Local developer Harridan is seeking to turn its Woolloongabba apartment project into the first stage of a broader transformation of Burke Street, using a new 16-storey mixed-use building to establish a greener pedestrian connection toward the rapidly evolving Boggo Road transport and knowledge precinct.

The South East Queensland developer has filed plans for 154 apartments on the <a href="https://www.apartments.com.au/new-apartments/4-burke-street-woolloongabba-qld-4102">southern side of Burke Street</a>, where its proposal has been designed alongside a wider vision by LatStudios for the street.

That vision positions the southern side of Burke Street for buildings of 15 storeys and above, while envisaging lower-rise development of up to five storeys on the northern side to transition into Woolloongabba's existing character housing. It also proposes wider pedestrian verges, deep planting, new street trees and upgrades to the pedestrian approach to Boggo Road Station.

The Harridan development itself has been designed by Brisbane-based Arqus Design and will comprise 154 apartments across 16 storeys. The mix is weighted heavily toward two-bedroom apartments, with 121 proposed alongside 10 one-bedroom and 23 three-bedroom residences. There will typically be around 14 units per floor.

A lower-ground car park and three podium levels will accommodate 156 resident parking spaces, along with visitor and commercial parking. There will also be 154 resident bicycle spaces and 40 visitor bicycle parks.

&nbsp;

Harridan is a family-owned developer and part of the Holmwood Highgate Group, with more than three decades of development activity across South East Queensland. Its portfolio spans residential, commercial and industrial property, with current residential projects including Riverbank on Byron in Bulimba, Esperance Residences in Carina and The Precinct at Kinross Road in Thornlands.

Wooloongabba has been popular for apartment developers, particularly since the announcement of the 2032 Summer Olympics games in Brisbane.

While there have been a lot of development applications, it has failed to materialize into real supply.&nbsp;

Sarazin has been the major player in the area. They are under construction at Murcia Residences, on the fringe of East Brisbane and Woolloongabba. They have just launched <a href="https://www.apartments.com.au/new-apartments/the-stanley-residences-woolloongabba-8-trafalgar-street-woolloongabba-qld-4102">The Stanley Residences</a>, in Woolloongabba on Trafalagar Street. They also have Nuage coming soon on the nearby <a href="https://www.apartments.com.au/new-apartments/nuage-woolloongabba-14-wellington-road-woolloongabba-qld-4102">Wellington Road</a>.

Joel Robinson

First look: Harridan plans Burke Street transformation beside Boggo Road transport hub

IN BRIEF

<ul>
	<li>
	Just three double-storey Sky Homes sit at the top of The Waterline, each with its own private marina berth and rooftop terrace.
	</li>
	<li>
	Construction on The Waterline is complete, with the first residents expected to move in from mid-October.
	</li>
	<li>
	Sky Homes range from 282 sqm to 367 sqm and are priced from $3.65 million.
	</li>
</ul>

<hr />
Lewis Land has opened the first completed sky home for inspection at Harbour Shores, giving buyers their first opportunity to step inside one of just three double-storey residences crowning The Waterline.

Each sky home comes with its own private marina berth, rooftop terrace and Broadwater views, combining the scale of a larger home with direct access to the boating lifestyle that underpins the wider <a href="https://www.apartments.com.au/new-apartments/harbour-shores-biggera-waters-564-oxley-drive-biggera-waters-qld-4216">Harbour Shores</a> masterplan.

[smartcode_project:default project_id=113271 project_image_fid=366708]

Lewis Land Head of Development Michael Long said the inclusion of a berth with every Sky Home had become increasingly valuable as marina access across the Gold Coast tightened.

“Marina berths are becoming increasingly difficult to secure across the Gold Coast, so including one with every Sky Home makes this a genuinely rare offering,” Long said.

“The private 70-berth marina will accommodate boats up to 12 metres in length and is positioned just 2.5 kilometres from the Broadwater, placing the open ocean only 15 minutes away.

“Being able to step out of your home onto your boat is a rare luxury, and it’s something residents here can look forward to when it opens later this year.”

[smartcode_project:default project_id=113271 project_image_fid=366709]

The display opening comes as construction completes on The Waterline, with the first residents expected to move in from mid-October.

The three Sky Homes range from 282 sqm to 367 sqm and each feature three bedrooms, three bathrooms, multiple living zones, expansive kitchens with butler's pantries and large balconies taking in the Broadwater outlook.

Each residence also has three secure basement car spaces and additional storage.

“This is the first opportunity the Gold Coast has had to step into Harbour Shores and see, touch and feel what we’re bringing to life here,” Long said.

“There are only three Sky Homes within The Waterline, ranging in size from 282sqm to 367sqm, with each residence featuring three large bedrooms, three bathrooms, multiple living zones, expansive custom-built kitchens with butler’s pantry, and large balconies capturing Broadwater views.”

<img alt="Harbour Shores" data-entity-type="file" data-entity-uuid="bab65e10-4fab-45e1-92d8-fc56e2ab98ff" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-25%20at%202.00.16%E2%80%AFPM.png?VersionId=XT8q76LsPkw3cYTsvN3JfFDaPLud90PN" />

Residents of The Waterline will have access to a private pool, along with Harbour Shores' wider collection of amenity including a lagoon pool, social clubhouse, tennis court, gym, yoga facilities and sauna.

Lewis Land partnered with Studio Collective to furnish the completed display, with the interiors designed to demonstrate how the residences could function as permanent homes rather than simply as show apartments.

Studio Collective Director Melissa Park said the surrounding waterways informed the interiors, but in a more restrained way than a traditional coastal scheme.

“We drew inspiration from the canals and coastal surrounds, but our approach was to interpret that subtly through layered materials and a grounded palette of earthy tones, rather than literal coastal references,” Park said.

“We introduced hero moments of green and teal to reference the surrounding waterways, while mirrored elements help reflect natural light.

“The result is a residence that feels elevated yet comfortable, somewhere buyers can genuinely imagine themselves living, entertaining and unwinding.”

Sky Homes are priced from $3.65 million.

Lewis Land is also offering private marina berths with The Residences, its limited collection of three and four-bedroom villas positioned directly along the Harbour Shores waterfront boardwalk.

Three-bedroom villas are priced from $2.99 million, while four-bedroom residences start from $3.19 million.

Harbour Shores is being marketed by Colliers International.

