#58175
strataact
Flatchatter

    If the $180 is tax at 30%, that suggests your gross income should be something like $850 – $250 (Tax agent fee) = Net income $600 – Tax $180, for a net benefit to the scheme of $420.

    At the risk of being pedantic, the net benefit is to the owners, distributed for tax declaration purposes according to unit entitlements. That’s why many schemes, for so many years, have put their money in non-interest bearing accounts.

    Would that only occur if it was actually distributed – and if it was it would be like a franked dividend, with franking credits for the tax already paid available as well.  CAn’t the scheme just keep the dividend, and use it for general expenses

    I see there is a long ATO Ruling on taxation of Strata Schemes.  From my amateur  reading it seems to suggest that interest income is OK to treat this way, but if the scheme makes income from common property (eg renting the roof space for a mobile phone tower) then that needs to be distributed to owners.   Are there any tax  accountants or lawyers out there in flatchat land who can comment?  Or Jimmy maybe it could be a topic with the right guest for a future podcast?