Australian tax system is comprehensive. If you are planning to purchase a new property in Australia, then you should consult a qualified tax advisor. Consulting a qualified and professional tax advisor would help you in getting good knowledge about the tax system and you will definitely end up saving a lot of money. When you plan to enter in any property transaction, these advisors can guide you in the correct manner so that you can benefit from it.
Below is a concise guidance for you to become familiar with Australia’s property tax system. Some basic taxes are there applicable in buying a new property in Australia, although these taxes may vary from state to state.
VAT (Value added tax) or GST (Goods and services tax) 10% flat rate GST is applicable on supply of goods and services. These include LED real estate display system too. It is also known as VAT. It is always end user or consumer who has to bear this tax ultimately.
In transactions like real estate acquisition agreement or acquiring marketable securities stamp duty is levied. It is also levied on financial transactions like leasing. It is known as the state tax and is applicable on increasing or fixed rate depending on your property valuation. Boston pacific capital reviews will give you detailed information on stamp duty levied in various states.
This tax is paid annually on the ownership of land. The total unimproved value of land is calculated and tax is paid accordingly. There is a specific date for paying the tax. Boston pacific capital reviews reveal the thresholds and tax rates information for you, as land tax also varies from state to state. It varies over time too.
CGT (Capital Gains Tax)
In Australia capital gains tax is levied only on the realized capital gains and not on the sale of personal property. Any gain from sale of personal property is exempt from CGT. But if the property was not used for any personal use then CGT is levied, for example rental income. For foreign residents in Australia, CGT on assets has been limited. This is done by the government of Australia for enhancing Australia’s appeal thus making it attractive for overseas investors for business environment.
Rental Income tax
Income received from renting out property is taxable. So if you want to save of your money, then pay taxes on time. You should include rental income in your tax return. You can earn this income from various sources like renting out buildings or land, private lodgers and even flat mates.
Inheritance or Wealth Tax
Australia property does not subject to inheritance taxes but some inherited assets might have CGT inference for the beneficiaries.