Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

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It may be nearing the end of financial year, but there are still steps you can take to maximise your tax refund, explains Mortgage Choice’s Jessica Darnbrough.
Figure out what you can claim
It’s crucial to know what it is you are and are not able to claim on your tax refund, explained Darnbrough.
“Many people have no idea that they can claim a tax deduction on petrol or home office expenses,” she said.
“You don't have to run a business from home to claim things like stationary. Rather, you just need to have a dedicated place to work at home.”
Property investors often don’t realise there are a range of expenses they can claim for. These include:
<ul>
<li>Agents' fees 
</li>
<li>Advertising 
</li>
<li>Body corporate fees 
</li>
<li>Capital expenses 
</li>
<li>Building maintenance and repairs 
</li>
<li>Cleaning 
</li>
<li>Insurances 
</li>
<li>Home loan fees 
</li>
<li>Interest payment 
</li>
<li>Council and water rates 
</li>
<li>Travel to/from a property for inspections</li>
</ul>
“One aspect that property investors often overlook when lodging their tax return is depreciation deductions. Depreciation applies to new and existing residential properties and in most cases owners of an investment property or properties are likely to be able to claim something,” Darnbrough suggests.
Consider an advisor
As everyone’s situation differs, it may be worth getting yourself a financial advisor to help determine the deductions.
Review your situation
“Part of good tax management involves making plans for the year ahead rather than facing a last minute rush,” said Darnbrough.
Mortgage Choice’s tips:
Formalising salary sacrifice super arrangements: Making salary sacrificed super contributions offers a simple way to save on tax and build wealth. It involves having part of your before-tax salary paid into your super rather than taking the money as cash in hand. 
These contributions are taxed at 15%, which is likely to be below your marginal tax rate (which could be as high as 46.5%), so more of your money goes towards growing your super rather than paying the tax man. Up to $25,000 annually can be added to super through pre-tax contributions ($35,000 if aged 60-plus). This limit includes your employer's compulsory contributions.
Examine your asset structure: It is important to review how your assets are structured on a regular basis (at least once a year) to make sure you are achieving a balance of flexibility of use and protection from creditors and excess taxes. If done effectively, asset structuring can provide tax advantages, family tax protection and the longevity of assets.
Use your tax return to your advantage: Every little bit of savings can put potential buyers closer to property ownership. Those looking to purchase property could consider contributing their tax refund into a high interest paying savings account or they could utilise the tax refund to reduce any existing debt. Having too much debt can make a difference when it comes time to apply for a home loan.
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jduke-EHk3XBmHkn

Act now to maximise your tax refund: Mortgage Choice

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The ATO’s increased IT capabilities has one accountant warning investors that capital gains tax is one area you do not want to be messing up.
The ATO is able, under legislation, to access data that others cannot reach due to privacy legislation. This is then matched against your information and claims made on your tax returns.
Capital gains tax is particularly on the radar, warned Property Tax Specialists’ Shukri Barbara.
His tax tip is to ensure that you declare all transactions.
“Diffculties tend to arise in distinguishing when a sol property was exempt due to it being a Main Residence and protected under thesix year rule if it was subsequently rented. They are not to be messed with in 2014/15,” Barbara noted.
Timing your capital gains and losses on investment properties is also crucial.
He urges investors to remember that the important date is the contract date, and not the settlement date. If you’re carrying capital losses, then note the date against any capital gain you may also be realising.
His tip is that if you’re singing the contract before June 30, then any gains can be offset against tax incurred over the year or carried forward from a previous year “before the balance can be assessed as taxable.”
“If there is an excess of taxable amount – 50% discount may be applicable if the property was held for longer than 12 months,” he explains.
If you sign a day later, on or after July 1, then the tax is reported in the 2014 tax return.
“What you do not want to do is generate a CG this year, pay tax and then sell a loss property next year when there are no CG to offset against,” says Barbara.
“Capital losses incurred in any year are available to be carried forward to future years if there are insufficient gains to absorb it in the same year. It can be carried forward for an indefinite period.”
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Do not mess up with capital gains calculations this year, warns accountant

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There can be significant tax benefits when investors buy an investment property off the plan.
These benefits are greater for new property with more tax depreciation items available.
