Tax Board to review granny flat arrangements


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
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.