Carrazzo Consulting | Hawthorn, Victoria, Australia


CARRAZZO CONSULTING

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PAUL'S SPORT OF KINGS TAX TALK


BACK IN SYDNEY!


Paul Carrazzo's horse tax talks are resuming in Sydney with his "Sport of Kings" presentation at Inglis Riverside on Friday, June 21, 2024. This event marks his first Sydney talk where attendees can join in person or online, a format previously introduced in WA and QLD talks. The talk will cover hot horse tax topics like ‘Business or Hobby’ and stock write-downs, alongside industry KPI trends. Paul, renowned as Australia's leading Bloodstock Taxation adviser, is known for his seminars, tax writing, and Sky Racing contributions. This talk is essential for you in making informed industry investment decisions.

 

For more information on this seminar, please visit here.


CARRAZZO RACES INTO FORMIDABLE NEW MERGER


Carrazzo Consulting is pleased to announce our merger with Baumgartners effective July 1, 2024.

This strategic move aims to elevate service offerings and enhance client experiences by combining expertise in Bloodstock Taxation Accounting with Baumgartners' Chartered Accounting prowess. Clients can expect expanded services, deeper specializations, and access to a broader professional network. Our commitment to excellence and integrity remains steadfast as we set a new standard in the accounting profession. We're excited to seamlessly integrate our expertise into Baumgartners, ensuring continuity of service. David Baumgartner, Managing Partner, warmly welcomes our team, highlighting shared values and commitment to excellence. Learn more at www.baumgartners.com.au.

With 30+ years in practice, our vast experience can help you build and protect your wealth, improve tax benefits or increase the performance of your self-managed superfund.

Our experts tackle opportunities with creativity, passion, and commitment. You’re on the right track with the caring professionals at Carrazzo Consulting.

We combine the thoroughness and efficiency of large corporate accounting firms with the personalised service offered by boutique firms.


We are pioneering providers of specialised accounting for the thoroughbred sector and have satisfied clients in property, start-up businesses, and high-net-worth individuals.

SMSF Advisers Network SMSF Advisers Network

WE DO THINGS DIFFERENTLY

We make difficult concepts easy for our clients to understand.

We have the experience and knowledge to provide you with the best solutions.

We listen to our client's needs and treat them as unique individuals.

We are invested in our clients and care greatly about your financial well-being.

We help reduce our client's exposure to tax during their lives – and for future generations.

We are strong leaders and tough players, so you win.

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INDUSTRY SPECIALISATIONS

We offer a wide range of highly customisable financial advice and solutions built around experience, understanding, and extensive research. We are here to ensure your wealth is protected today – and for future generations.

Thoroughbreds

Carrazzo Consulting is Australia’s leading horse tax adviser and has provided comprehensive horse accounting services to the thoroughbred industry for more than 30 years. We provide a range of tailored services, including business plans, tax audit assistance, bookkeeping, and payroll solutions.

Property

Our property tax knowledge is sought after by many, including negatively geared clients, our CPA Australia representative Paul Carrazzo has many years of experience as an ANZ-sponsored “Buying A Home” resident expert.

Veterinary

Here at Carrazzo Consulting, we believe an accountancy service should contribute to the bottom line. To this end, our team offers cash flow projections, break-even analysis, and budgeting to support business development.

Primary Production

Carrazzo Consulting is an expert in agricultural accounting. We have a passion for farm management, finance applications, and general consulting. With over 25 years of experience working with primary production from every industry sector, no matter how small or large the operation, our years of knowledge will help keep your farm on track.

Medical

Carrazzo Consulting provides accountants who specialise in medical practices. We combine the thoroughness and efficiency of large corporate accounting firms with the personalised service offered by boutique firms. Our highly responsive approach appeals to busy successful people who value competent advice that safeguards assets.

Hospitality

We will make sure you comply with all statutory requirements at both state and federal levels – it is our job to keep up with all the legislation. We ensure that you are structured in the most tax-effective manner to be confident that you are not paying more tax than you need to.

