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  • #50802
    Jimmy-TJimmy-T
    Keymaster

    In this week’s Flat Chat Wrap podcast, in the run-up to the Australian architectural awards, we talk about some of the innovative apartment block designs that made it the short-list. For a start, there’s the Verve towers in Newcastle which offer more corner units because it’s two slim towers rather than one solid one. …
    https://www.flat-chat.com.au/podcast_80/

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  • #50968
    Jimmy-TJimmy-T
    Keymaster
    Chat-starter

    I believe that in a scheme where all units in the Strata are residential and not commercial then interest received from the Sinking Fund is exempt from tax. Can you please confirm that this is true and, if so, correct the misleading statement above from this podcast?

    I can’t confirm that’s true because it isn’t, at least according to this factsheet and this website.

    In short, levies are not taxable, but interest earned, as well as penalty fines and late levies penalty interest are (or may be).

    You might also have a look at this Strataman page and this webpage from Bannerman Lawyers.

    It’s complicated, especially when you get into GST. Hence my comment in the podcast that some strata schemes put their sinking funds into non-interest earning accounts because the interest they earn is less than the cost of filing a tax return (especially these days).

     

    #50964
    AvatarCasuarina
    Flatchatter

    “You are not a big fan of accumulated sinking funds. Why?

    …..a sinking fund can’t earn high returns.  And what you do earn is taxed.  And the tax advantage are extremely limited.”

    I’m not sure that is correct, although it may be for a strata scheme that has a commercial component. But I believe that in a scheme where all units in the Strata are residential and not commercial then interest received from the Sinking Fund is exempt from tax.

    Can you please confirm that this is true and, if so, correct the misleading statement above from this podcast?

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