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434 | “It Is A Minefield”: Unboxing Tax Structures and Myths – Chat with Julia Hartman

One of the most common questions we receive in the world of tax is… 

What name should I put my tax structure in?!?  

 And while it may seem like a simple question on the surface, lurking below is a mix of confusing super contribution laws and tricky tax loopholes that requires the greatest of tax minds to debunk….which is exactly what we’ve got sitting down with us today😉  

Re-joining in the studio (For the FIRST time in 2023 – which we’re BEYOND pumped about!!) is one of the greatest tax experts in Australia, Julia Hartman: Founder of BanTACS, Chief Technical Tax Advisor at Empower Wealth and Tax structure extraordinaire!!   

As Ben says today, tax structures are like stepping onto a minefield, and to help you avoid running into any explosive situations, we’re doing a quickfire round of WWJD: What would Julia do!  

From SMSFs and Super to the 99 to 1% strategy we’re presenting you with the consolidated and ultimate guide to tax structures in 2023!  

PLUS tune in to hear Julia’s novel and niche tax structure strategy which has Ben and Bryce very intrigued….  

Yep. It’s another GIGANTIC episode that has us all giddy (which might have something to do with us all being in the studio again 😉) Listen in now folks!  

 

Free Stuff Mentioned… 

  • Watch this episode! Check out The Property Couch’s YouTube Channel to see our fireside chat in the studio with Julia 😊  
  • Free suburb reports end tonight! Our 8th Birthday surprise to you (5x Free suburb reports, usually $39) ends tonight, 16 March 11:59pm AEDT!!
    How To Claim Yours: Click here and enter the Coupon Code: TPCBIRTHDAY. Limit 5 per person. To ensure you are not charged, please purchase a single Suburb Report x 5 times. If you add 5 Suburb Reports into one cart purchase, you will only receive a $39.00 discount. Hence purchase one report at a time please 🙂 Don’t miss out!  
  • New PICA Webinar: Watch Ben’s latest PICA webinar on WA’s Tenancy Reform Strategy. Become a member today to watch the replay >>  
  • NEW MOORR FEATURE! Ready to take your wealth-building to the next level? Check out your IncomeSPEED today! Create or log in to your free account in our online platform or download the app on Apple or Google Play today! 
  • For those who left us a 5-star written review in our Moorr app – Thank you! Email us to claim a FREE Start & Build course today 
  • Ben’s “What’s Making Property News?” articles:  
  • Last Week’s Episode: Thanks to everyone who left us such positive feedback on the previous episode with Evan Lucas. Listen to it now >>  
  • Previous Episodes with Julia Hartman:  
    • Episode 417 | Home Deposits Made Simple – Chat with Julia Hartman, Michael Ragavan & James Bowe! 
    • Episode 386 | BEWARE Tax Traps! How to rebuild or repair after a natural disaster – Chat with Julia Hartman 
    • Episode 349 | How To Avoid Paying Tax Without Going To Prison! – Chat with Julia Hartman 
    • Episode 228 |Ownership Structure & Trusts with Julia Hartman – Everything You Need to Know About Property Tax (PART 2) 
    • Episode 226 | Capital Gains Tax 101 with Julia Hartman – Everything You Need to Know About Property Tax (PART 1) 

 

Want to work with Bryce & Ben’s Award-Winning Team? 

 

