Australian property tax and expatriate tax expert STEVE DOUGLAS explains why setting up a company to purchase property requires careful consideration.

Q. I’m thinking of buying a property in Australia. Should I set up a company to do this?

A. Using a legal structure to purchase property is a very personal decision and should be based on a number of issues. These include legal protection, succession planning, transferability – and of course, taxation. As a general rule it’s not ideal, as the company will not benefit from the 50 percent Tax Exemption on Capital Gains. If a legal structure is deemed necessary, a Unit Trust or Family Trust would be more appropriate.
     The nature of the property also makes a difference. If it’s commercial rather than residential, a legal structure may be more suitable – particularly when multiple owners are coming together to make the purchase. In this instance a record of a defined unit allocation can help to determine each individual’s ownership of the asset. With residential property, it’s usually best to make an acquisition in your personal name. This is because if you can keep the debt levels high on the property during the time rent is collected, it can prove very tax effective – both during your time abroad and upon your return to Australia. Buying in your own name is also essential if you wish to take advantage of the Principal Residence Exemption on Capital Gains Tax rule. This can only apply if you live in the property some time in the future, upon your return to Australia.
     Setting up a legal structure may also incur the loss of any benefits in building up tax credits on excess holding costs. In such an instance, any tax losses can become trapped in the entity, disenabling you to offset any personal salary income against these losses, upon your return to Australia.
In all cases, the use of a structure should be carefully considered. If your only reason is to obtain an artificial tax benefit – which some schemes and Hybrid Trusts promote – you may find yourself in trouble with the authorities. The Australian Tax Office has the power to look through and void the entity for tax purposes.
The current system and legal incentives for purchases as an individual already promotes the ability for you to enjoy a tax-free investment. So if tax avoidance is your sole motivation, using a legal entity could prove detrimental – you may just outsmart yourself!
 

Care for your child’s pearly whites with this advice from Dr Ong Yean Sze of SMILEFOCUS

A healthy set of primary teeth helps your child to speak clearly, chew naturally and also aids with creating a path for the arrival of permanent teeth. Teeth provide structure to the face and lips and create a beautiful smile. But decay can impact the healthy growth of secondary teeth resulting in long-term problems.
     Bacteria converts sugar on the tooth’s surface into acid within just five minutes which softens the tooth, inviting even more bacteria and resulting in cavities. Minimise this by ensuring your child is getting sufficient fluoride. The benefits of fluoride are two-fold. Fluoride first works on unerupted, developing adult teeth and then on the teeth already visible. Adult teeth start to form at birth, so incorporating fluoride into your child’s diet will help them develop a strong, healthy set of teeth for life. You should also encourage your child to drink Singapore tap water, as our national water supply is fluoridated. UK studies report children’s toothpaste has only 500ppm of fluoride, which is insufficient. By comparison, "grown-up" toothpaste has 1,100 to 1,400ppm and fluoride gels range from 1,000 to 5,000ppm. Ensure your child is able to expectorate (spit) before they use adult toothpaste and use less than a pea-sized amount, as ingesting excess fluoride can cause discolouration or fluorosis of adult teeth. The crowns of adult teeth are especially vulnerable during initial formation in the first three years of age.
     Children whose teeth are susceptible to decay may need an additional topical fluoride applied at dental visits. Tooth mousse is a good alternative to fluoride. While it is sugar and fluoride free, it offers similar oral health benefits as fluoride and also contains a particular protein which binds onto the tooth and gum surfaces, protecting teeth from decay by increasing calcium phosphate and neutralising acidic saliva. Tooth mousse is only available from your dentist but is not recommended if your child is allergic to milk proteins.
     Cavities in children are often due to frequent contact with acidic or sugary food and drinks. Encourage your child to eat healthily – limit their intake of sugar and acidic food and drinks and offer savoury biscuits or cheese instead. And promote good dental habits, such as brushing twice a day and flossing daily.

Tips for top teeth
- Avoid nursing your child to sleep, or bottle-feeding during bedtime.
- Floss to prevent "interproximal" cavities. Molar spaces close at around three years of age, so tooth-to-tooth contact between molars may be where daily flossing is needed.

Dr Ong Yean Sze
Visiting consultant, Cleft & Cranial facial Centre, KKWCH

Paediatric Specialist Dr Ong Yean Sze is a very popular dentist, deft at charming smiles from reluctant children.

AIDAN BAILEY shows you the right path for making sound financial planning decisions.

