For those people running commercial rental properties and
* Earning less than $75,000 in gross rents from those commercial properties, and
* Having no other linked business income (called 'STS group turnover') -
there is an opportunity in the next year to avail yourself of the Entrepreneur's tax discount which could avail you a 25% discount on your tax that relates to your commercial rental property. But there are some nice planning opportunities as well.
For example, lets say that we have a commercial rental property earning $40,000 in gross rents, $30,000 in expenses and you are also in receipt of salaried income of $140,000. This leaves you with paying tax on the full $140,000 and getting a 25% discount on the $10,000.
We can do better than that.
Lets say your employer allows you to salary sacrifice all of your commercial rental property expenses. You now pay full tax on the $110,000 and get a discount of 25% on the tax of the extra $40,000. You still earn $150,000 all up, but more of the tax is discounted.
Those who have commercial rental properties earning less than the $75,000 with no other linked STS group turnover income should be looking at salary sacrificing where possible.
This doesn't apply to the renting out of residentials however.
* Earning less than $75,000 in gross rents from those commercial properties, and
* Having no other linked business income (called 'STS group turnover') -
there is an opportunity in the next year to avail yourself of the Entrepreneur's tax discount which could avail you a 25% discount on your tax that relates to your commercial rental property. But there are some nice planning opportunities as well.
For example, lets say that we have a commercial rental property earning $40,000 in gross rents, $30,000 in expenses and you are also in receipt of salaried income of $140,000. This leaves you with paying tax on the full $140,000 and getting a 25% discount on the $10,000.
We can do better than that.
Lets say your employer allows you to salary sacrifice all of your commercial rental property expenses. You now pay full tax on the $110,000 and get a discount of 25% on the tax of the extra $40,000. You still earn $150,000 all up, but more of the tax is discounted.
Those who have commercial rental properties earning less than the $75,000 with no other linked STS group turnover income should be looking at salary sacrificing where possible.
This doesn't apply to the renting out of residentials however.