Tax Board to review granny flat arrangements
![Townhouses image](https://moneymanagement-live.s3-ap-southeast-2.amazonaws.com/s3fs-public/field/image/Townhouses-300.jpg)
![Townhouses image](https://moneymanagement-live.s3-ap-southeast-2.amazonaws.com/s3fs-public/field/image/Townhouses-300.jpg)
Following the Australian Law Reform Commission’s 2017 Report into elder abuse and the Morrison Government’s commitment of $22 million to stop elder abuse, the Board of Taxation will next year review the tax treatment of granny flat arrangements.
Under current tax laws, a homeowner may have to pay capital gains tax where there is a formal agreement for a family member to reside in their home, which often acts as a deterrent to establishing legally enforceable contracts.
The review would consider and make recommendations on the appropriate tax treatment of such arrangements and would consider how changes could raise awareness and provide incentives for older people and their families to enter into formal and legal arrangements.
The Board would commence the review early next year, which would also involve broad consultation with stakeholders, and the final report is due to the Government in the second half of 2019.
Recommended for you
A NSW-based adviser has been banned from providing financial services for five years for inappropriate advice and the AFSL of his business has been cancelled by ASIC.
The introduction of Rhombus Advisory has caused a shift in the top advice licensees as Insignia separates its advice business into two channels.
Given the clear divergence between the cost of financial advice and clients’ willingness to pay, two experts explore how advisers can transform the way they convey value to potential clients.
Nearly 18 months since Invest Blue adopted its nine-day fortnight structure to support employee wellbeing, the national advice firm has enjoyed positive results across all metrics.