@Dudley said:Re: raising these issues at the AGM.
Should I communicate my wish to discuss these issues and request that they be listed on the agenda or just raise them when the motion requesting that the financial statement be approved is raised?
My advice is that provided you have enough time to submit the issues you wish to raise in the form of a Motion on the Agenda of your AGM, then that’s the best way forward as it provides both your Executive Committee and Strata Manager with the notice necessary to prepare themselves by bringing appropriate information to the Meeting.
Otherwise, you’re likely to get the “I’ll take that Motion on notice, and get back to you” response.
Now back to the broader issue of an O/C’s tax liability, I’m not an accountant, but my interpretation of the Commissioner’s Ruling IT2505 is that in NSW where the Common Property is held in the name of the Owners Corporation (O/C) as “agent” for the Proprietors:
- Levies paid (to both Funds) are covered by the principle of mutuality, where the ATO does not regard those amounts as income
- Interest received, and Fees charged by the O/C for things such as preparing S108 Certificates are accessible income in the hands of the O/C, and liable to tax at the Company Rate (30%)
- The costs of managing the Plan, such as the SM Fee, Bank Fees etc are deductions for the O/C
- Income received by the O/C from the use of its Common Property, such as from a solar feed-in tariff, and from the rent or use of commercial areas in a mixed-use plan, off-sets an amount that would otherwise need to be paid by Proprietors (via Levies), and so those amounts are taxable in the hands of those Proprietors in proportion to the Units of Entitlement of their Lots.
Anything more (or at odds with my interpretation) from posters with more relevant expertise?