It is important to have a schedule of inclusions, such as fittings and fixtures on the sale contract, and then commission a depreciation schedule from a reputable provider.
Off the plan buyers can qualify for a 50% CGT discount but the ATO requires that a period of 12 months elapses before the buyer is eligible.
This period begins when the contract has been signed, so provided your settlement period is 12 months or longer (as it will be in most cases) investors could in theory sell along the way, or the day after settlement and still qualify for the generous tax concession.
But be warned the CGT discount only applies if there are changes in the taxpayers circumstances.
Any property bought with the intention of selling it at a profit as soon as it is completed, does not qualify as an investment but as part of a profit-making scheme, so normal income tax would apply.
Ken Raiss, partner at Chan &amp; Naylor Accountants, has pointed out in the past that buying with the intention to sell the sale would still be taxed at marginal tax rates even if you keep it for much longer than 12 months.
If you originally intended to keep the property but decide to sell due to unforeseen circumstances (say, after six months), it is still considered a capital gain but is not subject to the 50% CGT discount.
This means you will still be taxed at your marginal tax rate. This could be advantageous if you have capital losses.
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jchancellor-FAypfDUnLy

Tax planning for off the plan apartment purchasing

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GUEST OBSERVATION
In general terms, the tax law contains provisions that allow taxpayers to, in effect, get out of paying their tax bill if they can prove that paying their tax would result in “serious hardship”.
Obtaining a release from tax liabilities involves a two-step process:
<ol>
<li>A determination that the applicant would suffer a serious hardship if he or she was required to satisfy the tax liability; and</li>
<li>Whether in the circumstances, discretion should be exercised to grant the release sought. A taxpayer can request that the Tax Commissioner release him or her from their tax liabilities.</li>
</ol>
The process sounds relatively straightforward, but there is no definition of "serious hardship" in the tax law. Each case must be considered on its facts.
However, the Tax Commissioner has issued guidelines in what is known as the ATO Receivables Policy to provide ATO staff with guidance in dealing with applications for release from tax liabilities. In part, that policy states:
"The term ‘serious hardship’ is not defined at law and must be given its ordinary meaning. The Commissioner determines whether serious hardship exists by applying several tests which are designed to ascertain whether payment of the tax would produce unduly burdensome consequences for the person such that they would be deprived of necessities according to normal community standards.
"Thus, serious hardship would be seen to exist where payment of a tax liability would result in the person being left without the means to achieve reasonable acquisitions of food, clothing, medical supplies, accommodation, education for children and other basic requirements. On the other hand, elements of hardship may be regarded as marginal or minor – rather than serious – if the consequences of payment of tax are seen, for example, as limitation of social activities or entertainment, or loss of access to goods or services of a more luxurious nature or standard."
Okay, so getting a release from your tax debts is possible, but how often does it happen?
The burden of proof
The onus is generally on the taxpayer to prove that serious hardship will result if they have to pay their tax bill. That's often easier said than done, and taxpayers should not underestimate exactly what they have to prove.
Two recent decisions before the Administrative Appeals Tribunal (AAT) saw taxpayers lose their claims for relief from paying their tax liabilities. They illustrate just what it takes to prove serious hardship.
In the first case, the taxpayer’s tax debt was just over $80,000. He argued that his income tax debts arose as a result of his unauthorised early access of his superannuation benefits in order to support his gambling addiction. The AAT said that during the income year ended 30 June 2011, he illegally accessed his superannuation benefits by withdrawing just over $180,000 from his super fund. The taxpayer sought release from his tax liability either in whole or in part on the basis that he would suffer serious hardship if he was required to pay the outstanding balance.
He said his total asset value was about $580,000 with total liabilities of $666,200 which did not include his tax liability.
Although acknowledging the taxpayer's intentions to control his gambling addiction, the tribunal was not satisfied the taxpayer's situation, if required to pay the tax debts, would be of serious hardship. Even if it were a case of serious hardship, the tribunal said it would not exercise the discretion to grant relief.
