Holmans was proud to be a featured contributor in ARAMA’s recent “Meet the Professionals” webinar. The session brought together leading experts from finance, law, valuation, accounting and management rights sales to discuss the current state of the industry and provide practical advice for operators looking to strengthen, grow and maximise the value of their management rights business.

The webinar explored key topics including business valuations, finance trends, taxation, compliance obligations, agreement top-ups, letting pool protection and preparing a management rights business for future sale. Below is a summary of the key insights shared during the session, including commentary from Holmans Director and management rights taxation specialist, Lel Parnis.

Watch the Full Webinar

Missed the live session? You can watch the full ARAMA webinar right here:

ARAMA is the peak industry body representing management rights owners and operators throughout Australia. Members gain access to industry advocacy, education, training, compliance resources and regular industry updates designed to help operators build stronger and more profitable businesses.

To learn more about ARAMA membership, training programs and upcoming industry events, visit the ARAMA website.

Market conditions remain positive despite some softening

While transaction volumes have eased slightly across many regions due to higher interest rates, demand for quality management rights businesses remains strong.

Multipliers have softened in some areas compared to previous years, however well-presented businesses with strong fundamentals continue to attract buyer interest.

A key factor influencing business value is the return on investment available to buyers. As property prices and borrowing costs have increased, buyers are paying closer attention to business performance, agreement terms and overall profitability.

Top-ups remain one of the most important value drivers

One topic repeatedly raised by valuers, brokers and lawyers was the importance of keeping agreements topped up.

A top-up extends the term of management rights agreements, helping maintain both business value and marketability.

Businesses with longer agreement terms continue to attract stronger buyer interest, while businesses with shorter remaining terms may face additional scrutiny from purchasers, financiers and advisers.

Operators should:

• Understand their current agreement terms.
• Track key option and renewal dates.
• Plan top-ups well in advance.
• Treat top-ups as an ongoing business strategy rather than a last-minute exercise.

Finance approval timeframes are increasing

Finance approvals are taking longer than many operators may be accustomed to. What was once commonly a 30-day process can now extend to 50 or 60 days due to increased lender requirements and more extensive due diligence processes.

Interest rates also continue to impact borrowing capacity, particularly for buyers seeking to leverage equity from residential property.

Banks remain supportive of management rights lending, however buyers may need to provide more information and demonstrate stronger servicing capacity than in previous years.

For vendors, this means allowing realistic settlement timeframes and understanding that finance-related extensions are becoming more common.

Tax planning remains critical

Many management rights businesses have enjoyed a relatively strong financial year despite broader economic uncertainty.

While traditional tax minimisation opportunities have reduced over time, strategic tax planning remains essential.

Importantly, operators should focus on:

• Understanding future tax liabilities.
• Managing cash flow.
• Planning superannuation contributions.
• Reviewing business structures where appropriate.
• Seeking advice before making major decisions.

With significant tax proposals announced in recent budgets, operators should avoid making rushed decisions until further details become available.

Review your fees and charges regularly

For many operators, annual reviews of fees and charges can be an overlooked opportunity.

Where agreements allow, operators should review CPI-linked increases and ensure charges keep pace with rising operating costs.

This is particularly important given recent increases in wage costs, contractor expenses and supplier charges.

Regular fee reviews not only support profitability but also demonstrate sound business management to future purchasers.

Prepare now for changes to credit card surcharge rules

One significant issue raised during the webinar was the upcoming removal of merchant surcharge recovery for many businesses.

Operators currently generating income through guest credit card surcharges should assess the financial impact well before implementation and consider alternative strategies to recover costs or improve operational efficiencies.

Possible actions include:

• Reviewing merchant service providers.
• Negotiating lower transaction fees.
• Encouraging alternative payment methods.
• Reviewing booking and administration fee structures.

Stay on top of compliance obligations

Compliance remains a critical area of risk for management rights operators.

Industry experts highlighted several areas requiring ongoing attention:

• Real estate licence renewals.
• Corporate licence renewals.
• Trust account compliance.
• CPD obligations.
• Form 6 documentation.
• Letting agreement reviews.
• Cancellation fee authorisations.

Missing documentation or outdated agreements can create issues during audits, financing applications and business sales.

Strong relationships remain a competitive advantage

Understanding your agreements and maintaining positive relationships with committees and owners remains essential.

