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Empower Wealth Blog post by Empower Wealth

Developing Property and GST

In a recent case at the Federal Commissioner of Taxation, Administrative Appeals Tribunal a taxpayer was fined over $160,000 for failing to disclose the sale of new townhouses in their business activity statement. If you are building a property with the intention of selling the property for a profit, then you are required to register and charge GST on its sale.

The ATO has many ways in which they can track the purchase and sale of land and property, by simply starting at a state’s land titles office.

Therefore your decision to undertake a property activity for the pursuit of profiting from the activity, should first start with a meeting with an experienced accountant.  Such a meeting should discuss and document the intention of the building I.e. for Sale or for renting investments, as the appropriate tax advice can then be provided to you.

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