Archive for January, 2019

How Airbnb hosts can avoid a land tax bill

By admin | 苏州桑拿

I am thinking about renting out two rooms in my home for Airbnb. I’ve had conflicting information about my NSW land tax position. Can you clarify?
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A spokesperson for the NSW Office of State Revenue tells me that properties that are not owner-occupied or owned by a company or a trust are generally liable for land tax. This would include any property used for Airbnb rental purposes that is not occupied by the owner as their residence.

An owner is exempt from land tax if the property is used as the owner’s Principal Place of Residence (PPR). If the owner decides to use part of his residence for Airbnb rentals the exemption will continue to apply if the following conditions are met:

1. the whole property is rented as an Airbnb rental as long as in any calendar year this usage is less than 182 days. For example, where an owner rents their PPR for a period over summer the PPR exemption continues as long as after the rental they recommence to use the property as their PPR.

2. no more than two rooms within the house are occupied under separate agreements for Airbnb rental purposes or if the property contains a separate flat which is used for Airbnb purposes.

Where the usage of the property for Airbnb rentals exceeds the allowed occupancies of a flat or two rooms, and these areas are permanently set aside for use for Airbnb purposes, the property may become liable for land tax.

The liable portion of the property is based on the area of the buildings on the property used for the Airbnb rental purposes as a percentage of the total area of buildings on the property. However, not all land owners in this situation would automatically pay land tax in any given year as this depends on the land value of the liable portion of their property and if they own other liable land.

I am 67 and working full time. Am I able to salary sacrifice into my superannuation to reduce my income so that I would be eligible for a part age pension?

Money salary sacrificed into superannuation is regarded as income for the Centrelink income test. Therefore, your proposed strategy would not be effective.

Can you please clarify at what stage pensionable age is being increased?

From July 1, 2017, the qualifying age for the age pension will start to gradually increase by six months every two years until it reaches 67 in 2023. This change will affect people born after July 1, 1952, as they plan for their retirement.

I try to teach the kids the value of regular savings, and they have had a CommBank Youthsaver account for years. It pays some bonus interest each month when there is no withdrawal. CBA just introduced a new one deposit rule – the kids lose all interest if they make more than one deposit each month.This will disillusion my 14-year-old son who is doing odd jobs, depositing three times a month, and getting excited about watching his balance grow. Is this just another casualty in the bank world of profits?

CBA has confirmed that customers can make as many deposits as they like into the account as part of the terms relating to bonus interest payments on a Youthsaver account. The only way to lose interest for the month is to make no deposit.

Anybody who wishes to discuss the Youthsaver account can contact CBA on 13 2221, 24 hours a day, seven days a week.

My wife (67) and I (81) are trustees of our self-managed super fund, which is in pension mode. The balance in her name is $1,888,000 and the balance in my name is $375,000. With the recent super rules and the transfer balance cap of $1.6 million could you please comment on my strategy to comply with the rules.

Before June 30, 2017, can my wife draw down $300,000 from her account and place it in a joint bank account outside the SMSF. Later, can she give me $300,000 to start a new account based pension in my name within the SMSF? If you have an alternative strategy to avoid creating a separate account in the accumulation phase I would be very grateful.

Your wife will be required to withdraw about $300,000 from the fund to bring her balance down to $1.6 million at June 30, and she can certainly deposit this in a bank account. However, as you are aged 81, you can no longer contribute to super. This need not be a problem as you can earn $18,200 a year without paying tax – based on the information you have given this could be safely held in a bank account without incurring any income tax.

Noel Whittaker is the author of Making Money Made Simple and numerous other books on personal finance. His advice is general in nature and readers should seek their own professional advice before making any financial decisions. Email: [email protected]苏州夜总会招聘.au.

Why our assumptions, and current share prices, might be wrong

By admin | 苏州桑拿

Assumptions are the root of all major losses and if you think back to your last major loss, in the stock market, business or life, you will almost certainly find that it can be put down to “Core Assumption Failure”.
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Take the global financial crisis. We assumed that homeowners in the US were like us, and would suffer any deprivation rather than miss a payment on their mortgage. We judged others by our own standards. We were “surprised”, because it turned out that there were billions of dollars of mortgages in the US sold by people who didn’t care to people who were, unlike ourselves, allowed to hand back the keys if it didn’t go well. They didn’t have our standards. Core assumption failure, the root of all major catastrophes. Add gearing and hedge fund investors, to the failure of these “load bearing” assumptions and you have collapse.

