The Australian Tax Office (‘ATO’) recently launched a one stop property webpage specifically designed for home owners and investment property owners. The site covers a rate of tax issues. It is an excellent resource for beginners and experienced investors alike who are seeking to refresh their knowledge of key property tax issues.
The introductory section sets out the key issues for home owners and investors, with an overview section that covers different types of properties, uses, and investment or development activities.
For example, the ‘Your home’ section consists of the tax issues at each step from saving for your first home; buying and selling your home; buying a second property; to renting, building, or renovating your home. This section also contains an overview of home offices.
The introductory section also covers tax issues for inheriting a dwelling, renting out residential properties, tax issues associated with vacant land, and subdividing property.
The second major section on the ATO’s property web-page offers three useful calculator tools. The first is the ‘Property exemption tool’, which allows those selling property to work out the portion of the property that’s exempt from capital gain tax.
The second tool, the capital gain tax small business concession tool, helps the user determine whether the business is eligible for the capital gain tax concession for small business.
The third tool is the GST property tool. This help investors work out whether GST applies to a specific transaction, which may be a sale, a lease, or a purchase of real property. Users can also find out about claiming GST credits and margin scheme eligibility.
The news section on the ATO property web-page includes links to the latest ATO media releases that relate to property purchases, sales, or any property tax issues.
In Detail Section
The in detail section is a more ‘advanced’ section with detailed information about specific property tax issues.
Goods and Services Tax
This section includes a guide for working out GST to GST property sales and transaction. It also includes a margin scheme guide, which is a way of working out the GST when property is sold as part of a business. Other sections in this part of the page include GST and property adjustments, a very useful guide on the most common GST errors and property, and a section on accounting for GST.
Capital Gains Tax
This section consists of a guide to CGT in property transactions.
Investments – Individuals
This is a very useful section for those engaging inpropertyinvestment, covering the tax implications associated with obtaining, owning, and disposing of investment properties. This section highlights the major tax events at each stage and emphasises the need to keep good records from the start.
First Home Saver Accounts
This is a useful section for those who are saving for their first home. It guides the reader through eligibility criteria, how to open an account, and the tax savings and government contributions applicable.
The ‘In detail’ section also covers the rental affordability scheme, which is a scheme that assists those with low to medium incomes with securing rental property at below market rates.
The section also contains a detailed guide on the tax issues associated with rental income and rental expenses, with reference to specific and common rental property items.