Dear Members,

Welcome to the final newsletter for 2007!  This is often a very demanding time of year (as is June/July), so we ask that if you have any orders that are very urgent, please ensure to tell us. 

Please also take careful note of our trading hours over the holiday break at the end of this newsletter.

New Order Forms
Yes – very exciting news!  We’ve updated most of the instruction forms for our products which can be downloaded from our website at www.interprac.com.au/ntaacorporate..  I know, I know, it seems like we change these all of the time, but we’re always looking at tweaking them so as to best get the information we need, and, more importantly, minimise the number of calls we need to make to members to confirm that information!!  These are now in a user friendly Microsoft Word format.

And a reminder, for those whose handwriting is not the best, you can type directly on to these forms on your screen, print them out and then save them.  Even less phone calls!!!!

Save the Environment
We are very excited to announce the bulk of our paper will now be supplied on recycled paper!

New superannuation transfer form
The ATO has announced that it has released a new form to assist people who want to transfer superannuation from one fund to another.

The form is called the “Request to transfer whole balance of superannuation benefits between funds” – also known as the ‘portability’ form.  It sets out some of the requirements and consequences of using the form.

To get a copy of the new portability form, you download here or you can visit www.ato.gov.au and search for the new form by using its identifying publishing code (NAT 71223), or phone the Tax Office Publications Ordering service on 1300 720 092.

Warning: Amending unit trust deeds for NSW land tax
Most members with clients with unit trusts holding land in NSW will be aware that, a few years ago, the NSW Office of State Revenue changed its treatment of these trusts for land tax purposes. In many cases, these trusts will be considered "special trusts", and their landholdings will be subject to a different land tax regime (and probably liable to pay more land tax).

The NSW government offered two concessions to such trusts in the last State Budget.

One was to introduce a new concept of "family unit trusts". Trusts which meet the criteria (e.g., at least 95% of the units must have been owned by members of the same family on 31 December 2005, and the land owned by the trust must have a combined taxable value of no more than $1 million as at that date), and continue to meet the criteria, will be treated as fixed trusts, not special trusts.

Trusts which do not meet the criteria to be a family unit trust have been given an opportunity to change their trust deed, to become a "fixed trust" under the Land Tax Management Act 1956, before midnight 31 December 2007. The NSW Government provided an assurance that these amendments will, in general, attract no stamp duty.

However, it is unclear whether this change will result in a resettlement of the trust for, e.g., CGT purposes. The ATO has refused to indicate whether such changes will result in a resettlement, saying that it will only be able to make decisions on a case-by-case basis.

Therefore, we urge all members contemplating an amendment to their client's unit trust deeds before 31 December 2007 to consider this issue very carefully. A saving in land tax may not be justified if the amendment results in a resettlement of the trust.

It will therefore be best to seek specialist advice in this regard, so that an amendment can be tailored to your clients' circumstances (and to see whether there are other options, such as the family unit trust exception).

Further information can be found here: http://www.osr.nsw.gov.au/pls/portal/docs/page/downloads/other/landtax_unit_trusts_2007.pdf

Editor: Unfortunately, our unit trusts are likely to be "special trusts" (for example, they do not make the unit holders automatically presently entitled to the income and land of the trust), and, due to the risk of resettlement and the need for personally tailored amendments, we cannot provide an amendment service.

FAQs
Another reminder that our Frequently Asked Questions document can be downloaded from our website at http://www.interprac.com.au/corporate/NTAACorporateFAQs.pdf.  While it doesn’t answer every conceivable question, it just may contain the answers to something you’ve wanted to know.

Here’s some examples:

My trust deed is very old and I would like to update it by adopting your one.
We do not “replace” trust deeds of existing trusts (except for superannuation funds) as this is highly likely to resettle the trust.

When a “resettlement” occurs, the old trust is considered to come to an end and a new one begins. This generally happens where the trustee undertakes to do something (a new “trust”) not considered when the trust was first established by the original settlor – therefore, the trust has been “resettled”. Effectively, the old trust disposes of all of its assets to the new trust, giving rise to CGT and stamp duty issues.

It is commonly accepted that small changes to a trust deed, such as the addition of a trust power, will not resettle the trust, but that a change to the beneficiaries, and especially the adoption of an entirely new deed, can resettle the trust.

Who should be the Appointors of my trust?
We can’t advise you as to who should be the appointor of your trust.  However, due to the control issues, as a general rule the appointor/s should in most cases include at least one of the people setting up the trust, e.g., one of the primary beneficiaries.

Some trusts include an "independent" appointor (usually the accountant), in addition to two joint appointors, to help make independent appointment decisions, but who will be "wiped off" the trust once both normal appointors die. This ensures that the accountant (or other independent appointor) and their spouse/children/etc don’t end up with sole control of the trust.

If there are persons other than the primary beneficiaries listed as appointors, please let us know if they are to be joint appointors (i.e., with rights of survivorship), or if one or more of them is an independent appointor. For example, two appointors may be from different families (e.g., two brothers) and might not want to be joint appointors with rights of survivorship.

I have ordered a Partnership of Trusts with Agent. Who registers for GST and the ABN – the partnership or the agent?
The answer is – it depends. Generally, the partners (i.e., partnership) will always register for an ABN, and for GST if the taxable supplies made by the partnership (whether directly or through the agent) are greater than $75,000 per annum (previously $50,000 p.a.).  The Agent can register for an ABN and GST also, if it chooses – this is will depend on the circumstances and is up to the relevant agent and partnership. However, even if the Agent registers for GST, the Partners will still be responsible for the GST obligations of the Partnership (even if the Agent trades on their behalf).

*** Christmas and New Year Trading Hours ***

NTAA Corporate will be closed from 12pm on Friday 21^st December 2007 and will re-open at 8:30am on Thursday 3rd January 2008.

** Please note: NTAA Corporate will only be accepting orders up to 5pm on Thursday 20^th December 2007. **

We wish you a safe and happy holiday break and look forward to working with you in the New Year!

Please contact us on 1800 700 666 if you have any queries or visit www.interprac.com.au/corporate

Yours sincerely

Kerry Jones
NTAA Corporate Manager
 

C/- InterPrac Limited
NTAA Corporate
Level 3, 29-33 Palmerston Crescent
South Melbourne, VIC 3205
Phone: 03 9209 9799, OR Free Phone: 1800 700 666
Fax: 1300 361 816 (NB: this fax number will safely direct your order straight to NTAA Corporate's email - the best option)
Email: ntaacorporate@interprac.com.au 
Web: www.interprac.com.au/corporate 

NTAA Corporate is a service provided by InterPrac Ltd
InterPrac also offers the following services

• Leasing & Finance

• Mortgage Lending

• Financial Planning

www.interprac.com.au