Property Development, Tax (and everything in between) Day
The right decisions from the start to the end of a property development project. One day only Melbourne Thursday, 30 November 2023.
The Property Development, Tax (and everything in between) Day is for those who want to get to the heart of the key issues that arise when clients are making and acting on decisions about property development.
Using a single case study threaded throughout the day, each presenter will walk through not only the essential technical details of managing client requirements, but the practical application – the decision points, timing issues, calculations, and the ‘red flags’ that tell you it is all about to go wrong.
Our case study characters, Mr & Mrs Smith, will seem like they belong in Days of our Lives by the time we finish with them. We’ll walk them, and the audience, through the typical issues and problem areas that Mum & Dad developers face, the interaction between the tax and legal requirements, and the likely outcomes of important decisions at a granular level.
One day only. Don't miss it.
Dates & Details
Thursday, 30 November 2023
DoubleTree by Hilton Melbourne
270 Flinders St, Melbourne VIC 3000
Time
8:30am registration
9:00am - 5:00pm property tax day
FPA Accreditation 30949
Total 6.25 CPD Hours
One-off and Mum & Dad projects are common. Michael Carruthers sets the scene for our typical Mum & Dad case study, Mr & Mrs Smith. We'll walk through the decision points and issues that Mr & Mrs Smith face at every turn:
- Why the revenue / capital distinction matters so much
- The practical factors that need to be taken into account to reduce the risk of ATO challenge
- The unexpected outcomes that can arise from partitioning arrangements
- Switching from capital to revenue account
- How to calculate the capital gain or loss from the project or figure out the profit that should be taxed on revenue account
- When the main residence exemption can and cannot be applied
- How to determine whether a client needs to register for GST
- Claiming GST credits and the GST adjustment rules
with Michael Carruthers
Mr & Mrs Smith are at the precipice of a world of pain. Adrian Bailey, Principal of Cleary Hoare Solicitors walks you through:
- Determining when a contract has been formed when it contains conditions
- When a heads of agreement could be treated as a contract
- Partitioning arrangements
- The use of back-up clauses in contracts to manage tax exposures and whether this is effective
- What needs to be done to show that a property (or interest in a property) is held in trust for someone else (e.g. parent holding legal title to property that the adult child lives in / pays off etc.)
- Recent changes in NSW that might change the stamp duty outcome
with Neil Brydges
Clients and developers often enter into option arrangements but this can present some unique challenges. In this targeted session we explore the tax and legal issues that need to be considered before clients enter into an option agreement.
- Common problem areas and how to structure option arrangements well
- Timing issues under the CGT rules
- Undertaking CGT calculations
- Applying the GST rules to option arrangements
with Neil Brydges & Michael Carruthers
The GST rules contain a number of concessions and special rules that are often relevant in the context of property development projects. We walk through the key issues, the process and outcomes with a special focus on the margin scheme:
- When the margin scheme can be used to reduce the GST liability on sale of property
- How to calculate the margin
- When do you need a valuation and what are the requirements?
- The complex rules that can apply to properties that have been inherited, acquired from a related party or acquired GST-free
- Applying the margin scheme to property that has been subdivided or amalgamated
- Applying the GST rules to mixed use properties (e.g. properties that contain residential and commercial components)
- Determining whether an adjustment event has been triggered and how to calculate the GST adjustments when there is a change in use or intention with respect to a property that has been developed
with Simon Calabria
There have been a series of changes over the last few years that impact on the viability and cashflow outcomes of property development projects and for clients who are building or buying rental properties. We show you how easy it is for our hapless clients, Mr & Mrs Smith, to fall foul of the recent changes:
- Recent integrity rules and the unexpected outcomes that clients (and some practitioners) might not be aware of
- Holding costs for vacant land
- The complex interaction between the general deduction rules in section 8-1 and the specific integrity rules in section 26-102
- The treatment of costs incurred while renovating or repairing a rental property
- Understanding the exceptions to the rules
- Common problem areas
- Depreciation deductions
- When depreciation deductions are denied
- Inherited properties and other related party transactions that can lead to adverse tax outcomes
- Renting out a former main residence
- The flow-on impact when a property is sold
with Craig McCormick
Michael Carruthers
Tax Director, Knowledge Shop
Michael is an adviser, author, in demand presenter, mentor to Knowledge Shop’s technical team, and is well known for his capacity to translate highly technical information into tangible and useable advice for the profession. He has a knack for seeing through the complexity and helping advisers work through highly technical issues with certainty and accuracy.
Michael works with advisers every day to help them negotiate and implement the constant tide of change impacting the industry. He was a long-term member of the advisory panel for the Board of Taxation and was a member of the reference group for the Board’s review of small business concessions.
He was also an expert panel member for the Board’s review of tax impediments facing small business.
Craig McCormick
General Manager, TaxBanter
Craig is an experienced finance and management professional with a background in leading high performance teams and driving business performance. He is responsible for leading the Taxbanter business across its Australian national operations which covers every state and territory and major regional centres.
Craig’s prior experience includes a national leadership role with a large mid-tier accounting group and CFO roles with high growth companies and management roles with large global listed groups.
Outside of work, Craig is a volunteer surf lifesaver and enjoys spending time with family and friends. He also participates in triathlons and distance running.
Simon Calabria
Director, Webb Martin Consulting Pty Ltd
Simon is a highly regarded tax adviser with over 30 years of tax experience, specialising in Indirect Taxes (GST, WET), Corporate and International Tax. He mainly deals with transaction-based matters including the related structuring. With exposure to a diverse client base, from individuals to multinationals, Simon brings a practical approach when solving tax technical issues. He has been advising on GST matters from its implementation in Australia and regularly provides advice in relation to GST and property matters.
Neil Brydges
Principal Lawyer, Sladen Legal
Neil is a principal in the business law area, with a particular focus on taxation advice and disputes.
Taxation law is a complex area. Neil’s aim is to provide technical expertise to clients, commercially applied and in a friendly and approachable manner.
Neil’s practice involves advice, audits, disputes, and transactions. The client mix includes both family groups and business enterprises. Neil also regularly assists professional advisors, including tax agents, accountants, and financial advisors, to understand complex legal issues and help them to better assist their own clients.
Neil is a Chartered Tax Advisor with The Tax Institute and accredited as a specialist in taxation law with the Law Institute of Victoria.
Since 2019 Neil has been named one of Australia’s “Best Lawyers of the Year” in the practice of tax law. Neil has also been recognised in Doyles Guide as a recommended tax lawyer since 2021.
workshop
Property Development, Tax (and everything in between) Day