Don't Get Caught

We received a query from a client last month proposing a strategy involving his investment property and associated offset account.

Currently, his investment property loan is “interest-only” and he deposits the rent into his loan account.

He then transfers the rent to the investment loan offset account to pay the interest, before transferring the balance back to the loan account.

There is nothing wrong with this strategy up until the last step of transferring the balance back to the home loan account. 

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What does the increased FBT rate mean for your business?

From April 2015, the rate of Fringe Benefits Tax (FBT) will increase from 47% to 49%.

This is due to the 2% Temporary Budget Repair Levy (TBRL) and is designed to prevent individuals who earn more than $180,000 from salary sacrificing into fringe benefits in order to bring their income under the levy’s threshold and therefore avoid the extra tax.

The FBT rate will return to its current level when the TBRL is abolished on 31 March 2017.

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Changes to Queensland Real Estate Laws

On May 6 2014, the then Queensland Parliament passed four (4) Acts which replaced the Property Agents and Motor Dealers Act 2000 (PAMD Act)

These are:

  1. Property Occupations Act 2014;
  2. Motor Dealer and Chattel Auctioneers Act 2014;
  3. Debt Collectors (Field Agents and Collection Agents) Act 2014; and
  4. Agents Financial Administration Act 2014.

The commencement date of this new legislation was 1 December 2014.

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Industries in the Superannuation Spotlight

The Tax Office has recently issued a fact sheet identifying industries where employers are at greater risk of not making super contributions for their employees.

This year, the industries in focus are:

  1. Childcare services;
  2. Pubs, bars and taverns; and
  3. Industrial cleaning industries.


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