Operators should regularly review their caretaking and letting agreements, understand their obligations, and ensure expectations are aligned with those of the committee.

Likewise, maintaining strong relationships with owners can help protect and grow the letting pool, improve retention and support future business value.

Run your business as if you were selling tomorrow

Perhaps the strongest message from the webinar was that operators should manage their business as though they are preparing it for sale every day, regardless of when they actually intend to exit.

This means:

• Keeping agreements current.
• Maintaining accurate documentation.
• Reviewing fees and charges annually.
• Monitoring profitability.
• Staying compliant.
• Protecting and growing the letting pool.
• Building positive relationships with owners and committees.
• Seeking specialist advice early.

A well-managed business is not only more attractive to future buyers, it is also likely to be more profitable and enjoyable to operate in the meantime.

Need advice?

Management rights is a highly specialised industry. Whether you’re planning for growth, reviewing your tax position, preparing for a future sale or simply looking to improve profitability, obtaining advice from professionals who understand the management rights sector can make a significant difference.

At Holmans, we work with management rights operators across Australia, providing specialist accounting, taxation, audit and business advisory services tailored to the unique needs of the industry.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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In the wake of Tropical Cyclone Alfred, businesses across Queensland are facing significant challenges. AAMA recently hosted a webinar featuring industry experts from insurance, accounting, property services, and building management to provide guidance on financial recovery and operational resilience.

Key Takeaways from the Webinar

Financial Impact & Recovery Strategies
Tony Rossiter (Holmans) highlighted steps to assess and mitigate financial losses:

• Lost Revenue & Expenses: Businesses should document booking cancellations, operational disruptions, and clean-up costs.
• Government Grants & Assistance: There are financial support programs available, but navigating them requires careful documentation.
• Business Valuation Considerations: One-off losses due to natural disasters should be adjusted in financial reports to reflect normalised earnings.

Insurance & Risk Management

Chris Trail (EBM Insurance) provided insights on business interruption insurance and the claims process:

• Businesses should review policies to determine coverage for lost income due to the cyclone.
• A claim should be lodged even if financial losses seem minor, as cumulative claims can significantly impact business recovery.
• Preventative maintenance and proper documentation are critical for smoother claims processing.

Property Damage & Maintenance

Greg (WaterTight Group) and representatives from Programmed Property Services emphasised the importance of building maintenance and emergency response:

• Roof leaks, basement flooding, and structural damages need immediate assessment.
• Regular preventative maintenance—such as checking sump pumps and stormwater drainage—reduces vulnerability during extreme weather events.

Communication & Business Continuity

Kelly Rigby and Gush (MyBoss) addressed effective stakeholder communication and operational tracking:

• Clear communication with body corporate committees is crucial, especially regarding additional work charges and maintenance responsibilities.
• Property managers can use building management software like MyBoss to track damages, document repairs, and generate reports for insurance and stakeholders.
• Businesses should proactively update customers, residents, and investors on their recovery progress.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Support for Small Businesses Impacted by Tropical Cyclone Alfred

If your business, primary producer or not-for-profit organisation has been impacted by Tropical Cyclone Alfred, financial assistance is available through the Queensland Rural and Industry Development Authority (QRIDA) to help you recover and resume operations.

Available Assistance:

For Small Businesses & Not-for-Profit Organisations:

• Disaster Assistance Loans – Concessional loans to repair or replace damaged assets and restore operations (up to $250,000 for Business and $100,000 for non-profit, terms up to 10 years).
• Essential Working Capital Loans – Concessional loans to cover essential operating costs due to loss of income (up to $100,000, terms up to 10 years).

For Primary Producers:

• Disaster Assistance Loans – Concessional loans for repairing and replacing assets, replacing livestock, and resuming business operations (re-planting, restoring or re-establishing areas affected by the disaster event, sustenance, essential property operations, paying rent and rates) (up to $250,000, terms up to 10 years)
• Essential Working Capital Loans – Concessional loans to assist with ongoing expenses such as wages, rent, and fodder and transporting livestock or produce. (up to $100,000, terms up to 10 years).