[smartcode_project_cta:default project_id=113271]

Lewis Land opens sky home display as The Waterline completes at Harbour Shores

St Vincent de Paul Society Housing Australia has filed plans for a major mixed-use housing precinct on the southern edge of the North Sydney CBD, adding another significant proposal to a pocket around North Sydn​ey Station that is quickly becoming one of the LGA's busiest development zones.

The State Significant Development Application covers a 5,990 sqm site at <a href="https://www.apartments.com.au/new-apartments/1-19-mackenzie-street-lavender-bay-nsw-2060">1-19 MacKenzie Street and 211 Blues Point Road in Lavender Bay</a>, immediately south of Nor​th Sydney Station and between the commercial core and the lower-rise Lavender Bay Heritage Conservation Area.

Designed by Wardle, the proposal would deliver a new residential tower comprising 88 build-to-sell apartments and 19 affordable apartments, alongside a separate co-living building with 57 rooms and a building manager's studio.

It would also see the significant restoration and upgrade of St Francis Xavier Catholic Church, the adaptive reuse of the former school building, new parish facilities, retail, a new public square and around 1,000 sqm of publicly accessible open space.

<img alt="Vinnies North Sydney" data-entity-type="file" data-entity-uuid="d5dd7f87-a617-463e-b577-17541e01f0e9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.13%E2%80%AFAM.png?VersionId=4R8TsFN3P_LrrXO2HswTOIrx2blil8lh" />

The project is seeking a concurrent rezoning of the site to R4 High Density Residential and an increase in the maximum building height to allow a tower reaching RL120, or up to 20 storeys. The proposal was progressed through the NSW Government's Housing Delivery Authority pathway.

The build-to-sell component will be weighted toward larger apartments, with just six one-bedroom apartments compared with 31 two-beds, 43 three-beds and eight four-bedroom residences.

The 19 affordable apartments will comprise two studios, 15 one-bedroom apartments and two two-bedroom apartments, taking the total apartment component to 107 residences before the 58 co-living rooms are included.

<img alt="Vnnies" data-entity-type="file" data-entity-uuid="7d568ca5-cb90-4e18-96c6-d9795dba0c56" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.10.05%E2%80%AFAM.png?VersionId=GY2R5M9VtQh0EKy1vajaea19PSLOPuRD" />

Wardle's design for the Vinnies site has sought to negotiate that emerging high-rise context while retaining the lower-scale character of MacKenzie Street and the adjoining heritage conservation area.

The main building adopts a three-storey podium and tower arrangement, with the podium aligned to the ridgeline and front setback of St Francis Xavier Church.&nbsp;Wardle has designed the podium with colonnades, seating, recessed entries and active ground-floor frontages, with sandstone-toned precast concrete and face brick referencing the materiality of the existing church.

The tower then steps back eight metres to the south and six metres to the north before rising in a sculpted form comprising four interlocking quadrants. Wardle has also introduced rounded forms and chamfered corners to reduce the tower's perceived bulk and improve view sharing with neighbouring development sites.

Resident facilities and outdoor areas are planned at the separation between the podium and tower at Level 3, oriented toward Sydney Harbour and the CBD skyline.

The tower itself will feature a glass reinforced concrete facade, with recessed balconies and deep reveals used both to provide shading and privacy and frame views toward the harbour and city. The lower levels take a different architectural approach, using brick and sandstone-toned finishes intended to establish a stronger relationship with St Francis Xavier Church. The Church itself will be conserved and upgraded for its continued use, while the former school building will be adaptively reused as part of the co-living component.

<img alt="Lavendar Bay" data-entity-type="file" data-entity-uuid="2d4418ad-90aa-4d49-af93-c80b140aea80" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%209.09.47%E2%80%AFAM.png?VersionId=Kv4gzbsACaGvZSRuaqcfGC54jEJRXIDJ" />

&nbsp;

The proposal adds to an increasingly concentrated pipeline of residential development around Blue Street, MacKenzie Street and Lavender Bay.

Just west of the site, Central Element lodged plans earlier this year for one of the most significant residential developments proposed in Lavender Bay in recent years.

Central Element's SJB-designed scheme at 64-66 Lavender Street and 3-7 Middlemiss Street would deliver 163 apartments across two towers rising 23 and 32 storeys, replacing five existing apartment buildings containing 32 homes. The project also forms part of the Housing Delivery Authority pathway.

<a href="https://www.apartments.com.au/news/nsw/first-look-central-element-reveals-lavender-bay-apartment-plans?utm_source=chatgpt.com" rel="noopener" target="_blank">First look: Central Element reveals Lavender Bay apartment plans</a>

Immediately around North Sy​dney Station, another two significant proposals have emerged at 5 and 15 Blue Street.

Zurich Australian Insurance Properties is seeking to adaptively reuse its longstanding commercial building at 5 Blue Street, directly above North Sydney Station, rather than demolishing the structure.

Its SSDA proposes converting the building into a 14-storey mixed-use development with 62 apartments and 86 co-living rooms, together with ground-floor retail and a major refurbishment of Blue Street Plaza. The application is currently at the Response to Submissions stage.

<a href="https://www.apartments.com.au/news/nsw/first-look-zurich-targets-north-sydney-office-conversion-with-148-unit-proposal-above-metro-station">First look: Zurich targets North Sydney office conversion with 148-unit proposal above Metro station</a>

&nbsp;

First look: Vinnies files for 20-storey Lavender Bay apartment tower as North Sydney housing pocket heats up

When the opportunity arose for South Australian developer Palumbo to return to Kent Town, where it had previously delivered East Park Apartments and the East 
Rundle Apartments, it wasn't one the longstanding developer-builder was going to pass up.

The decision was quickly vindicated, with more than 30 apartments sold within the first month of launching <a href="https://www.apartments.com.au/new-apartments/royal-apartments-kent-town-2-8-north-terrace-kent-town-sa-5067">Royal Apartments</a> to the market.

The 206-apartment development, which will bring significant new supply to Adelaide's tightly held eastern city fringe, also gives <a href="https://www.apartments.com.au/developers/palumbo">Palumbo</a> the opportunity to bring new life to one of Kent Town's most recognisable watering holes.

[smartcode_project:default project_id=6109 project_image_fid=376073]

Royal Apartments incorporates the historic Royal Hotel, a venue Palumbo Managing Director Daniel Palumbo said has a longstanding connection with the local community.

