The ATO's property webpage
In 2012 the ATO launched a user friendly webpage designed for home owners and investment property owners (www.ato.gov.au/property). The page covers a range of tax issues, and is a great reference tool for both new and experienced investors.
The ‘need to know’ section outlines common property types and details common questions and issues surrounding its uses, and investment or development activities.
For example, the section titled ‘inheriting a dwelling’ explains the CGT and tax implications at the time of inheritance as well as possible implications upon subsequently selling the dwelling.
Other property types covered include residential rental properties, vacant land, subdividing, property development, building and renovating, property used in running a business and personal residence.
The ‘calculators, rates and forms’ section provides three useful calculation tools:
- Property exemption tool – helping property owners/investors (whether sole or joint) to work out what portion of their capital gain is exempt from capital gains tax on sale of the property.
- CGT small business concessions tool – helping determine eligibility for the capital gains tax (CGT) concessions available for small business.
- GST property tool –an interactive decision making tool designed to assist in understanding the GST implications for any property related transaction.
The ‘in detail’ section provides links to more specific and detailed information on common issues/topics. For example:
- Rental properties provide links to the ATO’s detailed guides on treatment of rental income and expenses, including how to treat certain residential rental property items. It also includes a guide to common mistakes made by rental property owners in their tax returns and how to avoid them.
- Goods and Services Tax (GST) includes a guide to work out how GST applies to GST property sales and transactions. It includes links to information regarding the margin scheme and GST, GST on property adjustments and common GST errors and property.
- Capital Gains Tax (CGT) guides the user to more detailed information on CGT and how it works both generally and in relation to property transactions.
- Loss through disaster outlines whether insurance payments received due to loss or damage to properties may affect your tax liability.
- ‘First home savers account’ providesguidelines to eligibility and associated benefits.
- ‘Rental affordability scheme’ (NRAS) provides information encouraging large-scale investment in affordable housing.
The webpage also includes a ‘news’ section which provides links to the latest ATO media releases relating to property matters (i.e. purchases, sales).
While the ATO’s property webpage is an excellent reference, please contact us for specific advice relating to their situation.