Difference Between Disaster Assistance Loan and Essential Working Capital Loan

• A Disaster Assistance Loan is available for businesses that have suffered direct damage from the disaster. This loan can be used to repair and restore business operations, as well as cover essential expenses the business is struggling to meet due to the disaster (e.g., lease payments, property rates, creditors).
• An Essential Working Capital is available for businesses that have not suffered direct damage but have experienced a significant drop in income due to the disaster. This loan helps cover essential operating costs (e.g., lease payments, property rates, wages, creditors) when the business cannot meet them within its existing credit limits.

Eligible Areas:

Disaster assistance has been activated for affected areas including:

• Brisbane City, Bundaberg, Fraser Coast, Gold Coast, Gympie, Ipswich, Lockyer Valley, Logan, Moreton Bay, Noosa, Redland, Scenic Rim, Somerset, Southern Downs, Sunshine Coast, and Toowoomba Regional Councils.

How Funding May be Used

• Loan funds provided are to be used as essential working capital, this includes:
• paying salaries or wages;
• paying creditors;
• paying rent or rates;
• buying goods, for example – fuel essential to carry-on the small business.

• Loan funds are not provided to:
• Compensate for lost income due to the disaster.
• Cover direct damage costs beyond the scope of eligible assistance.

Key Details:

• Interest Rate: 2.14%
• Application Deadline: 31 December 2026
• Repayments: If needed, up to two years interest only may be available
• Security: A loan under the scheme must be secured by a mortgage of land and other assets satisfactory to QRIDA.
• No establishment or maintenance fees

Eligibility Criteria;

To qualify for assistance, applicants must meet the following requirements:

1. Be a Small Business Owner
• Hold an Australian Business Number (ABN)
• Not be a public company under the Corporations Act
• Employ fewer than 20 full-time (or equivalent) employees
2. Operate in the Defined Disaster Area
• The business must have been actively operating in the affected region before the disaster.
3. Suffered a Significant Loss of Income
• The business must demonstrate a major financial impact due to the disaster.
4. Additional Requirements
• Provide adequate security for the loan, which may include:
• A mortgage over land or other assets
• Additional security such as plant, machinery, or general business assets
• Continue operating in the affected area.
• Show reasonable prospects of recovery with financial assistance.
• Have used all available funds and credit before applying.
• Have no access to commercial finance for ongoing operations.
• Not have received another concessional loan related to the disaster.
• Not have engaged in excessive risk-taking in business operations.

How to Apply;

• To be considered for a loan please submit a completed application form, accompanied by the documentation stated on the application form.
• Application forms and related information can be accessed here

Primary Producer:

• Disaster Assistance Loans
• Disaster Assistance (Essential Working Capital) Loan

Business:

• Disaster Assistance Loans
• Disaster Assistance (Essential Working Capital) Loan

Non-Profit

• Disaster Assistance Loans
• Disaster Assistance (Essential Working Capital) Loan

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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If you hold a Queensland property industry licence or registration, it’s important to stay on top of your Continuing Professional Development (CPD) requirements each year. We’ve put together a quick guide to help you understand what’s required, why it was introduced, and how to stay compliant.

Why CPD Was Introduced

The CPD framework was introduced by the Queensland Office of Fair Trading (OFT) to lift professional standards across the property industry. The goal is to ensure licensees and registered professionals remain up to date with legislative changes, compliance obligations, trust accounting requirements, and best practice in agency operations.

By requiring ongoing training each year, the OFT aims to:

• Improve consumer protection
• Reduce compliance breaches and trust account errors
• Keep industry participants current with law and practice changes
• Promote more consistent professional standards across the sector

Your CPD Year

Your CPD year is not based on the calendar year; it is based on the date your licence or registration was originally issued.

This means your CPD cycle may run, for example, from June to June, or October to October. To confirm your exact CPD year start and end dates, you can use the official OFT CPD calculator.

CPD Session Requirements

Each CPD year, you must complete 2 approved CPD sessions to maintain your licence or registration.

You can complete either:

• 1 × Type 1 session and 1 × Type 2 session
• OR
• 2 × Type 1 sessions

Only CPD sessions that are specifically approved for Queensland by the OFT will count. Training approved in other states will not be accepted for Queensland compliance.

Type 1 sessions generally focus on high-priority compliance and regulatory topics, while Type 2 sessions usually cover broader professional development and industry skills.

Where to Complete CPD Training

Most CPD training is provided by approved private providers and is typically paid training. Some easy click options include:

• Aspire Performance Training – from approx. $120 + GST per session
• REAA (Real Estate Academy Australia) – CPD package options
• REIQ – member and non-member CPD course offerings

Each provider lists whether a session is Type 1 or Type 2, so you’ll need to select sessions that satisfy your annual requirement.