Client Tools

Calculators

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Tax Facts

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Key Dates

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Useful Links

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BLOG

Interesting Insights from the Carrazzo Team

By by Paul Carrazzo May 7, 2024
In a strategic move aimed at enhancing its service offerings and client experience, Australia’s most recognised and respected Bloodstock Taxation Accountants, Carrazzo Consulting, are delighted to announce their forthcoming merger with the progressive Top 100 Chartered Accounting firm, Baumgartners, effective 1 July 2024. Under the umbrella of Baumgartners, clients of both firms can expect an expanded suite of services, deeper industry specialisation, and access to a broader network of professionals with diverse skill sets and experiences. The combined entity will continue to prioritise client outcomes, innovation, and integrity in all its engagements, setting the standard for excellence in the accounting profession. Baumgartners is a leading provider of comprehensive accounting, tax and advisory services in Melbourne’s east, and, like Carrazzo Consulting, has an established and growing presence Australia-wide. Carrazzo Consulting will integrate its expertise into Baumgartners, ensuring a seamless transition and continuity of service for clients. Paul Carrazzo’s invaluable insights, industry knowledge, and dedication to excellence will play a pivotal role in driving the continued success of the unified firm. David Baumgartner, Baumgartner’s Managing Partner, expressed his enthusiasm about the merger, emphasising the shared values and commitment to excellence. "We warmly welcome Paul and his talented team of professionals to Baumgartners. Their extensive experience will bolster our capacity to deliver premium services to our clients." David said. The merger not only signifies a broader spectrum of services for Baumgartners' clients but also showcases Paul Carrazzo's specialised skill set, encompassing areas such as business due diligence, property taxation, agri-business and self-managed super, among others. Paul’s diverse background in industries like thoroughbreds, veterinary, medical and hospitality further enriches Baumgartners’ service line-up. Anticipating this new chapter, Paul Carrazzo conveyed his excitement, "Having personally known David Baumgartner for over 30 years, I am thrilled to be joining forces with such an established firm that has a genuine focus on successful relationships and shares my vision of professional excellence and integrity. Its rate of growth in the past few years has far exceeded industry norms.” For more information about Baumgartners and its service offerings, please visit www.baumgartners.com.au
By Paul Carrazzo January 8, 2024
As we enter the 2024 season of major yearling and breeding stock sales, our office again prepares for the inevitable calls from new clients with their “how do I start and structure a new horse business” questions. Getting the start-up on a solid tax foundation is crucial, yet in our troubleshooting we often see a worrying lack of thought put into this phase. Undoubtedly, advisers are most commonly tripped up by the fact that “hobby” horse stock has to become “business” stock, a step that often also involves setting up a new business structure (e.g., a company, trust or partnership). If you want to get a start-up right, it’s well worth your while to review this article as I will raise the problems and tax-traps I frequently come across. 1. IGNORING THE NON-COMMERCIAL LOSS (NCL) RULES Due to the inherent nature of breeding and racing activities and the time lag before any income is derived, tax losses are often derived in the first few years – sometimes it can take 5 years plus before a profit is derived. This reality means you ignore the NCL rules at your own peril! The NCL rules only apply to individuals, alone or in partnership. The NCL rules prevents an individual’s losses from non-commercial business activities being immediately offset against the individual’s other assessable income in the year the loss is incurred. The loss is deferred to be offset against future income from the same business activity (e.g., horse breeding), unless : the individual meets the income requirement (i.e., “adjusted taxable income” (ATI) – refer definition below) from other activities is less than $250,000 and the business activity satisfies one of the following four tests: Assessable income test - the business produces assessable income of at least $20,000 for the income year; Profits test - the business has produced a taxable income in three out of the last five income years (including the current income year); Real property test - the value of real property (i.e. land and buildings) used in the business is at least $500,000; or Other assets test - the value of certain other assets (e.g., trading stock and depreciating assets - excluding cars, motorcycles and similar vehicles) used in the business activity is at least $100,000. the individual has a business activity that is eligible for an exception; or the ATO exercises its discretion to allow the loss for the business activity for one or more income years. It is these rules that have been modified in this new PCG. For reference, Adjusted Taxable Income (ATI) noted above includes the sum of: Taxable income for that year (e.g., wages less work-related deductions); Reportable employer superannuation contributions (“RESCs”) for that year; Total net investment losses for that year; and Reportable fringe benefits for that year. 1.1. THE PROBLEM? Where a high income earning client, i.e., they have other income on or beyond $250,000 (e.g., wages), wants to run the business as an individual (alone or in partnership, they must go through the onerous, costly and time consuming task of seeking an ATO private ruling to be able to claim those losses immediately, furthermore a poor application could mean that they must defer those losses immediately. Individual high-income earners could thus be deprived of tax relief if they are caught up in the NCL rules and unable to claim their tax losses immediately. Maybe another tax structure could have been considered? 