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As the summer holidays linger or fade, Property Observer has found a handful of holiday shacks for sale. And one as cheap as $75,000, if you want in Tasmania, or from $275,000 on the mainland.

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Their basic, no-frills design have possibly helped influenced architects such as Glen Murcutt and Drew Heath seek their quintessential utilitarian design.

Even after the result of years of sea spray, one does come close to a $1 million asking price.

[smartcode_project:default project_id=5559]

Just looking at them ought to bring back memories of jumping off sand dunes and baking hot car trips, being traumatised by older siblings and falling off bikes.

So take trip down memory lane – or in one case up the Murray River – just don’t forget your wallet.

$500,000 plus
<a href="https://www.realestateview.com.au/Real-Estate/8-diggers-crescent-great-mackerel-beach/Property-Details-buy-residential-2201871" target="_blank">8 Diggers Crescent, Great Mackerel Beach</a>, NSW

<img alt="8diggers" height="353" src="/images/stories/2012/12/8diggers.jpg" width="470">

Located not far from the western foreshores of Pittwater directly opposite Palm Beach, this one's an almost idyllic hideaway. The house was originally built in the 1950s and has had very little change since then expect for its bathroom being updated in the 1960s. As the agent Kathyrn Hall suggests - think back to days of no television, a more simplistic life, simple pleasures of a relaxed holiday atmosphere where you swam at the beach, board games and card games at night. The house itself is a very simple fibro cottage, light and airy, all on one level. And in very original condition, but in good order.

 

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$250,000

<a href="https://www.realestate.com.au/property-residential+land-nt-dundee+beach-200375791" target="_blank">3732 Launceston Road Dundee Beach</a>, Northern Territory

<img alt="dundee" height="353" src="/images/stories/2012/12/dundee.jpg" width="470">

A quarter of a million dollars will buy you this remote shack build from two storage containers on a 10 hectares of arid bushland about  three hours' drive south-west of Darwin and a short drive from the Timor Sea. It’s listed for sale through Margaret Fanning of Elders Real Estate and described as an “ideal spot for a quiet weekend or a fishing shack". The shack is subdivided into two containers with a breezeway in the centre for enjoying a cold beer and presumably, fish caught on the beach or in the nearby Launceston inlet. One of the containers is air-conditioned and is used for sleeping and the other is used for storage.

 

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$299,000 plus

<a href="https://www.realestate.com.au/property-house-sa-walker+flat-112039323" target="_blank">Swan Reach Road, Greenways Landing, SA</a>

<img alt="greenways" height="353" src="/images/stories/2012/12/greenways.jpg" width="470">

Hey, they don't make them like this anymore! This is one of eight shacks set close to one of the only boat ramp for miles on this portion of the Murray River. The freehold river front shack has plenty of room for boats, parking for cars, bikes and tents. Its got two bedrooms, water tank, pump shed, paved river front patio with fire pit, shaded lawns, sunset vistas with tame kookaburras and pelicans. Just a short boat ride to the legendary Swan Reach Hotel. Comes on a walk-in-walk-out basis with Torrens title, water licence and development plans (STCC).

 

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 $640,000 - $690,000

<a href="https://www.fletchers.net.au/3106069/247-The-Esplanade-Indented-Head" target="_blank">247 The Esplanade Esplanade, Indented Head</a>, Vic

<img alt="indented" height="264" src="/images/stories/2012/12/indented.jpg" width="470">

This fibro beach house is just metres from the beach and bay. Its been for sale with no price adjustment since listed in May 2012 through Fletchers. Hopefully the toes don't get wet on the front decking when the king tide comes in. It is bring your own tree.

 

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$275,000

<a href="https://www.realestate.com.au/property-house-wa-falcon-112488079" target="_blank">12 Maranel Street, Falcon</a>, WA

<img alt="maranel" height="353" src="/images/stories/2012/12/maranel.jpg" width="470">

Cute might be stretching it, but at just 350 metres to the beach, this two-bedroom cottage is well located. It's apparently on a quiet street on a lovely treed 885-square-metre block. Michael Goodwin at Harcourts Mandurah had the listing, selling it just a few days ago in early 2013. It had been for sale since October 2012, having last traded at $300,000 in early 2010.