During these uncertain financial times your planning can be tested to the limits and it can be tempting to jump from one "good idea" to another. But without careful planning, such "day" trading can be a recipe for disaster. Here are some key steps to consider in helping you stay on the straight and narrow.
Information Before you make plans for your financial future, ensure you understand where you’re starting from – check your income, assets, retirement objectives, life assurance and pension plans, UK or otherwise. It’s difficult to map a plan without knowing where you’re starting from.
Time horizons Give each of your assets a time period to achieve set objectives and consider specific future dates to assess and make further plans.
Risk tolerance When you’re planning a financial strategy, always carefully consider the degree of risk you’re willing to take. This doesn’t mean because you have a high capacity to accept risk you should adopt a high risk portfolio. Understand your limits.
Asset allocation Work together with a licensed and qualified adviser to determine a mix of assets to best suit your needs. Studies have shown the decision of asset allocation is the most important when it comes to determining investment returns.
Fund selection Once you’ve chosen your asset allocation, you’ll require a blend of suitable funds to meet your needs. Again, it’s best to seek advice from a licensed and qualified adviser at this stage.
Tax planning Although the tax "tail" should not wag the investment "dog", it’s important to protect your assets from unnecessary tax. Identify the most tax-efficient manner for your investments – such as approved pension, ISA, bonds, trusts and other structures. 
Review your financial affairs on a regular basis to ensure your chosen asset allocation continues to be suitable, funds are performing in line with expectations and advantages are made of any changes to tax legislation. Changes can then be made if necessary, although you shouldn’t lose heart if your strategy is not immediately successful. Markets rarely move in straight lines and by selling out of a fund which has dropped in value over the short term, you could miss out on a recovery. If your asset allocation fits your circumstances, objectives and risk profile, always sit tight on it – unless something fundamental, such as your objectives, has changed.
 

Aidan BaileyBA (Hons) CertPFS AWP^CM 
General Manager Singapore, International Division    

ELISABETTA FRANZOSO explores the relationship between wellbeing and communication – the ninth focus of the Wellness Inventory Wheel.

Reality Check Communication involves organising your thoughts and feelings, then transmitting them in the form of a verbal or nonverbal message. Human communication is an exchange of information between a sender and a receiver. But as humans are so complex, it’s virtually impossible for us to communicate isolated bits of data. Each time you speak to someone, you’re revealing something about yourself – your tone of voice, facial expressions, gestures, words and even clothes act as a message about yourself.
Insight The people you communicate with interpret what you share in the form of theory perceptions, beliefs and values. Sometimes there are so many variables and hidden messages the original information ends up getting buried. When you’re not busy communicating with someone, you’re carrying on a running conversation within yourself. Although you might not be aware of it, this self-talk has a deep impact on your self-esteem and subsequently, your wellbeing.
Result These internal conversations are as vulnerable to distortions and misrepresentations as any other conversation. Internal conversations direct the way you view the world and yourself, so they have an impact on your health, happiness and general wellbeing. If you tell yourself you are weak or unworthy enough times, the likely outcome will be just that.  
Moving Forward Once you realise how exhausting and sabotaging self-talk can be, you can resolve to change it. With the support of a professional personal coach, set aside time each day to observe and listen to your inner dialogue. Journal your intrapersonal communication and explore why it deeply influences your health and wellbeing. Awareness gives you the ability to take responsibility and action and make a decision to enhance your communication skills and lifestyle.

Elisabetta Franzoso is a highly self-driven coach and motivator who focuses on communication, self-expression and wellbeing. Her passion is to empower people to achieve excellence and transformation from the inside out. Stella’s Mum Gets Her Groove Back is Elisabetta’s personal testimonial of living behind a mask for many years and how love, faith and hope helped her triumph over denial, guilt and shame. Visit www.InsideOutYou.com to complete your Wellness Inventory index and get your personal Wellness Assessment.

There’s lots going on over the next few days, check out:

Further to below’s post, Boots today announced they’re offering 20% percent off all purchases until September 15, in celebration of their 75th birthday - woo hoo! Get shopping here

Paying less than full price has become de riguer. Of course it’s likely the retailers offering reduced prices have hiked up their "usual price" to allow for the "discount" that seems so inherent in Asian culture. But it always amazes me how when you ask, "is that your best price?", it very often is not. My husband is great at squeezing blood out of a stone. To my eternal embarassment he’ll always ask for a better deal - it’s the salesman in him. If it’s a pair of trainers he wants a free pair of socks. If it’s a car he wants a complimentary hands-free phone set. If it’s a fine for a one-day late payment charge on a credit card, he’ll threaten to take his business elsewhere unless its waived. While I’m in the corner cringing, he’s the one getting the deal. Thankfully it’s usually for my benefit!