The tribunal noted the taxpayer was earning a high income in the mining industry and that his household expenses included discretionary spending that could be reduced, for instance, entertainment of $250 per fortnight, other expenses of $264 per fortnight and vehicle expenses including repairs and loan repayments of $926 per fortnight. It said the sale of the taxpayer's car or investment property would also significantly reduce his tax liability. Furthermore, it noted the taxpayer had preferred the repayment of other debts to his tax debt. Accordingly, the taxpayer's application was dismissed.
In the second case, a taxpayer was also unsuccessful before the AAT in seeking to be released from his tax liabilities.
As of 4 May, 2014, the taxpayer's outstanding tax debts amounted to around $58,000. However, the tribunal was not satisfied the taxpayer's situation, if required to pay the tax debts, would be of serious hardship.
The tribunal said no explanation was offered for the failure by the taxpayer to meet his tax liabilities as they arose. When comparing household income to expenses, although noting the outlays were not extravagant, the tribunal was of the view there was a level of discretionary spending (eg entertainment) which, if necessary, could be reduced.
The tribunal said instead of paying what it considered to be manageable tax assessments, the taxpayer “largely ignored his tax liabilities over the last five or six years”, and had allowed the amounts due to accumulate with interest. It added that the taxpayer “simply failed to give proper priority to paying his tax” and that since entering the PAYG instalment system in 2008, he had paid only four of 22 tax assessments. The tribunal said the taxpayer had made no sustained effort to clear arrears and achieve compliance.
The tribunal considered that the taxpayer had overstated his expenses. It said the taxpayer's situation had been brought about by his own failure to meet his tax obligations. It was not, in the tribunal's view, a situation that had been forced upon him. He had simply failed to give proper priority to paying his tax.
While the law does allow people the opportunity to be released from their tax liabilities, the above cases prove how difficult that can be.
“Serious hardship” is determined on the facts of each case, and court and tribunal cases have built up a series of authorities on how it is to be determined. When taken with the ATO’s policy in this area, taxpayers need to understand fully just what it will take to be released from their tax liabilities.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" target="_blank">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
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Getting a release from your tax debts – possible, but not so simple

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GUEST OBSERVATION
Tax audits are practically a rite of passage for Australian business owners, with as many as 1,000 businesses audited every financial year.
Apart from the disruption to ‘business as usual’ that an audit can cause, there are significant stress levels to factor in, too.
So, how can we ensure that our relationship with the taxman remains a positive one?   
The audit lottery
The audit process can sometimes feel a bit like the lottery – not the exciting kind where you can win a lot of money, but in the sense that anything can happen at random.
The most important way to appease the taxman is by maintaining tidy and compliant books and records.
Of course, this requires a commitment by the business owner from day one. Setting an organised and thorough foundation early on empowers business owners to better manage performance. There are so many tools these days to help us create efficiencies that enable business growth – the right software can truly become a business owner’s best friend and can easily be programmed to comply with the ATO’s GST and tax requirements, as well as any bookkeeping requirements specific to an individual business’ needs. The chart of accounts and tax codes in the software are also set up to ensure accurate reporting.
The technology behind today’s accounting software has also advanced to offer features like bank feeds which update instantly and constantly stay up to date, so you are ready to submit your year-end results well before the due date.
A little bit of due diligence at set up ensures you have nothing to fear if you ever hear the ATO knocking on the door!
Lodge on time, every time
Another way to stay friendly with the taxman is by lodging all of your Business Activity Statements, Instalment Activity Statements and tax returns on time, every time.  
Late returns and unpaid balances are essentially a major red flag and call unwanted attention from our friends at the ATO, potentially triggering a request to audit. Of course, the accounting software you’re using should have the tools to easily prepare your BAS and IAS and track the amount owed to the ATO.
Businesses that update their records regularly are able to monitor business performance and identify issues before things spiral out of control. Successful businesses are those that monitor their cash flow on a regular basis, manage their debtors, creditors, stock control, set budgets and plan for future growth. By doing this, business will avoid the cash shortages that make it challenging to pay the ATO their debts – and duck under the ATO’s spotlight in the first place.
Industry benchmarks
Another way to avoid the taxman’s eagle eye is to make sure that your business falls within the benchmarks for your industry.
Each year the ATO releases small business benchmarks to compare like-type business performance against their ratios. The ATO publishes benchmark information on its website, and it derives benchmarking information from business activity statements and tax returns lodged by businesses.
