Here you will find common sense answers to the most common questions asked by our members. Answers are provided by the appropriate expert in that area.

How will the new capital gains tax changes happening in June 2019 affect property owners financially?

How will the new capital gains tax changes happening in June 2019 affect property owners financially?

Since the May 2017 Australian Federal Budget, Australian Expats have been living under a cloud of fear that they may become taxable on their former Australian residence.

In short, the proposals only affect anyone that actually lived in their Australian property prior to relocation overseas. If you only ever rented your property then no changes are occurring.

For those that did live in the property at any stage, the current law allows a tax free entitlement for the period actually lived in the property, plus a potential further 6 years tax free whilst rented, and then calculated the taxable amount on a pro-rata basis with any other proportionate period when the property was rented being taxable.

The changes propose to make the full period of occupation taxable regardless of how long or short that may be, If the property is sold whilst the owner is living out of Australia. For example, if you lived in the property for 20 years in Australia then moved overseas and sold the property after leaving Australia, the entire gain on the property would be taxable, totally ignoring the many years of occupation and penalising you even if you have just been abroad for 6 months!

The proposed changes don’t apply if the property is sold prior to 30th June 2019 or if the property is sold once you have returned to Australia and living there as a tax resident (but not necessarily in the same property).

SMATS has been at the front line pressing Prime Minister Scott Morrison, who was the Treasurer at the time of the announcement, through submissions and representations in collaboration with Austcham HK. We have asked that the rules not be changed as the current law is adequate to capture investment related profits and the removal of a family home tax free status for simply living abroad is extremely harsh and unjust.

This has seen a delay in the passing of the legislation with the removal of the Bill from the Senate floor late in 2018. This was done largely on the fact there was great unfairness in removing a long time entitlement being lost and the risk of a forced sale through unforeseen circumstances, such as death, divorce or financial trauma, triggering an unwanted and unplanned tax burden.

Since then, the Opposition Shadow Treasurer has formally come out to support our requested change to exclude Australian Citizens and Permanent Residence Visa Holders.

The stalling of the legislation and Opposition support to our requests is extremely encouraging, however while the Government remains in review process and the looming election in May 2019 approaches, there is great difficulty for anyone considering selling their previous property to ensure that keep the tax free status if sold prior to 30th June 2019.

Some things to consider include:

  • Don’t sell if you never lived in the property, as the changes don’t affect you.
  • Don’t sell if you genuinely consider that you wouldn’t sell the property until at least you have returned to live in Australia as you would not be disadvantaged.
  • If you lived in the property for extended periods of times prior to moving abroad, then selling prior to 30th June 2019 is a real option for you if it was likely that:
    • You were going to sell the property sometime soon while still living overseas
    • You think the law may pass
  • Another option if you think that you want to keep the property long term as an investment but may want to sell it while still abroad, is to transfer the property to a Family Trust. This realises the tax free gains, retains the property in a tax effective vehicle and potentially frees up the equity for your next family home if you intend to upgrade. There is a stamp duty cost of approximately 5%, however that may be more cost effective than large Capital Gains Tax charge.

You need to carefully consider your options and try and predict your future intentions as best as possible.

We will be sending our children to study in Australia soon, is it best to buy or rent somewhere for them to stay?

We will be sending our children to study in Australia soon, is it best to buy or rent somewhere for them to stay?

For many expatriates with children there will inevitably be a day when the decision on where your children undertake their tertiary education and whether or not you will be back in Australia to provide a home for them in that time.

This dilemma is also faced by many people from non-Australian backgrounds as they look at the international options for their childs study. Over 500,000 Student Visas are currently active in Australia, so it is clear that many people like Australia as a study destination for their children.

If you have decided on Australia for schooling and intend to allow your children to live alone, then the next dilemma is where to house them during the period of study.

The simple solution is to rent somewhere for them, be it an apartment, room or University dormitory.

This option is generally simple however at the end of the study period the cost soon mounts and this can be a substantial burden that is non-recoverable.

The other alternative is to buy a property that is suitable for your child to use while studying and then sell it at the end of the study period or keep it to remain as an on-going investment.

This can provide the opportunity to recover some or all of the costs of occupation and study from the potential capital gains on the property over the years it was held.

This has been a successful strategy for many over the years and should be seriously considered.

Below is a simple analysis of the key issues of renting vs ownership.

