciation in calculating your tax income for the given year and I can vary your last two years of tax returns if you’d like to go back and claim retrospectively.

The cost of obtaining the report varies among service providers but at least it is tax deductible also!

Regards

As we enter the last month of the FBT year (Fringe Benefits Tax), if you are lucky enough to be offered salary packaging  with your employer, now is the time to review it!

There are generous tax concessions for not-for-profit (NFP) organisations including an exemption from FBT.  This means that as an employee of a NFP, you can receive part of your wage as a reimbursement for personal expenses and you won’t pay income tax on this amount!

Depending on who you work for, your salary packaging limit may be $9,010 or $15,900 – either way there is usually a substantial benefit to accessing this opportunity if it is available to you.

This reminder comes now, as you should consider your personal circumstances as you enter the new FBT year and ensure your claims and records are up to date.

One thing you do need to be aware of is that having a HELP (Higher Education Loan Program) debt may impact on the effectiveness of any salary packaging agreement you enter into – so always get advice first!

Regards

Business in Heels – South West Victoria is on the move to Camperdown for our next event!

I always wanted this group to be a true regional network, and holding this next event at Madden’s Commercial Hotel in Camperdown on 9th March, 2016 is definitely a step in the right direction!

We’ll be joined by vibrant coach, speaker, consultant and social entrepreneur – Prue Morrison!  Prue has worked with hundreds of business owners and professional women to help them reach their goals, and she’ll be joining us to help us “Speak with Confidence”

I read an article recently titled “Has your confidence done a runner?” – I’m not ashamed to say that this happens to me a lot!  As such, I’m always happy to take whatever help I can get in this area, and even if you think you’ll never get up on stage to present, speaking with confidence is a skill we can all use in our everyday lives.

We’ll also hear from local businesswomen Skye Munro from Nurturing Connections and Tania Rowan from Ultimate Functional Fitness – and as usual there’ll be heaps of prizes and fun and a take home goodie bag!

You can buy your tickets here – don’t forget to sign up as a Crystal Member to receive the discounted price…it’s FREE to join!

Regards

Following the Global Financial Crisis in 2008, the Australian government (at the time) proposed some reforms to the way financial advice was to be provided in the future, these were known as the Future of Financial Advice (FOFA).

Part of the reforms included the “Accountants’ Exemption” – now I won’t go into the details (it will only bore you…), suffice to say that from 1st July, 2016 an unlicensed practitioner will be unable to direct their clients in regards to setting up a Self Managed Superannuation Fund (SMSF)

I have decided to remain unlicensed in this regard – for a number of reasons – as such:

“From 1st July 2016, as I do not hold a financial services licence, I am generally prohibited from providing you with any recommendation or opinion that is intended to influence you in making any decision in relation to self-managed superannuation (including whether to establish, contribute to or draw a benefit from, an SMSF, or any investment decision by an SMSF trustee), or that could reasonably be regarded as being intended to have such an influence”.

Nothing else changes though…so we’re all good!

Regards