Federal Budget 2016: You and Your Super

SUPERANNUATION, yes, it's still tax free. However, it comes with changes in that if you have more than $1.6m in superannuation at retirement, the amount over those earnings (not the withdrawals) will not be tax free from July 2017.

Not all bad news, as the bits above $1.6m still receive low concessional tax rates (10 or 15%). And, in most cases, it is far better than being taxed outside of superannuation.

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Do You Fully Understand “Cooling Off” Periods?

COMMERCIAL PROPERTY INVESTORS will generally live in a residential property. So, here is something to consider when you come to buy your next home.

A recent decision in the Supreme Court of Victoria (Tan v Russell [2016] VSC 93) has made it clear that real estate agents do not have authority to receive notices of termination when purchasers seek to exercise their cooling off rights, unless otherwise authorised to receive such notices.

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Reduce Your Fit-out Costs Using Depreciation Deductions

STARTING A NEW business can be quite daunting, particularly if you're trying to do so within a strict budget.

On top of other initial start-up costs, such as purchasing stock or merchandise, arranging insurance, budgeting for staff overheads and (if you don't own the building) allocating funds to pay rent, there are often costs involved in installing assets to fit-out the new space before you can open the doors for business.

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Answers For Commercial Property Investors

MANY OF YOU are now Members and therefore, already receive my Property Briefings podcasts each month. But if you're not, you can simply join here or by clicking on the orange logo above -- because Membership is FREE.

Anyway, I've been regularly receiving requests about providing access to transcripts for the various Episodes -- which number more than 120 so far.

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Negative Gearing Reform

Do Commercial Investors have anything to fear?

WHILE NEGATIVE GEARING is relied upon by investors across various sectors in the Australian economy, it has once again been brought under the spotlight within the context of property investment.

And both sides of politics have shared their positions, where it has been hotly debated over the last few months.

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Renovate and Flourish

MELBOURNE IS WELL KNOWN for its amazing selection of shopping, dining and entertainment. Consequently, more and more commercial property owners have joined the renovating bandwagon to produce popular hotspots for both local residents and those visiting.

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CBD Office Markets Vary Greatly

THIS IS CERTAINLY a two-speed story, according to the Property Council's most recent Office Market Report.

The vacancy rate in Perth currently sits at around 20%; with office rentals down about 40% since there 2012 peak.

Sydney saw a 100,000 sqm take-up in the 12 months to December -- which is three times its historical average. And the demand for office space was also strong for Melbourne.

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Depreciation: 3 Tips to Know

SURPRISINGLY, most Commercial property owners still remain unaware of their full depreciation entitlements.

In fact, around 80 per cent of commercial property owners don't claim depreciation; and therefore, miss out on thousands of dollars.

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Are We Now Finally Seeing a Retail Revival?

A RECENT ARTICLE in the Financial Review (11 January, page 32) summarised the influx of overseas retailers, who are about to launch new stores within Australia this year.

The key locations being: Melbourne (18), Sydney (10), Brisbane (8) and Perth (4).

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Deductions If You Own Hotel or Motel Accommodation

A RECENT PROPERTY OUTLOOK by Colliers International and JLL Hotels & Hospitality Group has predicted that 2016 will be another robust year for Australian hotel and motel owners.

According to John Kenny, the Chief Executive Office of Colliers International Australian and New Zealand, strong consumer confidence is driving demand resulting in increased hotel real estate activity during 2015 and this is expected to continue in 2016.

"Confidence is having a positive impact across the property sector and this optimism is starting to flow through to several of our occupier markets, as businesses become more confident," he said.

As demand for hotel and motel properties grows, it is important that owners of these types of properties understand the deductions they are entitled to claim.

Often the owners of these types of properties fail to claim the full amount depreciation deductions they are entitled to.

By failing to take advantage of the maximum deductions available, owners of hotels and motels could potentially be missing out on thousands of dollars.

What is depreciation and how will it assist hotel and motel owners?

The Australian Taxation Office (ATO) allows the owners of income producing properties to claim depreciation deductions relating to the wear and tear of the building structure and the plant and equipment assets it contains.

You could be missing out on:

By claiming depreciation, hotel and motel owners essentially will reduce their taxable income, therefore they will pay less cash. What's more, the fee to obtain a tax depreciation schedule outlining all of the deductions available to be claimed is 100% tax deductible.

 

Capital Gains Tax: Subdividing & Amalgamating Land

THE FOLLOWING is a little-known (but should be widely-known) ATO explanation on how to calculate CGT on a property that was formerly your home that you subdivide much later. And how the principal place of residence can be lost.

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