CABEL news…
We’re on Facebook! Yes, can you believe it! Jump onto our fan page to ‘Like Us’ and we’ll send you regular brief updates online. There is a ‘Like’ button just over there to the right below the list of blog posts!
Old emails @browne.com.au and @eagar.com.au will be terminated in 2 weeks time so please update your address books to name@cabel.com.au .
Will Kaye has begun working at CABEL Partners, with Dennis Vaccher in the Audit team. James Peake starts next week working with John, Ian, Jody and Minsi in the Business Services team, and welcome to Ali Burton who started in the new CABEL Books division. Welcome, Will, James and Ali.
Safe Negative Gearing – Phil Browne
I have been struggling with the concept of whether negative gearing is good for my clients and me. The answer is found in last Sunday’s Sun Herald; my source of all information along with A Current Affair and Wikipedia.
The answer it seems lies outside tax and in that other three letter word (probably the only other three letter word which isn’t a TLA) sex.
It seems the answer is that if negative gearing results in you earning less than $88k then this is going to be bad for you. But if your net income is above this amount all is good and by having a property you will continue to please the bank manager and the real estate agent. I now have a new (non-tax) threshold to speak to clients about.
This did lead me to go to our own 2010 tax returns (done almost late of course) and oops I find that moving office, having a tenant vacancy, changing names and taking on a partner (ambiguous isn’t it) have caused me to be below the threshold. But save the sex; Cathy doesn’t know what the taxable income was (who actually reads their tax return) , so all is safe for now.
I will be quickly checking with John my business partner (that’s clearer) how we went in 2011 and if there are any concerns with the threshold, I will be asking him to find some more income , quickly. You never know Cathy might read her tax return this year.
So back to the point at hand. There are lots of issues to think about when contemplating negative gearing, not just tax!
By the way a TLA is a Three Letter Acronym – ask my staff!
Donations
While the ATO generally requires written receipts as evidence of your donations, this year any donations up to $10 that were made to ‘bucket collections’ are exempt from the usual requirements. Donations over $10 still require written evidence.
What’s Yours is Mine - Leigh Adams, Leigh Adams Lawyers
From October 2011, the Personal Property Securities Act 2009 will begin operation. Operating across Australia, it revolutionises traditional concepts of ownership in everything except land, which will remain untouched by this legislation.
If your business leases equipment, supplies goods on a retention of title basis, lends money to companies for the acquisition of goods or has any interest in personal property provided for in a transaction that secures the performance of any obligation (this definition can include trusts!), then you need to understand how this new law works. It has a whole new language which will cause common terms to fall by the wayside. For example, a “floating charge” will be known as “a security interest in circulating assets”.
Failure to address the legislation can be catastrophic. Consider a lessor’s ownership of property leased by it to a lessee. Independently, the lessee then enters into a charge over the lessee’s assets. If the lessee later defaults in its obligations to its bank, then the bank can take the leased property, sell it and keep the proceeds if the legislation is not complied with! Retention of title arrangements are likewise rendered useless if the Act is not complied with. Ownership is irrelevant in determining the priority of security interests under the Act.
For further information, call Leigh Adams Lawyers on 99640022.
U.S. Property, Interested? Joel Xuereb, BEX Financial
With the Australian stock-market and property market flat, low risk high income generating investments are short on the ground. However, there has been growing interest in investing in the U.S. Property market due to strength of the Australian dollar, bargain prices and high levels of prospective rental returns. As such, we would like to inform our clients with some information regarding such an investment. There are Australian based property consultancy firms that offer the ability to source fully renovated, tenanted and defect free properties in well positioned socio-economic areas in the U.S such New York and the Mid-West marketing prospective income returns between 16.5% and 20% net of ongoing costs. The price of these properties can range in the vicinity of $A200,000 for New York and between $A40,000 to $A50,000 for the Mid West. These property consultancy firms also assist with all set-up, sourcing, compliance, necessary due-diligence, paperwork and post acquisition management arrangements. If there is any interest in such an investment, please let me know.
WHAT’S ON IN SYDNEY?
WINTER FESTIVAL – until 11 August 2011
The Alpine Winter Festivals offers winter activities to satisfy everyone from thrill seekers to culture vultures, young families to the young at heart. Check out the what’s on calendar for information on Sydney Winter Festival events.
HAIRSPARY THE MUSICAL – until 31 December 2011
HAIRSPRAY, the most critically acclaimed Broadway musical to open in Australia in recent times is now playing at Sydney’s Lyric Theatre, Star City for a limited season.
EL CIRCO –5 August – 31 December 2011
Slide’s longest running theatrical extravaganza El Circo features aerialists, acrobatic artists, burlesque, magicians, fire breathers and live singers.
Every Saturday Night and selected Friday Night Performances. El Circo is theatre of the unexpected.
