Read part 1 here (opens in a new tab)
Compliance Cost – NDIS SDA Registered Provider
The cost and time to get SDA Registered via the NDIA are unclear, indications provided to us from existing SDA Registered Providers indicate the process could take up to 12 months, and cost in excess of $10,000 to set up policies, and procedures for NDIA compliance.
Thereafter with an annual compliance cost of $5,000 plus for the annual audit and compliance maintenance.
The GST Claimed on a single property may only cover the compliance cost over the life of the investment!
Once an investor is SDA Registered, the ATO will allow a more experience SDA Registered Provider to act as an agent when dealing with participants.
If the investor is only got one property, the setup compliance cost may be too great to chase the GST Refunds, if however you are building a complex, or are obtaining a number of properties. The time and cost of SDA Registration may be worth the cost and wait.
Investors will need to spend the time to get personally compliant.
Below is the latest ATO interpretation of the NDIS SDA legislation, providers of NDIS SDA are registered with the NDIA personally, leasing to a third-party SDA Provider, who then leases to the ultimate NDIS SDA Participant is a supply to the SDA Provider, not the SDA Participant.
So is seen as an input tax supply.
We are investigating with other professionals on this matter, in particular for NDIS SDA Participants being also SDA Registered Providers for their own accommodation.
Is there a workable solution for
Please see the latest NDIS SDA Tax Rulings.
https://umbrellaaccountants.com.au/wp-content/uploads/2023/06/1.-GST-Free-Supply-SDA-Provider.pdf
https://umbrellaaccountants.com.au/wp-content/uploads/2023/06/3.-SDA-Provider-Registered-NDIA.pdf
https://umbrellaaccountants.com.au/wp-content/uploads/2023/06/4.-SDA-Reg-Provider-As-Agent.pdf
If you would like to discuss this further, please feel free to book a meeting online.
Main Points Considered A New Zealand Citizen living in Australia, do they qualify for the First Home Owners Grant (FHOG) Also, can they qualify for the First Home Owners Stamp Duty Concessions What if they rent out the spare bedroom to help pay the mortgage? Scenario...
Principal Place of Residence Exemption Loss if Sold While Overseas Summary of how the Principal Place of Residence (PPR) Exemption is impacted by moving overseas. When Australian homeowners move overseas and become non-residents for tax purposes, selling their...
Having an investment property prior or posted to it being a principal place of residence has tricky CGT Calculations. Capital Gains Tax (CGT) is an essential consideration for property owners when selling a property used for different purposes over time. This blog...
Picture of a vacant block of land to illustrate it may be subject to land tax What is Land Tax? Land tax is a state and territory-imposed tax on the unimproved value of taxable land owned by individuals, companies, and trusts. It is calculated annually based on a...
Temporary Resident in Australia Suppose you are a temporary resident in Australia and want to purchase a Principal Place of Residence (PPR). In that case, there are restrictions and requirements you must follow, mainly governed by the Foreign Investment Review Board...
Seven changes impacting your super in 2025 Superannuation rules are constantly changing, and 2025 is set to bring some updates that could affect your retirement savings. Whether you’re just starting to build your super or already planning for retirement, keeping up...
What are the tax and investment considerations for a Granny Flat above versus a Tiny Home below? Income Tax Return Reporting - Income Streaming Tiny Homes Tiny home ownership does not have to follow the ownership interest of the underlying property ownership. For...
Secondary Dwelling From December 2023 the Victorian Government has passed planning changes to make it easier to build Granny Flats - or "small secondary dwellings", on existing homes. The Victorian Premier Jacinta Allan revealed that planning permits will no longer be...
The ATO is particularly targeting property investors that are not using the help of a specialist property tax accountant like Umbrella Property Accountant, due to the high error rate being discovered from ATO Audits. The ATO Audits into self-preparers have uncovered...
Gold Coast - Example of the Housing Rental Competing Forces Many Apartments are sitting empty most of the year, including an entire beachfront tower. Gold Coast mayor Tom Tate cited an entire high-rise sitting empty in the triple tower Jewel development at Surfers...
