You should also consider which entity should acquire the property for tax planning purposes. A lawyer can advise whether the and/or nominee clause will work to prevent double stamp duty.

Either way the entity would need to be setup prior to entering into contracts.

You need a good lawyer in the state your in to advise on that.

Re GST you will pay on purchase it will depend on the situation of the current owner.

If its held as trading stock by the current owner it may be subject to GST. If its a residential block that they have held for 10 years and merely has a house they lived in or rented for those years and they never had an intention to do anything more then they probably wont be subject to GST so you wont pay GST on the purchase.

When you sell you will be liable for GST.

Re the block with the land and existing house i believe it will also be subject to GST.

MT 2006/1 states

270. In isolated transactions, where land is sold that was purchased with the intention of resale at a profit (which would be ordinary income) the Commissioner considers these activities to be an enterprise. This would be so whether the land was sold as it was when it was purchased or whether it was subdivided before sale. An enterprise would be carried on in this situation because the activities are business activities or activities in the conduct of a profit making undertaking or scheme and therefore an adventure or concern in the nature of trade.

Do some tax planning re using the margin scheme on sale so you have an idea of your projected profits from the outset.

• This reply was modified 6 years, 10 months ago by  Houseofwealth.
• This reply was modified 6 years, 10 months ago by  Houseofwealth.

If a mortgage broker set up an smsf without providing a statement of advice as a registered financial planner under an authorised rep or license then they have committed a criminal offense.