 

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$185,000

<a href="https://www.realestate.com.au/property-residential+land-qld-burrum+heads-200360715" target="_blank">40 Orchid Drive Burrum Heads</a>, Queensland

<img alt="orchiddr" height="353" src="/images/stories/2012/12/orchiddr.jpg" width="470">

Though this “lovers'” beach shack may have all the charm of a prison cell, it is just a short stumble the “very private” Sirenia Beach and will appeal to those holidaymakers who love the idea of a morning or evening beach walk searching for sea shells and other “treasures”. There’s also the opportunity to fish on the beach, the saltwater lake or in Burrum River. The property itself is a fully furnished three-bay colorbond shed (all indoor and outdoor furniture included in the sale price) and includes a shower, toilet and kitchenette.

 

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$75,000

<a href="https://www.realestate.com.au/property-house-tas-cramps+bay-112305039" target="_blank">78 Cramps Bay Road Cramps Bay</a>, Tasmania

<img alt="cramps" height="353" src="/images/stories/2012/12/cramps.jpg" width="470">

Affordable fishing cabins in Tasmania's Central Highlands have a naive romantic charm. This one's many great features include direct lake views and a boat ramp/lake access located within a lure throw. The 38-square-metre cabin is heated by a little Red Embers freestanding wood heater. The property is listed on a walk-in-walk-out basis, including all furniture, white goods, cookware, generator and presumably the firewood. Paul Kaine at Roberts Real Estate Longford has the 2,518-square-metre listing. 

 

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$970,000

<a href="https://www.realestate.com.au/property-house-nsw-arrawarra+headland-107302421" target="_blank">14 Second Avenue, Arrawarra Headland</a>, NSW

<img alt="secondave" height="353" src="/images/stories/2012/12/secondave.jpg" width="470">

Not many people paint their houses pink these days, it’s a shame. With its holiday décor, a granny flat out the back and various hidden treasures, this home has almost certainly been the site of many a teenage holiday romance. The four-bedroom property sits on a generous 750 square metres, and it’s literally metres from the beach. It’s a seven-hour drive north of Sydney, probably a two day affair back in the day. It’s being sold by Mark Killian from Nicole Cardow Real Estate Woolgoolga and Matt Dougherty at LJ Hooker Grafton.

 

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$289,000 - $299,000

<a href="https://www.realestate.com.au/property-house-sa-aldinga+beach-112618315" target="_blank">12 Maurice Street, Aldinga Beach</a>, SA

<img alt="maurice" height="353" src="/images/stories/2012/12/maurice.jpg" width="470">

This one's called Wacko Shacko – set in the scrublands just a few minutes walk from the access ramp to Aldinga Beach, under one hour from Adelaide. Wacko Shacko has three bedrooms, open plan living areas, and a well-equipped kitchen. The property is offered furnished – through Deb Tucker at Raine &amp; Horne McLaren Vale. It last sold for $235,000 in 2004. It's a holiday rental too, <a href="https://www.rent-a-home.com.au/propertydetails.aspx?PropertyID=41685#requestAQuote" target="_blank">currently renting at between $80 and $140 a night</a>.

 

 
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Nostalgic fibro holiday home shacks from $75,000 plus

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Nicole Kidman, the actress, has given Vogue a video tour of her NSW Southern Highlands retreat, Bunya Hill. It was the latest of the international magazine's 73 Questions series.

The actress and her country music star husband, Keith Urban snapped up <a href="https://video.vogue.com/watch/73-questions-inside-nicole-kidman-s-australian-farm" target="_blank">Bunya Hill</a>, a 45-hectare black Angus cattle stud at Sutton Forest, for $6.5 million in 2008.

