ARCHIVE: Better Fee Arrangements for Investors
AHC have been working on a new, optional fee arrangement for investors which will allow you to claim a greater portion of your property expenses and therefore improve your tax return. We are pleased to advise that this agreement has now been finalised and is available for investors to take up.
So what is changing with the new agreement?
Under your current NRAS agreement you are entitled to the full NRAS state payment contribution which is treated as non-assessable, non-exempt income for tax purposes. AHC issues you with an invoice for our NRAS compliance management fee which is generally not tax deductible. You can only claim property related deductions to the extent that income is assessable which is generally only about 85% of your property expenses.
With the new arrangement, AHC will share the state payment contribution with you and not charge you a fee. Your refundable tax offset (RTO) and the cash amount you receive is exactly the same yet you have reduced the amount of non-assessable non-exempt income you receive. This means that the proportion of assessable income you earn is higher which means that you can claim a greater proportion of property expenses, generally around 92%. Our modelling indicates the benefit to most investors will be in the order of $1,000.00 per year but of course everyone’s personal circumstances are different.
We have also created an information pack and listed some frequently asked questions to assist you further. The new fee arrangement is optional for investors but you will need to decide what to do prior to the 30th June 2018.
Further to this please see below for a letter of advise from HLB, a copy of the NRAS tax Rulings and some frequently asked questions.
HLB Letter of Advice & Model
Private Tax Ruling
Product Ruling (NANE & Deductibility)
Frequently Asked Questions
So what is changing with the new agreement?
Under your current NRAS agreement you are entitled to the full NRAS state payment contribution which is treated as non-assessable, non-exempt income for tax purposes. AHC issues you with an invoice for our NRAS compliance management fee which is generally not tax deductible. You can only claim property related deductions to the extent that income is assessable which is generally only about 85% of your property expenses.
With the new arrangement, AHC will share the state payment contribution with you and not charge you a fee. Your refundable tax offset (RTO) and the cash amount you receive is exactly the same yet you have reduced the amount of non-assessable non-exempt income you receive. This means that the proportion of assessable income you earn is higher which means that you can claim a greater proportion of property expenses, generally around 92%. Our modelling indicates the benefit to most investors will be in the order of $1,000.00 per year but of course everyone’s personal circumstances are different.
We have also created an information pack and listed some frequently asked questions to assist you further. The new fee arrangement is optional for investors but you will need to decide what to do prior to the 30th June 2018.
Further to this please see below for a letter of advise from HLB, a copy of the NRAS tax Rulings and some frequently asked questions.
HLB Letter of Advice & Model
Private Tax Ruling
Product Ruling (NANE & Deductibility)
Frequently Asked Questions