But I must say, shopping online emboldens me. And discovering websites offering great deals ALL THE TIME makes me realise bargains are always there to be found, you’ve just got to hunt them down.

• www.brandsfever.com - international fashion and lifestyle brands at up to 70 percent off. Current promos: Bodum teapot for one from $69 to $34.90 and Zarzamora swimwear from $59 to $22.90.
• www.reebonz.com - I know I’ve mentioned it before, but this site - where high-end boutiques offload excess stock - is the reason I’ll never buy an overpriced handbag direct from a boutique again. You’ll save at least $200 per item from this site, currently offering Balenciaga, Prada and Gucci.
• www.voucherwow.com - uses the power of group buying to get you up to 90 percent off dining, music lessons, spa treatments and more. Expect one unbeatable deal on something fun to do, see or eat in Singapore.
• www.boots.com/asia - the UK’s most-loved cosmetic, beauty, skincare and health emporium has entered the digital age. Enjoy online discounts and FREE shipping to Singapore for orders $170 and over.

What’s your favourite "bargain" website, where do you find great deals and what’s your bargaining trick?

Watching recent news reports from the US and reading headlines such as "Outrage over mosque to be built at scene of 9/11 attacks" got me thinking… If you just read the headlines, or listened to the angry protests you’d be under the impression building permission had been granted to construct a mega mosque on the site of the former World Trade Center.

But nothing could be further from the truth. In fact, a mosque - otherwise known as a place of worship - will be built two and-a-half blocks away from what is now sadly known as Ground Zero. And you can bet if it was a synagogue or cathedral the general public would be  none the wiser, because that’s not news.

9/11 was one of the most tragic events of our time. But the continued bigotry and hatred brought about by fear-mongering and misunderstanding is an even bigger tragedy.

Always dreamed of fame a la Elle Macpherson and Tyra Banks? Well if you’re pregnant, now’s your chance. Chic New Zealand maternity line EGG is launching their Next Top EGG Pregnant Model Search. Open to women throughout the world who’ll be between six to eight months pregnant as at 31 October 2010, the winner will be flown to Auckland, New Zealand and get to strutt her stuff in a professional photo shoot to become the poster-girl for the upcoming EGG All Seasons Winter 2011 catalogue and accompanying advertisements. You’ll be pampered, styled and take home a full set of images from the shoot to treasure forever, plus an EGG maternity wardrobe.

Log onto EGG to complete an entry form and send it in with a full-length up-to-date photo of yourself (preferably pregnant) to to find out if you’ve got what it takes! For further information, call Rochelle at 9389 8945 or email rochelle@eggmaternity.com.sg

Image: Lily & Louis, 2009 winners

The Swedish film of the first instalment of Stieg Larsson’s engrossing Millennium trilogy has finally reached Singapore!

The Girl With The Dragon Tattoo opens in GV cinemas today and as I missed the press screening in lieu of Boot Camp in the Botanic Gardens (exhausting, but worth it) I’ll be rushing ASAP to catch the movie along with you all. A friend who’s seen it in Australia reported it is, "An excellent, realistic adaptation. What amazed me most is how as this is the Swedish version, no one has had Botox or plastic surgery - everyone is ‘real’, wrinkles, saggy bits and all - so refreshing!". At last, an accurate representation of what it means to be in your mid 40s - or older - and sexy. I can’t wait to see Mikael Blomkvist and Lisbeth Salander brought to life, let alone all the other fascinating characters. It’s in Swedish with subtitles, so don’t forget your specs! You can view the trailer here

Make sure you catch the REAL adaptation, before viewing the Hollywood version - I believe Daniel Craig has been signed up and Carey Mulligan is under consideration. Let’s hope la-la-land doesn’t balls it up!

If any of you have already seen the first film and are eagerly awaiting the second, you can view a trailer of The Girl Who Played With Fire here and it will be out in Singapore on September 16. The Girl Who Kicked The Hornet’s Nest will then be released on October 21, shortly after it’s worldwide release on October 15.

So if you haven’t read the books yet you better get started. That way you can keep up with the action on screen and won’t miss out on seeing your imaginings brought to life!