"Everyone in the area has history with the Royal Hotel," Palumbo told Apartments.com.au.

"It was quite an active pub and social gathering place for locals. We want to bring it back to its former glory."

[smartcode_project:default project_id=6109 project_image_fid=376072]

The wider development will comprise two residential towers alongside the restored hotel, sitting on North Terrace opposite the Adelaide Park Lands.

For Palumbo, the project also marks a return to familiar territory.

The developer completed East Park Apartments next door more than a decade ago and jumped at the opportunity to develop in Kent Town again when the Royal Hotel site became available.

"The opportunity emerged, and we moved to secure the site," Palumbo said.

"We were approached by the previous landowner, who said they had extensive commitments in Sydney and weren't in a position to deliver the project.

"We took over the site and within six months recut the design scheme to be more in keeping with the type of development we want to bring to Adelaide.

"Now we're on the market and those changes have really resonated with local buyers."

That has translated into a strong start to sales, with 33 apartments transacting in the project's first 35 days.

Palumbo said the early purchaser profile had been consistent with the group's traditional focus on owner-occupiers rather than investor-led apartment stock.

"Local owner-occupiers have always been our market," he said.

"There are always some investors, but we've never developed what would be called traditional development stock. Owner-occupiers are very much our market."

[smartcode_project:default project_id=6109 project_image_fid=376068]

The buyer mix has been diverse so far, with downsizers and younger professionals both accounting for a significant portion of early sales.

South Australia's current stamp duty settings, which allow&nbsp;eligible homeowners in South Australia aged 60 savings of up to $103,830 on stamp duty when they downsize to a new property valued at up to $2 million,&nbsp;have helped encourage downsizer activity, while younger buyers in their late 20s and early 30s have been attracted to the opportunity to live immediately outside the CBD while still being able to walk into the city.



Location has been a major part of the proposition for both buyer cohorts.

[smartcode_project:default project_id=6109 project_image_fid=376075]

Royal Apartments sits on North Terrace directly opposite the Adelaide Park Lands, with residents able to walk through the parklands toward the East End, Rundle Street and Rundle Mall.

Apartments have been positioned to capture views across the parklands, Adelaide skyline, Botanic Gardens and Adelaide Hills.

Palumbo believes the scarcity of developable land along this section of the Park Lands makes the site particularly difficult to replicate.

"There's very few allotments on that side that can be developed," he said.

"If this location was in New York and you were sitting on Central Park, you'd be talking about a $60 million apartments."

Royal Apartments will offer a broad mix of residences, ranging from one-bedroom apartments through to four-bedroom sub-penthouses and penthouses.

Current listings include one-bedroom apartments from $680,000, while larger three and four-bedroom residences are priced around $2.5 million.

Residents will have access to a swimming pool, gym, barbecue and recreation areas, residents' lounge and dining space, and a communal deck.

[smartcode_project:default project_id=6109 project_image_fid=376067]

The apartments will feature generous balconies, while secure parking, bicycle storage and storage cages will also be provided.

A porte-cochère-style arrival and drop-off area has also resonated with buyers, particularly those attracted to being able to walk into the CBD during the day while retaining secure vehicle access at home.

Palumbo is acting as developer, architect and builder on Royal Apartments, continuing the vertically integrated model it has used across its South Australian portfolio.

The group was also behind the $150 million Sofitel Adelaide, the 251-room five-star hotel and residential tower which opened in 2021.

Palumbo said Royal's launch had come at an interesting time for the broader Adelaide apartment market.

Buyer confidence had initially been impacted by uncertainty surrounding the Federal Budget and broader economic conditions, but Palumbo believes sentiment is beginning to improve against a backdrop of significant investment flowing into South Australia.

He pointed to increased activity across defence and resources, including Olympic Dam, as potential long-term drivers of the state's economy and housing market.

"Money is starting to flow into Adeliade, significant amounts as Adelaide bucks the trend of the rest of the country.," Palumbo said.

"There's a lot of activity in the economy over the next decade. I think more investment will come into this market."

Early works on Royal Apartments are expected to commence this year, with major construction activity and cranes anticipated on site from early next year.

[smartcode_project_cta:default project_id=6109]

Palumbo's return to Kent Town strikes early chord with buyers

Go-to builder-developer <a href="https://www.apartments.com.au/developers/graya">GRAYA</a> is continuing to bulk out its already impressive and diverse apartment portfolio across South East Queensland. Their latest milestone is securing development approval for Silk, its boutique riverfront apartment development in St Lucia.

The approval clears&nbsp;the way for the team to begin construction planning for the 22-residence project.

<a href="https://www.apartments.com.au/new-apartments/silk-st-lucia-16-18-sandford-street-st-lucia-qld-4067">Silk</a> will rise 15 levels from an 810 sqm site at 16-18 Sandford Street, occupying a prominent bend of the Brisbane River with a prized northern aspect across Orleigh Park toward the Brisbane CBD.

The approved scheme will comprise 16 split-floor and six full-floor residences, continuing GRAYA's move into larger-format apartment developments targeting Brisbane's prestige owner-occupier market.

The project has been designed around the site's broad river frontage and dual-direction views, with GRAYA prioritising larger residences, privacy and outlook over apartment yield.

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="aa5c2349-f96c-4914-a812-1f2cd6827af8" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.44%E2%80%AFAM.png?VersionId=WY0vEU_7vYjeRJKQHiCwFdMxu8PvFh52" />

GRAYA Co-founder and Chief Executive Officer Rob Gray said the project had been shaped around local homeowners wanting to remain in St Lucia without maintaining a traditional family home.

"St Lucia is one of those suburbs people do not want to leave," Gray said.

"They know the river, the trees, UQ, the golf course, Toowong and Indooroopilly, and that familiarity is hard to replace.

"True riverfront opportunities here are exceptionally scarce. What we have designed at Silk is a way to stay in the suburb people love, with the scale and privacy of a private home and far less to maintain.

"This is not typical apartment product. It is a proper home on the river, and that is exactly what this market has been missing."

The approval comes as new apartment development continues to increase across the St Lucia and neighbouring Toowong corridor, although direct riverfront sites remain considerably more tightly held.

GRAYA Co-founder and Managing Director Andrew Gray said securing the approval had removed a significant element of development risk from Silk.

"Genuine riverfront sites of this quality in St Lucia are not something that comes up regularly," Gray said.