2.0 TAX IMPLICATIONS ON TRANSFER OF STOCK This problem arises where valuable stock is transferred to a new tax structure when the business commences. What is overlooked is that the stock is converting from “hobby” to “business” stock and this “hobby” stock is considered a “capital” asset under income tax rules. Capital Assets are subject to the Capital Gains Tax (CGT) provisions when they are disposed of. It is irrelevant that no money changes hands as under the CGT rules the disposal of stock to a new entity is a “deemed” disposal at market value . The only relief from these CGT provisions is if the horse is a “personal use asset” (e.g., a racehorse) and cost the taxpayer $10,000 or less (including GST). These horses are exempt from CGT upon disposal. 2.0.1. THE PROBLEM/IMPLICATIONS? The horse is subject to CGT and its market value has increased considerably since acquisition. This horse would be subject to CGT to the extent its market value exceeds its eligible cost base. To soften the tax blow, where the horse is subject to CGT on transfer, a 50% CGT discount applies if the horse is transferred at least 12 months after acquisition. 2.1. “HOBBY” TO “BUSINESS” STOCK IF NO NEW ENTITY The above discusses where the stock is considered to be part of a “business”, but the taxpayer decides to start the “business” in a different entity, e.g., from a sole trader to a trust. However, it is most common for a sole trader taxpayer to move from ‘hobby” to “business” without changing the entity. Where this occurs the income tax law relating to items “becoming trading stock for the first time” must be considered. In this case, the taxpayer is treated as having sold the item at either cost or market value (at the taxpayer's option), and as having reacquired it for the same amount. This has the effect that a deduction is allowed to the taxpayer for the cost or market value of the item at the time of the change, being a deduction for the cost of acquiring trading stock. Note – for the purposes of the “cost” option, an “in-foal” broodmare can have the cost of the service fee for the foal “in the belly” added to its cost price – our office was advised of this via an ATO private ruling we submitted. 2.1.1. THE PROBLEM/IMPLICATIONS? Where these rules are overlooked, there are two major implications: a) Stock that is subject to CGT which has increased considerably in value, need only be transferred at its “cost” value, thus triggering no tax implications when a horse tax business is set-up; and b) Stock could be transferred at market value, without triggering tax implications, if that stock is CGT exempt, i.e., it is a personal use asset acquired for $10,000 or less (refer above). 3.0 ANOTHER BUSINESS ENTITY DOES NOT HAVE “MAGIC” POWERS FOR YOUR HORSE ACTIVITIES Let me explain what I mean. I often have potential clients approach me and ask whether they can place their horse activities, say a breeding activity, into their existing business entity, say a company, on the basis that “oh..it’s ok…my company runs my other retailing business, which means that the breeding activity will also be considered by the ATO as a tax “business”. No! The ATO looks at each activity individually to ensure that each one has a tax “business” status. For example, merely placing one hobby broodmare into your existing business company does not mean that one mare is considered a “breeding business” activity. 4.0 CLAIMING PRE-GST ON STOCK ACQUIRED 4.1 Companies To get around the situation where pre-establishment GST can be “lost” on a new business start-up, the GST Act provides an exception to the general operation of the GST rules for all the pre-establishment costs of a company . Upon its creation and registration for GST, the company can claim back GST for these pre-establishment costs if the necessary requirements are met. 4.1.1 Eligible pre-establishment costs To claim GST credits for these pre-establishment costs of a company the following seven criteria must apply: the purchase must be for the purpose of bringing the company into existence or carrying on a business after it comes into existence the company must come into existence and be registered for GST no more than six months after the purchase you must become a shareholder, officer or employee of the company the company must have fully reimbursed you for the cost of the purchase the purchase must not be used to make input-taxed sales or for private purposes to avoid “double dipping” the company must not be entitled to a GST credit for the purchase, if it subsequently acquires the thing from you you must not be entitled to claim a GST credit for the purchase. The GST Act does this by treating an acquisition or importation made by a future shareholder, director/secretary or employee of the company as being an acquisition or importation of the company upon (not before) its creation. Of the seven requirements listed above, the most difficult to meet are: the “six-months” rule; and the “fully reimbursed” requirement (see below) for the shareholder, director or employee who incurred the expense. 4.1.2 What does “fully reimbursed” mean? In relation to acquisitions only, the acquisition does not qualify as a pre-establishment acquisition unless the member, officer or employee is "fully reimbursed" by the company for the consideration for the acquisition. In other words, before the relevant GST can be claimed back, the company must reimburse the individual not only for the GST-exclusive cost of the thing acquired, but also for any GST on the thing acquired. 4.1.3 What costs are eligible? The costs eligible include: set-up fees (e.g. accounting fees, company cost, business plan); business registration; plant & trading stock (e.g. broodmares, stallions, pin-hook stock, service fees); business premises; and GST on importation. Example 1 – claiming pre-GST establishment costs for a company In May 2020, Andre engages Alex & Co, accountants, to prepare a horse industry business plan for his yet to be incorporated company. Andre receives the plan in October 2020. The company is set-up in December 2020 and is registered for GST in January 2020. The company can claim back the GST referable to the services of Alex & Co. This is because Andre "made" the acquisition when the business plan was supplied, which was within 6 months of the company coming into existence and becoming GST-registered. 