Is it time you considered the structure of your business?

The ATO’s Small Business Restructure Rollover gives you flexibility, as an owner of a small business entity, to restructure your businesses and the way your business assets are held while disregarding tax gains and losses that would otherwise arise. There is a range of small business rollovers already available where

When should you consider cancelling your GST registration?

Just as not being registered for GST (or required to be registered) can be an effective defence against an accusation that you have made a taxable income, legitimately cancelling your registration before the income is made can prevent the income from being taxable. The cancellation process involves applying for the

Can you avoid the GST pitfalls?

Many of the pitfalls that you could be faced with as the property developer can be avoided by asking some key what, who, how and why questions in the early stages. Many of these pitfalls begin with the acquisition and in particular the contract of purchase. Things like: Is the

How does a “Going Concern” affect GST?

A sale of business where all that is necessary to operate the business is transferred to the purchaser is known as the supply of a ‘going concern’. In simple terms, the business has the ability to continue to function, as was the case immediately prior to sale. The revenue generated

The GST Margin Scheme – What is it?

The margin scheme is a way of working out the GST you must pay when selling a property that is a part of your business. Where the margin scheme does not apply (in most cases), you would calculate the GST as one-eleventh of the sale price. Where the margin scheme

How do business losses affect GST?

The ATO identifies a profit motive as one of the key indicators of an intention to carry on an enterprise. For this reason, the ATO places heavy emphasis on the achievement of profits. A business that consistently operates at a loss and does not have a reasonable prospect of achieving

What happens with GST if you change the use of your development?

What happens if you are a GST-registered property developer who builds apartments exclusively for sale, and later decides to rent them? The typical situation is that you would start out by correctly claiming input tax credits on all acquisitions relating to the development, including architect’s fees, legal fees and construction

Do you need to register for GST?

If you are carrying on an enterprise you are entitled to register for GST. When your GST turnover exceeds the turnover threshold, you must register for GST. An ‘enterprise’ includes activities done as part of an ongoing business and one-off activities that share the characteristics of a business dealing (such

Property development and GST

There are many Goods and Services Tax (GST) implications for property development businesses and, without a good working knowledge of these implications, you may find yourself in a tricky situation. Under the GST Act, an entity is liable to pay GST on ‘taxable supplies’ that it makes, and it is

Structuring your property development within your SMSF

Assuming that all the regulatory requirements can be satisfied, it may be possible for your SMSF to be undertaking activities in a number of ways, including: As sole owner of the project, using SMSF funds By a limited recourse borrowing arrangement JV or as tenants in common By investing via