Record Keeping Requirements

After completing each CPD session, the provider must give you proof of completion (such as a certificate or statement of attainment).

You are required to:

• Keep your CPD completion records for at least 5 years
• Provide them to the OFT if requested
• Ensure sessions are completed within your CPD year (not carried forward — this needs to be done every year)

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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On 27 July 2022, the Labor Government introduced legislation (Treasury Laws Amendment (Electric Car Discount) Bill 2022) aimed at helping increase the adoption of electric vehicles by making them more affordable for Australians by reducing FBT liability to nil regardless of the amount the vehicle is used for private travel for Electric Vehicles (EV) and Plug-in Hybrid Vehicles (PHEV).

Currently, when a business owns a vehicle (directly of via novated lease) and provides the vehicle to an employee and there is an element of private use, there is a deemed ‘Fringe Benefit’ provided by the business. The business is then either liable for Fringe Benefits Tax (FBT) or your accountant makes a ‘private use’ adjustment which is added to the business as taxable income to negate any FBT liability – either way the tax benefits of vehicles owned in businesses are currently reduced for private use.

But – should the proposed legislation be enacted there will no longer be limited tax benefits for vehicles owned by businesses – provided they are ‘electric vehicles’

If an employee purchases an EV/PHEV via a novated lease, provided it is under the luxury car tax threshold then the employee can pay for the entire car and ongoing costs from pre-tax salary with no FBT payable by their employer.

If the business purchases the car outright (or via chattel mortgage), the business can potentially claim the GST, a tax deduction for the cost of the car and ongoing running expenses in full.

A quick example of how big the potential savings could be, for a vehicle used entirely for personal travel for an employee business owner operating through a Trust structure:

The business owner has personal taxable income of $200k with after tax earnings of $135k. If he/she purchases a Model 3 Tesla for $60k including GST:

Without the proposed FBT exemption, the vehicle would be purchased personally and cost $60k – no tax savings to be had.

With the proposed FBT exemption, the vehicle could be purchased by the Trust which could:

• Claim an input tax credit for the GST on purchase ($5,454 GST credit)
• Claim an immediate tax deduction for the cost of the car under the current temporary full expensing rules provided the car is acquired and ready for use by 30 June 2023
• The taxable income will be reduced to $145k and tax to c.$42k. Overall a tax/GST saving of c.$23,000 + c.$5k = $28k in the year of purchase reducing the cost of the vehicle from $60k to $32k. With no ongoing private use/income adjustments required.

Exempt car fringe benefits for electric cars will still be included for the purposes of determining an employee’s reportable fringe benefits amount. This means that the benefits will be included for the purposes of calculating an employee’s Medicare levy surcharge, determining entitlement to certain tax offsets and determining eligibility for certain family assistance payments.

The impact on an employee’s reportable fringe benefits amount should be considered when modelling the benefits of salary sacrifice arrangements taking advantage of the new FBT exemption.

Key dates/notes:

• The exemption will apply to electric cars that are first held and used on or after 1 July 2022. Second hand vehicles may qualify and the exemption may apply to vehicles ordered but not received before 1 July 2022.
• The exemption will only apply to vehicles costing less than the luxury car tax threshold for fuel efficient cars, which is $84,916 for the 2022-23 financial year.
• The car must be a battery electric vehicle; a hydrogen fuel cell electric vehicle; or a plug-in hybrid electric vehicle. There are definitions for each of these terms in the Bill. The vehicle must be a car i.e. motorbikes are not exempt under the proposed legislation.
• Exempt car fringe benefits for electric cars will still be included for the purposes of determining an employee’s reportable fringe benefits amount.

Business owners should consider whether they could implement salary sacrifice policies to take advantage of this new FBT exemption to attract and retain staff, and reduce their carbon footprint.

The Bill was before the Senate and not yet passed at date of writing this article, please liaise with your accountant prior to making any significant asset purchases as always.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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Think about selling when you buy.

When selling any business, the key outcomes of a successful sale typically include achieving a quick and pain-free sale at the highest possible sale price.

Sounds easy in theory, however, it can be quite challenging in practice. With careful planning, attention to detail, and guidance from industry professionals, you can improve your chances of maximising your sale outcome.