4.2 All other entities (e.g., sole traders, partnerships and trusts) There is a special GST adjustment rule which states that an entity may claim GST relating to opening stock on hand if it becomes registered or required to be registered for GST. Simply put, the GST Act will deem the acquisition of the stock on hand by the entity prior to its registration as a creditable acquisition and thereby allowing the entity to claim the associated GST. The special adjustment rule only applies to stock on hand. That is, any other items (including capital items) acquired by an entity will not be eligible (unlike companies, as noted above). 4.2.1 Eligibility requirements This special GST rule applies if an existing entity becomes registered or required to be registered for GST. A GST claim on opening stock will arise at the time of the entity registering or meeting the requirements to be registered if: the entity that holds stock is carrying on its enterprise; and the entity had acquired the stock solely or partly for a business/creditable purpose I reiterate that this special adjustment rule does not apply to any other items (e.g. plant and equipment) acquired by an entity prior to it becoming registered. 5.0 PAST “HOBBY” LOSSES ARE NOT DEDUCTIBLE IN A NEW BUSINESS You can only treat your horse activity as a “tax business” if it has met the ATO criteria. This article does not go into these factors, but this topic is constantly referred to in many of my other articles – see www.carrazzo.com.au . Once the business case is established and the business is “up and running”, it is only expenditure that relates to the period on or after start date that can be deductible to the business – there is no income tax law that allows the prior expenditure to be deductible. To avoid confusion, as noted above, pre-GST can be claimed in certain circumstances, depending primarily on when that GST is incurred and the type of entity that is running the new business. Please do not hesitate to contact the writer if you wish for me to clarify or expand on any of the matters raised in this article.
By Paul Carrazzo December 17, 2023
How wealthy would I be if I received a dollar for every query I have had on these issues! Buying a stallion (whole or in part via a syndication) or worthwhile commercial broodmare is no cheap exercise and cash-flow needs to be very solid to afford these spends when payment time comes. Enter the “cashed-up” Self-Managed Super Fund (SMSF) solution! This article will focus on some basic ground rules that need to be met to justify that these acquisitions can be “eligible investments” for your SMSF. 1. Superannuation Investments and the “Sole Purpose Test” The trustee of a regulated superannuation fund must ensure that the ''sole purpose test'' as prescribed in the Superannuation Industry Supervision Act (“SIS”) Act is satisfied at all times. The sole purpose test requires a fund to be maintained solely for one or more of the ''core purposes'', or for one or more of the core purposes and for ''ancillary purposes''. A fund which is not maintained solely for at least one of the core purposes fails the test, as does a fund which has as one of its purposes a purpose other than a core or ancillary purpose. “Core” and “Ancillary” purposes are defined as: Core purposes Retirement benefits Specified age benefits Pre-retirement death benefits Ancillary purposes Resignation/retrenchment benefits Disability benefits Post-retirement benefits Financial hardship benefits Welfare benefits Long service leave benefits Compassionate benefits The sole purpose test is a civil penalty provision, and trustees may be liable to civil and criminal proceedings if the provision is breached. 1.1 Current SIS Investment Standards Superannuation funds should ensure that they carefully evaluate their compliance with the SIS investment standards. As a general rule, a fund must: have an investment strategy; enter transactions on an arm’s length basis; not borrow unless it is a Limited Recourse Borrowing of a “single acquirable asset”; not acquire assets from members or relatives of members; not provide financial assistance to members or their relatives; and not invest in “in-house” assets above the relevant thresholds (currently 5% of the market value of fund assets). 2. Exotic investments & new tighter standards The Government announced that from 1 July 2011 new standards apply to “collectables” or “personal use assets” that are acquired by a Self-Managed Superannuation Fund (SMSF). Collectables includes items such as: Artwork; Jewellery; Antiques; coins or medallions; wine; cars; memorabilia; postage stamps or first day covers; rare folios, manuscripts or books; cars; recreational boats; memberships of sporting or social clubs, or assets of a particular kind, if assets of that kind are ordinarily used or kept mainly for “personal use or enjoyment”. Unfortunately, the latter category generally includes racehorses in training, owned by a SMSF, given that the ATO has long classified them as “personal use assets”. A personal use asset is defined as an asset “kept mainly for the taxpayer’s personal use or enjoyment”. 2.1 What are the new standards for holding these assets? The tightened rules state that: The item must not be leased to, or part of a lease arrangement with a related party (a related party includes a member of the fund); If the item is transferred to a related party, it must be independently valued; The item must not be stored in the private residence of a related party; The item must not be used by a related party; The decision on the storage of the item must be recorded and kept for at least 10 years after the decision has been made; and The item must be insured in the fund’s name. It’s obvious from the above, that the very fact that an item such as a Racehorse in training must not be “used” or “leased” to a related party now makes them ineligible to be a SMSF asset and should be immediately removed to either a related party or outsider for an arm’s length value. Against this background, I comment below as the technical feasibility of having the stallions and mares held in a SMSF. 3. Stallion Shares To respond to