South East Property, a fully integrated business tailored to the needs of investors who aim to buy property in Australia, talks about Australian Tax as part of its expertise in Australian property market and to assist investors who are interested in buying property investments in Australia particularly in Sydney, Melbourne, Brisbane, and Perth.
As part of South East Property’s passion to provide quality assistance and services to its clients, they’ve set a particular plenary in the company’s web space to talk about Australian tax as it is an important factor in every investments. In order to provide a fully integrated and quality services on property market, Australian Tax should be noted and discussed.
The company discussed about Australian tax and have narrowed it down with three subtopics namely:
Income tax, Capital Gains Tax, and Goods and Services Tax (GST). The discussion below is an important aspect that the company aims to relay to the investors so as to gain more insights about the business.
Non-Residents who hold, or wish to purchase property in Australia will be affected by Australian Taxation Law. Our Tax Consultants can assist you with any questions you may have as an expatiate or non-resident, including advice on tax file numbers, preparing tax returns, maximising your losses and minimising your tax payable.
Non-residents or previous Australian tax residents who have moved overseas and who hold property assets within Australia are obliged to lodge a Tax Return.
It is important that you are registered with the Australian Taxation Office and obtain a tax file number.
Australian laws require every person or corporation earning income to lodge an income tax return for the financial year which runs from 1 July to 30 June. The tax return must state the gross income received from all sources within Australia and a claim may be made for any expenses relating to that income.
- Common deductions you will be able to claim include:
- Advertising for tenants
- Agents commission for managing the property
- Gardening and maintenance
- Insurance – property and contents
- Interest on loans used to finance the property
- Lease preparation costs, council rates and land tax
- Travel and car expenses
- Telephone, facsimile and postage
- Travel costs incurred when visiting Australia can be claimed, provided they are incurred principally to inspect the rental property and are reasonable
Capital Gains Tax
Capital Gains Tax in Australia is levied on profits made on the sale or transfer of assets. When you sell your property, the excess of the sale price over the purchase price is a capital gain.
Capital Gains Tax applies to residents of Australia for assets located both within and outside Australia and for non-residents (including expatriates and foreign nationals) for profits which are made on Australian based assets.
Goods and Services Tax (GST)
The rate of GST in Australia is set at 10% and is charged upon the value of the goods and services.
For non-residents who own residential property investments, GST is not levied on rent, interest on loans or when you sell your investment. However it is imposed on the provision of maintenance services, property management and other ownership costs. For owners of Commercial property investments, there may be a requirement to charge tenants GST and it may be applicable when you sell the investment.
For property development it is important you speak to our experts to fully assess the GST implications.
About South East Property:
South East Property is a fully integrated business tailored to the needs of expats and investors looking to buy property in Australia. The company is the first business of its kind, which sets it apart from competitors as they are able to provide clients with information on current market trends, property hotspots, exclusive property developments, property finance, tax and rental management. To find out more, visit: http://www.southeastproperty.org/