Consumer News
Changes to the Home Building Act (NSW)
On 19 October 2011, the New South Wales Parliament passed legislation that makes a number of changes to the Home Building Act 1989 (NSW) (“the Act”). Please find some of the changes outlined below.
How does Bankruptcy affect you?
Bankruptcy refers to the situation where an individual is unable to meet their financial obligations and repay accrued debt. It occurs when an individual does not have enough money/assets to pay creditors or a debt that is owed. However, it is not to be confused with the American term in which ‘bankruptcy’ is used for companies and not individuals.
The importance of determining sources of income
As an individual, you must pay tax to the Government in proportion to your earnings for the financial year period. In addition to the marginal tax income rates that are used to calculate the base amount of tax payable, taxpayers may be eligible to claim deductions or offsets that may further reduce the amount of tax payable.
Contesting a Will
The passing of a loved one is a particularly emotional and devastating time. This can be made all the more horrific if there is any kind of dispute against the Will of the deceased. Disputes often arise when parties that are associated with the deceased person disagree with the intentions as contained in the Will. In NSW, you have to meet certain criteria in order to be eligible to contest a Will. If the Will excludes or does not make adequate provision for ‘eligible persons’ to whom the deceased owes a moral obligation, a Will can be overridden by the current legislation. Applications must be made within 12 months of the death.
Is Land Tax applicable to you?
Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. Landowners are generally liable for land tax when the unimproved value of taxable land exceeds certain thresholds. You may be liable for land tax if you own or part-own:
Maximising your share portfolio
When we consider purchasing shares we generally think about capital growth. That is, whether the share price has gone up or conversely, gone down. If you are considering investments that provide steady income, Australian Industrial Shares may be a solution. The Australian Industrial Share price may rise or fall, but generally they continue to pay dividends to shareholders. For example, the dividend return of the S&P/ASX 300 Industrial index was 5.6% for the financial year ending 30 June 2011.
Land Taxes Levied 31 December
Land tax is a tax levied on the owners of land in NSW as at midnight on 31 December of each year. In general, your principal place of residence (your home) or land used for primary production (a farm) is exempt from land tax. If you own property other than your principal place of residence or primary production land, and the combined value of this land is greater than the land tax threshold, you will need to register for land tax.
What Does Bankruptcy Really Mean?
In the September quarter of the year alone, Australia saw 5,677 new bankruptcies. Bankruptcy occurs when an individual does not have enough money or assets to pay their debts, and is entered into by a formal process. Only individuals can be declared bankrupt – when a company enters a similar state it is termed ‘insolvent’ and may face liquidation.
Considering a Trust?
A trust is an entity where a person (trustee) holds and governs property or other assets guided by the terms of a trust deed for the gain of another person or persons – the beneficiaries of the trust. A trust is not a separate legal entity like a company. All transactions in respect of the trust are undertaken by the trustee. Consequently, a transaction entered into by the trustee is a personal obligation.
What is the difference between Insolvency and Bankruptcy?
Insolvency is defined by the Corporations Act as an inability to pay debts, as they fall due, out of the debtor’s company resources and refers specifically to businesses and companies. Usually used to refer to a business, insolvency refers to the inability of a company to pay off its debts.