  Rental Ownership
Initial Outlay For rental only a small deposit is required initially, usually 4 weeks rent, so the burden here is very low

To purchase a property there is a large outlay at the outset. In most cases Finance is available for up to 80% of the purchase price which can reduce the initial out of pocket outlay significantly.

Regardless, 20% deposit plus an allowance for 5% Government & Transfer fees means a significant up front commitment is required.
Flexibility Rental leases are usually 6 to 12 months duration allowing a very flexible environment and an ability to change around if required. If you have purchased a property then ideally you would want your child to stay in that property and any decision to change would be fairly unwelcomed. As such owning is fairly inflexible in that regard. It is possible however to rent the property out to another person should your child insist on an alternative venue to live, so there still is a reasonable level of flexibility.
Ongoing Cost Simple fixed cost, with modest increases through the study period.

The weekly cost of owning the property with a mortgage will vary greatly depending on the type and location of the property and the initial value.

It will likely be more expensive that renting by at least half again each week.
Multiple Children Additional room can be taken either at the same location or a different place. If you purchased a property with 2 or more rooms, then the cost for having your other children stay does not increase at all. When you have 2 or more children staying in the one property then this will usually make the ownership cost less than the alternative of renting.
Opportunity to recoup outlay There is no opportunity to recover the rent at all.

If you have chosen a good property in good area, it is highly likely that the value will rise over the period of study and that gain should be sufficient to cover most if not all of the weekly ownership costs.

If you have selected a better area or allow some additional time for the value to improve, then you may not only fully recover the holding expenses but also the cost of the education.
Tax Implications

There are no tax implications on renting a property for your child.

The expense is not allowed as a tax deduction in Australia.
It is possible to get substantial tax benefits when having your children live in your property which can offset tax issues you may have on other Australian property you own or build up as a future tax benefit to offset the Capital Gains on sale or future income in Australia when you return to live in Australia sometime in the future.

The cost and benefit of buying will vary greatly depending on the personal circumstances of each individual, but the opportunity should always be considered as the chance to fully recover all expenses for your childs education is something that could have a major impact on your future personal finances.

There are also two very important things to consider as well:

  • Start Early
    Even if your children are very young, the advantage of buying a property sooner than later is significant. You will have the advantage of todays price, which tends to be lower than the potential price in the years ahead when the property is needed, and you also have the advantage of being able to rent the property out until needed, meaning your holding cost is very modest for now. By the time you actually need the property the cost to you may be very modest indeed making it far more affordable to educate your children.
  • Selection Is Very Important
    As with all property investment decisions it is essential to purchase the right property. You should be careful to avoid “specialized student accommodation” as it can be very small and extremely difficult to re-sale later, even though the rent returns are very attractive. A normal property that is desirable in the general market, good size and well located near a study zone has proven to be a sound investment throughout history and this trend is likely to continue. The advantage of an extra room or two should also be considered, and may be essential if you have more than one child.

Buying a property in Australia is always a big decision, however when it can provide the advantage of housing your children through their academic life, the rewards can be very attractive and in most cases make the decision to buy a more astute option than the alternative of renting accommodation.

I want to invest some money and wondering if it is better to have shares or property?

I want to invest some money and wondering if it is better to have shares or property?

This is always a hot topic of debate however the answer is very simple, you should have both.

It has been an eternal debate as to which investment is the better, and despite what many people think the long term return on shares and property is very similar.  There are some key tax issues to note in making a decision on which one you choose to make.

When living outside of Australia, there is no Capital Gains Tax on share sale profits nor is there any Income Tax on dividends received each year.  Shares enjoy a tax free status for Non-Resident Taxpayers which makes them an extremely attractive option for investment for many expatriates and foreign investors in Australia.  You should note that you may have tax issues in the country you are living in so best to check that as well, however many expatriate zones allow tax free status on international shares.

Tax free is a major positive but it is not the only one.  Other plus points include:

  • Shares are easy to accumulate as they can be bought in parcels from A$500 upwards,
  • It is also easy to sell shares that are listed on a Stock Exchange, with sale proceeds usually available within 3 days,
  • In many cases they can offer very attractive dividend yields.  At the current time this can be well above the interest rates on offer for bank deposits.

