Author Box
Articles Categories
All Categories
Articles Resources

Property Taxes - What Taxes Do You Pay If You Have an Investment Property?

June 01, 2012 | Comments: 0 | Views: 175

In Australia there are no investment property taxes as such, however your property sale may be subject to Capital Gains Tax (CGT). The purchase and sale of your property in Australia will be subject to Goods and Services Tax (GST) and your rental income will be subject to Income Tax.

GST is paid on almost everything in Australia at a rate of 10% on the purchase price of your property. GST must be paid on all property that is connected with Australia. With regard to residential property in Australia that is purchased and rented out, the investor can make a claim on input tax credits. That is any GST paid on goods and services purchased to maintain the property can be claimed as input tax credits. These input tax credits can be claimed on a Business Activity Statements (BAS) as a refund and reduce the amount of GST paid overall.

If your Investment Property is held as in a Trust or purchased by a Company, the Trust or Company must register for GST if it's turnover is greater than $75,000 or $150,000 for a non-profit organisation in a financial year. Once registered for GST the Trust or Company must lodge BAS regularly.

If your Rental Income is paid direct to you and the property is not owned by a Superannuation Fund, Trust or Company, then the Rental Income will be taxed at your Marginal Tax Rate. That is, if you pay tax at a top rate of 45 cents in a dollar, your Rental Income will be taxed at 45 cents in a dollar.

Thus the importance of communicating with your Accountant and Financial Planner about your financial situation so they can work out the best ways to purchase your investment property or properties in order to minimise or postpone the amount of Income Tax that you pay. That is, they will consider using a Self Managed Superannuation Fund, Trust or Company to be set up to purchase your properties.

Capital gains tax is another tax you will be subject to when you sell your property. So it is best to sell your property when your income is at a minimum as Capital Gains Tax is paid at your Marginal Tax Rate which is dependent on your income. If your Investment Property is owned for more than 12 months, you may able to receive a 50% discount on Capital Gains Tax.

Now, you are probably thinking is all this worthwhile? If you want to increase your holdings of property investments and you income, and you like the idea of investing in property, this may be the ideal solution for you. There are property investment specialists, Financial Planners, Accountants and Mortgage Brokers whom can assist you with your financial strategies to obtain the best outcomes for you.

Discover How You Too Can Retire Early with a Well Designed Investment Property Plan. Go to to access free tips, training and resources from real investors. Realistic guidance with a NO FEE policy!

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Property Taxes


Investment Property




Property Investment Specialists

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Tax liens are like government restrictions on certain properties. These so called restrictions are usually imposed on specific lands and properties that are usually delinquent in the loan or mortgage

By: Andrea Averyl Finance > Taxes Propertyl June 21, 2012 lViews: 144

When you can no longer maintain your monthly mortgage payments and real estate taxes, you risk losing your real estate to the government through foreclosure. Once your real estate taxes have entered

By: Antoinette Ayanal Finance > Taxes Propertyl June 20, 2012 lViews: 162

Homebuyers need resources in today's marketplace if they hope to find the best deals on properties. Articles like the one you're reading now, are all about pointing you in the right direction and

By: Kevin P McGeel Finance > Taxes Propertyl June 10, 2012 lViews: 151

There are a number of property tax reduction programs available to property owners. Although many of the tax reduction programs are similar, each has it's own set of rules for the tax appeal process.

By: Gerald Fishl Finance > Taxes Propertyl May 14, 2012 lViews: 139

Fair to say, if you are living anywhere in the country, you are probably paying more property taxes than you should. The National Taxpayers Union, in fact, estimates that approximately 60% of all US

By: Peter A Jordanl Finance > Taxes Propertyl April 16, 2012 lViews: 132

It's vital to understand how much your property taxes are going to cost before you purchase a property. If complications with your taxes arise after you have purchased your property, a real estate

By: Al Beaudreaul Finance > Taxes Propertyl February 12, 2012 lViews: 136

Are you confused about investment home loans and how to find the best option for you? This article gives you 7 hot tips on how to find the best option for your personal situation so you can save

By: Julian Thorntonl Finance > Home Equity Loansl May 31, 2012 lViews: 172

Discuss this Article

comments powered by Disqus