Here’s some of the gold we cover… 

  • 0:00 – The gold that’s coming at you today!  
  • 2:12 – Free resources!! PICA Webinar Replay, Free Suburb reports, and more… 
  • 5:03 – Watch this episode! 😮  
  • 6:03 – Mindset Minute: FOMO and… sheep?!? 🐑🐑🐑 
  • 8:17 Welcome back, tax expert Julia Hartman!  
  • 9:06 – The Myths of Asset Protection  
  • 13:24 – Top Trends in Tax structures  
  • 16:40 Your complete guide to tax structures (The Big Pros + Cons!)  
  • 18:49 – Scenario 1: “I want to put this property in my company name!”  
  • 21:38 – Folks, here are the biggest considerations.  
  • 25:11– Scenario 2: “Is it a good idea to purchase a new company premise in my company name?”  
  • 27:30 Scenario 3: SMSFs  
  • 30:57 – “It is a minefield…”  
  • 34:46 – The alternatives, risks & big benefits.  
  • 40:41 – Scenario 5:I want to put into a trust!” 
  • 44:33 – Scenario 6: What if I’m an Income Earner or Business?  
  • 47:07 – Are Hybrid Trusts too good to be true?  
  • 55:04 – Ownership Types & Ratios: Joint Tenants Vs. Tenants In Common   
  • 58:11 – The 99-1% trend: Is it still the best strategy today?  
  • 1:03:24 – Can you contribute it to a Super fund?  
  • 1:04:44 – The Fed Budget, Wages, Interest Rates & Super: The future according to Ben 
  • 1:07:29 – The Mortgage Trust: A No-way or Niche idea?!  
  • 1:11:11 – It boils down to C_m_le_I_y vs. R_s_!  

And… 

 

Get Moorr out of your money:
Log in or create your free account via the
Moorr web platform, or download the app on Apple and Android and transform the way you view and track your wealth. 

 

394 | Do you NEED to choose between Lifestyle & Wealth?! – Q&A

It’s been a while since we’ve said this (which makes it even more exciting!!)…

Ben reckons he’s found his new FAVOURITE QUESTION!!!!  

That’s because this question is something EVERYONE can relate to: Do I need to choose between building wealth or living the lifestyle you want?!  

Folks, this is the type of thing that we deal with on an everyday basis!

We’re using our years of battle-hardened experience and razor-sharp knowledge to outline what this question essentially boils down to, revealing how thousands of our clients have overcome this dilemma, and recommending just one thing that can clear all the rocks and rubble on anyone’s investing pathway, making the journey more akin to a walk in the park.  

Plus we’re covering loads more territory including…

  • How does our $2k weekly passive income goal tie in with Super?!  
  • And we’re talking Equity – should it be used to refinance or kept for the rainy days?! Is there a catch all solution to this?! And given today’s rising interest rate market, is now a good time to be making this move?
  • We also reveal some of our biggest Do’s and Don’ts when renovating and share our top resources to help you get the best bang for your buck.  

So if you’re ready for lots of evergreen wisdom, tune in now folks! 🛠️️👷  

 

Questions we Answer

Bernie Blyth on How to hold properties with higher cashflow drain 

Hello Bryce & Ben. 

This is Benny from Bayside in Melbourne. Firstly, a quick thanks for the value-added content you bring.

My question today is about how to adjust one’s portfolio in response to maintaining a healthy cashflow. My wife and I live in Metro in Melbourne and have 3 kids between 10 and 16. We’re happy in our own home and have 2 investment properties. Now first, the 2-bedroom unit, we bought in 2006 has double in value and is now positively geared to a degree. 

In 2014 we bought a tiny but old 1950s brick house in one of Melbourne’s baysides suburbs, which is a land bank. On the positive side, it’s experienced capital growth in the interim and is situated on a block of land that has redevelopment potential such as a subdivision.  

On the challenging side though, it’s still negatively geared and being an older property, it doesn’t rent for anywhere near as much as the recently developed properties around it and even though we both work, we have the cost of 2 kids in private schools simultaneously for the next six years combined with the prospect of rising interest rates, we are considering our next moves in terms of balancing property growth, cash flow and lifestyle. 

In general, what options would you recommend for consideration?  

Jake on – Pulling out equity and purchasing another 

Good day Guys, Jake here. 

Chasing an answer for this question that’s been sitting on my mind for a little bit. So my partner and I have recently refinanced a house in the Southeast Suburbs and fortunately we’ve found that there’s a bit of equity in there which is good.   

Now, what are your thoughts on pulling out essentially every bit of equity in the property to then purchase another one given that interest rates are going up and then might be a little bit of a plateau or even a slight decline in the property market. I’d love to hear your answer. 

It’s probably pretty straight forward but yeah, I though it would be a good one to myself and probably a lot of other people who’ve purchased in that pre-pandemic period so I’ll wait for the answer and appreciate the feedback and also go the tikes and hopefully onwards and upwards you gain for this season. 

Cheers guys!
Bye 

Adam Lett on Planning include Super? 