"The approval removes a substantial layer of execution risk, and the location underwrites demand in a way very few inner-city sites can.

"The fundamentals here are as strong as anything we have assessed in Brisbane."

<img alt="Silk St Lucia" data-entity-type="file" data-entity-uuid="d0f3d734-65e1-48e8-8ed3-2e0715ffcdd9" src="https://s3.ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public/inline-images/Screenshot%202026-08-26%20at%208.25.56%E2%80%AFAM.png?VersionId=sOLSs_jdHkXLWbBKzRyayf5BfTb2vPsD" />

Silk will see GRAYA return to a stretch of the Brisbane River where it already has recent construction experience. The vertically integrated group recently completed ARC in neighbouring Toowong as builder for developer Spyre, delivering the riverfront project on a constrained site.

GRAYA will take a different role at Silk, controlling the project from design and development through construction and aftercare under its vertically integrated model.

The development will include a gym and resident leisure areas at ground level, integrated with the river's edge.

Silk joins a growing pipeline for GRAYA across Brisbane and the Gold Coast, which includes Enclave, The Gallery, Coral and Ripple.

The developer-builder has also recently lodged plans for its largest project to date, <a href="https://www.apartments.com.au/new-apartments/the-silo-19-chester-street-newstead-qld-4006">The Silo</a>, a proposed <a href="https://www.apartments.com.au/news/qld/graya-buys-frasers-newstead-site-plans-the-silo-between-james-street-and-gasworks-precincts">$700 million mixed-use development</a> in Brisbane's James Street precinct.

Silk is expected to predominantly target local owner-occupiers and prestige buyers seeking a permanent riverfront home in Brisbane's inner west.

Registrations of interest are now open, with further details on the project and construction program to be released as it progresses.

<hr />
<h2>SILK PROJECT FACTS</h2>

Developer-builder: GRAYA

Project: Silk

Location: 16-18 Sandford Street, St Lucia

Apartments: 22

Built form: 15 levels

Site: 810 sqm riverfront holding

Mix: 16 split-floor and six full-floor residences

Status: Development approved

Next step: Construction planning underway

[smartcode_project_cta:default project_id=152168]

GRAYA greenlit for riverfront St Lucia apartment development, Silk

<html><body>
To date the No Land Tax political party has only been evident with bright yellow campaign signs on roadside telegraph poles, but that has all changed as the single issue party as won the coveted first spot on the ballot paper for Legislative Council election.
The No Land Tax party drew position A, giving it a reasonable chance of getting its candidate elected. It is running 93 lower house candidates which ought generate assistance for the upper house prospect.
<a href="https://www.nolandtax.com.au/" target="_blank">The party</a> wants a full restructuring of the state's taxation system, including land tax, stamp duty and payroll tax.
A total of 24 groups are contesting the Upper House election. No Land Tax has 16 candidates on its upper house list.
Candidate Peter Jones hopes land tax can be abolished just like death duties were in 1981.
Land tax is levied on investment residential and commercial property and holiday homes in NSW regardless of the income generated by the property. 
The party's website says over 150,000 people are hit with land tax every year in NSW. 
"There is no equivalent tax on share investors," it notes.
"With high property prices in Sydney and NSW, it’s not difficult to be dragged into paying land tax.
"Land tax is calculated on the 'highest permissible use' of the property, so for example, a warehouse that has been rezoned for residential development is taxed at the higher valuation, even if the warehouse tenant has a long term lease.
"It is not uncommon for some property investors to pay more in land tax than they receive in rent."
In 2003 the NSW government collected over $1.1 billion in land tax. The figure is almost $2.4 billion now and it is expected to increase to almost $3 billion by 2017.
Over the years Peter Jones has caught the attention of Fairfax and News Ltd journalists, with 2GB broadcaster Ray Hadley suggesting the party was an interesting invention that would secure plenty of colourful coverage.
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jchancellor-FAypfDUnLy

No Land Tax party puts the $2.4 billion issue atop the NSW election agenda

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Stamp duty on property conveyancing, insurance and motor vehicle sales should be scrapped and the goods and services tax (GST) lifted to make up any funding shortfall, accounting professional body CPA Australia has proposed.
<a href="/expert-insights/finance/how-stamp-duty-varies-state-by-state">Pressure has been mounting for changes to stamp duty</a>, which is charged when properties change hands, with representatives from various state branches of the Real Estate Institute, the Property Council of Australia and other industry commentators calling for the tax to be reviewed.
CPA Australia chief executive Alex Malley described stamp duty and taxes on property conveyancing, which often run to tens of thousands of dollars, as “inefficient and unpopular”.
He said modifications to the GST could raise enough revenue to allow government to eliminate the charges.
“Additional GST revenue can be used to abolish a number of inefficient state taxes and also provide for personal income tax cuts and compensation for low income households, while also boosting economic growth,” Malley said.
The accounting body commissioned KPMG to prepare a report comparing four scenarios involving changes to the base and rate of the GST, along with the removal of stamp duties.
Under the existing system, a 10% GST is applied to a wide range of products and services in Australia. Food, health and education are excluded.
One scenario looked at maintaining the level of the GST but extending it to include food, health and education. The report estimated an additional $12.1 billion could be raised in the first year through this course of action.
Another scenario examined retaining current exemptions while increasing the GST to 15%. This would raise an extra $26 billion, the report estimated.
A third case considered lifting the GST and extending it to cover health and education but not fresh food, which was reckoned to bring in $36.8 billion in extra revenue.
The final scenario involved increasing the GST to 15% and broadening its reach to include food, health and education. The modelling found this would raise $42.9 billion additional revenue.
“The additional revenue raised in each of the scenarios can be used to retire or reduce inefficient and unpopular taxes, including stamp duties on insurance, motor vehicles and conveyancing on residential and commercial properties,” Malley said.
“The modelling reveals that there is also sufficient revenue to return to households as income tax cuts or as compensation for low income households who would not benefit from changes in income taxes.
“The net outcome in all the reform scenarios we’ve looked at is that households across the income spectrum can be better off.”
Previous reviews of the taxation system have excluded the GST, which was introduced by the Howard government in 2000, more than 20 years after a consumption-based tax was first proposed for Australia.
{mijopolls 92}
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zfielding-GvX3Uq9KTa

