23/05/2026
CLIENTS FREQUENTLY ASK ME BELOW QUESTIONS.
I am a temporary resident and sold some CBA’s share. Do I need to show that amount in my tax return?
Capital gain arising from the sales of Ausralian shares are not assessable based on shares don’t constitute “taxable Australian property”. A temporary resident is subject to a tax on a capital gain only if the CGT assets is taxable Australian property (ITAA 1997 s 768-915(1)). For this reason, you don’t need to pay the capital gain tax on those shares unless and until those shares are taxable Australian property.
I would like to set up SMSF, as an accountant would you able assist me?
Certainly, we could assist you to set up SMSF when you are ready to set it up. However, we could not recommend you establish the SMSF because we don’t AFSL licence (section 766A and section 911A of the Corporations Act 2001).
My friend told me that Small Business get some concession, but I am not sure whether my business falls under the small business entity or not?
Small businesses are entitled for small business restructure rollover (s 328-G of ITAA 1997), simplified depreciation (s 328-D of ITAA 197), Small business CGT concession ( S152-A of ITAA 1997 and turnover should be less than $2M or Net assets should be below $ 6M), GST Preparation and lodgement on cash basis. To get his concession, small business should fall under below definition.
Subdivision 328-C of ITAA 1997 provides a single definition of an SBE for the purpose of accessing any of the small business tax concessions listed on s 328-10. Under the subdivision of 328-C, an entity is an SBE If:
* carries on a business, and
* satisfies the $ 10 million aggregated turnover test
An entity will satisfy the $10 million turnover test if any of the following three tests are met (s 328-10)
* its aggregated turnover for the previous income year ( ie before the current income year) was less than $ 10 million or
* its aggregated turnover for the current income year, based on its state of affairs as at the first day of the income year is like to less than $ 10 million and the aggregated turnover for each of the two previous income year is less than $10 million
* the actual turnover the current income year, worked out as the end of current income year is less than $10 million.
I am an executor of Deceased Estate. What amounts are included in Deceased Estate? Should I pay the Medicare Levy of Deceased Estate’s Income?
When calculating the net taxable income of a deceased estate for an income year, there are two broad categories of income that are included in the estate’s tax return. They are
• Amounts that would have been assessable in the hands of deceased persons if they had been received by the deceased during the lifetime (S 101A of ITAA1936)
• Income derived by the deceased estate it its own right (s 95)
Under s 251S (1) (c) of ITAA 1936, deceased estate does not need to pay any Medicare Levy.
Who are death benefit dependent?
A “death benefit dependent” of a deceased person is defined in s 302-195 of the ITAA 1997 to include any of the following:
(a) The spouse or former spouse of the deceased person
(b) A child of the deceased person, if aged less than 18 at the time the person died
(c) Any person with whom the deceased had an “interdependency relationship” (as defined in s 302-200 of the ITAA 1997) just before they died.
(d) Any other person who was a dependent of the deceased just before they died.
How often should the Investment strategy of SMSF be reviewed?
SMSF trustees are required to regularly review their investment strategy to ensure it continues to meet the current and future needs of the fund members ?
In particular, trustee should review the fund’s strategy at least annually. A review should also be undertaken when certain significant events occur (even if this is within general annual review period such as:
• a market correction
• the admission of a new member (or exit of an existing one); or
• a member of commencing a pension from the fund (to ensure the fund has sufficient liquid assets to meet minimum pension requirements)
Revisions should be made to the investment strategy if it no longer reflects the SMSF’s investment objectives, including the retirement goals of its members.
I bought the investment property and paid $ 30,000 Stamp Duty on it? When could I deduct that amount?
Investment property is a CGT asset under the definition of s 108-5 of ITAA 1997. If you pay stamp duty on investment property it will second element of cost base under the definition of s110-25(3) of ITAA 1997 and you could deduct this when sell the property not before selling the property. There are five elements of cost base under the definition of s110-25. If you buy the assets in $ 820,000. Your total cost base amount will be $ 850,000 including the stamp duty. You need to keep settlement copy for your records.
I sold my property and my contract date was 29th June, and my settlement date was 15th August. When should i declare capital gain amount from that property ?
When you sell the investment property, CGT event A1 (s104-10(1) of ITAA 1997) happens. For CGT event date would be the contract date (s104-10(3). For this reason, you need to show the capital gain amount in the FY ending on 30th June for that year.
I bought the vacant land. Could I claim the interest deduction on land in my tax return?
If you bought the vacant land after 1st July 2019, s 26-102 of ITAA 1997 denies deduction for holding the vacant land. This provision only applies to individuals, SMSF, trustee, private trusts and partnerships but do not apply to companies. As per s 26-102(2) you could include that interest in cost base while selling the land. However, if the interest are related with construction that interest would be deductible (TR 2023/3 paragraph 26 and example of para 27).
Please contact at Noble Tax Group's Perth office if you need any further in regards to bookkeeping, accounting and taxation.
Regards
Rabin Bartaula
Noble Tax Group
Suite3, Lvl1,13 Collier Road
Morely,WA -6062
O: 08-6186-5470 I M: 0435-108-317
Email : [email protected]
Web : www.pnoblegroup.com
Call now to connect with business.