Ideally, your planning for a sale should start the day you settle on purchasing your management rights. Consider any issues that caused concerns during your purchase, such as letting agreements; issues that might have been raised with the agreements during your due diligence are still going to be there when you sell unless you take action to get them resolved. All too often, the agreements end up in the bottom drawer of the filing cabinet and don’t see the light of day again until your buyer is undertaking their due diligence. At that time, it may be too late to rectify the issues or, at best, will lead to potential long delay in your sale.

Bundling for a better outcome

Another strategic decision you could make early on in your management rights journey that could pay dividends when you go to sell is the bundling of fees and charges to unit owners. Increasing in popularity over the last few years, bundling has led to successful outcomes for many management rights sales by simplifying the revenue streams of the business, improving relationships with unit owners, and maximising revenue outcomes. If your management rights has not already bundled charges, talk to your industry accountant and ideally have the new system in place at least 12 months prior to going to market to sell.

Preparing a sale of business statement that will stand up to scrutiny

Against the best advice from industry professionals, management rights owners continue to prepare their own sale of business statement when they go to sell. Although this do-it-yourself approach is quite admirable and may lead to savings in professional fees, it is also likely to increase the possibility of a sale contract falling over or a dramatically reduced sale price due to some common errors. The opportunity cost of not maximising your sale price may be many times that of the savings in professional fees.

Preparing your figures yourself or engaging an inexperienced accountant to advise on your sale purely because they are charging less can lead to the same unhappy result. Generally, the old adage ‘you get what you pay for’ couldn’t be more true.

Although not rocket science, the preparation of a sale of business statement is not entirely intuitive. Getting a single figure wrong will cast a shadow of doubt in the mind of an experienced accountant preparing the financial verification for a buyer. We see simple errors such as including 13 months’ worth of one income item or making inappropriate assumptions regarding adjusted figures. These can easily lead to a terminated contract or a drastic reduction in sale price.

Minimising your tax liability

Typically, a management rights owner will sell for one of two reasons: either to retire or to upsize their complex. Either way, the more cash remaining after the sale process is complete, the better. Writing a cheque to the tax office as a result of a capital gain on the sale of your business and you won’t see it again. Legally minimise that tax payment, and you have suddenly increased that retirement nest-egg or the size of your next complex.

The greatest opportunity for minimising tax is by accessing the small business Capital Gains Tax (CGT) concessions. In practice, the owner of a management rights complex can make a capital gain of $500,000 or more on the sale of goodwill and pay no tax. Although these concessions have been available for a number of years now, it is amazing how few people plan to ensure they are in a position to access them.

In reality, planning for minimising tax should start before you even purchase your management rights business. Ensuring you have the most appropriate business structure from the outset will maximise your opportunity to access the small business concessions when you sell. Even if the business structure is not the most appropriate from the outset, you may still be able to minimise any CGT exposure by appropriate planning in the year of sale.

The Small Business CGT concessions include a 15-year retirement concession, an active asset concession, and several rollover concessions. Additionally, applying the general 50 percent discount may reduce CGT. Common mistakes in planning for the Small Business CGT concessions include operating your management rights business through a company rather than a family trust. In a company structure, you will not be able to access the 50 percent discount, and the application of the active asset concession will be ineffective in minimising tax.

Where your management rights business is operated through a discretionary trust, the Small Business CGT concessions may not be available if appropriate distributions from the trust are not made in the year the Capital Gain is realised. Additionally, if applying one of the rollover concessions and payments aren’t made within the correct timeframe or the correct approved forms are not completed, the tax office may not allow the concession.

Recently, we had occasion to advise a new client who was fortunate enough to be making a capital gain on the sale of their business in excess of $1 million. The business owners had received advice from their long-time accountant that the gain would attract a CGT liability in excess of $250,000. After some careful consideration of the relevant legislation and applying the Small Business CGT Concessions, we were able to determine that the CGT liability could legally be reduced to below $50,000. Suffice it to say, the client was ecstatic with the lower tax liability, meaning the individual could retire comfortably today rather than face the prospect of working for several more years after paying the higher amount of tax. The moral of the story is to choose your advisors carefully; saving a few dollars today in professional fees may be lost many times over in the future when you come to prepare your business for sale and ultimately calculate the CGT liability on your gain.

Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.

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