So the next time you are entering any sort of commitment, relationship, marriage, business deal, or just buying a stock, ask yourself, what assumptions am I making, because if you are going to get it wrong, they will be your undoing. Assumptions are the bedfellow of error and surprise.

The market has seen some significant assumption failure in the last year or so, assumptions that would have delivered us a fortune had we but questioned them.

Assuming that the British would never be so stupid as to vote, against economic logic, to leave the European Union, would be an obvious one. That safe income stocks were still worth buying despite the fact they had below-average yields another. The “safe” REIT sector is now down 15 per cent in six months. That Chinese demand for infant formula or vitamins would never be satiated. Bellamys is down 76 per cent. Blackmores is down 55 per cent.

That the n dairy industry was a good investment. Murray Goulburn is down 67 per cent since listing. That Woolworths was no longer a core portfolio stock. It is up 30 per cent since the new CEO came on board. That mid-cap growth stocks on a price-earnings ratio over 40x and yields of under 2 per cent were good value.

That the iron ore price and the coal price would never boom again. That thanks to the US shale gas boom the oil price was going to settle at its long-term average under $30 a barrel. That Donald Trump would not get elected. Can we really start listing the core assumption failures related to Trump? That Trump is a fool not worthy of the office of President. That Trump is all campaign promises no action. That Trump will be bad for the global economy.

The market doesn’t reward pride or prejudice and there is a lot of money to be made when assumptions are wrong. It is, after all, the things we don’t expect that move share prices, not the things we expect. So what assumptions are we making now? Here are a few.

That the stock market always goes up. That the GFC was a once-in-a-lifetime event. That the iron ore price will settle at around $80. That the Chinese economy is stable. That interest in the mid-cap and small-cap growth stocks will never recover. That the property market always goes up. That the Chinese interest in our property market is perpetual. That there will never be an n property market collapse. That there won’t be a Royal Commission into the bank sector. That the Trump effect is going to be short-lived. That global interest rates have bottomed (that’s a big one). That n interest rates have bottomed. That the US economy is recovering. That European growth is recovering. That European risk, Greece, Portugal and Spain in particular, is behind us. That European elections don’t matter. That fixed interest is not worth investing in ever again. That we will not wake up to a meaningful terrorist event. That superannuation laws won’t change. Actually, no one would be stupid enough to assume that last one.

We have all heard of contrarian investing. To many it might sound like betting against the odds. But we should all have the presence of mind and the humility to at least entertain the idea that we, our assumptions and those share prices, just might be wrong.

Marcus Padley is a director of MTIS Pty Ltd, the author of the daily stock market newsletter Marcus Today. For a free trial of the Marcus Today newsletter please go to www.marcustoday苏州夜总会招聘.au.

Forget Brunswick, baristas, you’d make a killing here instead

By admin | 苏州桑拿

Generic shots of Albion for Domain Neighbourhoods Photo: Jayne D’ArcyBig money arriving in once-sleepy St AlbansHigher house prices don’t always mean hipstersGritty Footscray well and truly on the rise
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It’s hard to pinpoint what signifies gentrification. Is it when locals can spend lazy weekends eating sourdough with free range eggs and house-cured bacon at a close-to-home cafe? Or their weekdays tapping out screenplays on a MacBook while perched on a salvaged chair under suspended light bulbs in their hood? Or is it simply when house prices in a once unfashionable suburb begin to bounce around Melbourne’s near-$800,000 median price, meaning only those in well-paying jobs can buy in?

According to Domain Group data, house prices in little Albion are rapidly getting bigger. The median price is $655,000, up 44 per cent in the past 12 months alone.

The tiny ‘burb (its population is under 5000) is well and truly gentrifying. But it is, as yet, completely “trendy” cafe-free. Three empty corner shops in the suburb scream the same thing: opportunity. One sits right across the road from Albion Primary School (which grew from 130 students last year to 190 students in 2017) and Albion Kindergarten. It’s a double whammy for the canny barista who can serve up a double shot. There’s another prime should-be cafe spot on Drummartin Street, and, hey, we’ve even named the could-be cafe for you: Drummer Boy.