Long hidden behind hedging, the Sutton Forest property, with its magnificent 1878 Georgian mansion and impressive pedigree, has wide sandstone verandas, pressed-metal ceilings, a carved cedar staircase and 10 marble fireplaces.

It has the proportions and details that made it worthy to be leased as a vice-regal rural retreat for Lord Augustus Loftus, a governor of NSW in the colonial 1880s.

Bunya Hill was sold by Peter Coad, head of global markets at National Australia Bank, and his wife, Helen, through Sothebys and Drew Lindsay Real Estate. 

[smartcode_project:default project_id=5897]

It is set in the Sutton Forest village located in New South Wales precinct where Hume Coal now intends to build an underground coal mine.

Details of the plans were advised last week, submitted to New South Wales Government as a first step in the approval process.

The aim is to extract coal from the Wongawilli coal seam in the Sutton Forest region, while protecting the ground water and the environment, but most locals, including the celebrity couple have huge apprehension.

[smartcode_project:default project_id=6284]

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal. Over half of the remaining sections of the project area are scheduled to continue to be, used for livestock grazing, small-scale farm businesses and hobby farms. There are a small number of vineyards present, principally Cherry Tree Hill Wines, and Eling Forest, with the Belanglo State Forest covering the north-western portion of the project area and contains introduced pine forest plantations, areas of native vegetation and several creeks that flow through deep sandstone gorges.

The project area is traversed by several watercourses including Oldbury Creek, Medway Rivulet, Wells Creek, Wells Creek Tributary, Belanglo Creek and Longacre Creek, all of which ultimately discharge to the Wingecarribee River, located around 2 km north of the project area. The Wingecarribee River’s catchment forms part of the broader Warragamba Dam and Hawkesbury-Nepean catchments. Medway Dam is also adjacent to the project area. 

Hume Coal has undertaken extensive groundwater investigations to characterise the existing hydrogeology of the project area and surrounds, including groundwater depth, quality, flow and uses. Investigations are ongoing, though the 65 groundwater monitoring points that have been established to date, comprising mainly purpose-built groundwater monitoring bores, as well as vibrating wire piezometers.

Project director, Greig Duncan stated that the company had commenced <a href="https://www.humecoal.com.au/hume/assets/File/Home%20page%20PDF%20and%20images/J12055_SEARs%20application%20supporting%20document_FINAL_170715.pdf" target="_blank">detailed environmental and geological studies</a> as well as extensive engineering design analysis to make sure the local community received the best outcome.

[smartcode_project:default project_id=6876]

It is noted that, to avoid any perception that the Hume Highway could be affected by future, longterm ground movements, no mining will occur beneath these features, other than development of underground roadways (first workings development) required for access.

The planned coal mine will mine 35% of coal from the available reserves and leave the rest underground to hopefully provide long-term ground stability and reduce impacts on groundwater.

It is expected to create 400 jobs for the local community.

Greig Duncan assured he project will not involve coalbed methane, opencast or longwall mining.

"It will have no impact on town water or surface water such as dams.

"Furthermore, we’ve taken great care to design a mining system that will have no long-term impact on the groundwater system, ensuring it remains intact and undamaged for future generations.”

[smartcode_project:default project_id=29679]

The innovative mining system is being spriuked as an "Australian first." 

The project incorporates a number of leading practice innovations, "some of which set a new benchmark for underground coal mining in NSW" with the rail wagons used to transport product coal off-site being covered.

Surface infrastructure is proposed to be developed on predominately cleared land owned by Hume Coal, or for which there are appropriate access agreements in place with the landowner, at sites that are relatively free from environmental and other constraints.

With proximity to rail infrastructure and Port Kembla, the Hume Coal Project involves operation of an underground coal mine over a 22 year-period, which will extract approximately 50 million tonnes of coal from the Wongawilli Seam, followed by a closure and rehabilitation phase of nominally two years.

There will be production of nominally up to three million tonnes per annum of metallurgical and thermal coal for international and domestic markets.