Morning Ben, Bryce and team. 

My name is Adam and I’m a long time listener of your show. My question relates to the plane of 3 to 4 quality investment properties to derive an income of $2000 a week in retirement. I’m working towards this goal. 

My question more specifically is how is this plan ties in or (dove tails in?) with an individual superannuation balance? 

By this I mean, if I or an individual had a healthy super balance of a million dollars plus is the $2000 a week on top of the super? Really like to hear your thoughts on this, keep up the good work. 

 

Laura Turner on Resources to help with renovating 

Hello, I’m Laura, I’m from Melbourne. 

My partner and I own our own home and we’ve just purchased our first investment property which we have nearly finished renovating. 

We purchased an old house, 3 bed, 1 bath, and we’ve turned it into 3 bed, 2 bath, with a walk-in room and we’ve updated everything to be within this century. I’m a conveyancer. My partner’s a carpenter and our plan moving forward is to keep purchasing property to renovate as this is something we both really enjoy, plus we see it as a quick way to grow our equity. 

What I don’t really understand is how to work out all of the figures. 

This current house that we have renovated ended costing a lot more than we anticipated. I haven’t had it valued yet as we are not finished but I am crossing all of my fingers that we haven’t over capitalised and that we will walk right with some kind of profit and then nothing is certain however,I am wondering if there’s someway you can recommend where I can go to learn how to find the right houses to renovate, how to calculate cost and what the end valuation is likely going to be. 

Any courses, tools or calculators you can recommend we use before we can go ahead and purchase our next property would be super helpful. Thank you! 

 

Free Stuff Mentioned… 

 

Our Renovation Resources recommendations! 

 

Here’s some of the gold we cover… 

  • 1:15 – Ask us a question on our Speak Pipe for a chance to win our Start & Build Course!
  • 1:50 – So…how’s Labour going?  
  • 3:22 – Folks, the REALER you are the less….?  
  • 4:44 – Q1) How to hold properties with higher cashflow drain 
  • 6:35 – It’s really a question around C____  
  • 8:11 – THIS is what most of our clients do!  
  • 10:25 – The 1 thing that everyone needs in situations like these is… 
  • 11:39 – Getting wealthy and STAYING wealthy are 2 very different things folks!  
  • 14:46 – Couples that come to us often have THIS problem  
  • 18:12 – The Compounding Effect – why you should hold!  
  • 19:31 – Q2) Pulling out equity and purchasing another 
  • 20:49 – Ben’s Warning!  
  • 23:13 – Make sure you have these foundations down!  
  • 24:38 – If you release your equity now, you’ll get less… 
  • 25:00 – For all our listeners: NOW is a good time to do these things 
  • 26:20 –The 3 best equity release strategies!  
  • 28:35 – The 3 steps to go from here (If you need one, why not check us out? 😊) 
  • 32:22 – A shoutout for our clients!  
  • 33:07 – Q3) Planning include Super? 
  • 36:50 – Check out these examples too! 
  • 37:14 – Q4) Resources to help with renovating 
  • 38:18 – Why shows like “The Block” don’t WORK!  
  • 40:10 – The minimal rule of thumb for renovating 
  • 41:07 – THIS is where you’ll get the most bang for buck…  
  • 42:46 – How much should you spend on your specs?  
  • 43:17 – For repeat renovators, be careful about this exemption!  
  • 44:03 – Bryce’s top 3 considerations  
  • 45:45 – Why Renovating to hold is a better strategy…. 
  • 46:54 – How to test the asset’s location!  
  • 47:54 – Reno resources we recommend!  

And… 

  • 49:40 – Find your phone…from your watch?! (For you Apple Users)  
  • 51:03 – There’s a developing Building Supply challenge… 

 

391 | War of the Property Policies: Which is the Winner?

With the Federal Election fast approaching, you’ve probably heard A LOT of noise around stuff like climate change, international security, and aged care funding… 

But as a property investor, you’re probably wanting to know: 

What do the parties’ property policies mean for you!?!  

We’ll be breaking down and comparing Liberal’s Access to Super policy and Labour’s Help to Buy (Shared Equity) policy and answering: How do they fit into the big picture?!? 

