1 July 2027 CGT Changes: Why Property and Business Valuations Matter

Commercial property can be an attractive investment for business owners and investors looking to diversify their portfolios, generate rental income and build long-term wealth. But commercial property investment works differently from residential property, particularly when it comes to financing, rental returns, tax deductions and the use of a Self-Managed Super Fund (SMSF). With recent changes to SMSF borrowing rules, understanding your options before purchasing is more important than ever. What Makes Commercial Property Different? Commercial property includes offices, warehouses, factories, retail premises and other properties used for business purposes. Compared with residential property, commercial investments can offer several potential advantages. Leases are often longer, providing greater certainty around rental income. Tenants may also be responsible for certain outgoings, such as council rates, insurance and maintenance, depending on the lease agreement. Commercial properties can also offer higher rental yields than residential properties, although returns vary considerably depending on the property, location, tenant and market conditions. However, commercial property is not without risk. Vacancies can last longer, properties can be more difficult to sell and the financial impact of losing a tenant can be significant. Can You Negatively Gear Commercial Property? Yes. Commercial property can still be negatively geared. Negative gearing occurs when the costs of owning and operating an investment property exceed the rental income it generates. For example, if your commercial property generates $60,000 in annual rent but incurs $75,000 in eligible expenses, the property produces a $15,000 loss. Depending on how the property is owned and the applicable tax rules, this loss may be deductible against other assessable income. Eligible expenses may include: Interest on investment borrowings. Property management fees. Council rates and insurance. Repairs and maintenance. Certain other property-related expenses. The tax treatment will depend on the ownership structure and the nature of each expense. Importantly, the recent negative gearing reforms commencing on 12 May 2026 relate to residential property. They do not introduce the same restrictions for commercial property. This means commercial property investors can continue to consider negative gearing under the existing tax rules, subject to the usual requirements. Can Your SMSF Buy Commercial Property? A Self-Managed Super Fund can be used to purchase commercial property, provided the fund complies with superannuation and investment rules. For business owners, one potential strategy is for the SMSF to purchase commercial premises and lease them to the business operating from that property. This can allow the business to pay rent to an entity that forms part of the owner's retirement savings strategy, rather than paying rent to an unrelated landlord. However, the arrangement must meet strict requirements. Where the property qualifies as Business Real Property, an SMSF can generally lease it to a related business, provided the arrangement is conducted on commercial, arm's-length terms. What About Borrowing Through an SMSF? Recent changes to Limited Recourse Borrowing Arrangements (LRBAs) have significantly changed the SMSF property landscape. From 10 August 2026, new SMSF borrowing arrangements could generally no longer be used to acquire ordinary residential investment property. However, SMSFs can still borrow to acquire eligible Business Real Property. This means commercial premises, such as qualifying offices, warehouses and factories, can remain an option for SMSFs using an LRBA. Existing residential borrowing arrangements are generally protected under the transitional rules, and eligible business property borrowing remains available. It is important to understand that not every property described as commercial automatically qualifies as Business Real Property. The property's actual use and the requirements under superannuation law must be considered. What Should You Consider Before Investing? Commercial property can offer attractive opportunities, but there are several important factors to assess before committing. 1. Cash flow Consider the rental income, borrowing costs, property expenses and the potential impact of vacancies. 2. Tenant risk A commercial property may depend heavily on one tenant. If that tenant leaves, finding a replacement can take time. 3. Location and demand The property's location, accessibility, surrounding businesses and demand for that type of premises will influence its investment potential. 4. Liquidity Commercial property can take longer to sell than other investments. This is particularly important for SMSFs, which need sufficient liquidity to meet their obligations. 5. Ownership structure Whether you purchase personally, through a company, trust or SMSF can have significant tax, legal and financial implications. Is Commercial Property Right for You? Commercial property can be a valuable part of a broader investment or retirement strategy, particularly for business owners who may have the opportunity to purchase their own premises. However, the right structure, financing arrangements and tax treatment need to be considered before you buy. At Ascent Accountants, we can help you understand the tax implications of commercial property investment, assess potential ownership structures and consider whether purchasing through an SMSF may be appropriate for your circumstances. Getting the right advice before signing a contract can help you avoid costly mistakes and make a more informed investment decision.

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When you're looking for ways to save money, it's easy to focus on the big expenses.  But sometimes the easiest savings are sitting in the things you pay for every month without really thinking about them. Subscriptions, unused services and small recurring expenses can quietly add up over time. Here are five simple things worth checking. 1. Audit Your Subscriptions Start by looking at all the subscriptions you're currently paying for. Go through your Apple App Store or Google Play Store accounts and check what you're being charged for each month. You may find subscriptions you've forgotten about, apps you no longer use or services that are automatically renewing. Even a few dollars here and there can add up to a significant annual expense. 2. Cancel Services You Don't Use If you've paid for a service that you haven't used in the past month, ask yourself whether you really need it. Unused streaming services, apps, memberships and other recurring payments can continue taking money from your account long after you've stopped using them. Cancelling an unnecessary subscription is one of the easiest ways to stop the leakage. 3. Negotiate Better Deals If you've been with the same provider for a long time, don't assume you're already getting the best deal. It may be worth contacting your provider and asking whether there is a better plan or rate available. This could apply to a range of services where you're a long-term customer. A few minutes spent asking the question could result in ongoing savings. 4. Set Reminders for Renewals Free trials and annual subscriptions can be easy to forget about. Set a reminder for when a free trial ends or when a subscription is due to renew. That gives you the opportunity to decide whether you still want the service before you're charged again. Your calendar or phone can prompt you. 5. Track Your Spending Small expenses are easy to overlook when they're spread across multiple accounts and services. Using a budgeting app or regularly reviewing your transactions can help identify areas where you're spending more than you realise. You may discover recurring payments or habits that no longer represent good value. Small Changes Can Add Up Saving money doesn't always require a major lifestyle change. Sometimes it's simply about paying attention to where your money is going and cutting expenses you no longer need. The article provided makes the same point: regularly reviewing subscriptions and cutting back on unnecessary expenses can help build a stronger financial foundation. saving costs things to look at At Ascent Accountants, we can help you look at the bigger picture of your finances and identify opportunities to make your money work harder for you.