There will be peak workforces of approximately 400 full-time equivalent employees during construction and approximately 300 full-time equivalent employees during operations.

[smartcode_project:default project_id=94621]

Hume Coal Hume Coal is a wholly owned subsidiary of POSCO Australia, a subsidiary of Korean based POSCO, the world’s sixth-largest steel maker.  Hume Coal currently has two advisory groups, the SRG and WAG.

Hume Coal established a SRG formed in 2014 chaired by Paul Mitchell OAM and is made up of community representatives.

The Hume Coal WAG is made up of representatives from government, local business, landowners, special interest groups and Hume Coal and its technical advisors. It was formed in 2011 and is chaired by the Hon. Gary Nairn.

Hume Coal holds exploration Authorisation 349 (A349) approximately 100kms south of Sydney and 3kms west of Moss Vale, in the Wingecarribee local government area.

Extensive exploration has been undertaken within A349 since the 1950s and the current exploration authorisation was granted in 1985. It was acquired by Hume Coal in 2010. Concurrent with lodging this document, a referral is being made to the Commonwealth Department of the Environment to determine whether or not approval is also required under the Commonwealth Environment Protection and Biodiversity Conservation Act 1999.

An EIS is a requirement of the approval process.

The project area is in a semi-rural setting, characterised by grazing properties, small-scale farm businesses, hobby farms, natural areas, forestry, scattered rural residences, villages and towns and some industries and major infrastructure.

[smartcode_project:default project_id=6656]

A number of State and locally listed heritage places are present in the local area.

The villages of Sutton Forest and Exeter are within A349, but both have been excluded from the project area.

Medway, New Berrima and Berrima villages are also nearby, while Moss Vale, Bowral and Mittagong, located between approximately 3 and 15 km east and north-east of the project area, are the LGA’s main regional centres.

Industrial and manufacturing facilities in the locality include the substantial Berrima Cement Works and Berrima Feed Mill on the fringe of New Berrima, as well as brickworks, metal fabrication, mining equipment manufacture and quarries. Berrima Colliery’s mining lease adjoins the project area’s northern boundary.

Berrima Colliery closed in 2013 after almost one hundred years of operation and is currently in care and maintenance.

The Wingecarribee LGA is also a retirement destination with an aging population, with approximately 42% aged over 50 – significantly higher than the NSW average of 33% (Australian Bureau of Statistics 2011).

Main picture of Bunya Hill (dated 2008) from Drew Lindsay Real Estate. 

Carousel images courtesy of US Vogue Magazine.
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Nicole Kidman shows off Bunya Hill, Sutton Forest for first time

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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.
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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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SPONSORED POST
Many people believe that making a profit from renovating is all about the hands-on DIY of renovating. However Jane Slack-Smith from Your Property Success believes that most renovators miss the number one thing that will cause them to lose money every time - being able to recognise the renovation potential of a property in the first place.  She says you must start with the first inspection so you can really begin to assess and evaluate the property for true renovation potential.
The renovation itself is then about how to create more perceived value. That is, more than what you actually spend. She says this is key to making money and not overcapitalising.
Most would-be renovators watch renovation shows which mainly concentrate on the renovation rather than the actual property location. This means they are missing a key factor in the renovation project. When it comes to renovation, unfortunately not all suburbs are created equal and some suburbs have very little difference in value between an un-renovated and renovated property. In other words, even if you can complete a fantastic renovation at minimal cost, there is simply no margin present to add equity.
The key to a successful renovation, is starting with the right target area, then finding the right street, then the right property. After that comes the actual renovation.
What can you look out for to ensure it’s the right location?
A good renovation suburb has a spread of values present at the street level. This means that renovated houses are selling for substantially more than un-renovated houses. This spread of values is referred to as a pricing disparity.
Finding the right suburb for your budget can take a lot of research, but it is the foundation on which all other steps depend. There are several methods for locating a great renovation suburb - paid reports or online tools can shortcut the research while mapping out several years’ worth of past sales data is another method. Jane can show you how to combine both of these so you know what streets in your target suburb are the ones that have the greatest profit potential. If you just leave it to chance then no matter how much potential your property has, once you have selected the wrong location then you may never get your investment back.
How to recognise the potential for a renovation
For most, viewing your potential property with a dedicated process and a checklist in hand, is a good start. However, many don’t realise that the big drain on your renovation budget is all those little things that are often unseen and not planned for.
In Jane’s opinion the five biggest budget busters to watch out for in the existing dwelling are:
<ol>
<li>Rewiring</li>
<li>Restumping</li>
<li>Replastering (which is often needed after restumping)</li>
<li>Roof Repair</li>
<li>Plumbing</li>
</ol>
If all five (or even three) are required, she suggests you should begin thinking about another property.
In her new video series, Jane explains the tell-tale signs of choosing the right property and how you can renovate and make a money every time. Plus she will give you a property inspection checklist so you always know what to look for.
<a href="https://go137.infusionsoft.com/go/videos/MLPO/" target="_blank">Click here</a> to see this great series.
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Recognising the renovation potential of your property

