- This topic has 14 replies, 7 voices, and was last updated 3 days, 10 hours ago by .
Our SP is in NSW. Years ago our Strata Plan Executive Comm decided to put some money into an Investment Account and back then it would have been earning a ‘good’ interest rate. Over the past decade+ these interest rates have been tumbling and as at today in said account the rate is 0.0500 pa.
Because having this account earning interest our SP has been paying a tax accountant (via the Strata Mgr – which is now in house with the SM) do a tax return for our strata plan lets say $280.00 per year to do this, plus the interest is taxed by the ATO which at this year is not much as one can imagine. Our SPlan investment account has lets say over 30k in this account.
So our SP has paid for over 10 yrs plus say average 250 x 10 = $2500.00 approx to do tax yearly return and the ATO – tax on the ‘interest” and this year it was a payment to the ATO of $180.00 which would have been probably the same for the past 10 years = 1800.00.
At no stage in the AGM’s, did the Strata Mgr say do we still wish to keep this account open. Kinda makes one wonder why. And yes maybe other and current owners should have realised this was costing money but we didn’t and most owners don’t look that hard at the accounts.
So the lesson here is if you are in a Strata Plan with an investment account unless you have a lot of money and a great interest rate that’s fine – but if not – it’s suggested you ask your strata manager for the sums and see if it’s worth keeping such an account. Our ‘investment’ account is about to be closed.
For your info.
- You must be logged in to reply to this topic.