QHA-Review_April_Digital

More documents

Recommendations

Info

LEGAL MATTERS with Curt Schatz OPTION AGREEMENTS QHA REVIEW | 28 More recently in my articles, and also at the recent QHA Symposium, I have been looking at some of the important aspects to be considered when being involved in a pub transaction. On 20 September 1985, the Federal Government bought in the wonderful capital gains tax. This tax is hefty, and while there are certain concessions available in relation to ‘rollover relief’, which attaches to particular types of holding entities and/or periods of retention prior to disposal, by and large, it’s 49% on the gain. What is not commonly known is that the capital gains tax liability arises each time there is a capital gains tax event. A disposal of an asset which is subject to capital gains tax is such an event. What is a disposal? The answer is that the contract which is entered into by the parties is such a disposal event by the seller and in the event that the asset sold under the contract is transferred (in other words the contract settles), then capital gains tax is payable in the financial year that is relevant to the date of the contract. In other words, it is the date of the contract that formulates the capital gains tax liability. If you are a seller and you are looking to get a binding agreement with a buyer in a particular financial year but would prefer to defer the creation of the contracts to postpone the capital gains tax liability, then the most commonly used mechanism is either a put option, a call option or a put and call option. Types of agreements Firstly, let’s consider these different types of agreements. A call option is an option granted to a buyer to exercise based on the conditions of the option agreement including the timeframe during which a call option can be exercised. A put option is the same type of grant, but in favour of the seller. You would have heard the term put and call option, and this is an agreement where the buyer and the seller have independent rights to exercise a purchase or a sale by giving notice. The important part to the capital gains tax deferral is the fact that the option agreement can be drafted such that the call option and/or the put option may not be exercised until a certain date. For example, if the parties enter into the put and call option deed on 1 April 2024, but the options may not be exercised until at least 1 July 2024, then the contracts don’t come into existence until the exercise of the option which cannot occur until 1 July 2024 or later. This pushes the capital gains tax liability out to the following financial year. Binding parties to an agreement Lastly, you may be concerned an option agreement is not as binding on the parties as a formal contract. The option agreement will have annexed to it the contract/s in final and agreed form (but unexecuted), and the parties will confirm in the option agreement that upon the exercise of the call or put, and even if a party to the option agreement refuses to sign the contract, that the party refuses to sign the contract is equally as bound to it as if they had signed that contract. Of course, security for such performance in the form of money, bank guarantees or other security can be requested by either party from the other to secure the promise to settle the contracts in the event that the put or call options are exercised. We always insist that clients speak to their accountants about these mechanisms because we are never as familiar with our clients’ personal financial affairs as your accountant and on that basis, this article represents statements of general principal as opposed to the specific advice.
SUPERANNUATION HOSTPLUS IS AN AWARD-WINNING SUPER FUND Hostplus is Money magazine’s Best Super Fund for 2024 1 . What does that mean for our members? Hostplus is a top-performing super fund that puts members first. Judged on strong performance, good value and an ongoing focus on members, we’re proud to be a super fund that delivers on all three fronts. The benefits of being with us Take a look at a few ways we’re striving to provide our members with the future they’ve worked hard for. Consistently strong returns We measure our success by what we deliver for our members. As well as winning Money magazine’s Best Super Fund for 2024¹, Hostplus’ default Balanced (MySuper) option, where most of our members invest, is a top performer over the long term. In fact, it’s ranked the number one option over rolling 10 and 20-year periods.² See our investment performance at hostplus/performance. A low admin fee 3 One of the lowest admin fees out of any MySuper product means more of members’ money is invested in their future. Every dollar our members save goes a long way to helping them achieve a future full of positivity. That’s why we aim to keep our fees and costs as low as possible. You can find out about our fees by visiting hostplus/fees. A wide range of investment choices While our Balanced option is designed for members who prefer to leave investment decisions to us, we offer a range of investment options – including premixed and single sector options – for those who want more control over their super. Members can mix and match different options to suit their investment risk profile and financial objectives. Take a look at our range of investments at hostplus/investments. Disclaimers 1 Best Super Fund 2024 is awarded by Money magazine. Visit moneymag.com.au for awards criteria. Awards and ratings are only one factor to consider when choosing a super fund. Past performance is not a reliable indicator of future performance. General advice only. Consider the relevant Hostplus PDS and TMD at hostplus.com.au and your objectives, financial situation and needs, which have not been accounted for. Issued by Host-Plus Pty Limited ABN 79 008 634 704, AFSL 244392 as trustee for the Hostplus Superannuation Fund, ABN 68 657 495 890. 2 SuperRatings Fund Crediting Rate Survey – SR50 Balanced (60-76) Index for January 2024. 3 Source: SuperRatings fee data for public offer MySuper products extracted from SMART 2.0 platform on 7 February 20242023. Comparison is based on the total administration fees and costs assuming a $50k account balance. Other fees and costs apply. Refer to the PDS for more information.
Page 1: q u e e n s l a n d h o T E L S a s
Page 4 and 5: q u e e n s l a n d h o T E L S a s
Page 6 and 7: NEWS CHEERS! THE FIRST PEOPLE, POTS
Page 8 and 9: NEWS QUEENSLAND SHINES BRIGHT ON FR
Page 10 and 11: NEWS AN OPTIMISTIC OUTLOOK QUEENSLA
Page 12 and 13: NEWS HIGH SPIRITS TO SAY THAT QUEEN
Page 14 and 15: LMG QUEENSLAND MEMBERS’ CONFERENC
Page 16 and 17: TAB, MAX & SKY with Adam Floyd CUST
Page 18 and 19: GETAWAY HEAD IN THE Clouds QHA REVI
Page 20 and 21: eechmont QHA REVIEW | 20 Here in Qu
Page 22 and 23: GETAWAY Keeping in line with this v
Page 24 and 25: GETAWAY QHA REVIEW | 24 Ross said t
Page 26 and 27: OLGR with Victoria Thomson STRIVE F
Page 30 and 31: INSIGHTS FOCUS ON SUSTAINABLE SEAFO
Page 32 and 33: INSIGHTS QHA REVIEW | 32 Surroundin
Page 34 and 35: ACCOMMODATION with Tom Fitzgerald T
Page 36 and 37: QHA REVIEW | 36 FUN-LOVING
Page 38 and 39: A TYPICAL DAY AT PARADISE RESORT 8a
Page 40 and 41: FOCUS QHA REVIEW | 40 “There is a
Page 42: FOCUS QHA REVIEW | 42 levels not ex
Page 45 and 46: Sarah Swan EMPLOYMENT RELATIONS •
Page 47 and 48: Therese Kelly TRAINING AND SAFETY R
Page 49 and 50: Contact your SouthTrade representat
Page 51 and 52: TOP DROP NOSFERATU CASCADIAN IPA Se
Page 53 and 54: QHA REVIEW | 53
Page 55 and 56: Q U E E N S L A N D L O C A L S A C
Page 57 and 58: YOU ARE INVITED TO BE OUR GUEST SAV
Page 59 and 60: A SPIRITED BUNCH QHA REVIEW | 59
Page 61 and 62: The pair’s unique approach to jus
Page 63 and 64: TRADE DIRECTORY INSURANCE | RISK MA
Page 65 and 66: QHA PARTNERS & CORPORATE MEMBERS Ko
Page 67 and 68: A PLACE TO LAY YOUR HEAD. NOT KISS

QHA-Review_April_Digital

Create successful ePaper yourself

Delete template?

Save as template?