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Property laden self-managed super funds face the prospect of higher tax bills following super changes announced by Superannuation Minister Bill Shorten last week.

Mr Shorten announced that super income streams over $100,000 will be taxed at a concessional rate of 15% from July 1, 2014.
For people with more than $2 million in super assets (such as investment property) supporting income streams, the reform will affect assets earning a rate of return of 5%.
The most recent ATO figures for 2011 show that 28% of SMSFs now have account balances of at least $1 million.
"From  July 1, 2014, future earnings (such as dividends and interest) on assets supporting income streams will be tax free up to $100,000 a year. Earnings above $100,000 will be taxed at the same concessional rate of 15% that applies to earnings in the accumulation phase," said Federal Treasurer Wayne Swan in a joint statement with Mr Shorten last Friday.
Treasury announced that special arrangements will apply for capital gains on assets purchased before 1 July 2014:
<ul>
<li>For assets that were purchased before 5 April 2013, the reform will only apply to capital gains that accrue after 1 July 2024;</li>
<li>For assets that are purchased from 5 April 2013 to 30 June 2014, individuals will have the choice of applying the reform to the entire capital gain, or only that part that accrues after 1 July 2014; and;</li>
<li>For assets that are purchased from 1 July 2014, the reform will apply to the entire capital gains.</li>
</ul>
"These generous transitional arrangements will ensure that people who have already purchased superannuation assets will have ten years to decide whether they want to restructure their superannuation holdings, before their capital gains start to be affected," reads <a href="https://ministers.treasury.gov.au/wmsDisplayDocs.aspx?doc=pressreleases/2013/040.htm&amp;pageID=003&amp;min=wms&amp;Year=2013&amp;DocType=0" target="_blank">the statement.</a>
The reform will not affect the tax treatment of withdrawals.
"Withdrawals will continue to remain tax-free for those aged 60 and over, and face the existing tax rates for those aged under 60."
The government also announced that for people aged over 60, concessional caps will be increased from $25,000 to $35,000 from July 1. This concession will be extended to those aged 50 and over from July 1 next year.
Prior to the announcement, the capital gains proposals were slammed by small business leaders.
"As small business owners, our lives are based around our assets," Council of Small Business of Australia chief executive Peter Strong said. "It's almost an attack on small business."
The supposed plan would see capital gains tax charged when properties move into the pension phase of an account, meaning SMSF owners would be charged more money as they near the point where they are able to draw funds.
"When you have an asset like a property and it's an integral part of your business, it seems unfair to change the rules and then dictate when you can retire."
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SMSFs face higher future tax bills after super changes

