Australia’s first full-service social enterprise real estate agency was launched by Women’s Property Initiatives in March 2015 and since opening its doors for business, Property Initiatives Real Estate has been going from strength to strength.

Kristie Looney, Property Initiatives Estate Agent said they specialise in property management with a business aim to make the process of leasing and managing property as simple and stress free as possible.

“Our focus is on our customers – we want to free up their time, relieve them of any unnecessary stress and save them money” Ms Looney said. “An investment property should be profitable, low maintenance and stress free or why else would you have one?”

However, their real point of difference is its social enterprise business model whereby all the profits from the agency will build affordable homes for women and children in need. This is achieved through Property Initiatives’ partnership with Women’s’ Property Initiatives, the company’s sole shareholder and sole beneficiary. Profits are used to develop safe and affordable housing for women and children in need across Victoria.

Property Initiatives Real Estate was appointed by Grocon as the preferred property manager for their $110M Bouverie St Apartments development at the former Carlton brewery site in Melbourne. Grocon said they selected Property Initiatives as the preferred property manager for the development based Property Initiatives’ strong credentials in property management, strong social conscious and community focus.

You can start making a difference today by engaging Property Initiatives as your property management specialist. Transferring your property is easy – they do all the work for you. You keep your tenants and continue to charge market rate rent. At the same time, you are helping to create positive social impact in your community.
Property Initiatives also offer a sales service where they partner with your local agent to ensure you get the local knowledge and expertise while still being able to contribute to a great cause. It’s a win-win. If you are interested in selling please contact Property Initiatives for more information.

If you don’t have an investment property, but would like to support Women’s Property Initiatives directly, you can always donate through its website. All donations assist in providing safe, secure, good quality, affordable rental housing for women and children in need.

As previously flagged by the ATO (and reported in our June 2016 newsletter), late last month the Commissioner of Taxation released further guidance on limited recourse borrowing arrangements (LRBAs) with non-arm’s length terms. Specifically, Practical Compliance Guideline PCG 2016/5 (the PCG) was updated from the original version released in April 2016 and Taxation Determination TD 2016/16 (the TD) was issued to replace two withdrawn ATO Interpretative Decisions: ATO ID 2015/27 and ATO ID 2015/28.

The PCG provides that SMSF trustees have an opportunity to review the terms of their funds’ LRBAs before 31 January 2017 such that the terms of their LRBAs will not be subject to compliance action for the 2014-15 income years (or before) if, by 31 January 2017:

1. the LRBA is on terms consistent with an arm’s length dealing; or
2. the LRBA is brought to an end and the payment of principal and interest made under the LRBA terms is consistent with an arm’s length dealing.

The PCG then sets out the ‘safe harbour’ terms on which SMSF trustees may structure their LRBAs consistent with an arm’s length dealing.

Where the terms of an LRBA are not on arm’s length terms, the TD expresses the Commissioner’s opinion on how the non-arm’s length income (NALI) provisions will apply and sets up a ‘hypothetical borrowing arrangement’ for assessing whether or not it is objectively reasonable to expect that an SMSF could have and would have entered into a borrowing arrangement that is based on arm’s length terms.

Given the effects of the NALI provisions, advisers should notify SMSF clients with related party LRBAs of the importance to review such arrangements now. If you require help with reviewing and or potentially updating the terms of a loan agreement in an LRBA so that it comes within the scope of the Guidelines before 31 January 2017, please contact Thalia Dardamanis or Patrick Cussen on 1300 267 529.

The Victorian Government has released a Bill which aims to give Victorian’s a greater say in their medical treatment when they have lost capacity.

The Medical Treatment Planning and Decisions Bill (“the Bill”) aims to ensure a person’s medical instructions are complied with and clarifies when a person will be deemed to have lost decision-making capacity.

The Act is in response to legislative complexity and inconsistency. Currently, Victoria has four different Acts governing this area, each with their own definition, test for capacity and obligations.

What’s different?

The major changes contained in the Bill relate to simplifying the legal framework for medical choices and giving legal status to advance care directives.

A single test will be imposed when a medical decision must be made for a person who has lost capacity. The decision must be consistent with the person’s preferences, values and rights.

To prevent any uncertainty about someone’s wishes, the proposed legislation will allow a person (who has capacity) to execute a legally binding advance care directive. This can relate to medical decisions for current or future conditions. Within the advance care directive a person can now include:

• Binding instructional directives about treatment a person consents to or refuses and which health practitioners must comply with;
• Value directives, which will describe a person’s views and values; a medical treatment decision maker and health practitioners will be required to give effect to a values directive as far as reasonably possible when making treatment decisions; and
• Appointment of a medical treatment decision maker who will make decisions on behalf of a person when they no longer have decision making capacity
• Appointment of a support person who will assist a person to make decisions for themselves by collecting and interpreting information or assisting the person to communicate their decisions.

The proposed changes will give people more control over future health choices. However, the Act does not govern unlawful medical treatment, including physician assisted dying.

From 28 October 2016, under the SuperStream reforms, small business employers must join the ranks of all other employers and begin to pay super contributions electronically to their employees’ superannuation funds (including SMSFs). Related data must also be provided electronically from this date by all employers.

Additionally, from 28 October 2016, all superannuation funds (including SMSFs) must be able to receive electronic contributions and data from employers of fund members. For an SMSF, this means providing the following information to each member’s contributing employer by 28 October 2016:

• The SMSF’s ABN;
• The SMSF’s bank account details; and
• The SMSF’s active electronic service address that will receive contributions related data.

Advisers should remind their small business employer and SMSF clients of the impending deadline and contact us if they require further guidance on any particular requirement.