these questions, background on the “sole purpose test” is required. No matter what type of investment a fund makes, whether it is an exotic investment or an investment in equities, the fund needs to carefully evaluate the investment prior to deciding to make, keep or sell the investment. Significantly, the expertise of the trustees of a fund may also have a bearing on the types of investments of the fund – if a trustee has considerable expertise in a particular area (e.g. horse breeder), it may well be that the investment portfolio of the fund will reflect that expertise. The key questions that trustees need to ask themselves when they are making investment decisions, particularly is a SMSF are: Does the investment satisfy the sole purpose test? Is the investment consistent with the investment strategy of the fund? Does the investment breach any of the SIS investment standards (see above)? When considering the appropriateness of the investment in terms of the sole purpose test, the fund needs to consider such things as: What is the expected income flow from the investment? Is there any capital appreciation likely to arise from the investment? If there is only an expected capital appreciation, does the amount of this appreciation justify the lack of income flow? Having regard to the above investment guidelines, I would consider it unlikely that a SMSF investment in a stallion share would cause it to fail the SIS “sole purpose test”, reasons where: The SMSF trustee has significant experience and expertise in the horse racing and breeding industry; An interest in a commercial stallion should be capable of generating a yearly cash-flow consistent with your fund’s investment strategy. Their expected yearly nomination fees should be able to generate a significant return on the funds invested; Unlike many public companies, a shareholder “overs” dividend can be reasonably expected on a year to year basis; You can secure the SMSF’s interest in the asset via insurance; Stallion Shares commonly generate capital appreciation. Even in years where dividends are low or non-existent, the amount of capital appreciation could easily justify the lack of income; and Most fund investment strategy’s require liquidity from its assets – stallion shares have a fertile secondary market and many avenues exist to enable a relatively quick disposal, e.g. bloodstock agents, auction, industry advertising etc. Service right – cannot be used by a related party Read this section below carefully, the use of a stallion right by your commercial breeding entity is not as straightforward as you might think! From 1 July 2000 “in-house assets” may not amount to more than five percent of the total market value of a fund’s assets. Under the SISA rules, the definition of an “in-house asset” includes: “an asset of the fund subject to a lease or lease arrangement between the trustee of the fund and a related party” A “lease arrangement” is defined in the SISA rules, being: “any agreement, arrangement or understanding in the nature of a lease (other than a lease) between the trustee of a SMSF and another person, under which the right to use, or control the use of, property owned by the fund”. In effect, this closes off the right for a related party (i.e. your breeding entity) to use a stallion right where the horse market value is greater than 5% of the total market value of the fund’s assets. Where this is the case, a related party, such as a breeding business in a related entity, could not use the service right, even where you pay the required “arm’s length” market value fee to the super fund. Where 5% test is met Where, however, the stallion value is less than 5% of the total market value of the fund’s assets, to secure the “arm’s length” nature of this investment, the related party must pay the fund a commercial fee where you use the service right for your own breeding activities. The “arm’s length rule” rule also applies to external parties that pay the SMSF to use the right. If the fund were of a complying nature, the fee would generate 15% tax within the fund (unless the fund is in pension phase where NIL tax applies).  Investment strategy Finally, any investment that your fund undertakes must be consistent with its investment strategy. For example, asset allocation percentages should be in line with the investment strategy currently formulated. If a stallion share is contemplated, I suggest that you adjust these percentages accordingly – fund trustees are encouraged to review investment strategies on a regular basis as and when needed. 4. Broodmares In my professional opinion, it could be reasonably argued that a broodmare can be held in a SMSF where she avoids the “personal use asset”/“collectable” designation outlined in the above stricter investment standards. This typically will be achieved where: The mare acquired is commercial, reflected primarily in original purchase price; The mare is used for commercial breeding purposes and all foals are ultimately sold on arm’s length basis. The primary purpose to sell foals is crucial; The mare and her foals are appropriately insured; The numbers acquired are not to the extent and scale of an income tax “business” (preferably two or less held for this purpose at any one time); It is not held as trading stock within the SMSF accounts; She is included in the investment strategy; and The SMSF trustee has capability and experience in the breeding industry. 5. Private Ruling for definitive ATO opinion If you or YOUR client base need a definitive ATO opinion on this issue, I would suggest you seek a private ruling prior to commencement of the activity. A private ruling is an expression of the Commissioner’s opinion of the way in which a relevant provision applies, or would apply, to an entity in relation to a specified scheme. Private rulings are usually made on application by an entity, the entity’s agent or legal personal representative. The ATO should issue the private ruling within 60 days. Where this does not happen, the applicant may request the Commissioner to issue the private ruling. If a further 30 days passes, the applicant has objection rights. Please do not hesitate to contact the writer if you wish for me to clarify or expand on any of the matters raised in this article.

