Finance

There are many choices when it comes to finance and it is advisable that you look at all of the options available to you. It is of the utmost importance that you choose the financial vehicle best suited to your requirements.

We have access to professional financial groups, who can negotiate with all of the major banks and lending institutions on your behalf.

Finance Brokers are constantly shopping the market for the best rates using all the leading lenders. They do the work for you in establishing loans and accounts - saving you money and valuable time.


Accounting

Your own personal accountant is the best person to advise you on the structure of your finances, but a second opinion doesn’t hurt. If your accountants do not specialise in property they may be out of touch with the latest up to date information and procedures available to benefit you.

There are various opportunities available to you and there are a number of independent financial consultants and accountants here in Queensland that we can recommend.

Ask us about the tax advantages that you can achieve to maximise your benefits.

Stamp Duty
Stamp duty is a State Tax on written documents (‘instruments’) and certain transactions, such as:

• motor vehicle registration and transfer
• insurance policies
• leases and mortgages
• hire purchase agreements
• transfers of property (such as businesses, real estate or shares).

The rate of stamp duty varies according to the type and value of the transaction involved. Depending on the nature of the transaction, certain concessions and exemptions may also be available.
For further information contact your State or Territory revenue office.

What is Negative Gearing?
Negative gearing is when the interest rate on the borrowed funds used to purchase an asset or make an investment is higher than the expected income yield on the investment; the practice is called negative gearing. The investor may be able to offset the loss against other taxable income.

Taxes
Following is a guideline only of varying taxes. For further information or clarification you should seek independent advice from a professional licensed financial institution.

GST
GST is not payable on the sale of an existing family home or when a private individual sells a property.

Land Tax
Land tax is imposed in all states and the ACT, but not in the Northern Territory. It is a tax levied on landowners, except in the ACT where it is levied on lessees under a Crown lease. Land Tax must be paid but only on UCV (i.e. Unimproved Capital Value). The threshold in Queensland is $160,000 before any fee is charged.

Landowners are generally liable for Land Tax when the unimproved value of taxable land exceeds certain thresholds. In some States there are deductions and rebates available, depending on the use of the land. Principal places of residence are usually exempt from land tax although this is subject to certain qualifying criteria, which vary between States.

Land owned and used by the following organisations are generally exempt from land tax:

• Non-profit societies
• Clubs and associations
• Religious institutions
• Public benevolent institutions
• Charitable institutions.

As exemption criteria vary between states, you should seek clarification from your local State or Territory revenue office.

Land Tax
Land Tax must be paid but only on UCV (i.e. Unimproved Capital Value). The threshold in Queensland is $160,000 before any fee is charged.

Income Tax
You pay 29% from one dollar, but only after all tax deductions have been applied.

Capital Gains Tax
Capital Gains Tax (CGT) is the tax that you pay on any capital gain you make and includes on your annual income tax return. It is not a separate tax, merely a component of your income tax. You are taxed on your net capital gain at your marginal tax rate.

Your net capital gain is your total capital gains for the year;
less
Your total capital losses (including any net capital losses from previous years)
less
any CGT discount and small business CGT concessions to which you are entitled.

Property Tax Allowances
Property tax allowances are a valuable aspect of any property investment due to their ability to enhance an investor's return and produce a better cash flow.

However, a high level of expertise is required to ensure that investors obtain maximum allowable entitlements. Property tax allowances form part of the Income Tax Assessment Act 1997 (ITAA 1997) and provide an opportunity for owners of income producing property to reduce their assessable income.

There are a number of property tax allowances available to property owners, investors, and developers, including allowances for building structure and depreciation on plant. Property tax allowances are often simply referred to as tax depreciation.

Tax Deductions
All expenses (excluding stamp duty) are tax deductible. This is the same for an Australian Citizen or Overseas purchaser.