This isn’t to suggest that you lower the bar set for performance and successes, but it is worth noting that if your income or expenses fall significantly outside of the parameters of these benchmarks, it’s a pretty likely bet that the ATO will take a special interest in your business activity. Be prepared to give them a status check if you’re in this situation!
What can cause you to fall outside the benchmarks?
Claiming personal expenses as part of your business, inflating deductions or underreporting incomes will distort your results compared to other businesses in your industry. Here are some examples of common mistakes that can distort business results:
<ul>
<li>Topping up the fuel of family member’s cars and claiming it as business car usage.</li>
<li>Claiming mobile phones that are private.</li>
<li>Claiming personal trips as business related.</li>
<li>Expensing capital items purchased.</li>
<li>Over-claiming on GST – by claiming on items that are exempt of GST like donations, bank fees, drawings etc.</li>
<li>Not reporting cash income</li>
</ul>
While nobody rolls out the welcome mat for an ATO audit, it goes without saying that business owners that keep their books tidy, up to date and compliant can breathe a sigh of relief if the taxman ever knocks on their door.
Pam Madytianos is director of <a href="https://www.twopeas.com.au/" target="_blank">2 Peas</a> and a certified MYOB consultant. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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How to stay friends with the taxman

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As 1 July fast approaches, we take a look at how you can make the most of your self-managed super fund before the end of the financial year and how you can avoid being hit with a <a href="https://www.smartcompany.com.au/finance/superannuation/42288-self-managed-super-funds-top-tips-from-the-ato">penalty from the tax man</a>.
1. Be aware contribution caps are changing
On 1 July, the Australian Tax Office is changing the amount you’re allowed to contribute to your SMSF and the age you’re allowed to do it, for both concessional and non-concessional contributions.
Kathy Evans, principal of superannuation and SMSF at Crowe Horwath, said concessional contributions, or deductable contributions, are employer contributions that include those made under a salary sacrifice arrangement. For people who are self-employed, it includes personal contributions claimed as a tax deduction.
“At the moment with concessional contributions, anyone aged under 60 can currently put in up to $25,000 per annum, while those over 60 can put in $35,000,” says Evans.
She says the ATO is bringing the contribution age down to 50 for the next financial year (2014-15).
Evans says if you’re in that category, from 1 July your contributions cap will go up to $35,000. For those under 50, the cap goes up from $25,000 to $30,000.
Non-concessional contributions are personal contributions that you don't claim as an income tax deduction, and Evans says they will also go up from 1 July.
“Non-concessional and non-deductive contributions at the moment are capped at $150,000 per annum for everyone who’s eligible to make them,” says Evans. “That $150,000 is going up to $180,000 from 1 July.”
2. The superannuation guarantee rate is also going up 
Currently, employers must pay a minimum of 9.25% super guarantee to SMSFs. From 1 July, the rate will increase to 9.50%.
Brad Twentyman, director of superannuation at Pitcher Partners, said that rise has the potential to affect salary sacrifice contribution arrangements.
“You need to factor in that your employer will be obliged to contribute 9.5% instead of 9.25% and with an increased obligation on your employer to contribute, your voluntary component may reduce,” says Twentyman.
Graeme Colley, director of technical and professional standards at the SMSF Professionals’ Association of Australia, said: “If you want to maximise your contributions before 30 June, you need to talk to your accountant or professional adviser to make sure your salary sacrifice agreement with your employer allows the maximum to be salary sacrificed.”
Twentyman says it is also important for employers to note the change in superannuation guarantee, to protect themselves from any possible claims of compensations that may arise from over contributing.
“As an employer, if you’re aware that your employee might contribute above the contribution limits, it would be prudent to point out to the employee that they might want to seek some advice. If they think there’s a problem, employers should get on the front foot,” says Twentyman.
3. Watch out for the new penalty regime from 1 July
There has been a lot of talk about the new powers the ATO will have to penalise those who fall foul of its rules. The new penalty regime will be introduced from 1 July and will apply to breaches that remain outstanding as of 30 June.
“If you’re a trustee of a SMSF, you’ve always had obligations to run your fund the way it should be run or you run the risk of upsetting the ATO,” says Evans. “And they’ve also always had the ability to penalise you. But they haven’t had a regime that’s strong enough to stop some people doing the wrong thing.”