Like…

  • Will either policy help Australia’s economy?
  • Will dipping into your Super help or hinder future wealth creation?
  • And which demographic of people will benefit from which policy? (Plus, LOTS MORE)   

We’ll also be covering Liberal’s existing policies and turning the mic over to…our listeners!!  Yesterday we asked our Facebook Tribe for their questions around both parties’ property policies and MAN we were blown away!!   

You guys gave us a run for our money  (A big thank you to everyone who left us a question!!), and we’ve now got a fantastic lineup of Q’s that we reckon a lot of you are probably wondering too! 

So if you’re ready to get up to date with this year’s property policies and what they mean for YOU, then tune in now!!  

👇 Full list of questions below!! 👇

Questions we Answer

Q1) James Watson:  

“Am I missing something? I genuinely can’t see the benefit of the super housing policy. If you have a 5% deposit, if you qualify for and can service a loan, you will be far better off paying mortgage insurance than gutting your superannuation. Further, if you have a 5% deposit and you have the full $125,000 in your super and you borrow the maximum $50,000 and you’re looking to buy something at around 650-700,000 (ie. you’re not in a capital city), you will still have to pay LMI. So what is the point of this? Seems it will simply drive house prices up”

 

Q2) Marc Hooper 

“Would the LNP be better using Super as collateral against a loan rather than taking it out? Super should be for retirement. 

I feel taking super money out prematurely is bad policy. 

Are they trying to give us all higher interest rates? These policies will increase housing prices feeding inflation and giving RBA the need to raise rates. Do you feel that will lead to higher inflation and maybe rates? 

Love the ALP policy as is. But feel it will feed into inflation. So ill timed.” 

 

Q3) Svend Petersen 

“I reckon the LNP may have just lost the election with this dumb idea. Let’s fix the housing supply problem by increasing demand??? WTF?”  

 

Q4) Matty Tippowicz 

I think both policies are very poor ideas, especially Labor’s. Who the hell would want the government owning 40% of their property? 

 

Q5) Michael In-ski 

I’m a 32 year old professional. My super sits at about 40k today. I don’t know if anyone else is in the same boat as me but doesn’t seem like it’ll get me anywhere. Question: who will benefit from accessing super? Average Age, professions etc

 

Q6) Emma Benic 

What’s to stop someone selling the property, blowing all the cash and then needing the aged pension? 

Will they put stops in place that force funds to go back in to super? Or has this been overlooked?

 

Q7) KeLee Gee 

Access to super: will this be within the current SMSF route? 

Share equity: can people buy out the govnt share of their property? 

At what point the agreement ends? Death? Forced sale or refinance in certain timeframe? 

Both schemes: What are the limitations to type, location, age, condition of the property? 

 

Q8) Graeme Ash 

With shared equity, do you have to pay out their percentage on sale? Once again it would leave them short to make the next step on their journey. 

 

Free Stuff Mentioned… 

  

Here’s some of the gold we cover… 

  • 3:54 – Don’t fall into the trap of S___ P____!  
  • 6:40 – We reckon you should be viewing property policies like THIS… 
  • 9:05 – What is the Super Policy!? (Plus an explanation + history lesson on what Super is)
  • 15:00 – What we think about the Liberal’s Super Property Scheme!  
  • 20:44 – The Older Australians Downsizing Policy (aka. What Ben calls “a golden handshake”!)  
  • 24:50 – What are the Liberals’ other Property Policies?  
  • 27:56 – Labour’s “Help to Buy” Property Policy explained  
  • 31:00 – Why you shouldn’t panic over policies “causing” Inflation (The numbers don’t lie folks!)  
  • 35:34 – Labour’s other policies + Wrap!  
  • 36:25 – YOUR Q&As: Q1 – What’s the benefit of the Liberal’s Super Policy?! (Ben runs a pretty cool simulation here!)  
  • 47:42 – Q2 – Will it lead to higher Interest Rates??  
  • 50:30 – Q3 – Impacts on Housing Supply & Demand  
  • 51:54 – Q4 – Who wants the Gov owning 40% of their property?!  
  • 52:25 – Q5 – WHO will benefit from the Super Policy?  
  • 53:24 – Q6 – What’s to stop someone blowing all their Super & living off the aged pension? 
  • 54:47 – Q7 – Self Managed Super Funds & Buying out the Gov’s share of equity  
  • 57:59 – Q8– Paying out the percentage of the sale 
  • 1:01:05 – Our top takeaways! 
  • 1:05:38 – Listen to this if you’re not a fan of the Super policy!  