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Real estate company and mortgage broker Ray White has announced plans to cash in on the growing popularity of self-managed superannuation funds by adding financial advice to its list of services.
<a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK">Fairfax</a><a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK"> </a><a href="https://www.afr.com/p/business/property/ray_white_heads_into_financial_advice_gyFgF90R5dLaGdkefADjjK">reports</a> the new company will be called Wealth Market and will act as a subsidiary of mortgage products and insurance company Loan Market, which is a partner company of Ray White owned by the White family.
Loan Market already has offices in each capital city, employing around 1,000 brokers who write around about $1 billion worth of mortgages each month.
“We’ve got clean hands after 110 years – there aren’t a lot in property who haven’t had a scandal,” Ray White Group chairman Brian White said.
This article first appeared on <a href="https://www.SmartCompany.com.au" target="_blank">SmartCompany</a>.
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Ray White expands into SMSF financial advice market

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<img src="/images/sponsored/inside-the-market-series/Brought-To-You-By-Mozo.jpg" height="50px">
In the past, it was typical for borrowers to go straight to one of the big four and ask for a loan – usually from the bank that held their savings.
But with competition high, you have the opportunity to get the upper hand and choose wisely.
Mozo’s database shows that there are more than 60 home loans that have lower interest rates than the big banks. Topping the list include the likes of loans.com.au, UBank, ING Direct, Bankwest, Heritage Bank and Newcastle Permanent.
Doing your homework and considering smaller banks, mutuals and non-bank lenders beyond the headlining names is where the biggest savings are to be found.
The smaller tier has recently started upping the pressure on the top-end banks, particularly around the topic of rates, says Mozo director Kirsty Lamont.
“Even if you have a big loan amount and are eligible for a package discount with the big four, it’s still likely you’ll be able to get a cheaper rate by looking outside these banks and going with a smaller bank or mutual,” she says.
Credit unions, building societies and smaller banks also tend to have higher customer satisfaction ratings for customer service and trust, according to the thousands of home loan reviews published on Mozo.com.au each year. They have also been closing the gap on features.
However, there is a downside with choosing an independent bank for your loan. You might find your banking somewhat separated, Lamont explains.
“You have to ask yourself whether you’re happy to have different banking providers or whether you want to move your existing banking to that lender so that you’ve got your everyday accounts, your savings, your home loan and your credit cards all with the one bank,” she says.
Those who have been loyal to a big bank for some time might be less keen to face this upheaval or to start holding accounts across multiple banks, however it is becoming more commonplace.
Mozo’s home loan expert Steve Jovcevski also warns that, while it’s not likely you’ll need it, it’s a worthwhile consideration that technically it’s only the big four who are 100% guaranteed by the government.
For information on property loans, rates and more, visit Mozo.com.au or <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/42368-get-loan-savvy-expert-tips-for-a-first-time-investment-or-refinancing-loan-in-a-free-ebook" target="_blank">click here</a> for the free Property Observer eBook, Get loan-savvy – tips for a first time, investment or refinancing loan, which helps you decide on a home loan that meets your requirements.
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The big four vs independents: Mozo weighs up the pros and cons