Raise the GST to abolish stamp duty: Accountancy group

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Abolish payroll tax and kick start the economy; it’s that simple! 
Problem solved – cue the Henry Tax Review which found that of the major heads of taxation revenue, payroll tax is more damaging to the economy than company tax. 
When Australia entered the global financial crisis, instead of handing out money, payroll tax should have been immediately abolished. If Australia wants to have strong employment then back the engine room that drives the economy, instead of greedy states and territories trying to destroy it.
If the Prime Minister wants to save his position he should act immediately on this given last week’s cash rate cut is not going to save the economy. What we are clearly seeing now is home owners and property investors being given the greatest free kick in Australian economic history with the majority well ahead of their respective mortgage repayments. Unless something is done we will see the cash rate at the current level and possibly lower for quite some time to come.
One only has to look at the NSW report on state finances for 2013-14 where a surplus of $1.247 billion was announced thanks mainly to residential and commercial sales. Nobody likes paying stamp duty on real estate transactions especially since they too were supposed to be abolished in 2000 when the GST was introduced. For those who follow the property markets closely ask yourself one simple question – where would real estate prices be today if stamp duty had been abolished? You’re right – they would be much higher.
Back to the 2013-14 NSW state finances report where government revenue grew by 9.8% and expenses grew by just 4.6%. Payroll tax receipts were $248 million which was much less than forecast – surprise, surprise.
The Abbott government needs to act decisively and fast given the budget is in such disarray that this week we saw the governor of the Reserve Bank and the new head of Treasury deliver a dire warning to Cabinet that unless the Senate passes the government’s spending cuts, the budget is at risk of never getting back to surplus. If payroll tax was removed the government would get back to surplus much faster as businesses can then re-invest much more back into their respective businesses instead of being fined for employing people.
If Tony Abbott wants to shirt-front something then there would be no better place to start than by abolishing this absurd tax that is dragging the economy down. What remains to be seen is whether or not our politicians in Canberra have the economic intelligence to recognise this anchor on the Australian economy and act forthwith.
Interesting to read <a href="/expert-insights/finance/what-central-banks-around-the-world-are-doing-with-interest-rates">what central banks around the world are doing with interest rates</a> given many are now predicting that the RBA will cut again when they meet next month. The RBA recently released their credit aggregates for December 2014 which identified that home lending is now up to a record $1.42 trillion. Total credit grew by 5.9% with housing posting 7.1%, business 4.8% and personal credit 0.9% in annual terms. If payroll tax were to be abolished business credit would almost double – which is exactly what our economy needs. Why is it that that elected governments fail to recognise this, given this would also drive up spending and GST receipts?
Maybe we need to do a test case, so where better to start than NSW – the best performing state in Australia. NSW also has a state election looming so it would be political suicide for either major party to fight such a decision.
The states and territories made a mockery of removing nominated taxes when the GST was introduced so it’s high time the electorates started reminding these governments that enough is enough.
Aside from politicians, I am yet to find anyone who supports payroll tax in Australia.
So what does that tell you?
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robertsimeon-hRNTwJyXkQ

Abolish payroll tax and kick start the economy: Robert Simeon

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A Federal Court judge has attacked superannuation breaks in the tax system as “totally skewed” in favour of the rich.
Justice Edmonds criticized Australia’s tax regime in a speech to the Australasian Tax Teachers Association conference at the University of Adelaide.
“I dare say that if the ordinary man in the street had any knowledgeable notion of what certain sections of the community were getting away with in this regard, any semblance of consensus would quickly disappear,” he said.
“The whole system of the taxation of superannuation in this country needs to be brought back to the table.”
But Justice Edmonds said the Abbott government has no “realistic prospect” of achieving structural tax reform.
“I fear time is now too short. Of course that may suit the government,” he said.  
<a href="https://www.smartcompany.com.au/finance/tax/25198-revealed-how-much-time-you-are-really-losing-to-tax-red-tape-each-year">Read more: How much time you are really losing to tax red tape each year</a>
“It will be to the detriment of our ‘common wealth’, if that ‘unique confluence of opportunities’ is not grasped by structural reform of our tax system, reform which implements a broader base upon which our income tax can operate, so as to facilitate a reduction of marginal rates of income tax across the board, but particularly at lower levels, which will be required to provide an equitable foundation to broaden the base of the GST, and, if necessary, increase its rate, without doing violence to the underlying criteria that need to be satisfied for the achievement of true tax reform.”
Professor Chris Evans, of the University of New South Wales, attended the conference and was in the audience for Justice Edmonds’ speech.
He told SmartCompany Justice Edmonds’ comments were “quite brave” and “eminently sensible”.
“He is spot on in the sense that it would be good to have structural tax reform. The government is leaving it really late and it does suit the government for there not to be real debate about structural tax reform,” he says.
Evans says if the government is serious about having a better tax system going forward it needs to look at broadening the taxation base by reevaluating superannuation, capital gains tax discounts, negative gearing and the rules surrounding gifts and bequests.
Evans says “there are so many subsidies” making the current tax system “massively inequitable”.
“While [the subsidies] benefit everyone relatively, they benefit those on higher income much more. When you can take literally hundreds of thousands of dollars in superannuation tax-free you have got to say it is skewed violently towards the rich and wealthy,” he says.   
Paul Drum, head of policy at CPA Australia, told SmartCompany CPA Australia has been saying for some time that superannuation requires a long-term vision and a clearly articulated direction.
“Constant rule changes only serve to undermine public confidence in the system,” he says.
 “The fact is that we are living longer and for many of us, despite having a good superannuation nest egg, there is the real possibility that we will outlive our savings.”
Drum wants a comprehensive review of the super system, including looking at ways to improve the de-cumulation phase as part of the broader tax reform process.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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cwaters-YrtBR88nBe