Of the 18,000 SMSF contraventions lodged with the ATO in the last financial year, approximately 50% could have incurred penalties based on the proposed new super laws.
“If you are aware there’s a breach within your SMSF and you’re in the position to fix that breach by 30 June, it’s a good idea to do so,” says Twentyman. “Because if you tick over into 1 July, you will be penalised and you’ll need to go to the ATO with cap in hand.”
These breaches include:
<ul>
<li>bank accounts going into overdraft;</li>
<li>failure to get accounts and returns prepared;</li>
<li>providing loans to family members from your SMSF;</li>
<li>investments being made into in-house assets which are not solely for the SMSF;</li>
<li>SMSF assets not being separated from personal assets;</li>
<li>taking money from the fund for living; and</li>
<li>incorrect borrowing structures being established for the purchase of assets by a SMSF.</li>
</ul>
“These penalties are mainly for the more serious breaches of investment restrictions, but they do also apply to the administrative functions a trustee is expected to complete,” says Evans.
The penalties for many of these breaches have gone up to $10,200 per trustee per transaction, so a SMSF with two trustees would be looking at a potential fine of $20,400. 
The penalty for lodging your SMSF accounts by 30 June has also increased.
“If you haven’t done your 2013-14 accounts by 30 June, there’s a possibility that the ATO will be imposing a penalty on trustees that could be up to $1700,” says Twentyman.
“At the moment the non-lodgement fee is a few hundred dollars, and in fact the ATO will probably be looking to impose that and then they’ll come along and impose this new penalty,” he says.
4. Don’t risk being declared a non-person
Non-lodging SMSFs will be declared a non-person for tax purposes if they’ve been slack with their lodgements.
“If you have a SMSF and you haven’t lodged a tax return for two or more years, they will classify your fund as a non-person,” says Evans.
“That means your fund won’t be able to receive contributions, rollovers or transfers,” she says. “In other words, if you’re in that situation and you’re well behind on your reporting, your fund will effectively stop being able to operate.”
The figure for concessional contributions for people over 60 has been corrected since publication from $30,000 to $35,000.
Story continues on page 2. Please click below.
<hr class="system-pagebreak">
5. Remember the ‘bring forward’ rule
With non-concessional contributions, if you are under 65, you can currently put $150,000 in a year to your SMSF, but the ATO also allows you to put in three years at once.
“So you can put in $450,000 in one fell swoop,” says Evans. “Then you just can’t do anything for the next two years.”
From 1 July, the bring forward rule becomes $540,000, or three times the new non-concessional contribution cap of $180,000.
Twentyman says Pitcher Partners are not big advocates of this strategy because in most incidences all it does is give a timing advantage.
“But if your marginal tax rate is going to be significantly less next year than this year, you may look at bringing forward a deduction, but from our experience not that many individuals fall within category,” he says.
6. Don’t exceed your minimum or maximum pension withdrawals
“If you’re on a pension in your super fund, make sure you withdraw your minimum pension that you’re required to take out each year,” says Evans. “In some cases, there’s also a maximum limit you can’t go over.”
Minimum and maximum pensions from SMSFs have to be paid by 30 June if you want to avoid paying tax on them.
“If you don’t pay by 30 June, the risk is the government will take away the tax exemption on the fund and that can be significant, there can be thousands of dollars at risk,” says Twentyman.
Colley says if you are eligible to draw amounts from superannuation, you may be able to defer receiving the amount until after you reach the age of 60, or until a later financial year when you may end up paying a lower rate of tax.
7. Get your trust entitlements paid by 30 June
“A lot of self-managed super funds have investments in trusts and those trusts owe the super funds money,” says Twentyman.
“Generally, it is a good idea for the trust to pay whatever it owes by 30 June because the tax office sometimes likes to view those as loans and that can cause compliance issues,” he says.
8. Employers beware of SuperStream by 2015
The ATO is putting in place a new system that aims to standardise the way employers pay super.
The new SuperStream standard will require all SMSFs to be paid electronically and is <a href="https://www.smartcompany.com.au/finance/superannuation/42145-smes-to-be-hit-by-super-delay" target="_blank">coming in gradually over the next few years</a>.