Nothing is perfect though and shares do have some negative issues including:

  • The market risk of shares which we have seen to be very volatile in recent past,
  • It can at times be very confusing as to what shares to buy as there are many options,
  • There is some level of management and effort required to monitor and adjust from time to time.

Nonetheless, shares can be a sensible part of any investment portfolio and well worthy of consideration.

Property has very different characteristics to shares.

Australian property will always be a taxable activity regardless of where the owner lives in the world, but is can be a very Tax Effective investment.

This is because the Australian Government allows all expenses on the property to be offset before any tax is levied on items such as interest on loans, maintenance, travel, agent fees and insurance.  In addition there are special write offs on the construction costs and internal fittings of a property that can ensure that no annual income tax is payable.

Capital Gains Tax is payable as well, however it can also be effectively managed through the accumulation of annual tax losses and multiple property ownership.  For more detail on these issues please visit our website.

Being tax effective is an advantage, but property has remained popular for other reasons including:

  • By nature “bricks and mortar” have been considered to be a safer investment class than other investment forms.  This is especially true for Australian property which has shown long term modest and sensible increases with few negative growth periods,
  • Banks are happy to lend 80% of a property value which can make the entry cost into property a lot easier, while at the same time improving your tax position and enhancing the overall return through the mathematical benefits of sensible leveraging,
  • At the end of the day, we all need somewhere to live, so acquiring property is very much an inevitable reality for all of us.  As it turns out, the earlier we buy, usually the more affordable the property is,
  • While living overseas, the ability to rent the property out during your absence makes it very affordable to hold a property.  The net ownership (rent minus expenses and interest) cost can be less than 1%pa of the purchase price which means a A$1 million property costs less than A$1,000 to own.  As long as the property appreciates more than this, then you are better off and for the more desirable areas the growth has consistently outpaced this holding cost making the decision to buy a smart one.

From the negative aspect, some of the things to consider include:

  • The initial entry price can be both scary and significant.  The first property you buy will usually need a 20% deposit plus up to 5% for purchase costs, which means you will need to commit a fair sum to enter the market.
  • Property by nature is a long term investment and this is especially true for Australian property as the safe market results in modest growth that in turn needs as long as possible to perform to its peak.  You should resist taking speculative positions in Australian property as you may be disappointed,
  • If you are seeking quick exist from property markets you may be disappointed, as it can take between 2-8 months from decision to sell until you receive the proceeds,
  • There are risks of being a landlord in all property markets.  Australia has excellent legals protections for owners and is considered a very safe rental market, but that doesn’t mean no risk or hassle in some cases.

The decision as to which investment choice is best for you usually starts with how much you have to invest. 

If you want to buy a property you need a substantial deposit (25% or equity in another property), so if you are still short of that you will have to wait on the sidelines.

As such, we usually suggest that you can consider accumulating your regular savings in shares along the way the, when you see the right property for you in your budget range, cash in your shares and grab the property, then start the share accumulation all over again for your next property.

Regardless of which option you choose, you will have a tax advantaged investment option from an Australian perspective and hopefully building wealth along the way to improve your financial future.

I have a property in Australia but it isn’t making me any money.  Do I have to lodge a tax return?

I have a property in Australia but it isn’t making me any money. Do I have to lodge a tax return?

It is a common misconception that if you are not making any profit on your Australian property that you do not need to lodge an income tax return.  This is not correct.

It is a legal requirement that you must lodge an Australian Income Tax Return every year that you receive any taxable Australian income. 

In addition, unlike Australian residents that can earn small amounts of annual income and still remain tax free, when living out of Australia there is no tax free allowance on your income, so you become taxable on your first dollar of net taxable income.  The Australian financial year ends on the 30th June each year.

If you chose to prepare the return yourself then you must lodge by the 31st October each year.  If you have a Registered Tax Agent, such as ATS, prepare your return then we have time extensions that allow lodgement through to April the following year.

Failure to lodge your return by the due date can lead to penalties of up to A$550 per year, per person even when there may be no tax payable.

You should not be concerned about the need to lodge an Income Tax Return, it is a simple process and can actually prove to your benefit in most circumstances.

For most people, the only taxable Australian income is likely to be the collection of any Australian property rental during the year, regardless of whether the rent is greater than the expenses or not.  In fact if the expenses on the property are greater than the income, the resultant loss needs to be calculated and lodged as it carries forward indefinitely to offset any future rental or other Australian income and capital gains.