Yes, baristas: bypass Brunswick and head straight to Albion. There’s another sign of gentrification, and it’s easy to spot. Former northern ‘burbs real estate agent and now co-founder and CEO of bespoke development company Scalise Studios, Steven Scalise, picks up-and-coming suburbs by their foliage.

Cruise around Northcote and you’ll see snow gums and veggie gardens in front gardens. Cruise around Albion, and you’ll now see the same. “From my experience of selling in Fitzroy and Fitzroy North, I could see a connection with the same renovations and the gardens – homeowners planting indigenous gardens in particular,” he says.

Scalise grew up in neighbouring Sunshine, and recently decided to develop there. His project Hill Terrace is almost complete, but when it came time to buy again in Sunshine, house prices had risen.

“Sunshine was always great value, so you didn’t need to consider Albion. Only recently when I looked to buy another site in Sunshine, I noticed that the property market was going up faster than you could buy a house!”

He then looked to the “sleeper suburb” of Albion. “It didn’t have a shopping strip, it didn’t have the same demographic. It was almost hidden. You’d drive there and you wouldn’t see anyone. You still don’t!” he says.

Albion was designed as a “Garden City” by H.V McKay for employees of Sunshine Harvester Works. Some of the attributes of this design, including parks like the very community-oriented Selwyn Park, by a particularly scenic part of Kororoit Creek, remain.

There’s something nice about Albion’s streetscape. Blocks of mostly poorly-maintained 1970s flats dot the wide streets (the median price of a flat here is $213,500), but it’s the period homes that really stand out. And there’s another sign of gentrification: skips in front yards filled with the detritus of renovation. Yes, these old homes are getting a new chance at life.

“Thanks to McKay, Albion ended up as a suburb with wide streets and parks, and all these beautiful and large Californian bungalows and 1940s weatherboard homes. But they’d gone into disrepair,” says Scalise. “But over the past three to five years, there’s been gradually this movement to restore these homes. And over the last two or three, with that influx of gentrification and people looking for family homes, more of those homes are being renovated. It’s like the suburb has come alive again,” he says. Five things you didn’t know about AlbionIt’s about 13 kilometres west of the CBD and its boundaries include the Western Ring Road, St Albans Road and Kororoit Creek.The Sunbury train line will get you from Albion to the CBD in six stops.AC/DC filmed the video clip for Jailbreak in Albion quarry, which itself started in 1885.You can grab a pastizzi with your coffee at Cafe Verdala at the Maltese Cultural Centre (open from 8.30am Sundays).Albion Eco-living Centre at Selwyn Park has yoga classes, community gardens and even a free stand offering locally-grown produce.

Airbnb plays trump card straight into hands of NSW strata owners

By admin | 苏州桑拿

Airbnb’s new building program to give strata bodies a cut of short-stay rentals???Tenants hurt as Airbnb closes in on empty rental properties in Sydney, according to new reportAirbnb could be key to recouping cost of investment properties, report claims
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As Airbnb ramps up its efforts to avoid being locked out of Sydney’s apartment buildings, through wall-to-wall advertising on the internet, TV and in print, it has produced its trump card ??? and it may play straight into the hands of anti-holiday letting strata campaigners.

Its proposed Friendly Buildings Program allows strata building owners’ corporations to sign up to a scheme that allows access to details of the Airbnb lets in their buildings, caps the number of nights they can be let and takes a cut of the earnings.

As well as sharing the letting information – a radical departure for the normally secretive group – Airbnb is committed to pulling the listings of hosts who stray from the rules.

It sounds like a win-win, especially for Airbnb, which is at serious risk of being shut out of Sydney’s apartment blocks – potentially the most lucrative market in its fourth biggest territory in the world – through legislation due to be tabled in Parliament next month.

It also plays into the hands of the strata community campaigners who want the government to allow individual apartment blocks to choose whether or not they want to pass bylaws that could restrict or even completely ban short-stay holiday lets.

So how does the Friendly Building Program help predominantly anti-holiday letting campaigners?

To put it simply, the government can’t pass legislation forcing strata schemes and individual owners to accept the Airbnb scheme, as that would be favouring one holiday letting agency over another. Stayz and Gumtree have no such program in place so the bill would have to address holiday letting as a whole.