Evans says many employers still lodge their employee’s super by sending checks or banking it at the local bank.
Large and medium-sized employers, or those with 20 or more employees, must complete the implementation of SuperStream by no later than 30 June, 2015.
“If you’re a larger employer, you should have looked out for the SuperStream changes and made arrangements by May 31,” says Colley. Large employers were supposed to get new electronic service numbers to pay their employees electronically by the end of May.
Small employers, or those with 19 or fewer employees, have another year starting from 1 July, 2015 but must complete their implementation no later than 30 June, 2016. 
Small businesses may be eligible to use the Small Business Superannuation Clearing House, which is a free online service provided by the ATO that allows you to pay contributions to a single destination in one simple electronic transaction. 
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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Eight things you need to know to get your SMSF ready for the end of financial year

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The Australian Taxation Office will be carefully monitoring this financial year, as with previous years, rental property expenses in tax returns.
It was often first-time landlords who got their claims for rental property deductions wrong, Tax Office assistant commissioner Karen Anstis told Fairfax Media.
A common query may arise for claiming rental deductions for a property that was not genuinely available for rent.
Another mistake was overstating the deductions on the interest on the mortgage.
Karen Antis said the Tax Office had increasingly sophisticated technology for identifying excessive claims.
The lodgement deadline for returns is 31 October, 2014 for those filing their returns themselves.
Those lodging through a registered tax agent are usually eligible for a later deadline of up to May 2015.
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ATO cautions first time investors

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It’s coming up to tax time, which is great news for those few that enjoy filling out extra paperwork and visiting their accountant.
Last year, thousands of <a href="/news/aussies-scammed-out-of-89-million-in-2013-accc-report">Australians were scammed out of a combined $89 million in 2013</a>, according to an Australian Competition and Consumer Commission report that was released yesterday.
It’s unfortunately also a time of year when you’re more comfortable providing your details to sort out your tax return and get your affairs in order. Here are five tips from the Australian Taxation Office on being aware of, and recognising, signs of fraud and unscrupulous activity.
Simple tips to recognise fake SMS and emails that pretend to be from the ATO
These aren’t all ‘Nigerian Prince’ style emails that you can tell at a single glance should be deleted without opening and some can actually look convincing, the ATO warns.
If the emails are one or many of the below, then you may be dealing with a case of fraud:
<ul>
<li>Unsolicited 
</li>
<li>Not from a valid ATO address (but may look as though it is from an official email) 
</li>
<li>Do not address you by your name, or uses your email address instead of your name 
</li>
<li>Asks for your personal or financial details (in particular, date of birth, address or PIN number) – This is a big warning sign. The ATO notes they will never ask for these details via SMS or email 
</li>
<li>Poorly worded, containing gramma errors (pun intended) – this helps to avoid filters 
</li>
<li>Promises money – Do we need to explain why this one is unlikely? 
</li>
<li>Contains an attachment 
</li>
<li>Contains fake links (the ATO suggests moving your cursor over the link, not clicking, and seeing where you’ll be redirected to. If it’s not to the ATO’s official site, then don’t click it.)</li>
</ul>
If the SMS or email you have received fits the above categories - head to the official ATO website and give them a call.
Report SMS and emails offering tax refunds in exchange for your personal details
Tax refunds are calculated after you’ve reported your information – not before.
“Any SMS or email that requests additional information before a refund can be released is a hoax,” they warn.
If an SMS or email says that you owe money, or that your account is in arrears and you will be taken to court – it’s time to ignore it.
This information will not be sent in an email or as a text. The phone, mail, an external collection agency or a personal visit are the methods more likely to be used.
Use online services via the official ato.gov.au
Don’t use other websites or methods, other than phoning the official number, to do business with the ATO. If they text you, it’s probably not them.
You’ll be prompted to sign in with a TFN and password and often AUSkey. If you aren’t asked to login, beware – it’s not the ATO. Double check the address bar.
Keep your TFN and passwords secure
Don’t share your password, and do not respond to emails with your TFN or password.
When are SMS and emails used by the ATO? For promotional or information services. Reminders, notifications, requests for you to contact the ATO and confirmation may be sent in these formats.