This is a substantial planning benefit and greatly to your personal advantage to ensure you lodge correctly and record this each year.

It is very easy to use a sensible level of borrowing against your Australian property to ensure that a no income tax environment can be achieved.

In addition it may include Australian wages or consulting fees that were earned for services provided in Australia.  If you receive income from an Australian company while living overseas, and the income relates to services provided out of Australia, then that would not be taxable in Australia.

If you have earned any Australian bank interest that is not a taxable income, instead the bank should be deducting a Withholding Tax of 10% from your interest and then there is no further tax obligation or need to report in Australia.

Similarly with Dividends from Australian companies, if you receive “Unfranked” dividends then a Withholding Tax would apply and no further obligation.  If you have received “Fully Franked” dividends (where the company has paid tax prior to the dividend being paid) then no further tax obligation exists and no Withholding Tax is required to be levied.  Share in Australian Public companies are also Capital Gains Tax Free for Non-Residents.

Australian tax laws are very complicated but they are also quite fair and reasonable for people living overseas.  It is just important to be aware of your obligation to lodge, ensure that you have good guidance on your personal situation and seek professional support to ensure that your tax obligations are kept to reasonable levels.

I heard that I need to get a Valuation on my property due to changes in the Australian Budget.

I heard that I need to get a Valuation on my property due to changes in the Australian Budget.

In May 2012 Treasurer Wayne Swan announced a change to Capital Gains Tax for all Non-Resident taxpayers that will mainly affect Australian expatriates and foreign nationals owning property in Australia.

Under the old rules, anyone owning property in Australia and subsequently selling for a profit is liable for Capital Gains Tax on this profit.  If they had owned the property more than 12 months, then half of this gain would be tax free, the remaining half taxable.

The change has proposed that all profits made after the 8th May 2012 will no longer be entitled to the half tax free concession.

Importantly this change only affects profits after 8th May 2012.  Any profits prior to this date will still enjoy the 50% discount. 

In order to establish the profits up to the 8th May 2012, we are meant to arrange a Sworn Valuation on our property at this date and that value will be used to establish how much of the future gain on sale will enjoy the discount.

I would not rush to arrange a valuation until such time as the final legislation has been passed through Parliament in Australia.  We have made a submission to the Government to try and stop this occurring as logistically it will be difficult to administer and it may have a detrimental effect on foreign investment to Australia.

You can view our submission and join our On-Line Petition by visiting www.cgtchange.com 

If the laws do come into effect, some important issues to consider include:

Are you intending to sell while living out of Australia?
If you do not think that you will sell the property until you are back living in Australia, a valuation may not be required and you will still enjoy the full 50% discount on your entire capital gain – including the period you lived out of Australia.

This is because the discount has only been removed for Non-Resident taxpayers, so if you have returned and become a Resident taxpayer once more, then you will receive the full discount.

Must Be Qualified Valuer

The Valuation must be by an appropriately qualified person and cannot be an “appraisal letter” from a local Real Estate Agent.  It must be a Sworn Valuation.

We are arranging a bulk discount with Valuation groups, so if you would like some assistance on this email cgtchange@smats.net and we will ensure you have the proper valuation at a good price.

True Market Value

The instructions given to the Valuer are very important.  This is not a conservative Bank valuation, rather a true optimistic assessment of the best value the property may be considered to be worth.

Be sure your Valuer understands this as it can make a big difference in your future tax position.

Don’t forget to join our fight to stop this change, we need all the help we can get to have the Australian Government see common sense and leave the tax system unchanged.  Visit www.cgtchange.com for more information.

I have bought a house in Australia that will be my home eventually.  When I go back how long do I have to live in it to become tax free?

I have bought a house in Australia that will be my home eventually. When I go back how long do I have to live in it to become tax free?

In Australia we have a special Capital Gains Tax Free status for a persons home, or Principal Place of Residence.

One of the great myths is that you only have to live in it briefly for it to become a tax free asset and sadly this is not the case.  It is not possible to extinguish the full gain by living in the property for any period of time, even though many people try and do this and run the risk of being caught out later.

You need to be very careful as the Australian Tax Office is now matching sale records to rental lists and is highly likely to prompt an investigation, even if it is a few years after the sale event.  Being caught out can be a very expensive mistake once penalties and back dated interest charges are imposed.