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GUEST OBSERVATION
All too often we get calls or emails from clients and some non-clients even, who are late with getting important information back to their accountant, whether it is tax returns, information for their auditor, or engaging with their wealth planner!  So, we thought we would find out what is the right information and when it is needed.
We are focussing on audits of SMSFs and trading entities. We have captured here the key areas of process, or events where you must advise your auditor.
SMSFs
<ul>
<li>Make sure all SMSF transactions go through the fund’s bank account. 
</li>
<li>Put an investment strategy in place.  If you do not have an investment strategy, then please talk to our wealth planning team who will be only too happy to assist you. 
</li>
<li>Tell your accountant when anything significant happens so they can produce a minute of the trustees meeting. e.g. buying or selling a significant asset. 
</li>
<li>“I transferred money into or out of the SMSF bank account in error” - Tell your accountant straight away and agree the best way to I fix this. 
</li>
<li>One of the members/trustees is seriously ill – Tell your accountant. 
</li>
<li>A trustee is leaving Australia ‘permanently’ or for more than six months – Tell your accountant. 
</li>
<li>SMSF trustees should work with their accountant to ensure that they don’t do anything to prejudice the tax advantaged 15% tax or tax free pension income. 
</li>
<li>Maximum or minimum pension amounts must be drawn every year 
</li>
<li>If you receive an auditors management letter, you should act on any matters raised, before they become reportable contraventions 
</li>
<li>If you don't have much money invested in your SMSF - check with your accountant to make sure it is still viable to maintain.  It could be a good option to transfer your super monies into a public offer super fund. 
</li>
<li>Have you considered having life and income protection insurance inside the super fund? 
</li>
<li>SMSFs are not allowed to buy residential property from a member or related party. 
</li>
<li>In a SMSF it can't rent or provide a residential property to a family member or yourself. 
</li>
<li>If part of your investment strategy is to collect art, then it can’t be displayed or leased in a SMSF member’s home or property (sole purpose test).</li>
</ul>
Other Audit Clients:
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="26">#</td>
<td valign="top" width="197">Issue Description</td>
<td valign="top" width="197">Reason</td>
<td valign="top" width="197">Preferred course of action</td>
</tr>
<tr>
<td valign="top" width="26">1</td>
<td valign="top" width="197">Not keeping full records in a business-like manner.</td>
<td valign="top" width="197">It makes performing an audit difficult as sufficient appropriate audit evidence cannot be accumulated by the auditor to support an audit opinion and allow for a ‘clean’ audit report to be issued.</td>
<td valign="top" width="197">Full and proper record keeping needs to be employed – seek the advice of your accountant early.</td>
</tr>
<tr>
<td valign="top" width="26">2</td>
<td valign="top" width="197">AGM timing – ‘Not for Profit’ organisations sometimes schedule their AGM far too close to the end of their financial year.</td>
<td valign="top" width="197">Does not leave enough time for the financials to be compiled leaving enough time for an appropriate audit to be conducted.</td>
<td valign="top" width="197">Liaise with your accountant and auditor on achievable time frames and preferred AGM dates.</td>
</tr>
<tr>
<td valign="top" width="26">3</td>
<td valign="top" width="197">If your business has bank lending covenants that need to be maintained, an auditor may need to check these and report accordingly.The terms of your lending covenants might include not declaring a dividend large enough to create negative current assets. Or your interest coverage ratio needs to stay above a certain level.You should be aware of any loan or overdraft conditions imposed by the bank and work with your accountant to ensure they’re not breached.</td>
<td valign="top" width="197">If breached, at any time during the year, the bank may have the right to call in the loan. This could be inconvenient for you and require the loan to be quickly refinanced – if possible.</td>
<td valign="top" width="197">Be aware of lending conditions, maintain monthly or quarterly financials promptly and have your accountant regularly checking that covenants are met.</td>
</tr>
<tr>
<td valign="top" width="26">4</td>
<td valign="top" width="197">Directors not being aware of other factors that would require an annual audit to be conducted e.g. ASIC requirements.</td>
<td valign="top" width="197">If a shareholder (holding 5% or more of the shares) requests an audit; if the company becomes a Large Proprietary company, if the company has  any two of the following -  more than 50 employees; Assets of more than $12.5M; and turnover of greater than$25m.</td>
<td valign="top" width="197">Keep your accountant informed of changes with your company so they can advise if ASIC regulations require an annual audit.</td>
</tr>
</tbody></table>
Robert Edwards is a partner at <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> Audit Services.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
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What you need to tell your accountant about your SMSF

