Category: Tax

Aug. 15, 2018 By Smart Property Off

Land Tax Optimisation Strategies For Property Investors

Understanding Land Tax for Property Investors Incorporating land tax into your overall investment strategy is essential for long-term success. By understanding the nuances of land tax regulations and exploring investment structures, you can better manage your tax obligations and protect your investments What is Land Tax? Land Tax is an annual, accumulative tax charged by all states and territories (except the Northern Territory) and is payable on any land you own. Generally, it excludes your Principal Place of Residence (PPOR). How is Land Tax Calculated? The amount payable to the relevant State Revenue Office (SRO) varies slightly according to location and is determined by the combined unimproved value of any taxable property legally owned by you. Why Consider…

Aug. 15, 2018 By Smart Property Off

Ownership And Investment Structures For Property Investors

Optimal Property Investment Structures: A Comprehensive Guide Investing in property offers a variety of strategies, each with its own unique benefits and challenges. Understanding the different ways you can structure the purchase and ownership of your property assets is crucial for maximizing your returns and minimizing risks. The Importance of Professional Guidance Seeking professional guidance from an experienced property investment expert is highly advisable when determining the best structures for your specific needs. Property investment is not a “one size fits all” proposition; different structures have varying tax repercussions and advantages depending on your investment goals and methods. Key Takeaways: Different property investment structures have varying tax implications and benefits. Individual ownership is simple but exposes assets to litigation…

Aug. 15, 2018 By Smart Property Off

Capital Gains Tax (CGT) For Property Investors

Capital Gains Tax (CGT) is perhaps the most loathed property tax for investors, as it can take a sizeable chunk out of the portfolio you’ve worked so hard to build up over time if you decide to release any assets. You’ll be required to pay tax on the capital gain made at time of sale – that is tax on the difference between what you initially paid and what you received when you disposed of the asset. CGT was introduced on 20 September 1985 and all assets acquired since that date are subject to the tax, with most personal assets like your own home and car being exempt. Rates for CGT will vary depending on the type of…

Aug. 10, 2018 By Smart Property Off

Positive Cashflow Property Investment: The Complete Guide

Positive Cash Flow Investment Property Positive Cash Flow Investment Property is property that pays you every week, just to own it. That might sound great (and it certainly can be), but there is much more to cash flow positive property investment than meets the eye. In this article, we’ll explore what cash flow positive is (and is not), as well as cover some of the benefits and risks when buying cash flow positive real estate. So let’s get started. What is Positive Cash Flow Property? Definition: Positive Cash Flow Property is an investment property where the annual rent exceeds the total annual expenses, after tax deductions and depreciation are taken into account. In other words, this is a…

Jun. 7, 2017 By Smart Property Off

Property Investment Tax Benefits 2019 (With Tax Deductions Checklist)

Property investment tax benefits are far from the only reason to invest in property, but they are one of the key financial levers for property investors. When high-flying businessman Kerry Packer was faced with charges of alleged tax evasion, he was infamously quoted as saying: “I am not evading tax in any way, shape or form. Of course, I am minimising my tax. Anybody in this country who does not minimise his tax wants his head read. I can tell you as a government that you are not spending it so well that we should be donating extra.” Therefore, tax optimisation is a critical area for property investors to master in order to ensure you take advantage of all the…