Brightline Residential Sale
Over the past five years, legislative changes have resulted in a complex series of rules surrounding the sale of residential properties. Many of these sales are exempt via one of several exclusion rules (e.g. main home exclusion rule). However, we have recently seen several instances where residential property sales inadvertently trigger Brightline tax, unbeknownst to the owner/seller. Examples include when a relationship has ended and one ‘owner’ has moved out of the property, a partial sale of the property from parents to children, and the sale of a bare section that includes drafted house plans. The key here is to involve your accountant early, well before any contract is committed to.
Short Term Accommodation
Did you know that from 1st April 2024 the short stay accommodation rules are changing? Up to this point all residential accommodation (short or long term) has been deemed a GST exempt supply. From 1st April 2024 this will no longer be the case. This change will see a requirement for all GST registered owning entities, or any owning entity with an annual gross rental turnover in excess of $60,000, to be registered and return GST on associated income and expenses. If you are using a peer-to-peer website such as Airbnb, Bookabach, Holiday Homes or the like then the rules are slightly different again, depending on if you are GST registered or not. Contact your accountant to discuss your personal circumstances.
New Business Owners
We have had a number of people approach Leech & Partners recently to assist them with setting up a new business. It is great to see many of these people engaging with us nice and early, having already completed some due diligence. Well done to these clients!
From an accountant’s point of view, the earlier we are involved in the process the better. If engaged early, we can provide good advice on structures, budgeting and tax planning without many complications. We are also able to get alongside clients to ensure they tick off all the required steps and ultimately set them up for success.
