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Tax Issues Surrounding Retirement Village Investment

Published on 27 Jul 2006 | Took place at Tattersalls Club, Sydney , NSW

The retirement village industry is experiencing both growth and consolidation. Many builders are looking to retirement villages as alternative investment opportunities, while some major players are taking the opportunity to consolidate existing villages.

An industry like no other, its participants find themselves subject to a web of complex agreements, ATO pronouncements and transitional rules, that provide both internal and external tax specialists with headaches and sleepless nights.

These materials will help you gain an understanding of the complex tax rules, regulations and the ATO accepted practices, and be made aware of future challenges and how they may impact on your, or your client’s business. Issues considered include:
- types, treatment and the ATO’s views on resident contracts
- treatment of deferred management fees
- capital v revenue distinction and the importance of the characterisation
- transitional issues TR 2002/14 versus TR 94/24.

Get a 20% discount when you buy all the items from this event.

Individual sessions

GST issues surrounding retirement village investment

Author(s):  Ken FEHILY

Topics covered in this paper include:

  • leasing arrangements
  • sales of units
  • services provided
  • serviced apartments
  • charitable exemptions
  • recent developments.
Materials from this session:

Retirement villages - income tax and CGT issues

Author(s):  Mark WEST

Topics covered in this paper include:

  • developer versus operator
  • capital versus revenue distinctions - resident contracts
  • lease premium versus resident loan
  • income tax treatments of deferred management fees, sharing of capital gain/(loss) with residents
  • sinking fund and capital replacement fund issues - trust funds
  • tax planning and structure issues
  • sale of villages - capital gain or revenue
  • transitional issues TR 2002/14 versus TR 94/24.
This paper was also updated and presented at the 'Retirement Villages: Understanding the tax implications' seminar held in Brisbane on 25 October 2006.
Materials from this session:

Legal structuring of retirement villages

Author(s):  David MCELHONE

Topics covered in this paper include:

  • overview of the industry and its future
  • what is a retirement village?
  • what are the different ownership structures and why?
  • legal challenges facing the retirement village industry.
Materials from this session: