Land Tax Exemption
Ordinarily land tax is paid on investment properties. However, there are strategies that allow an owner to move out, charge rent (or costs) and still be exempt from land tax. This is provided via two means – the absence exemption and the caretaker provisions. You can find full details of this land Tax Exemption article on our website blog at www.cabel.com.au/blog .
If you are thinking of renting your property talk to CABEL Partners beforehand to find out how you can take advantage of land tax exemptions.
2011 Tax Forum Summary
The much heralded 2011 Tax Forum was held in the Great Hall of Parliament House on the 4th and 5th October. It involved two days of discussion between 150 representatives from the community, business, unions and tax experts. The aim was to “continue the conversation” commenced by the release of the Henry Review in 2010, from which only 12 recommendations have so far been adopted.
The discussion was in relation to the following areas:
- Business Tax
- Personal tax and transfer payments
- State taxes
- Environmental and social taxes
- Tax system governance
The main concrete proposal to come out of the Forum was the raising of the tax free threshold to $21,000 which is to be put to Parliament shortly. In relation to the other topics, some were referred to more dedicated committees or people to report back on. In relation to Business Tax, the discussion was in relation to cutting of the corporate tax rate, the treatment of losses, and targeted changes to help struggling businesses. These questions were also referred to a working group, but this group does seem to have some rigour around its timeframe, with a first report in November of this year and a final report in May 2012.
As with all Forums, it remains to be seen what action comes from it. We will keep you informed.
CABEL Tax Going Global
The Tax Team is going global, well somewhat…
Matthew Eakin, Tax Consultant, is heading off OS on extended leave – finishing Friday 21 October 2011 and returning 7 March 2011. Matthew will be heading to Nepal to undertake some volunteer work with a women’s refuge and orphanage called Mitrataa Foundation http://mitrataa.org/.
Whilst in Nepal Matthew will also ensure he does his fair share of trekking, paragliding, mountain biking and other outdoor activities.
We wish him all the best for a safe (well… as safe as Matt can be) journey.
Phil and Kaylene, will be keeping the CABEL Tax team running smoothly while Matt is away. They will be ably assisted by John and the Business Services team.
TAX Talk – 17 November 2011
Our next tax talk will be held on the 17th November 2011. Invitations will be sent out shortly. It will be the last talk for the year. The topics will be:
- Capital gains tax demerger relief – a live example,
- Land tax 6 year exemption and
- Carbon tax reflections
Reducing Interest Charges for Late Payment of a Tax Debt
The Tax Office charges interest on the late payment of a tax debt. The rates vary, but are around 12%. The interest is also compounded daily. Don’t despair though – there are provisions in the law that allow the Tax Office to reduce these charges, either in part or full. The reasons for reduction are broad and based on a ‘reasonable’ requirement. This allows great flexibility in arguing for a
reduction.
If you owe interest charges to the Tax Office talk to CABEL Tax about making a claim to have them reduced.