Finding a caveat on a property you're looking to buy can be an unwelcome surprise. A caveat can prevent certain dealings with a property from being registered, which can delay a sale or prevent a purchaser from settling until the issue has been dealt with. It can also create problems with finance because lenders generally require clear title. First, What Is a Caveat? A caveat is a legal notice recorded against a property. Importantly, a caveat may only be lodged by a person or entity with a legal or equitable proprietary interest in the land. It effectively acts as a statutory injunction, preventing the Registrar of Titles from registering certain dealings with the property, such as transfers, mortgages or leases, unless the caveat is withdrawn, removed by court order or otherwise lapses. caveat on properties Why Might a Caveat Be Lodged? There are several reasons why a caveat may be placed on a property. These can include securing a debt owed by the borrower, protecting a buyer's equitable interest in land under a contract of sale, or protecting an unregistered or equitable mortgage. A caveat can therefore indicate that another party has an interest in the property that needs to be resolved. How Can a Caveat Affect a Property Purchase? If you're buying a property with a caveat on the title, it can complicate the transaction. For example, the sale may be delayed or prevented from proceeding until the caveat has been dealt with. It can also affect finance. Lenders generally require clear title, so an unresolved caveat may make it difficult to obtain or finalise finance. What Should You Look Out For? If a caveat appears on a property, you're considering buying, don't simply assume it will disappear before settlement. Find out: Why the caveat has been lodged. Who has lodged it. What interest the caveator is claiming. Whether the caveat needs to be withdrawn or formally removed. Whether it could affect your ability to settle or obtain finance. The type of caveat matters too. The source material identifies different types, including absolute caveats, subject-to-claim caveats, caveats lodged after notice, improper dealing with caveats and registered proprietor's caveats. caveat on properties How Is a Caveat Removed? There are several possible ways of dealing with a caveat, depending on the circumstances. These can include withdrawal by the caveator, statutory removal or court resolution. A withdrawal generally needs to be signed by the caveator and lodged electronically where required. There is also a process for applying for removal under section 138B of the Transfer of Land Act 1893. caveat on properties The caveator has 21 days after being served with the relevant notice to act, although the Supreme Court may order an extension in some circumstances. Don't Let a Caveat Catch You by Surprise If you're buying or selling property, understanding what is recorded on the title is an important part of the process.  An unexpected caveat doesn't necessarily mean a property deal can't proceed, but it does mean there is an issue that needs to be understood and dealt with. At Ascent Property Co, we can help you understand the financial implications of a property transaction and work alongside your legal advisers to help you make informed decisions.

Are you using the logbook method to claim car expenses? The ATO has been increasing its audit focus on car expense claims, with particular attention being paid to both whether logbooks meet the requirements, and if the business-use percentage has been calculated correctly. Here are eight common areas that could cause potential issues with your claim. 1. Keeping a logbook in the wrong income year A valid logbook must be kept in the first income year in which you use the logbook method to claim car expenses. After that, a new logbook is generally required every five years. If you're not sure whether your current logbook is still valid, it's worth checking before relying on it for your tax return. 2. Not keeping the logbook for the full 12 weeks A valid logbook needs to cover a continuous period of at least 12 weeks. The 12-week period can cross from one income year into another, provided it includes part of the relevant income year. 3. Choosing your busiest 12 weeks It can be tempting to choose a 12-week period when you were doing more business driving than usual. But the business-use percentage from a 12-week logbook isn't automatically the percentage you can apply for the entire year. Your calculation needs to consider variations in how the car was used throughout the year. 4. Forgetting about a replacement car If you replace your car during the income year, you can't simply transfer your existing logbook to the new vehicle due to changes in usage. If you want to rely on the existing logbook for the replacement car, there are nomination requirements that need to be met. Otherwise, a new logbook may be required. 5. Writing vague descriptions of business trips The details matter. A logbook needs to record the relevant details of each business journey, including the dates, odometer readings, kilometres travelled and the purpose of the journey. Entries such as "business trip", "client visit" or "customer visit" may not be enough . The description should explain why the journey was made. 6. Reconstructing your logbook later Your logbook should be kept as you make the journeys, or as soon as possible afterwards. Inconsistent entries, duplicated dates, identical odometer readings or records that don't line up with other information can raise questions about whether the logbook was reconstructed from memory. 7. Getting business and private kilometres wrong Your business-use percentage needs to be based on a reasonable estimate of your business kilometres for the year. That means considering changes in your work, holidays, leave, changes in employment duties, changes in your work location and other variations in how the vehicle was used. 8. Forgetting your odometer records and receipts A logbook is only part of the record-keeping requirements. You also need odometer records for the relevant period, and car expenses such as registration, insurance and servicing generally need to be supported by appropriate records. What Should You Do?  If you use the logbook method, don't assume that having a 12-week logbook automatically makes your claim correct and compliant. The ATO's increased scrutiny means it's important to make sure your logbook is valid, your entries are accurate and your business-use percentage reflects how the vehicle was used throughout the year. At Ascent Accountants, we can help you review your car expense records and make sure your logbook and business-use calculation meet the requirements before you claim.