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Leading Accounting Firm Since 2013
Reconciled Business accountants offer services for company, trust,
partnership, sole trader, self-managed super fund and not-for profit.
- Level 1, 14 French Avenue, Bankstown NSW 2200
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About Us
RECONCILED Business Accountants services for Small and medium business enterprises (SMEs), including high net worth families frequently operate through single or groups of private companies, trusts and partnerships. These SMEs face some of the most complex and challenging rules in the tax system. They also face a high tax compliance and planning burden. Here is Reconciled Business Accountants assist for SMEs issues including indirect taxes, asset protection and estate and succession planning. Tax issues for private companies and shareholders, including Div 7A of the Income Tax Assessment Act 1936 (Cth), Tax issues relating to remuneration by and financing of SMEs, Trust streaming, trust loss and capital distribution rules affecting SMEs, Tax integrity and anti-avoidance rules for SMEs, including trust anti-avoidance rules, Tax planning for high wealth families and SME structuring, asset protection and estate and business succession, incorporating key state and federal tax, asset protection and estate issues. With more than 13 years of experience, we assist businesses from starting stage to growth and closure. Give us a call on 0404000042 for free consultation.
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Recent Updates from Reconciled
Accountants
Purpose of the Bare Trust
The Bare Trust is set up when an SMSF (Self-Managed Super Fund) borrows to buy property under a Limited Recourse Borrowing Arrangement (LRBA). A separate trustee company (the 'bare trustee' or 'custodian') legally holds the property on trust for the SMSF. The SMSF is the beneficial owner of the property, even though the legal title is in the name of the bare trustee.
Role of the Bare Trust Company
The Bare Trust company is usually a special-purpose company with no other role than to hold the property title. It does not trade or earn income itself — all income and expenses flow directly to the SMSF. The directors and shareholders of this company are typically the same individuals who are members/trustees of the SMSF, but that is by choice, not a legal requirement.
Shareholders of the Bare Trustee Company
The shareholders of the bare trustee company are not automatically the beneficiaries of the trust. Beneficiaries of the bare trust are determined by the trust deed: in this case, the SMSF itself is the sole beneficiary. Shareholders of the company just own the company (which acts as trustee). Their rights relate to the company, not directly to the trust property.
Beneficiary in Practice
The SMSF is the only beneficiary of the bare trust. The SMSF members (individuals) are beneficiaries of the SMSF, not of the bare trust directly. Therefore, being a shareholder in the bare trustee company does not give you beneficial rights in the property. Those rights flow only through your member interest in the SMSF.
The shareholders of the bare trustee company are not beneficiaries of the bare trust. The SMSF itself is the sole beneficiary, and SMSF members benefit through their SMSF membership, not through shareholding in the bare trustee company.
🏠 Rental Income
You must declare all income earned from renting out a property, including:
What to Include
- Rent payments (weekly/monthly)
- Bond money retained (e.g. for damages)
- Insurance payouts (e.g. loss of rent)
- Reimbursement of expenses by the tenant
- Booking or service fees (e.g. Airbnb, Stayz)
- Government subsidies (e.g. rental assistance)
- Lease premiums or lump sum payments
- Part-year or short-term rental income
📌 Tip: Even if your property is rented out only for part of the year (e.g. Airbnb), you must apportion income and expenses accordingly.
📄 Rental Expenses
You can claim deductions for many expenses related to your rental property. These are categorized as:
1. Immediate Deductions (same income year)
- Advertising for tenants
- Council rates, water charges
- Loan interest
- Property agent fees/commissions
- Repairs & maintenance (not improvements)
- Pest control
- Insurance (building, contents, landlord)
- Body corporate fees
- Cleaning, gardening, and security
- Depreciation on assets (under $300 immediate)
- Travel for inspection (Note: Limited after July 2017 for individual owners)
2. Depreciable Assets (decline in value)
Furniture, appliances, carpet, blinds, hot water systems, etc.
Claimed over the effective life
3. Capital Works Deductions
Structural improvements (e.g. extensions, renovations)
Claimed at 2.5% per year over 40 years
4. Non-Deductible Items
- Acquisition costs (e.g. stamp duty, conveyancing)
- Borrowing costs over $100 (deductible over 5 years)
- Expenses not related to earning rental income
🔍 Common Mistakes
- Claiming the full deduction when property is not rented for the full year
- Claiming initial repairs (considered capital)
- Not apportioning expenses between private and rental use
- Forgetting to declare all types of rental income
📅 Record Keeping
Keep records for:
- Purchase and sale contracts
- Loan and interest documents
- Receipts for expenses
- Tenancy agreements
- Property management statements
Records must be kept for at least 5 years.
End of Financial Year Trust Distribution - The financial year ends on 30 June.
Trustees must resolve distributions by 30 June (or earlier if required by trust deed). Document the Trust Distribution Resolution before midnight 30 June, or the trustee may be taxed at the highest marginal rate.
Confirm rules on income distribution.
Check if income includes capital gains or frank dividends.
Then Calculate Net Income
Prepare draft accounts for the trust to estimate:
Net trust income
Capital gains and losses
Franked dividends
Any carried-forward losses
Who receives income (beneficiaries), What percentage or amount each beneficiary receives,
whether distributions include specific types of income (e.g. capital gains, franking credits).
Then consider Tax Planning
Allocate income tax-effectively, minimize tax by distributing to beneficiaries with lower tax rates, consider family members (adults over 18, retired members, etc.).
Watch out for Division 7A, Section 100A and minor beneficiaries tax rules.
Document of the resolution require.
Need Help?
Now is the perfect time to schedule your EOFY review with us. We'll make sure you're claiming all available deductions, staying compliant, and ready for FY2026.
Best Regards,
0404 0000 42 [Bashar] from [Reconciled Business Accountants]
5/14 French Avenue, Bankstown NSW 2200
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Registrations Related Services
Aus Company Registration
Aus Company Registration is a sister concern of Reconciled Accountants and will handle all of your paperwork, compliance, and ASIC requirements so that you can launch your business with confidence.
Other Registrations
From ABNs and GST to business name and TFN registrations, we’ve got you covered. Aus Company Registration also makes setup fast, simple, and fully compliant.
Payroll Australia
Not For Profit Services
Specialised accounting support for not-for-profits.
- Ensuring Compliance
- Transparent Reporting
- Maximise Impact being audit ready
Not For Profit Services
Specialised accounting support for not-for-profits.
- Ensuring Compliance
- Transparent Reporting
- Maximise Impact being audit ready
Training
Upskill yourself or your team with our training in
- Microsoft Business Central
- Xero, MYOB And Taxation Training
- Online Learning
Property Accountant
Property Accounting and taxation services
We simplify property-related accounting — from rental income to capital gains — with tailored tax solutions and expert guidance.
Asset and Protection
Get professional support in managing your assets. We help structure your investments for long-term growth and risk mitigation.
Investment and Strategy
Strategic advice to align your finances with your goals. Reconciled Accountants helps you invest wisely with confidence.
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Fee Disclosure
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