The actual position for Capital Gains Tax is if you have bought a property while living overseas and rented it out, then it is a taxable property on eventual sale no matter how long you may spend actually living in the property later on.

The way the tax calculation works will be on a pro rata basis so the longer you live in it the more of the gain will be tax free.  If you never move in, then the full gain would be subject to Capital Gains Tax.

You will be entitled to a tax free portion for the period of time the property is used as your principal residence.  For example if you bought this and rented for 4 years prior to return and then lived in the house for 1 year when back in Australia, then 1/5th would be tax free and 4/5th of the gain would be subject to capital gains tax.

If you can stay in it longer prior to sale then the taxable portion can come down significantly.

If instead of living in the property for just 1 year, you stayed for 5 years, then 5/9th would be tax free and only 4/9th taxable.  This tax free portion will continue to increase each year subsequent year of occupation.

The only exception to this rule is if you had lived in the property as your home from the time it was first acquired.  If that was the case then you may be entitled to a 6 year tax free period on Capital Gains tax even if the property was rented.  There are additional conditions on this so you should check with your Australian tax advisor to see if you may qualify.

You should also remember that once you have owned any asset in Australia more than 12 months then you will also enjoy a further 50% tax free allowance on the Capital Gain.

I have had situations where some people choose to move back in to the property briefly to try and reduce the potential Capital Gains Tax.  Sometimes the cost and inconvenience of moving in and then out of the house is greater than the tax saved, so you need to make a rational decision as to whether it is indeed worth living in the property or simply moving into your preferred residence the first time.

I have heard that fixed interest rates in Australia are lower than the floating rate on my loan.  How can that be possible?

I have heard that fixed interest rates in Australia are lower than the floating rate on my loan. How can that be possible?

When borrowing to buy an Australian property, lenders in Australia usually offer the opportunity to either take a floating (or variable) interest rate that will change from time to time, or to fix your interest rate for set periods of up to 5 years.

There are times when the fixed rate may become more attractive than the floating, and vice versa, and the main influence on how the rates are calculated usually comes down to two main issues, Expectation & Availability.

Expectation is quite simple, it is whether the “market” believes interest rates will rise or fall in the future.

Fixed rates do try and predict what the future rate will be.  Issues like the current interest rate policy of the Reserve Bank and state of the local economy can influence interest rate outlook.

In the current environment, there is an expectation that Australian may experience another rate reduction during the coming year, so we can see this being priced in now.  It does not matter if the rate reduction actually occurs, just that the market believes it may happen is enough.

Availability comes down to how much money the banks have in reserve ready to lend to prospective borrowers.  During 2011 in Australia, lending output was soft as the property market was in the main procrastinating on their buy decisions, hence at the current time the Australian banks have too many funds on deposit and not enough lent out.

The bank finds themselves in a position that they have interest cost on the deposit but no revenue coming in.  That reduces their profit and costs them money so they need to encourage more lending by in essence having a “sale” on the interest rate.  Once the lending picks up and they are start making a profit on the lending margin, they will tend to be less generous with the fixed rate offerings.

A perfect situation for borrowers is when we see low interest rate policy from the Reserve Bank and low lending output from the banks.  We saw this occur around March 2009 during the Global Financial Crisis when the 3 year fixed rates in Australia dropped to 5.19%pa.

The variable rate was also low at the time but not as low as the special fixed rates on offer, however there was belief that rates may reduce further which did not occur.  Within 6 months the fixed rate had risen to almost 7%pa even though variable was still around 6%pa. 

A combination of higher rate expectation, as the Reserve Bank continues to lift rates, and reducing availability, as more people took advantage of improved conditions and began to borrow once again,  quickly shifted the fixed rate offering from low end to high end.

A similar situation will no doubt occur in Australia this year as activity picks up, even though the RBA is likely to hold rather than lift rates through 2012.  This may mean that the fixed interest rate is an attractive option for any Australian property investor.  To review your loan or check the current interest rates on offer visit our website at www.smats.net

We have been renting our house out in Australia for a while but we are moving home soon to live in it.  What expenses can we claim in tidying up the property before we move in?

We have been renting our house out in Australia for a while but we are moving home soon to live in it. What expenses can we claim in tidying up the property before we move in?

When you rent a property out in Australia, all expenses incurred in keeping that property in a tenantable condition are allowable as an expense.