Judge slams “totally skewed” super tax breaks for rich

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GUEST OBSERVATION
All too often we get calls or emails from clients and some non-clients even, who are late with getting important information back to their accountant, whether it is tax returns, information for their auditor, or engaging with their wealth planner!  So, we thought we would find out what is the right information and when it is needed.
We are focussing on audits of SMSFs and trading entities. We have captured here the key areas of process, or events where you must advise your auditor.
SMSFs
<ul>
<li>Make sure all SMSF transactions go through the fund’s bank account. 
</li>
<li>Put an investment strategy in place.  If you do not have an investment strategy, then please talk to our wealth planning team who will be only too happy to assist you. 
</li>
<li>Tell your accountant when anything significant happens so they can produce a minute of the trustees meeting. e.g. buying or selling a significant asset. 
</li>
<li>“I transferred money into or out of the SMSF bank account in error” - Tell your accountant straight away and agree the best way to I fix this. 
</li>
<li>One of the members/trustees is seriously ill – Tell your accountant. 
</li>
<li>A trustee is leaving Australia ‘permanently’ or for more than six months – Tell your accountant. 
</li>
<li>SMSF trustees should work with their accountant to ensure that they don’t do anything to prejudice the tax advantaged 15% tax or tax free pension income. 
</li>
<li>Maximum or minimum pension amounts must be drawn every year 
</li>
<li>If you receive an auditors management letter, you should act on any matters raised, before they become reportable contraventions 
</li>
<li>If you don't have much money invested in your SMSF - check with your accountant to make sure it is still viable to maintain.  It could be a good option to transfer your super monies into a public offer super fund. 
</li>
<li>Have you considered having life and income protection insurance inside the super fund? 
</li>
<li>SMSFs are not allowed to buy residential property from a member or related party. 
</li>
<li>In a SMSF it can't rent or provide a residential property to a family member or yourself. 
</li>
<li>If part of your investment strategy is to collect art, then it can’t be displayed or leased in a SMSF member’s home or property (sole purpose test).</li>
</ul>
Other Audit Clients:
<table style="width: 460px;" border="1" cellspacing="0" cellpadding="0"><tbody>
<tr>
<td valign="top" width="26">#</td>
<td valign="top" width="197">Issue Description</td>
<td valign="top" width="197">Reason</td>
<td valign="top" width="197">Preferred course of action</td>
</tr>
<tr>
<td valign="top" width="26">1</td>
<td valign="top" width="197">Not keeping full records in a business-like manner.</td>
<td valign="top" width="197">It makes performing an audit difficult as sufficient appropriate audit evidence cannot be accumulated by the auditor to support an audit opinion and allow for a ‘clean’ audit report to be issued.</td>
<td valign="top" width="197">Full and proper record keeping needs to be employed – seek the advice of your accountant early.</td>
</tr>
<tr>
<td valign="top" width="26">2</td>
<td valign="top" width="197">AGM timing – ‘Not for Profit’ organisations sometimes schedule their AGM far too close to the end of their financial year.</td>
<td valign="top" width="197">Does not leave enough time for the financials to be compiled leaving enough time for an appropriate audit to be conducted.</td>
<td valign="top" width="197">Liaise with your accountant and auditor on achievable time frames and preferred AGM dates.</td>
</tr>
<tr>
<td valign="top" width="26">3</td>
<td valign="top" width="197">If your business has bank lending covenants that need to be maintained, an auditor may need to check these and report accordingly.The terms of your lending covenants might include not declaring a dividend large enough to create negative current assets. Or your interest coverage ratio needs to stay above a certain level.You should be aware of any loan or overdraft conditions imposed by the bank and work with your accountant to ensure they’re not breached.</td>
<td valign="top" width="197">If breached, at any time during the year, the bank may have the right to call in the loan. This could be inconvenient for you and require the loan to be quickly refinanced – if possible.</td>
<td valign="top" width="197">Be aware of lending conditions, maintain monthly or quarterly financials promptly and have your accountant regularly checking that covenants are met.</td>
</tr>
<tr>
<td valign="top" width="26">4</td>
<td valign="top" width="197">Directors not being aware of other factors that would require an annual audit to be conducted e.g. ASIC requirements.</td>
<td valign="top" width="197">If a shareholder (holding 5% or more of the shares) requests an audit; if the company becomes a Large Proprietary company, if the company has  any two of the following -  more than 50 employees; Assets of more than $12.5M; and turnover of greater than$25m.</td>
<td valign="top" width="197">Keep your accountant informed of changes with your company so they can advise if ASIC regulations require an annual audit.</td>
</tr>
</tbody></table>
Robert Edwards is a partner at <a href="https://www.chan-naylor.com.au/" target="_blank">Chan &amp; Naylor</a> Audit Services.
Disclaimer: This article contains general information. Before you make any financial or investment decision you should seek professional advice to take into account your individual objectives, financial situation and individual needs.
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po-LsXgBTHBmX

What you need to tell your accountant about your SMSF

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Hi Margaret,
I am a fortunate Aussie expat whom has just reached five years overseas. As expats our land tax exemption in Queensland is only $350,000 per person. 
My wife and I own two properties in Brisbane and are looking to purchase our third and future home.  Our tax planning strongly requires us to increase our current debt levels.
Unit : $200,000 land value, 50/50 ownership,principal place of residence up to end 2009.
Post war 810 square metre splitter: $405,000 land value, one title, 100% my name.
Future home: $800,000 to $1 million, 50/50 ownership.
Do you have any recommendation on how we can eliminate or reduce our land tax exposure after the purchase our new home while remaining oversees?
We are likely to face an $8,000 to 10,000 yearly land tax bill.  We have considered selling our unit as we can still access the capital gains exemption and going forward it is not likely to provide growth to match the cost of land tax.
I look forward to your assistance.
Thanks
Julyan 
Hi Julyan,
It always worries me when the tax accountant’s response to saving tax is to increase your level of borrowing.
While I support borrowing to invest, the amount of debt you ultimately obtain must suit your personal appetite for risk, not some accountant’s attempt to reduce your tax.
It’s all very well to say ‘get more debt’ but to do so without care and extremely careful planning around what you buy might just end up diverting those saved taxes into property losses when you buy the wrong property!
You cannot get the usual principal place of residence (PPOR) exemption on your land tax as you do not reside here – and so the normal thresholds that apply to property other than your own home apply to you, as you have so rightly pointed out. 
Once you make this next property your home, it will come under the exemptions, so maybe you need to consider the length of time it will be just an investment and calculate the total amount of tax you will actually be up for – then assess if this amount is worth getting into the market now. 
It could be that the amount of money you save by buying now, assuming what you buy goes up in value, is more than the tax you have to pay, making the payment worthwhile.
In addition to this you could: 
<ol>
<li>Explore how you can make your PPOR your own home – this may entail coming home for a month to live in the newly acquired property as soon as you settle, then invoking the six year rule to move out of it for up to six years.  While this deals with capital gains tax it may also deal with land tax too – you must check with the QLD office of state revenue for their policy on PPOR exemptions and it’s relation to land tax. 
</li>
<li>Instead of buying a property now to live in, instead look for additional investment properties but choose them in a state other than Queensland.  Land tax is a state based tax and you get a tax free threshold in each state!   Note that the threshold is different in every state, but this could allow you to add to your portfolio with growth assets without further burdening your land tax liability. 
</li>
<li>If you must stay in Queensland, consider buying a commercial property, where land tax is an outgoing recovered from the tenant.</li>
</ol>
Apart from these ideas, land tax is a fact of life and one which has no legal way of avoiding.  As with all tax advice though, be sure to contact an accountant to discuss your needs, and choose one who can demonstrate a sound knowledge of property investing tax matters.
Regards,
Margaret
Have a property question?  <a href="mailto:askmargaret@propertyobserver.com.au" target="_blank">Ask Margaret!</a>
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mlomas-KC9MUPZ6Ca

