Do You Have to Pay Capital Gains Tax When Selling a Home?
Let’s say you have been living in your only home for many years but now you want to move to a smaller place. You have built up quite a bit of equity so you are likely to receive a large profit when you sell. Will you have to pay capital gains tax on the money? Generally speaking, […]
Are the costs of establishing a self-managed super fund (SMSF) deductible?
Answer: The costs of establishing a superannuation fund would typically be classified as non-deductible capital expenditure. Clearly the SMSF trust – or any interest in the trust – does not qualify as a “depreciating asset” for the purposes of Division 40 of the Income Tax Assessment Act 1997 (ITAA 1997). A “blackhole” deduction under section […]
Private Health Insurance Rebate Thresholds
Eligibility for the private health insurance (PHI) rebate is income tested against the PHI income thresholds, which are usually adjusted annually.From 1 July 2015, the income thresholds used to calculate the PHI rebate and the Medicare levy surcharge will remain at the 2014–2015 levels for three years. That is, the income thresholds will remain at the […]
Why having a corporate trustee for your SMSF can save you from potential costs
Some of the key advantages of having a corporate trustee include: Continuous succession – a company has an indefinite life span. A company makes succession to control more certain on death or incapacity. Administrative efficiency – on the admission or cessation of membership, that person becomes or ceases to be a director of the company. […]