These will be allowed either in full for general maintenance issues or as a progressive depreciation claim for more substantial items such as stoves and carpets.

If you intend to move back into the property, you are allowed to claim any expenses in bringing the property back to a satisfactory condition at the expiration of the rental period.

This may include painting, garden maintenance and general repairs.

It is recommended that these be done prior to you moving back into the property, however as long as they are done within a reasonable period then you can claim these type of expenses in full.

How long the property has been owned and rented may have a bearing on the amount of the claim.  For example if you had only recently acquired the property and rented it for only 6 months, then the total tax deduction may be reduced if it is seen that the property is being improved substantially from the time it was acquired rather than maintained over the course of a rental.

The longer the property has been rented, the more likely maintenance expenses will be allowed at the termination of the rental period.

Other expenses that improve the nature of the property are likely to not be allowed as an expense.  These may include new carpets, kitchen equipment or any structural improvements to the property.

These type of expenses are normally allowed as a partial annual write off if there is rental income, so if the rental ceases then so does the tax deduction entitlement as these items will provide future benefit to the occupier.

It may allow you to claim any residual amount on the old items that were replaced, such as the stove, where any unclaimed depreciation will be allowed as a full write off in the year the item was replaced.

Depending how old the item was, this could amount to a reasonable tax offset in the final year of rental.

If the items were recently replaced, then only the depreciation allowance for the rental period would be allowable, and this would cease to be a deduction from the day the property ceases to be available for rental.  You will not be able to write off any remaining value unless the item is replaced and scrapped.

We are often asked whether it is worth doing the major repairs prior to moving in, and generally speaking the depreciation write off is not sufficient to warrant the fact that you may prefer to be the first user of the item rather than the tenant.

If you have substantial expenses to be incurred on the changeover form tenant to yourself, then it would be sensible to seek professional advice on the different expenses to determine the tax deduction that may be available to you, prior to the expense being incurred.

I recently received a penalty notice from the Australian Tax Office for not lodging my tax return.  Is there anything I can do about this?

I recently received a penalty notice from the Australian Tax Office for not lodging my tax return. Is there anything I can do about this?

Many people do not realise that it is a legal requirement to lodge an Australian Income Tax Return if they receive any taxable income in Australia.

For most people living out of Australia, this would only be rental property income as overseas income would usually be non taxable.

It is a common myth that if your expenses are greater than your income (such as interest costs) that you do not need to lodge a return.  This is not true.

Even if you have just A$1 of rental income you are required to lodge a tax return and report this, even if you have more expenses than income.

For many years the Australian Taxation Office (ATO) did not have the resources to adequately police this and many non lodging taxpayers were not contacted so they felt they had no reason to lodge.  In fact it was general policy in the past that if no tax was payable then no fine would be imposed.

This changed in financial year 2000 where the ATO changed the rules to allow them to fine a taxpayer for not lodging a return even where there was no tax payable.  Until recently we have not seem them act on this ability, however with more staff available and a recent upgrade in their computer systems, chasing up non lodgers is now a priority task.

If you did receive any Australian sourced income prior to June 30th then you must lodge a return declaring the income and claiming any expenses by 31st October if you do it yourself, or if you engage a Tax Agent such as ourselves, then you have an extended period until April the following year.

Even if you did not receive any Australian income but in past have lodged Australian Tax Returns, then it is prudent to advise the ATO that a return is not necessary so they do not send you any penalty notices or demands.

If you don’t then a fine of up to A$550 per person, per year outstanding may be imposed.

If you have been charged a late lodgement fine, then it is possible to have it remitted in part or full by making a request to the ATO.  They are generally quite lenient, however you will need to explain why the return is late and also promise to lodge promptly in the future.

There is no guarantee that they will reduce the penalty, but form our experience they are reasonable in this regard at least for now, however we do expect them to be tougher on this in the future.

You should note that they will not reduce any penalties until the required Tax Returns have been completed and lodged.  If there is tax payable, then there may also be late payment penalties that need to be considered.

Attending to your tax return lodgement is not a complicated matter so should not be feared nor put off too long.

If you have outstanding tax returns then it is sensible to contact either the ATO or an Australian Registered Tax Agent like us, to discuss your situation and let them know when the returns will be lodged.  This will ensure that you can keep up to date with your requirements and hopefully have a minimum of penalties imposed.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or any of it's related entities.