Summary

Taxation is not a subject that most property people get excited about, but an increasing number of people have more than a passing interest in the topic, because of the recent introduction of a range of taxes from the state government that are reaching into the pockets of more and more property owners.

The expansion of land tax and the introduction of vacant land tax has many property owners and sellers scratching their heads trying to figure it all out. In this episode, I interview a local accountant and partner at Sharp Accounting Ewen Fletcher, to discuss all of these topics, along with some of the stamp duty concessions available to buyers. As always, this information is general in nature and should not be consider professional advice and you should speak to your own accountant or legal professional to understand your unique circumstances.

Takeaways

• Taxation is crucial for property investors to understand.
• Seek professional advice for specific tax situations.
• Capital gains tax applies to profits from property sales.
• Inherited properties have unique tax implications.
• Land tax is concern for some investors.
• The six-year rule can exempt certain properties from capital gains tax.
• Vacant land tax applies from 1st Jan 2025, get advice now.
• Windfall gains tax applies to rezoned land but there are exemptions.
• Stamp duty exemptions exist for first home buyers and downsizers.
• Planning ahead can help reduce capital gains tax liabilities.
• Legal advice is essential for navigating tax regulations.

Chapters

00:00 Introduction to Taxation in Property

03:03 Understanding Federal and State Taxes

06:01 Capital Gains Tax Explained

08:42 Inherited Properties and Capital Gains Tax

11:28 Planning for Capital Gains Tax

14:31 The Six-Year Rule for Principal Places of Residence

17:05 Land Tax: Current Trends and Implications

19:49 Land Tax Structures and Ownership

22:58 New Taxes: Vacant Land Tax

25:26 Understanding Win-Fall Gains Tax

28:02 Stamp Duty Exemptions and Considerations

Contacts:

Stone Real Estate Ballarat

Stu Brien

P: 03 5341 2200

E: stubrien@stonerealestate.com.au

W: https://www.stonerealestate.com.au

A: 513 Warrenheip St Buninyong 3357

Sharp Accounting

Ewen Fletcher - Partner

E: ewen@sharpac.au

W: https://www.sharpaccounting.com.au

P: 03 5338 7100