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SPONSORED POST
The materials and techniques used to build a retail centre will have a significant effect on the development’s sustainability over time.
Trends towards sustainable development are shifting the way the property industry thinks about the materials used in construction to focus on their entire life span from extraction or manufacture to disposal, rather than solely the period during which they are used in a building.
To meet the highest standards of sustainability, builders are eliminating products that harm the environment and human health – such as chlorofluorocarbons and hydrochlorofluorocarbons that were once common in air conditioning and refrigeration units, toxins such as lead, mercury, and wood treatments containing creosote, arsenic or pentachlorophenol.
The Living Building Challenge standard includes a “Red List” of materials or chemicals that cannot be used in developments seeking to meet its criteria.
But sustainability is affected by more than the choice of materials: the way in which products are sourced also plays a role. Sustainable development emphasises selecting locally sourced materials where possible to support and invest in the local economy as well as to eliminate unnecessary transportation. This also includes contractors and consultants who advise on the project.
The LBC standard, for instance, requires projects to source at least 20 percent of the materials they use from manufacturers located within 500km of the construction site. A further 30 percent of the materials construction budget must come from within 1000 km. Another 25 percent of materials must be sourced from within 5000km, and only 25 percent can be sourced from further afield.
Consultants must come from within 2500 km of the project location.
The Living Building Challenge’s focus on a sustainable, regenerative future considers the use of materials from the design phase through to the end-of-life deconstruction phase. The Challenge allows only for minimal disposal, requiring waste to be eliminated or diverted. Leftover products are collected for reuse and recycling.
On the 5.8 hectare Central Park site in Sydney, developed by Frasers Property Australia and Sekisui House, 93 percent of demolition waste was recycled.
Lendlease’s development at Barangaroo South targeted diverting 97 percent of its construction waste away from landfill.
Other examples of sustainability during the construction phase include employing building practices to minimise dust, noise and disruption to the surrounding community during construction, and seeking community input and engagement during development.
For more information, download our eBook <a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/52152-australia-aspires-to-global-green-leadership-the-living-building-challenge" target="_blank">here</a>.
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What new building techniques and materials will future sustainable retail centres incorporate?

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SPONSORED POST
You can claim a tax deduction for some of the expenses associated with owning a rental property in the year in which you incurred them, but others must be claimed over time.
DEPRECIATING ASSETS
Items that will wear out and need to be replaced, such as carpets and appliances, need to be depreciated. This means you claim the cost of the item over its expected lifespan.
The Australian Taxation Office has published a list of the timeframes for depreciating common items found in rental properties.
For example, the ATO suggests carpet should be depreciated over 10 years and floating timber doors over 15 years. Gas or electric hot water systems can be depreciated over 12 years, while the suggested lifespan of solar hot water systems is 15 years. The ATO suggests cook tops, ovens and refrigerators should be depreciated over 12 years.
You can use the ATO’s suggested timeframes to claim depreciation or, in some cases, you can make your own estimates.
If you want to use your own estimate of the e ective life of a depreciating asset, you’ll need to be able to back up your claims with information such as the manufacturer’s specifications, engineering information or common practices for scrapping the item.
The item’s lifespan starts from when it was new, not when you started claiming deductions. If you install second-hand items, you’d have to consider their lifespan since new, not since you bought them.
CAPITAL WORKS
If your rental property was built after July 17, 1985, you may be able to claim a deduction for construction costs, known as a capital works deduction. 
Capital works deductions are usually claimed at a rate of 2.5 percent t a year for the 40 years after construction. They cover expenses for buildings, extensions such as garages or patios, alterations such as kitchen and bathroom renovations and structural improvements including carports, sealed driveways and fences.
Assets that are considered to be part of the building must also be depreciated as capital works.
This includes:
• Cabinets, sinks and xtures in kitchens and bathrooms
• Built-in wardrobes
• Tiles and other oor coverings that can’t easily be removed without damaging the building
• Insulation
• Fly screens and awnings
If you want to claim for capital works, you’ll need records of the construction dates and building costs, details of who carried out the works and the type of construction.
If you don’t have access to these details, you can hire a quantity surveyor, architect or builder to supply this information. 
To download a free ebook on new financial year taxation tips for property investors,<a href="http://propertyobserver.com.au/forward-planning/tools/ebooks-and-webinars/55208-new-financial-year-tax-planning-tips-for-property-investors" target="_blank"> click here</a>.
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