And… 

 

Free Report: How to Make your Own Super Contributions

It’s almost here folks.

After nearly a year of documenting bills and recording receipts, it’s finally time to whip out the calculators and sharpen those pencils…

Yep, that’s right – it’s the 2022 Tax Season!!

And boy are we excited to get into it!!

Well more specifically, we’re excited to get into all the ways that you can maximise your tax return!

That’s why in our April Bonusisode we invited our favourite Property Tax Guru, Julia Hartman, back to the show to share her knowledge!

But we realised while recording that there was just SO much gold to cover…

That there was only one solution:

To write it down in a report for y’all!! 

Hence this report is ALL about making your own super contributions. We explain how to make them, its implications and how you can measure the $27,500 cap!

So what are you waiting for?

Let’s get started! Simply fill in the form below and we’ll email the PDF to your inbox 😊

 


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p.s. Tune in to the full Bonusisode on Tax Planning Tips to Maximise your Returns (Part One) to hear Julia and our own Ben Kingsley unpacking this report. Start playing from 1 minute 33 seconds folks!

p.s.s On the hunt for a good Tax Accountant? Well, look no further! Book in a free and no-obligation initial consultation with one our Tax Experts here!

 

 

 

 

 

 

 

 

 

 

Bonusisode with Julia – Tax Planning Tips to Maximise your Returns (Part One)

As the old saying goes…

“By failing to prepare, you are preparing to fail”. 

And folks, we believe this holds true today which is why this Bonusisode is all about organising your taxes in the lead up to 30 June 2022!! (Part one)

This is the 2nd episode from our NEW Property Tax education series called Talking Property Tax with Julia Hartman where we give YOU hot tips and tricks to boost your returns and avoid tax traps. 

(Pssst – check out  Episode 1: The Top 5 Tax Rules Every Property Investor Must Understand here!!)

In today’s episode, we’re covering…

How to top up your own super…  

The BEST bookkeeping practices everyone should implement (Like what records should you keep and how long you should keep them for!!)  

AND we’re also giving you handy tips for claiming car and travel costs!!  

We’ll also be putting on our property investors’ hats to unpack the difference between Improving vs. Repairing in the eyes of ATO!

But that’s not all!!   

To help illustrate what we’re talking about in today’s episode, we’re also giving you 3 FREE reports on:  

  • How to make your own Superannuation Contributions 
  • Tax deductions when working from home 
  • Year-end considerations for Rental Property Owners 

Just fill out the forms below to download them now!  

  • Select the FREE reports you'd like to download!
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There is tons of gold in this Bonusisode so tune in now!

p.s. If you are looking for an experienced and qualified tax accountant, you can reach out to us here 👉 https://thepropertycouch.com.au/tax

p.p.s Make sure you stay tuned for Part 2 where we hone in on maximising your claims with travel, plant and equipment deductions!!

 

Here’s some of the gold we cover… 

  • 1:33 – How to make contributions to your Super  
  • 4:09 – What benefits do you get from topping up your Super??
  • 10:48 – Pitfalls of the home office claim 
  • 13:24 – What should you be recording when bookkeeping?  
  • 17:00 – Should you bother claiming your utility bills in the home office?  
  • 18:37 – Listen tothis if you’re self-employed!  
  • 19:56 – Let’s Recap!  
  • 20:35 – Must-knows with car and travel claims!!  
  • 26:53 – Property Taxes and Interest in Advance  
  • 27:50 – Why 2022 is a (relatively) LOW tax bracket!  
  • 32:56 – Repairs vs. Improvements  
  • 36:01 – Example 1: Repairing a roof  
  • 37:37 – Example 2: Carpet to Floorboards 
  • 41:18 – What is plant equipment?  
  • 43:13 – Understanding different depreciation schedules… 

 

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