Advising First-time Property Developers: Key Tax Imperatives - recorded half-day online conference

You can put your staff in the boardroom and watch it there. You can watch it on your computer or on your portable electronic device. All for the same low price.

The conference will be based on our highly successful video webinar technology: there’ll be a chairperson, a panel of experts, presentations and discussion.

Session 1: Duty and Tax Issues for Amateur Developers

Inexperienced developers undertaking their first project may include private individuals who see a great opportunity to capitalise on a particular block of land, or an investor who decides to undertake a one-off development project with the intention to only sell enough units to cover the cost of development and to hold the rest as investments. This session considers the specific duty and income tax issues that arise with these types of taxpayers, including:

• Where the taxpayer is undertaking development with one or more other parties:

  • What is required to obtain the partition exemption for transfer duty purposes?

  • What steps should be taken to avoid a common law or tax law partnership?

• Where the development utilises a previously held property:

  • Is there a change of purpose to a profit-making scheme?

  • Does CGT Event K4 occur?

• What are the income tax consequences of:

  • Consolidating title

  • Subdividing title

  • Going your own way afterwards

• Considering the CGT rollover options

Session 2: GST Issues for First Time Developers

Inexperienced developers undertaking their first project may include private individuals who see a great opportunity to capitalise on a particular block of land, or an investor who decides to undertake a one-off development project with the intention to only sell enough units to cover the cost of development and to hold the rest as investments. This session considers the specific GST issues that arise with these types of taxpayers, including:

• Does the taxpayer need to register for GST?

  • Is the taxpayer carrying on an enterprise - is there an adventure or concern in the nature of trade?

  • Pros and cons of registering voluntarily

• If registration is required, when should it be done?

  • Advantages of leaving registration as late as possible if margin scheme is available in relation to the property

  • Claiming construction costs

• Key GST issues to consider:

  • Potential adjustment events if property is held rather than sold

  • How long can the development be held for before it stops being new residential premises, and what are the consequences?

Session 3: Valuation Issues for Property Developers

Valuation of real property is a vital part of the factual matrix for GST and income tax. This session provides guidance on the underlying tax technical as well as valuation principles that apply, including:

• Implications of valuations for margin scheme - when and how

• Trading stock valuations - choosing the methodology

• ATO guidance:

  • What is “market value”?

  • When is a professional valuation required?

  • Penalties for failing to use a qualified valuer

• Understanding the valuation process as a tax adviser