Archives: Investax FAQs

A depreciation report for an investment property, also known as a tax depreciation schedule, is a comprehensive document that outlines the depreciation allowances a property investor is entitled to claim for the wear and tear of their property and its fixtures over time. It typically includes a forecast, often for up to 40 years, of all depreciable assets, the depreciation methods applicable (prime cost or diminishing value), and the calculated depreciation deductions. This report is used to maximise tax deductions related to the property’s decline in value each financial year and must comply with the Australian Taxation Office (ATO) regulations.

o Keep all records from the start, including purchase contracts signed by the vendor, settlement statement, legal fee invoice, stamp duty payment record, Buyer’s Agent fee invoice, loan contract and the loan settlement statement​.
o Keep all the records related to the sale, including signed sale contract, agent fee invoice, settlement statement for the property and the closing statement for your investment loan.

You may need to pay capital gains tax and will need records such as the contract of sale, settlement statement, sale of property fees to calculate your capital gain tax.

Include all rental-related income as you receive it, get your expenses right by only claiming for periods when the property was used to earn income, and keep detailed records to prove all income and expenses​​.

Keep all records from the start, including purchase contracts signed by the vendor, settlement statement, land title deed, legal fee invoice, stamp duty payment record, Buyer’s Agent fee invoice, loan contract/offer and the loan disbursement statement​.

Yes, the Trust must have a bank account in the name of the trustee. For example, if your Trust is named XYZ Trust, and the trustee company is ABC Pty Ltd, the Trust bank account is typically created under the name ABC Pty Ltd ATF XYZ Trust. We recommend depositing the $10 Settlor fee as soon as the bank account is opened.

$10 is the sum our legal team suggests. Some court cases (a recent case we have seen is Cumins v FCT [2006] FCA 43) have not questioned a settled sum of $5. Nonetheless, a settled sum of at least $10 is advised.

In General:
a) If there is only one appointor, unless their will says otherwise, the powers of appointment will pass to their legal personal representatives.
b) If there are two or more joint appointors, as each one dies, the powers of appointment will pass to the remaining joint appointors until there is only one left. Then, the powers will pass to that person’s LPRs.
c) If any of the appointors are considered independent (e.g., an accountant or solicitor), then that person will never have the sole power of appointment. In other words, once there is only one family member appointor and the independent appointor remaining, the powers of appointment will pass to the family member’s LPRs upon their death. However, we require specific instructions in this regard to be specified in the schedule to the deed.
d) The appointors may choose not to be joint in the context of survivorship, meaning that upon their death, their own power of appointment will pass to
their own LPRs, rather than to any surviving joint appointors. When a husband and wife are joint appointors, the deed is set up as described in point 2 above.
Finally, an appointor may be automatically removed if they become bankrupt or mentally ill, or if the appointor is acting in the capacity of, or on behalf of, a trustee in bankruptcy, liquidator or administrator, or the Family Court Registrar, but they can resume their position if the condition that caused the Appointor to be removed ends, is reversed or otherwise ceases.

According to our legal team who sets up the trust for Investax it is generally the primary beneficiaries of the Trust become appointors due to the Control Issues.
You must consult with a lawyer or discuss this with your accountant if you would like to nominate a person to be an appointor who is not a primary beneficiary of the trust. A special instruction needs to be in place to inform the establishment team if the non-beneficiary appointor should be a joint appointor or an independent appointor.