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Bonusisode – Negative Gearing Policy removed from Labor’s Homepage

Folks, if you haven’t noticed the level of activities that had been happening on our show recently, there were heaps of things going on regarding Labor’s Proposed Negative Gearing policies.

Long story short.. Two weeks ago, Ben as the Chair of Property Investors Council of Australia (PICA), discovered that Labor and the Parliamentary Budgeting Office (PBO) had been using incorrect data in their costing for the proposed Negative Gearing Policy.

Since then, Ben had been speaking to researchers, aggregators, politicians, lenders and real estate agents to find out what’s the actual rate of investors that are buying brand new properties vs existing ones. So far, it’s been found that the proposed Negative gearing savings could be overstated by up to $8 billion. This again highlights the importance of having the right data.

So last week, Ben was on the Money News Show with Ross Greenwood to discuss further about this discovery and he was also invited to the Housing Industry Forum to share his point of view as Chair of PICA.

And it looks like, he’s finally made an impact because now, you couldn’t find much information on the policy on ALP’s website!

We’re very excited that Labor and the PBO are updating their costing with good data now but the work’s not done. It’s important to include subject matter experts like the Master Builders Australia, Housing Industry Association, Real Estate Institute of Australia (REIA), Property Council, Property Investment Professionals of Australia (PIPA), PICA and others to craft this policy together.

Again, as we mentioned before, we’re NOT against Labor.

We are NOT saying that we should leave Negative Gearing unchanged.

We are against the ill-prepared policy here. And if you agree with us, please share this with your network and hopefully, common sense would prevail.

228 |Ownership Structure & Trusts with Julia Hartman – Everything You Need to Know About Property Tax (PART 2)

Here we go, folks…. Property Tax PART 2 is finally here!!
So, let’s get down to the Ownership Structure, Trusts and SMSF insights you need!

If you tuned into Episode 226, then you’ll know we have none other than The #1 Property Tax Expert in Australia… Julia Hartman, unpacking the gold for you!

Julia is the Founder of BAN TACS, a co-operative of Accountants, which has been helping thousands of Australian’s navigate the world of tax since 1992!! She has a Bachelor of Business and is a Chartered Accountant (CA), Certified Public Accountant (CPA) and a Registered Tax Agent…. which, if they don’t mean much to you, translates to this — “impressive” and “rare”!!

PLUS, because we knew she was coming, we threw it out there for our listener’s to ask us their most pressing Tax Q’s they have — and Julia’s going to answer the last of these today and dishing out her top tax tips on ownership and borrowing tax structures!

Get the answers to…

Before we get to today’s questions, we want to let you know that we’ve compiled all of Julia’s Answers and Additional Resources into a PDF! If you’re interested, then just fill in the form below and we’ll send it to you right away. 🙂

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Today’s Ownership Structure and Trust Related Questions:

Question from Ben:

When investing for the long term as a couple (with one partner’s income considerably higher than the other), what are your top tax tips to consider when determining ownership and borrowing structures.

Question from Locky:

What is the best tax structure for being able to keep borrowing (family trust or company)? Buy build and rent out for passive income? Thanks guys.

Question from C L Wong:

Should we open a company to manage the residential properties or a trust perhaps? If so, what are the tax benefits do we have? Thank you, Gents 🙂

Question from Alistair:

How to transfer property between entities (company to trust or company to personal name). Investigate how the family law act interprets this. Thanks.

Question from Damien:

Is there any point in getting a tax depreciation schedule anymore for existing fixtures (since recent changes)?

 

Question from Paul:

Is there any point getting a depreciation schedule done on a brand new build IP considering I can just give my accountant the exact costings of the build to depreciate?

Question from Pete:

I want to know: am I able to claim tax deductions if I rent out 1 or 2 bedrooms in my home? If I rent out 2 bedrooms in my 3 bedroom home, am I able to claim two thirds or my rates, Strata, etc?

Question from Matthew:

When renovating an investment property to what level must you renovate the IP so it can be classed as a “Substantial Renovation” to allow you to claim it as a depreciating asset?

Question from Andrew:

Would love to know if we have any further clarification on the possible negative gearing changes from Labor are we able to still offset our income with interest down to 0 but not claim it as a loss i.e. negative gearing or is there plans to take away claiming the interest charges at all so all income is classed as income.

Question from Nick:

How do I transition my investment property at retirement with minimal tax impact?

Question from Kosta:

What implications must we consider if we go down the short-let Airbnb route?

