Kelly+Partners Compulsory Acquisition services provides expert tax planning and business advice for business owners impacted by the New South Wales Government's infrastructure plans.
What is Compulsory Acquisition?
NSW Government Infrastructure Plans
The NSW Government has recently announced a series of major projects that will result in the vast expansion of Sydney’s rail and road infrastructure. These projects are located in Inner Sydney areas such as the CBD, Rozelle, Waterloo and North Sydney as well as in areas across Greater Sydney such as the North West and the South West. To implement the State’s infrastructure plan, various properties will be subject to Compulsory Acquisition under the Land Acquisition (Just Terms Compensation) Act, 1991. Broadly, under the provisions of the Act the Valuer General determines the amount of compensation to be paid by the Government to the land owner and any other parties affected by an acquisition, such as tenants.
Tax Planning Strategies
The Compulsory Acquisition of residential and commercial properties and/or leasehold interests in such properties presents significant tax planning opportunities for business owners. Some business owners may be able to utilise ‘roll-over relief’ provisions in the Income Tax Assessment Act (Cwlth), 1997 which may, depending on an individual taxpayer’s circumstances, result in the significant reduction of any taxation liabilities on the Government’s acquisition of the relevant property. Access to the roll-over relief is not automatic as very specific criteria must be met. Receiving expert tax advice regarding Compulsory Acquisition is crucial for diligent taxpayers seeking to access the roll-over provisions and to minimise their tax liability.
NSW Government Subsidy for Accounting Advice
In recognition of the complex tax issues that arise on the Compulsory Acquisition of land or a leasehold interest in land, the NSW Government is subsidising the provision of tax advice in some circumstances. To find out whether you qualify for this subsidy please check the letter you have received from the NSW Government entity seeking to acquire your land.
For more information, please contact Tony Nunes or Brett Kelly, our Compulsory Acquisition experts.
Kelly+Partners Tax Consulting Group
When businesses anticipate and manage their tax liabilities, their cash flow improves, their risk of Australian Tax Office audit adjustments goes down, and their profits go up. A stronger business means a lower risk profile, greater valuation, lower interest rates and many other benefits. Business profits are directly affected by tax laws and indirectly affected by other Government policies that rely on existing tax laws for their operation.
Kelly+Partners Tax Consulting Group have a number of ways to help you build a more profitable, stronger business by managing your total tax risk.
Our tax experts will help you to understand your tax risks and liabilities across your entire business. Just as importantly, we will show you how sound planning can help you to reduce your liabilities and manage your corporate tax governance.