Thanks for getting back, Richard,

We purchased the property on a single title as private citizens. I have been googling what I can about GST and margin schemes and it seems to be about cash flow when constructing and delaying paying back GST if you can't sell right away – is this right?. As the plan is to develop and hold long term (at the very least more than five years – we are established and like being here) I am hoping this would not apply and we would only be liable for CGT on 50% of the profit of one townhouse  – the other being our PPOR replacing our old house that we're living in now.

Regarding profit  margins – in a nutshell are we talking about spending $700k to create two properties worth say $1.1mil from the same block of land that we already own? Or am I missing something blindingly obvious?

Cheers.