Ask Margaret: How can I reduce my land tax exposure?

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The Australian Capital Territory Civil and Administrative Tribunal (ACAT) has lowered the penalty tax for a couple who operated an investment property while living overseas, but found that being unaware of a tax was no excuse for a failure to pay.
In 2012, Geoffrey Wade and Siew Imm Tan were living in Singapore due to personal circumstances. In April that year, they used an agent, PRD Nationwide, to rent out their Australian property. For two years, from May 2012 to May 2014, the property was leased, and they were liable to pay land tax for the two years.
Neither the couple nor their agent notified the state tax department of the rental agreement within the required 30 days of its commencement. Once the couple were aware of their tax liability, in early 2014, they began paying the land tax off immediately, in installments.
The Commissioner for ACT Revenue decided to impose a penalty tax on Wade and Tan above the default 25% of unpaid tax, at 50%. The 50% rate usually applies if the taxpayer isn't able to provide a reasonable excuse for failing to pay their land tax, and the mistake was caused by a failure of the taxpayer to take reasonable care.
If a taxpayer intentionally disregards tax law, they are usually charged a penalty at 75% of the unpaid tax. The penalty rate can increase to 90% in certain circumstances.
Wade and Tan disputed the 50% penalty rate, arguing that their agent, acting on their behalf, should have notified ACT Revenue that their property was being rented.
They contended that the legislation which saw them incur a penalty of 50% was irrelevant, as it referred to an owner that had not notified the Commissioner of a rental property, not an agent that had not notified the Commissioner.
However, the Commissioner argued that owners were still responsible for declaring a rental property, even in the case where there has been a failure to do so by the agent. Tan and Wade, it was contended, had failed to take reasonable care, and had an obligation to independently figure out their tax obligations.
Ultimately, the Tribunal considered the couple's exceptional circumstances: Tan and Wade had to remain overseas, were unable to access mail from the Commissioner, and had been let down by their agent (who did not appear as a witness). It also noted that Tan and Wade had not heard of land tax, and upon realising they had a tax obligation, immediately began paying their land tax.
It was, however, also noted that the couple had failed to take reasonable steps to ensure they met their tax obligations, and that they couldn't receive a full remission of their penalty tax.
The Tribunal decided to remit 40% of the penalty tax imposed, which meant they were required to pay a 40% penalty tax, rather than the 50% sought by ACT Revenue.
 
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jrichardson-uRX5hFdKfN

ACAT softens penalty tax for unaware couple

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GUEST OBSERVATION
The Australian Tax Office (ATO) says it continues to see a number of taxpayers understating rental income and over-claiming rental deductions.
With the surge in real estate sales, especially residential real estate, and an emphasis on investment properties, the ATO has not surprisingly taken a close interest in the <a href="https://www.smartcompany.com.au/finance/tax/43478-ato-targets-work-expenses-rental-properties-and-more" target="_blank">expense claims people make concerning their rental properties</a>.
Rental properties have been on the ATO radar, it seems, forever. The issues haven't greatly changed, but it seems taxpayers are still getting it wrong. Quite why this is the case is something of a mystery.
The ATO is now sending what it says are "re-designed" letters to taxpayers regarding reviews of rental, legal and/or borrowing expense claims. In those letters, the ATO says it will provide information on specific expense claims it is reviewing. It says the letters identify:
<ul>
<li>the relevant tax return label where the expense is claimed and the amounts in question; 
</li>
<li>the proposed ATO adjustments; 
</li>
<li>what to do if there is a disagreement about what has been claimed; and 
</li>
<li>where to find relevant information on the ATO website.</li>
</ul>
The ATO says it has also refined its case selection processes to minimise the likelihood of incorrectly selecting commercial properties.
Common errors with rental expense claims
Some of the common errors the ATO has identified include claiming as a legal and/or borrowing expense:
<ul>
<li>stamp duty on the transfer of property; 
</li>
<li>legal fees in relation to family divorce proceedings; 
</li>
<li>borrowing expenses in a single year, instead of being spread over five years as the law requires. The five years runs from the date of the borrowing; 
</li>
<li>borrowing expenses for personal loan protection insurance for injury, illness and loss of income; 
</li>
<li>interest expenses incorrectly claimed at the borrowing expense label on the tax return; 
</li>
<li>renovation costs as repairs and maintenance instead of being attributed to the capital cost of the property. This area causes confusion for many in determining for a start what is a repair versus what is a renovation. Structural improvements are unlikely to repairs e.g. remodelling a bathroom or kitchen; 
</li>
<li>solicitors fees for purchase of the property; and 
</li>
<li>some expenses as legal instead of sundry expenses. For example, fire levy expenses and lease fees.</li>
</ul>
The ATO says it continues to see a number of taxpayers understating rental income and over-claiming rental deductions. The ATO says it will be expanding its focus to investigate issues such as the incorrect:
<ul>
<li>apportionment of income and expenses based on ownership holdings; 
</li>
<li>claiming of expenses for vacant land; 
</li>
<li>apportionment of expenses for holiday homes. This may be done on the basis of the actual number of days the property is let at a commercial rent, although this will depend on the particular circumstances; 
</li>
<li>claiming of interest expenses for private borrowings.</li>
</ul>
It's also important to remember that expenses incurred in respect of an empty rental property will only be deductible if the property is available for rent and there are active and bona fide attempts to let the property. This means that expenses incurred will not be deductible for any period during which the property owner does not actively seek to find a tenant. This is a common issue.
There are many rental property expenses that are tax deductible e.g. council and water rates, building insurance premiums, real estate agent management fees, advertising costs, travel costs to inspect the property, etc.  However, as the Tax Office has clearly found, there are a number of areas where mistakes are being made. Rental property owners should take note of these.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" target="_blank">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
Thomson Reuters <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/the-australian-tax-handbook-tax-return-edition-2014/productdetail/121906" target="_blank">Australian Tax Handbook 2014 – Tax Return Edition</a> provides information on claiming all kinds of tax deductions, including the rules relating to claiming rental properties and work-related expenses.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
 
