Real Estate
Industry Overview
Australian real estate — residential development, commercial property, property investment, and property management — is one of the most tax-sensitive sectors. The interaction between GST, CGT, land tax, stamp duty, and negative gearing creates a complex compliance environment that varies significantly across property types and holding structures.
For developers, the GST treatment of new residential premises, the margin scheme, and withholding obligations require careful structuring from project inception. For investors, the choice between personal ownership, company, trust, or SMSF — and the capital gains, land tax, and stamp duty implications of each — affects long-term returns.
Property managers face trust account obligations, rental income reporting, and GST on management fees. Across the sector, the layering of federal tax law, state-based duties and levies, and ATO compliance requirements means that even routine transactions can carry material tax consequences if not properly managed.
Key Commercial & Regulatory Challenges
GST on Property Transactions
New residential premises, commercial property, margin scheme elections, going concern exemptions, and withholding obligations for purchasers. The GST treatment of property transactions depends on the nature of the supply, the status of the vendor, and the contractual terms — errors in classification can result in significant under- or over-remittance of GST to the ATO.
Capital Gains Tax Structuring
CGT discount, main residence exemption, 6-year absence rule, small business CGT concessions, and rollover relief for property disposals. The CGT outcome on a property sale is determined by the holding entity, duration of ownership, and the use of the property — and these factors need to be considered well before a disposal event occurs.
Negative Gearing & Rental Properties
Deduction claims for investment properties, depreciation schedules, loan interest apportionment, and rental property record-keeping. The ATO has identified rental property deductions as a priority compliance area, with common errors including incorrectly claimed interest deductions, overstated travel and repair costs, and missing or inaccurate depreciation schedules.
Land Tax
State-based land tax obligations, aggregation rules, trust surcharges, exemptions, and the interaction with ownership structures. In South Australia and other states, land tax is assessed on aggregated holdings — meaning the choice of ownership structure directly affects the total land tax liability across a portfolio.
Development Structuring
Entity selection for property development, profit allocation, GST withholding, and the treatment of pre-development costs. Whether a project is undertaken through a company, trust, joint venture, or partnership has implications for income tax, GST, stamp duty, and land tax — and these need to be addressed before contracts are exchanged.
Foreign Investment Rules
FIRB approval requirements, foreign purchaser surcharges on stamp duty and land tax, withholding obligations on property acquisitions, and vacant residential land tax. Foreign investors and developers with foreign ownership face additional compliance layers that apply at acquisition, during holding, and on disposal.
How We Support This Industry
Our work for real estate clients covers the full range of property-related tax, accounting, and compliance requirements — from acquisition structuring through to disposal and everything in between.
SMSF Setup, Tax & Audit
SMSF establishment and compliance for real estate professionals and property investors.
Learn moreCompany Setup & Compliance
Company registration, tax returns, bookkeeping, payroll, BAS, and FBT for real estate agencies and development companies.
Learn moreIndividual Tax & Financial Services
Individual and company tax returns, rental property tax, investment consultancy, and mortgage services for property investors.
Learn moreFinancial Planning
Retirement planning, wealth management, and investment strategy for real estate professionals and investors.
Learn moreTrust Formation & Tax
Trust formation, administration, and tax compliance for property investment trusts and family structures.
Learn moreSmall Business & Audit
Small business advisory, compliance, and audit services for real estate agencies and property managers.
Learn moreLegal Business Advice
Entity structuring, partnership agreements, and succession planning for real estate businesses and investment groups.
Learn moreWho We Work With
Our real estate advisory work covers a range of client types across the property sector:
Property Developers
Residential and commercial developers from small-scale renovations and subdivisions through to multi-stage master-planned projects. Advisory covering entity structuring, GST, and development cost treatment.
Property Investors
Individual and corporate investors with residential and commercial portfolios. Tax compliance, CGT planning, negative gearing, depreciation, and land tax management across multiple holdings.
Real Estate Agencies
Sales and property management agencies. Trust account compliance, commission structures, payroll for agents and support staff, and business advisory for agency principals.
Property Trusts & Syndicates
Unlisted property trusts and investment syndicates. Fund accounting, investor reporting, trust tax compliance, and regulatory lodgements for managed property structures.
Construction & Trades
Builders and trade contractors servicing the property sector. Business structuring, contractor compliance, payroll, and tax advisory for construction-related businesses.
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Discuss Your Real Estate Advisory Requirements
Whether you are a developer, investor, agency principal, or property trust operator, we can discuss how our advisory capabilities apply to your specific situation.