Question from Sandy:

How do you choose/ find a quality property investment savvy tax accountant? Thank you for all your insights

Question from Sineth:

How to differentiate investment savvy/specialist tax agent and general Tax agent? What outcome Investment savvy tax accountant can bring in to table? Cheers

Question from Iain:

What sort of benefits could one expect from a property investment savvy/specialist tax agent over a generalist or do it yourself?

Thanks again for sending in your questions on Facebook folks! All of the answered questions will get a free book so make sure to reach out to us at [email protected]! 🙂

Julia’s Answers on Ep 226 & 228

So you’ve checked out Episode 226 on Capital Gains Tax 101 & Episode 228 on Ownership Structure and Buying in a Trust and thought to yourself…

Oh my god! This is next level!

Well, we thought the same too folks. And like you, tax can sometimes make us confused and overwhelmed. As Ben mentioned on the podcast, if we lay the printed copy of the Australian Taxation Law side by side, we can probably reach the moon! #TrueStory

Anyway, that is we always refer to an investment savvy tax accountant when it comes to matters like this and please note that Julia’s answers is general in nature and should not be relied on to make any investment decision.

Now, with that in mind, go ahead and download the report! We’ve included additional link to some of her blogs and resources as well. Just fill in the form below to get access.

You wouldn’t regret it. 

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p.s. We’ve got heaps of other Free Resources on the site! Make sure to check them all out here.

 

Bonusisode with Ross Greenwood on the Money News!

Yes you’ve heard it right yesterday! Ben was on the Money News with Ross Greenwood!

Folks, if you haven’t tune in to the Money News yet, do yourself a favor and check out their podcast. We tune in to the Money News almost every day and with multiple highlights throughout the day,  it really helps you to stay up to date to what’s happening in Australia and globally.

>> Tune in on iTunes here

 

So, why was Ben on the Money News show?

Well, as the Chair of PICA and also the one who exposed the data that were used for the proposed Negative Gearing policy, Ben was invited to share some of his findings. 

And the team at Money News has generously allowed us access to the audio to share with you guys! What are you waiting for? Tune in now to find out more.

p.s. Don’t miss out the Q&A session at the 8:30 minutes mark as well! 😉

p.p.s Want to listen to Ross’s full episode? Click here.

227 | Exposed: “Dodgy Data” Driving Labor’s Negative Gearing Policy

Folks, let’s just say… it’s been a week!!!

You know that exclusive story we shared with you in last week episode?? Well, it’s, ahh, hit the headlines… BIG TIME!

Don’t know what we’re talking about? Here’s a Quick Recap…

Ben was listening to Chris Bowen (Shadow Treasurer of the Labor Party) on ABC’s Insiders: The Interview. Bold Statement made. Rather bold in fact (Listen to ABC’s audio here). Chris Bowen quotes that 96% of properties negatively geared are Established Properties. Ben nearly “loses his cornflakes”. Where had Labor got their data from???

Fast forward to today and not only do we know that the ABS data Labor used to model their negative gearing policy is, in fact, WRONG… but also Ben’s done a bit of behind-the-scenes leg work to expose the real data.

The result? You’ll find out EVERYTHING in today’s episode! But we WILL say this… our world exclusive has made front page news on the Financial Review and Chris Bowen himself has mentioned a certain “mortgage broker” (aka ol’ mate Kingsley) in an address yesterday.

Watch the National Press Club clip here on ABC iview here.

 

Hence, we’ve decided to push Julia’s “Part 2” property tax episode back a week because we think this breaking news is SERIOUSLY IMPORTANT for you folks!

Before we get into it, we do want to add that we are NOT questioning the methodology of the PBO and other expert economists responsible for the modelling work here — far from it. What we’re saying is the data they had access to was simply wrong. And without Labor approaching any of our industry experts prior to pushing the pedal on their modelling, the figures they’ve been telling the general public are, and have always been, misinformed. And this, to be frank, can have quite dangerous consequences for the property market.

Here’s what you’re about to learn….

Read Financial Review’s Articles:

ALP’s Negative Gearing Policy Based on ‘Dodgy Data’

Negative Gearing Savings Overstated By Up to $8b

Bowen Revises Negative Gearing Numbers

Other resources mentioned in this podcast…

Check out Ben’s Analysis on the Negative Gearing Data here.

Become a member of PICA — only $5 for a year OR $20 for 5 years

PICA is coming to BRISBANE next Wednesday — 18th April 2019 — with key note speaker, Cameron Kusher from CoreLogic. Register here.

Two new charts are now available on the Platform! Make sure to check them out today here! 🙂

Win one of Turia Pitt’s books below! — Find out more

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