MEET THE TEAM

Meet Paul Carrazzo, the principal of Carrazzo Consulting


Paul Carrazzo CA is the principal of Carrazzo Consulting CAs. Paul has over 25 years of experience in taxation and business consulting, including three years with the international accounting firm “Arthur Young” (now “Ernst & Young”).

TESTIMONIALS

What Our Clients Say

  • An astute commercial breeder suggested I consult with Paul Carrazzo when I transitioned my breeding and racing interests from hobbyist to a commercial enterprise. As such, I expected to receive first-class structuring, tax, and accounting advice. I am delighted to say that nothing has changed across the five years that I have been working with Paul.


    What I didn't expect from Paul and what has made it all the more enjoyable to work with him is his passion for the thoroughbred industry. Whilst structuring, tax planning, and accounting are essential to any commercial enterprise, I must say, being able to speak with your accountant about your horses is unique. He knows them, he follows them, he rides the ups and downs with you that our industry inevitably hands out.


    First-class practitioner and first class bloke.

    Laurie Macri - Commercial breeder, Australian Turf Club Director
  • I engaged Carrazzo Consulting to be the accountants for my thoroughbred enterprise in 2006 when I was making the transition from "hobby breeder" to a commercial breeder.


    Paul assisted me with the establishment of Bradley Thoroughbreds Pty Ltd. I have always received excellent service from him and continue to engage Carrazzo Consulting to the present day.


    Paul Carrazzo has a high degree of expertise in providing accounting services to the professional breeder and ensuring compliance with Australian tax law.


    Thoroughbred breeding on a commercial scale involves complex accounting, legal, and taxation issues, all of which Paul has handled to a high standard.

    Brian Bradley - Partner Bradley Bayly Legal (WA)
  • "I have been associated with Paul Carrazzo for nearly ten years, and he was instrumental in the commencement of my bloodstock entity.