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thayes-XhNcNKLNWa

Rental property owners in ATO's sights: What you can and can't claim

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GUEST OBSERVATION
The capital gains tax laws are voluminous and complicated. But they also contain benefits for taxpayers.
Legislation introduced in federal Parliament last week – the Tax and Superannuation Laws Amendment (2014 Measures No 7) Bill 2014 – will amend the tax law to ensure that CGT exemption is available in respect of compensation or damages received by:
<ul>
<li>a trustee (other than a trustee of a complying super fund) for a wrong or injury a beneficiary suffers in their occupation, or a wrong, injury or illness a beneficiary or their relative suffers personally - and a beneficiary that subsequently receives a distribution that is attributable to such compensation or damages from the trustee; 
</li>
<li>a taxpayer for a policy of insurance on the life of an individual or an annuity instrument if the taxpayer is the original owner of the policy or instrument; and 
</li>
<li>a trustee of a complying super fund for a policy of insurance for an individual's illness or injury.</li>
</ul>
The government said it was intended that trustees or beneficiaries who receive compensation or damages in respect of certain events (such as an injury an individual suffers at work) or in respect of certain policies of insurance (such as illness, injury or death) not be subject to CGT.
However, the express wording of the relevant provisions in the tax law had created uncertainty about this treatment. It was also intended that insurance policies held by complying superannuation funds for injuries and illnesses suffered by an individual not be subject to CGT. So the legislation now introduced seeks to implement those original intentions.
Under the proposed changes, a capital gain or loss made by a trustee in relation to compensation or damages for any wrong or injury a beneficiary of the trust suffers in their occupation, or any wrong, injury or illness a beneficiary of the trust or their relative suffers personally, will be disregarded. Further, a capital gain or loss made by a beneficiary will also be disregarded if the trustee of a trust then distributes money, property or other CGT assets to the beneficiary attributable to the compensation or damages received by the trustee.
Take the following example.
Robert is the beneficiary of ABC trust, which was established after Robert fell off a roof whilst working for Roofing Inc and suffered serious injuries. Patrick, as trustee of ABC trust, seeks compensation on behalf of Robert from Roofing Inc's insurance company, and receives compensation for the accident.
Under the proposed law, the capital gain made by Patrick in relation to the compensation received will be disregarded.
Assume Robert recovers from his injuries, but requires substantial further medical and other support. Patrick, as trustee of ABC trust, distributes the compensation to Robert to assist in paying his hospital bills. Any capital gain made by Robert in relation to the compensation received will be disregarded.
The bill also proposes that a capital gain or capital loss made from a CGT event happening to an interest in a policy of insurance on the life of an individual or an annuity instrument is disregarded by the original owner of the policy or instrument.
Another example will help explain this.
Fred holds a life insurance policy from an insurance company. Fred passes away and his wife Jane, as executor of his estate, receives $200,000 from the insurance company in respect of the policy. Jane, as executor of Fred's estate pays $50,000 to Alice, a beneficiary of Fred's estate. The payment to Alice is attributable to the amount received by Fred's estate in respect of the life insurance policy.
Any capital gain made by Alice, as a beneficiary of Fred's estate, will be disregarded.
The amendments will apply retrospectively in relation to CGT events happening in the 2005-06 and later income years i.e. generally from 1 July 2005. Accordingly, the tax law has also been amended to ensure that taxpayers are given sufficient time to seek an amendment to previous assessments (as the amendment period will otherwise have expired in some cases), if required in these circumstances.
The government says the amendments are consistent with the administrative practice of the Commissioner of Taxation and ensure that taxpayers that could have benefited by relying on the Commissioner’s administrative practice are not disadvantaged by the changes.
The bill will not be debated until after Parliament resumes in February 2015, but the changes are welcome.
Terry Hayes is the editor-in-chief of tax news reporting at <a href="https://www.thomsonreuters.com.au/" target="_blank">Thomson Reuters</a>, a leading Australian provider of tax, accounting and legal information solutions.
Thomson Reuters <a href="https://www.propertyobserver.com.au/https://www.thomsonreuters.com.au/the-australian-tax-handbook-tax-return-edition-2014/productdetail/121906" target="_blank">Australian Tax Handbook 2014 – Tax Return Edition</a> provides information on claiming all kinds of tax deductions, including the rules relating to claiming rental properties and work-related expenses.
This article first appeared on <a href="https://www.smartcompany.com.au/" target="_blank">SmartCompany</a>.
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How CGT changes to exemptions on compensation or damages could benefit taxpayers 

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Hi Margaret,
I have just bought an investment property, which included doing a building inspection.
But prior to buying the property I also had a building inspection done on another property that I was looking to get as an investment which I did not go ahead with.
Are both building inspections tax deductible or just on the one I bought please?
With thanks
Geoff
Hi Geoff,
When buying an income producing property, the expenses which are associated with that are treated differently, depending upon what the expenses were and when they were incurred.
Where a building inspection is concerned, this is considered what we call a 'capital cost' and it is claimed by adding it to the cost base.  This means that you do not get an immediate deduction for it (as in, you cannot claim it in the year that it was incurred to get some of your tax back ion that year) - rather, it adds to your cost base and essentially reduces the gain you have to account for when you sell, reducing the amount of capital gains tax you must pay.
If you do not buy the property, you have no cost base to add it to so it is not claimable at all.
If you want to claim these kinds of costs, you must be in the 'business of buying rental properties' or in the 'rental property business'.  If your are assessed as being in one of those categories, then there are many extra things you can claim, but you will be treated like a business with all of the associated requirements and lose the 50% discount on CGT when you sell.
Regards,
Margaret
Have a property question?   <a href="mailto:askmargaret@propertyobserver.com.au">Ask Margaret!</a>
 
 
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