There are many ways to invest for your future, like: shares, cash deposits, government bonds, company debentures, life insurance, investment properties in residential or commercial types, and most popular recently self managed superannuation fund, etc.

 

Hereby, we only discuss 2 major investments that most Australians take part in:

 

Investment Properties

What to have ready when we prepare your taxes on investment properties:

  • Address of property
  • Date on which 1st income generated
  • Number of weeks in the tax year under review that the property earned rental income
  • Ownership details: Name(s) of owner(s), ownership percentage
  • Income details and amount: Rent received, other receipts, etc.
    1. Expenditure:
    2. Advertising for tenants
    3. Body Corporate fees
    4. Borrowing costs
    5. Cleaning
    6. Council rates
    7. Depreciation of fixtures & fittings
    8. Insurance
    9. Gardening expense
    10. Interest on loans
    11. Land tax
    12. Legal fees
    13. Pest control
    14. Property agent fees
    15. Repairs & maintenance
    16. Capital works (2.5% on cost construction)
    17. Stationery, telephone, postage and travel
    18. Water rates
    19. Sundry expenses

 

Self Managed Superannuation Fund (SMSF)

Many Australians are bit concerned about superannuation. With share markets fluctuation and government changing rules regularly, many think it’s not a good idea to put hard owned money into super. There is another way of running your super – SMSFs.

 

An SMSF is set up with four or less members, the sole purpose is for retirement. You can invest in shares & properties, you can’t take the money out of SMSFs unless you decided to retire or other eligible purpose. SMSFs enjoy lower income tax rate at 15% on income made within SMSFs and zero Capital Gain Tax (CGT) when selling out properties if you retire.

 

Other benefits of SMSF's:

  • Investment control and opportunities
  • Family wealth accumulation vehicles
  • Preferred investment vehicles
  • Estate planning opportunities
  • Borrowing opportunities

There are many things to be aware of and an SMSF is not for everyone, members/trustees of SMSFs do have responsibilities to maintain:

  • Certain establish funds to make it working
  • SISA compliance requirement – sole purpose test
  • Have an investment strategy and invest responsibly
  • Keep proper records
  • Do not lend SMSF money to members or relatives
  • Do not borrow money
  • Do not allow in-house assets to exceed 5% of total assets
  • Buy and sell assets at true market value
  • Make sure only allowable contributions
  • Complete and lodge an GST activity statement if needed
  • Complete required SMSF audit yearly

To find out if an SMSF is for you, please contact us for a free appointment or complete the e-mail request form.