Taxes and houses
Download
1 / 21

Taxes and Houses - PowerPoint PPT Presentation


  • 292 Views
  • Updated On :

Taxes and Houses The Henry Recommendations Substantial increases in the maximum rates of rent assistance for income support recipients. Rent assistance rates should be linked to movements in market rents Public housing rent concessions should be replaced by rent assistance.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Taxes and Houses' - oshin


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

The henry recommendations l.jpg
The Henry Recommendations

Substantial increases in the maximum rates of rent assistance for income support recipients.

Rent assistance rates should be linked to movements in market rents

Public housing rent concessions should be replaced by rent assistance.

A new form of assistance for high-needs tenants to improve equity and work incentives.


The henry recommendations3 l.jpg
The Henry Recommendations

Land tax should be extended to residential property - integrated over time with property rate assessments.

Stamp duties on property should be reduced, and ultimately removed, with the revenues replaced by efficient taxes, preferably an annual land tax.


The henry recommendations4 l.jpg
The Henry Recommendations

Concessions for investors in rental property who use their own funds rather than borrowed funds.

This was recommended to reduce the disparity between investors who use savings to acquire rental properties rather than negatively gear the investment.

A reduction in the CGT discount for investors who use negative gearing from 50 percent of the gain to 40 percent of the gain.


Issues for housing l.jpg
Issues for Housing

Taxes and affordability

GST and supplies of residential land

GST and property development

GST and short term accommodation


Taxes and affordability l.jpg
Taxes and affordability

Negative gearing

Quarantining

Non-commercial loss rules

Main residence exemption

50% CGT discount


Gst and supplies of residential land l.jpg
GST and supplies of residential land

Examples of taxable supplies of housing:

  • Sales of new residential premises

  • Sales of vacant land

Tax Reform After Henry

7


Input taxed supplies l.jpg
Input taxed supplies

Sales of houses that are not “new”

Leasing of houses

“to be used predominantly for residential accommodation”


Meaning of residential premises l.jpg
Meaning of “residential premises”

Residential premises means land or a building that:

(a) is occupied as a residence or for residential accommodation; or

(b) is intended to be occupied, andiscapable of being occupied as a residence or for residential accommodation (regardless of the term of the occupation or intended occupation) and includes a floating home

Tax Reform After Henry

9


Issues l.jpg
Issues

Vacant land

Vacant land of itself can never have sufficient physical characteristics to mark it out as being able to be or intended to be occupied as a residence or for residential accommodation. GSTR 2000/20

Land and buildings where the buildings are demolished after purchase

Predictions as to buyer’s intention


The toyama decision l.jpg

The “Toyama” decision

Toyama Pty Ltd v Landmark Building Developments Pty Ltd [2006] NSWSC 83


Gst and property development l.jpg
GST and property development

“New residential premises” defined in s 40-75

  • Not previously sold as residential premises

  • Not previously been the subject of a long term lease

  • Created through substantial renovations

  • Built to replace demolished premises on the same land

  • Note s 40-75(2) - premises stop being new residential premises after 5 years

Tax Reform After Henry

12


Commercial residential premises l.jpg
Commercial Residential Premises

(a) a hotel, motel, inn, hostel or boarding house;

(b) premises used to provide accommodation in connection with a school;

(c) a ship that is mainly let out on hire in the ordinary course of a business of letting ships out on hire;

Tax Reform After Henry

13


Commercial residential premises14 l.jpg
Commercial Residential Premises

(d) a ship that is mainly used for entertainment or transport in the ordinary course of a business of providing ships for entertainment or transport;

(da) a marina at which one or more of the berths are occupied, or are to be occupied, by ships used as residences;

Tax Reform After Henry

14


Commercial residential premises15 l.jpg
Commercial Residential Premises

(e) a caravan park or a camping ground;

(f) anything similar to residential premises described in paragraphs (a) to (e).

Tax Reform After Henry

15


The marana holdings decision l.jpg

The Marana Holdings decision

Marana Holdings Pty Ltd v Commissioner of Taxation (2004) 214 ALR 190.


Gst and short term accommodation l.jpg
GST and short term accommodation

GSTR 2000/20 para 51 - 52

  • A strata titled unit or suite cannot, by itself, exhibit the characteristics of commercial residential premises.

  • This is why an individual unit only takes on the character of commercial residential premises when it is aggregated with others and run by an entity who has acquired the interests necessary to let the rooms in its own right, rather than on behalf of the owners, in the same manner as a hotel, motel, inn, or hostel.

Tax Reform After Henry

17


Commercial residential premises18 l.jpg
Commercial Residential Premises

  • a hotel, motel, inn, hostel or boarding house;

    ……..

    (f) anything similar to residential premises described in paragraphs (a) to (e).

    Macquarie Dictionary: “similar” means “having likeness or resemblance, especially in a general way”.

Tax Reform After Henry

18


Anything similar l.jpg
“..anything similar…”

The relevant factors are:

  • commercial intention;

  • multiple occupancy;

  • holding out to the public;

  • accommodation is the main purpose;

  • central management;

  • management offers accommodation in its own right;

  • services offered; and

  • status of guests

Tax Reform After Henry

19




ad