OK, but how does the government allow Airbnb under the Friendly Buildings Program, without opening the floodgates to all the agencies and rogue landlords that don’t want to pay the 10-15 per cent commission to their buildings or be restricted by its rules?

The simple answer is to hand back the power to the owners’ corporations. Let strata owners decide collectively whether or not to allow short-stay lets and under what circumstances. They would be able to pass bylaws that permitted short-stay letting – or not – subject to whatever conditions they choose.

Owners in buildings where controlled short-stay lets were wanted could pass bylaws participating in the Friendly Building Program (or any others that might pop up in its wake).

But this plays into the hands of strata owners much more, one suspects, than Airbnb realises.

The only thing that stops strata schemes from having bylaws that ban holiday lets regardless of their zoning is section 139 (2) of the strata Act, which states: “No bylaw is capable of operating to prohibit or restrict the devolution of a lot or a transfer, lease, mortgage or other dealing relating to a lot.”

The way this law stands, even if strata schemes wanted to buy into the Friendly Buildings Program, they couldn’t. Just as buildings can’t pass bylaws that ban short-stay letting directly, they couldn’t compel owners to participate in the Friendly Buildings Program or any other scheme they might devise.

Leading strata lawyer Stephen Goddard, one of the key players in the anti-holiday letting campaign Our Strata Community Our Choice, has been saying for years that 139(2) and its predecessor in the old laws needed to go, to reflect the realities of modern strata living.

It was, after all, only included back in the 1960s so that banks would feel confident in giving mortgages for strata units. Now it’s more a case of holding them back.

So, for once, Airbnb and the pro-choice strata owners lobby have common ground. And if Airbnb’s honchos were as smart as they think they are, they’d know that allowing smart and savvy residential strata buildings to pass bylaws that control holiday lets would mean that all those other blocks that are run by investors, for investors, would be wide open to them.

Jimmy Thomson writes the Flat Chat column in the Sydney Morning Herald and edits the advice website flat-chat苏州夜总会招聘.au.

Cranbrook student accused of sexually assaulting girl as friend filmed attack

By admin | 苏州桑拿

Police are investigating claims that a teenage boy sexually assaulted a girl at a house party in Sydney’s eastern suburbs in an attack that was filmed on a mobile phone and shared on social media.
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A 15-year-old boy has been charged by police after he allegedly filmed the assault in Bellevue Hill on March 4 and posted it online.

Detectives will question the boy’s friend, also aged 15, over claims he sexually assaulted the 15-year-old girl at the party. Neither boy can be named for legal reasons.

The boy accused of assaulting the girl was a student at the elite Cranbrook School in Bellevue Hill and teachers at the school reportedly raised the alarm when they became aware of the allegations.

In an email sent on Tuesday afternoon, Cranbrook headmaster Nicholas Sampson told parents the school would offer support to students who needed it.

“You may be aware of a serious incident that is currently before the courts and has received media attention. This incident did not occur on school grounds,” Mr Sampson wrote.

“As I am sure you will understand, we are not able to disclose further details at this stage, both because this is a police matter concerning a student under the age of 18 and because of our pastoral responsibilities for all our students.

“Should you feel your son requires support, please make contact with the school. We will continue, as always, to support our staff and students. This remains at the heart of what we do.

“As you know we, as a school, always place the highest priority upon the wellbeing of our students and students in other schools.”

A Cranbrook School spokeswoman told Fairfax Media: “Our greatest priority is the safety and wellbeing of students.”

“The matter is currently before the courts and as such it would be inappropriate for us to comment further at this stage,” the spokeswoman said.

A NSW Police spokeswoman said an investigation into the alleged sexual assault was under way.

The Daily Telegraph reported that police would allege in court that the girl had been drinking alcohol and was unconscious when she was allegedly sexually assaulted and filmed. She did not know she had been assaulted until the footage emerged online days later, the newspaper reported.

The teenage boy charged with filming the assault appeared in Bidura Children’s Court in Glebe on Monday.

The boy, who attends Rose Bay Secondary College, pleaded not guilty to charges of filming a person in a private act without consent, producing child abuse material, and disseminating child abuse material.

No charges have been laid against the second boy. iFrameResize({resizedCallback : function(messageData){}},’#pez_iframe_236′);