YOU MAY ALSO WANT TO READ
ATO warns of tax time scammers:<a href="/expert-insights/finance/ato-warns-of-tax-time-scammers-here-s-how-to-spot-them"> Here's how to spot them</a>
ATO branded scam alert: <a href="/news/ato-branded-scam-alert-fake-landlord-tax-exemption">Fake landlord tax exemption</a>
Beware of tax scams: <a href="/expert-insights/finance/beware-of-tax-scams-how-to-make-sure-you-don-t-get-fleeced">How to make sure you don't get fleeced</a>
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Four ATO tips to protect yourself from end of financial year scams

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The Australian Taxation Office has raised concerns that self-managed superannuation funds have been incorrectly reporting the details of limited recourse borrowing arrangements used to buy property.
The warning comes as the ATO prepares to take up new and more flexible powers to deal with SMSF trustees who fail to follow the rules.
From 1 July, the ATO will be able to impose a wider range of penalties on funds that breach superannuation law. Under the new penalty regime, trustees may be personally liable for penalties of up to $10,200 per breach. They may be forced to rectify the problem and complete an SMSF education course.
SMSF trustees are required to lodge accurate annual returns each year to the ATO detailing their fund’s assets, liabilities and income. Penalties can be applied to those that fail to lodge their annual returns on time, or incorrectly report the details of their fund.
The ATO said it had noticed some trustees had misreported details of limited recourse borrowing arrangements, which are used to borrow to buy property through an SMSF, in their funds’ annual returns for 2013.
To help trustees understand the requirements, the ATO has released a detailed guide describing how to complete each section of the annual return.
The ATO has recently released the 2014 version of the annual return for SMSFs. It has also clarified some of the rules that apply to the borrowing arrangements and assets they are used to acquire.
Strict conditions apply to borrowing money through limited recourse borrowing arrangements. There can be civil or criminal consequences for fund trustees that fail to follow the rules.
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ATO concerned that SMSFs are incorrectly reporting borrowing details relating to property purchases

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As the end of the financial year approaches, self-managed super fund (SMSF) trustees can employ a number of strategies to legally minimise their tax payments.
Graeme Colley of the SMSF Professionals’ Association of Australia says those strategies include after-tax and age-specific tax contribution.
“Making after-tax contributions to super, which could come from your personal savings, transferring personal investments or an inheritance, is one effective way to minimise tax,” says Colley.
While the maximum personal after-tax contribution for this financial year is $150,000, those aged 65 or over can contribute up to $450,000 over a three-year period.
“This allows you to make substantial contributions to super and build your retirement savings,” Colley says. But he warns SMSF trustees not to go over the after-tax contribution caps, with excess contributions attracting tax rates up to 46.5%.
The after-tax contribution cap will rise for the next financial year, says Colley.
“Remember, too, that from 1 July 2014, the after-tax contributions cap increases to $180,000. This means if you can trigger the bring-forward rule that a total of $540,000 can be contributed over the fixed three-year period.”
He explains that SMSF trustees who are aged 60 and over have a maximum tax deductible contribution cap of $35,000.
“These contributions include amounts you make as salary sacrifice, the Superannuation Guarantee or, if you qualify, personal deductible contributions. If you want to maximise your contributions before 30 June, make sure you talk to your accountant, tax agent or professional adviser so that your salary sacrifice agreement with your employer allows the maximum to be salary sacrificed,” says Colley.
Regulations apply to those aged 65 or over who still want to contribute to their SMSF.
“If you are 65 or older you will need to meet a work test to contribute to super in most cases. You will need to work for at least 40 hours during 30 consecutive days at any time during the financial year to make tax deductible and non-deductible contributions to super,” says Colley.
Once you reach 60 years old, all lump sums that you extract from your super fund is tax free, with some exceptions for government funds.
“However, before age 60 any lump sums that include a taxable component can be taxable. The taxable component includes the tax deductible contributions plus any income that has accumulated in your superannuation benefit. No tax is payable on taxable amounts of up to $180,000, in total, you receive before age 60. This amount is indexed annually,” says Colley.
He says that if trustees are eligible to draw from their superannuation, it may benefit them to wait until they are over 60 years old, or a later financial year.
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