capital gains tax in oz
Sep 15th 2003, 3:02 pm
#1
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Thread Starter
Joined: Sep 2003
Location: london
Posts: 2
capital gains tax in oz
Hey people, does anyone know about capital gains tax in oz? We're in the process of buying a property out there, but dont' want to move into it straight away, rather have it rented out(paying the mortgage on it) and stay with friends to save some money. We won't own another property apart from this one but someone told me we'd incur capital gains tax if its not our primary residence. IS this true?
Any info on people we could talk to or if you know yourself would be useful.
Lizzie
Any info on people we could talk to or if you know yourself would be useful.
Lizzie
Sep 15th 2003, 9:58 pm
#2
Joined: Aug 2003
Posts: 11,149
This is a complicated subject and I would take professional advice as it will involve 2 tax systems.
Sep 15th 2003, 11:42 pm
#3
Migration Agent
Joined: May 2002
Location: Offices in Melbourne, Brisbane, Perth, Geelong (Australia), and Southampton (UK)
Posts: 6,459
Tax in Australia
Hello Lizzie,
For starters you might want to request one or more of our free tax factsheets:
http://www.collettandco.com/factsheet.cfm
Best regards.
For starters you might want to request one or more of our free tax factsheets:
http://www.collettandco.com/factsheet.cfm
Best regards.
Sep 16th 2003, 3:04 am
#4
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
If you have PR you would also not be able to claim the First Home Owners Grant if you bought your first house here to rent instead of to live in, which is worth $7,000 to you.
Dosn't matter if you own or have owned a house anywhere else except Australia you are eligable on the first house / appartment you buy to live in.
So think carefully before buying your first house to rent.
Dosn't matter if you own or have owned a house anywhere else except Australia you are eligable on the first house / appartment you buy to live in.
So think carefully before buying your first house to rent.
Sep 16th 2003, 5:33 pm
#5
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Joined: Nov 2002
Location: Southampton, England
Posts: 51
CG Tax / 1st time buyers grant
If you purchase a property and get the 1st time buyers grant of $7,000, does anybody know how long you have to live in it before you can move out and rent it out instead? Our hope is to buy a property as soon as possible whilst we look for jobs. If we then find jobs in a different area we will the look for property nearer our place of work, and rent the initial one out.
Sep 16th 2003, 8:31 pm
#6
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Joined: Jul 2003
Posts: 11
Lizzie have a look at the ATO (Australian Tax Office site)
http://www.ato.gov.au/individuals/co...tent/31570.htm
specifically Part A - Chapter 6 - Real Estate and Main Residence
Right down the bottom in the very last section 'Main Residence' it says:
To get full exemption from CGT:
the dwelling must have been your home for the whole period you owned it
the dwelling must not have been used to produce assessable income, or
any land on which the dwelling is situated must be 2 hectares or less.
If you are not fully exempt, you may be partially exempt if:
the dwelling was your main residence during only part of the period you owned it
you used the dwelling to produce assessable income, or
the land on which the dwelling is situated is more than 2 hectares.
As far as I understand it (and I am NOT an expert) rental income would be assessable income
Hope that helps.
http://www.ato.gov.au/individuals/co...tent/31570.htm
specifically Part A - Chapter 6 - Real Estate and Main Residence
Right down the bottom in the very last section 'Main Residence' it says:
To get full exemption from CGT:
the dwelling must have been your home for the whole period you owned it
the dwelling must not have been used to produce assessable income, or
any land on which the dwelling is situated must be 2 hectares or less.
If you are not fully exempt, you may be partially exempt if:
the dwelling was your main residence during only part of the period you owned it
you used the dwelling to produce assessable income, or
the land on which the dwelling is situated is more than 2 hectares.
As far as I understand it (and I am NOT an expert) rental income would be assessable income
Hope that helps.
Last edited by DogsComingToo; Sep 16th 2003 at 8:34 pm.
Sep 16th 2003, 10:21 pm
#7
BE Forum Addict
Joined: Jan 2003
Location: Brisbane
Posts: 1,576
Re: CG Tax / 1st time buyers grant
Originally posted by gbarker
If you purchase a property and get the 1st time buyers grant of $7,000, does anybody know how long you have to live in it before you can move out and rent it out instead? Our hope is to buy a property as soon as possible whilst we look for jobs. If we then find jobs in a different area we will the look for property nearer our place of work, and rent the initial one out.
If you purchase a property and get the 1st time buyers grant of $7,000, does anybody know how long you have to live in it before you can move out and rent it out instead? Our hope is to buy a property as soon as possible whilst we look for jobs. If we then find jobs in a different area we will the look for property nearer our place of work, and rent the initial one out.
Also if you buy an investment property in some states (Queensland for instance) the stamp duty you pay is twice as much for an investment property as it is for you one you live in, and you also loose the $7,000 First Home Owners Grant.
So basically don't just jump in with both feet as soon as you arrive it could prove expensive.
Stamp Duty Calc
