Tax Issues Surrounding Retirement Village Investment

Published on 27 Jul 2006 | Took place at Tattersalls Club, Sydney, NSW

The retirement village industry is experiencing both growth and consolidation. Many builders are looking to retirement villages as alternative investment opportunities, while some major players are taking the opportunity to consolidate existing villages.

An industry like no other, its participants find themselves subject to a web of complex agreements, ATO pronouncements and transitional rules, that provide both internal and external tax specialists with headaches and sleepless nights.

These materials will help you gain an understanding of the complex tax rules, regulations and the ATO accepted practices, and be made aware of future challenges and how they may impact on your, or your client’s business. Issues considered include:
- types, treatment and the ATO’s views on resident contracts
- treatment of deferred management fees
- capital v revenue distinction and the importance of the characterisation
- transitional issues TR 2002/14 versus TR 94/24.