Frequently asked questions

Usually only on part of the gain. The main residence exemption applies for the period it was genuinely your home, and the six-year rule can extend that exemption while it is rented — provided you do not nominate another property as your main residence over the same period. The gain is then apportioned across the ownership period.

It depends on whether the work is a repair or an improvement. Restoring something to its original condition is a repair and deductible in the year incurred. Replacing or upgrading it is capital, and is either depreciated over time or added to the cost base to reduce CGT on sale. Both are worth claiming — just in different places.

Land tax is assessed on the aggregated unimproved value of all land you own in WA at midnight on 30 June, excluding your principal place of residence. Because it aggregates, each additional property can push the whole portfolio into a higher bracket. Properties in the metropolitan region also attract MRIT.

It depends on your income, whether the property will be negatively or positively geared, your land tax position and your exit plan. A trust cannot distribute losses, so a heavily negatively geared property often sits better in personal names — while a positively geared one frequently belongs in a trust.

Generally when profit consistently exceeds what you need to draw personally, or when liability exposure grows through staff, contracts, premises or equipment. The tax saving on retained profit is the usual trigger, but asset protection is often the more important reason.

Often yes. The small business restructure rollover and various CGT rollovers can make the transfer tax-neutral, but every one has conditions that must be met before the transaction occurs. WA transfer duty is assessed separately and is not automatically waived by a CGT rollover.

If you take money out of your company other than as wages or dividends, Division 7A treats it as a deemed dividend and taxes it in your hands unless it is put on a complying loan agreement with minimum repayments. It is the most common unintended tax bill for company owners.

As a general rule, around $200,000 in combined member balances. Below that the fixed annual costs of accounting, audit and the ATO levy usually outweigh the benefit compared with a low-fee fund — unless the fund exists to hold a specific asset such as business premises.

Where the fund borrows, the law requires the asset to be held on trust for the fund by a separate holding entity until the loan is repaid, which limits the lender's recourse to that asset alone. The bare trust must exist before the contract is signed, or the arrangement can fail and duty may be payable twice.

No. Residential property held by an SMSF cannot be used by members or their relatives at any time, regardless of whether market rent is paid. Business real property is different — a fund can lease commercial premises to a member's business at market rates.

Our office is in East Perth and we meet clients there, but we advise clients across Australia by phone and video. As part of the Investax Group we also have a Sydney office, which matters for clients holding assets in more than one state.

No. Clients can contact us for brief guidance on important tax and structuring matters without a fee for every question. Substantive advice, modelling and written opinions are quoted before we start.

We aim to respond to all client correspondence within one business day. Where a matter is time-critical — a contract date, a settlement, a 30 June deadline — tell us and we will prioritise it.

It depends on how you operate rather than what you call yourself. Volume, frequency, a documented system, the capital committed and your intention at acquisition all matter. Investors get the 50% discount but can only offset capital losses against capital gains; traders are taxed on ordinary income and can deduct losses more broadly.

Yes. A crypto-to-crypto swap is a disposal of the first asset and an acquisition of the second, both at market value in Australian dollars on the day. Moving coins between wallets you control is not a disposal.

It carries forward indefinitely and can be applied against capital gains in any later year. There is no time limit, but you must have kept the records — which is why losses should be reported in the year they occur even when there is no gain to offset.

Often not. Where the build and sale amount to a profit-making undertaking, the profit is on revenue account and taxed as ordinary income with no discount, and GST may apply. Intention at acquisition and the pattern of your conduct decide it.

Possibly. A one-off sale of a long-held family property is usually not an enterprise, but subdividing, building and selling generally is. Where registration is required, the margin scheme can significantly reduce the GST payable — but only if the eligibility conditions are met and it is elected correctly.

Yes. Renting out part of your home costs you a proportion of the exemption, apportioned by floor area and by the period it was rented. The exemption is not lost entirely, but the property is no longer fully CGT-free on sale.