September 2017 Newsletter
- ATO flags big intervention on SG non-compliance
- Important things to look out for when entering into property transactions
- Vendor beware: proof required that seller is not a foreign investor
- Avoid opening Pandora’s box with BDBNs
- Upcoming Events
- Recent Facebook Posts
- Most Asked Question of the Month
The ATO will be significantly stepping up its compliance and enforcement activity this financial year in relation to the payment of the superannuation guarantee (SG.)
A new report from the tax office estimates that the net superannuation gap — which is the difference between the value of SG gaps required to be paid by law minus what is actually paid — is about $2.85 billion.
A number of recent cases (2015 and 2016) involving taxpayers and the Tax Office highlight the need to have draft contracts for sale of properties reviewed before they are signed.
To rely on standard form contract available through the Law Institute and or The Real Estate Institute of Victoria does not ensure there will not be a dispute, penalties and or audits. This has been made very obvious on checking three recent cases involving GST and Property.
Vendor beware: proof required that seller is not a foreign investor
Recent changes to the Foreign Resident Capital Gains Withholding (FRCGW) regime mean that more Australian residents are likely to be affected by the tax for transactions as common as the sale of the family home.
As its name suggests, the FRCGW rules (which started on July 1, 2016) require the purchaser to withhold a portion of the sale price of assets sold by foreign residents to address concerns that foreign residents were not meeting their tax obligations.
Avoid opening Pandora’s box with BDBNs
The SMSF sector continues to be plagued by BDBNs that are either carelessly prepared, invalid or completely unnecessary. What steps can be taken to prevent poor tax outcomes for clients or lengthy court battles?
Recent media attention regarding the witnessing of superannuation documents highlights the fact that a binding death benefit nomination that has not been validly prepared and executed is nothing more than an expression of wishes, which may or may not be followed after the member’s death.
Recent Facebook posts you may have missed:
This month we congratulate Jenny and Nicole that are bringing up work anniversaries of 9 and 3 years respectively!
Tax & Property – Wednesday 13 September 2017
Do you want to ensure you are getting the maximum possible return from your investment property?
Over the last 20 years our presenter Brian Watts has been assisting investment property owners to not only get it right but also help them maximise their after tax returns from investment in property. Brian is the author of the Tax Tips column in the Wimmera Mail Times Property section and is an active property investor himself.
This presentation is suited to those looking to purchase their first investment property, commence their first development or those looking to maximise their after tax returns from their existing portfolio.
Topic: Tax & Property Presentation
Date: Wednesday 13 September 2017
Session: 6.30pm – 8.45pm, at 44 Wilson Street
Light refreshments will be supplied from 6.15pm.
RSVP: By Monday 11 September by phoning Cris on 5382 3001 or firstname.lastname@example.org
Most asked question of the Month:
Superannuation Funds to Disclose Fees More Clearly?
This is correct. From 30 September tougher regulations have been introduced that will help reduce the amount of under-reporting of fees that some superannuation funds have been accused of.
These changes are designed to make it easier to understand the fees and costs being charged. This will include changes to the Product Disclosure Statement (PDS) and periodic statements.
All the best from the Watts Price Team!