    His dealings with other legal and financial advisors on my behalf both domestically and overseas have always been professional and seamless.


    Paul's passion and enthusiasm for the thoroughbred industry is infectious and along with his regular public speaking, allows him to remain up to date with all the latest financial and taxation issues affecting the industry.


    Paul always makes himself available personally, and his team at Carrazzo Consulting has always been professional, proactive, and accommodating.

    Stewart Hume - Berwickshire Bloodstock Pty Ltd (QLD)
  • "At his regular horse tax seminars, Paul shows a positive and happy attitude to accounting and an endearing aptitude for horse tax issues."

    Richard Logan - Logans Livestock Insurance (NSW)
  • Paul, sometimes we go through life not knowing the impact (good or bad) we have on others. I just want to let you know that you have given our vision a massive shot in the arm by your and your staff's professionalism and expertise. Also, I think your blog/website is most informative.

    Peter Cranitch - Breeder (QLD)
  • "Paul has been known to me in my role as Managing Director of Matrix Bloodstock for over 10 years. In this time, I have always respected and admired the manner in which Paul has engaged in educating and servicing the thoroughbred industry in all matters relating to taxation advice and consultancy.


    More recently we did work together to prepare a detailed response to a review by the Australian Taxation Office addressing compliance matters relating to the company's tax affairs in regards to the bloodstock breeding and racing operation. Paul's knowledge of the industry and well-thought-out approach provided us with relevant background information to confidently submit a well-documented business plan that was supported by industry trends and statistics. Paul's extensive knowledge of pedigrees, stallions fees, broodmare produce, yearling sales results, and the taxation regulations all combine to give a practical approach to any matters requiring clarification.


    If you want down to earth, no-nonsense advice, knowing that you can be confident in your business plans and structure going forward, I highly recommend using Paul Carrazzo


    I can't thank him enough for assisting us.

    Michael Crismale - Matrix Bloodstock Pty Ltd, Vice Chairman Australian Turf Club (NSW)
  • "We have been using Paul for our racing and breeding business for over 20 years and this association has been nothing short of amazing. Paul has displayed exceptional skills in all aspects of Thoroughbred accounting and stands out amongst his peers. Initially, he restructured our entities and streamlined our processes. We have been very confident with the knowledge Paul has shown with Taxation matters related to Thoroughbred Breeding.  Paul also has an encyclopedia-like knowledge of pedigrees and is always a joy to converse with and hear his knowledgeable opinions.


    Any queries from the Taxation office have been handled professionally and to our benefit. We have no hesitation in recommending Carrazzo Consulting to our friends and breeding acquaintances and when we have done so they have all been happy with his services."

    Dr Denis and Claire O’Brien - Clairden Racing Pty ltd, Director
  • I have known Paul Carrazzo for over 20 years and have regularly sought his advice and second opinion on a range of bloodstock taxation issues.


    My daughter Emma has often attended Paul’s horse taxation seminars at the Magic Millions, and it has been beneficial to her understanding of our bloodstock taxation affairs.

    Stuart Ramsey - Turangga Farm, NSW
  • Paul Carrazzo has been a regular source of horse tax consultancy for my Corumbene operations over the years, especially our business planning, and I value his advice immensely.


    I wouldn’t hesitate to refer his taxation services and seminars to serious horse industry investors.

    George Altomonte - Corumbene Stud, NSW
  • Dear Paul,


    As we enter into 2022, 6 years since the incorporation of the Australian Chinese Jockey Club, I write to thank you, on behalf of ACJC, for your support since our incorporation.  Not only have you supported us by becoming a member and participating in most of our events, you have also generously provided us with professional advice and updates on various compelling topics in horse tax – this has, in turn, helped a lot of our first-time horse owners in having the confidence in investing in the thoroughbred industry.  You have pointed us in the right direction in setting up our first ownership syndicate – The Australian Chinese Jockey Club Million Dollar Racing Syndicate which we still hold shares in two very promising stayers, 2021 Melbourne Cup runners in Knights Order and Sir Lucan.


    You are very highly regarded in our community.


    Wishing you continued success with your practice and racehorses in the coming years and looking forward to seeing you at our events soon.

    Teresa Poon - Australia Chinese Jockey Club, Chairperson
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