This session used case studies to explore the different tax issues that arise from both the taxpayer and ATO perspective in respect of property development activities, both when undertaking the typical knockdown and subdivide scenario as well as in relation to large scale broad acre developments, including:
- When activities are likely to be more than the mere realisation of a capital asset, taking into account the recent decision of Commissioner of Taxation v Morton [2026] FCAFC 31.
- Maximising the main residence exemption and common mistakes when applying the exemption in the context of property subdivisions.
- GST issues including:
- Whether the landowner is considered to be carrying on an enterprise and, if so, from when
- GST withholding for new residential premises
- Application of the margin scheme
- Structuring of large scale broad acre developments, including:
- Retention of land by the landowner vs sale of land to a developer
- Timing issues that can arise for land owners in relation to crystallisation of tax liabilities
- Impact of structure on application of income tax and GST provisions
- Additional tax issues that arise in structures involving multiple investors.