November 2008

Tax deduction through property

Welcome to our November newsletter! It's really interesting to see which part of last months newsletter attracted the most readership. Using our software (graph below) I can see that you were most interested in our article on salary sacrificing. Therefore, and this is not something that I would normally do, but through our networks have discovered a property deal that, for it's depreciation and taxation benefits, you might like to consider..

Please keep in mind, I don't gain any benefit from this. It's just something that has come across my desk. I've thought long and hard about actually even mentioning it in the newsletter. I value our relationship and never want to be seen as "selling" to the valuable contractor base that Contract1 has built up. But I've decided to let you know about this opportunity because I genuinely feel that it could be of benefit, and I genuinely feel that in this climate that it is an excellent opportunity.

In Airlie Beach, Queensland, there are some off-the-plan apartments available, where the developer is getting down to his final sales requirements before construction can begin. Therefore is very keen to sell one apartment only. I've negotiated on your behalf;

• $12,500 discount off original purchase price of $550,000
• Guaranteed 6% return for 2 years
• At least $9,500 tax benefit in the first year via depreciation
• Settlement in 2010
• 10% bank guarantee or deposit bond required

These benefits are available to no other purchaser, but I won't mention it again. If this sounds of interest to you though, let me know and I'll put you in touch directly with the developer or I'm happy to sit down and go through it with you. You can check out the development here, but keep in mind this offer is only available to you and other contractors of Contract1.

Here is an image of the outlook of one of the apartments.

And an image of the outdoor area. If you've ever been to Airlie Beach and know the area, you'll know how fantastic it is and how beautiful the Whitsundays really are.

In future newsletters, I'll always try and include some additional tax information or deductions and benefits. Of course, there is always further information in our Tax Deduction Kit.

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The Contract1 Foundation

Something that I've been wanting to do for a while now is establish a way of giving back to the communities in which we reside and work. For this reason, Contract1 Pty Ltd has established a company called Contract1 Foundation Pty Ltd and have applied to the Australian Taxation Office and the Minster for Finance to established a Prescribed Private Fund.

The fund's aim is to distribute donations to community charities such as located close to our bases in various capital cities, namely Canberra at this stage. Our proposition to you, the contractor is, that by only donating a few tax deductible cents an hour we can collectively make a huge difference.

If all the Contract1 contractors donated 20c an hour for 1 year, we would have $52,156 to give back to the community. I'm certainly passionate about making an effective contribution, and I'd love it if you were to join us on the journey over the next few years in really making a difference.

I expect the foundation to be up and running by about April or may 2009, and without giving any commitment whatsoever, your anonymous feedback is very much appreciated.

There will also be positions available for those that would like to participate further in the foundation, effectively giving our contractor base a direct say about which charities should receive the benefit of our very generous donations. If this is something that is of interest to you, drop me a line.

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Referral offer

If you know of anyone about to start a contract anywhere in Australia, who require the services of a Contractor Management Company, we'll happily provide a gift voucher to the value of $100.00 to you, the introducer. You can choose any of a wide range of gift vouchers including Myer, David Jones, or any store that you may get the best value from. Just let us know who requires the services of Contract1, and we'll be in touch to say thank you!

For now, happy contracting!

Stuart McLeod.
Managing Director - Contract1 Pty Ltd.

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