What taxes do you pay for an investment property?

Hi Adryana

It will depend on the state you are in.

Generally, when purchasing you will need to pay Transfer Stamp Duty, and a Title Registration Fee. If you borrow money, you will pay to register the mortgage and you may also pay Mortgage Stamp Duty. For the amount of these, see the website of your state governments Lands Title Office and/or State Revenue. And there are other taxes peculiar to certain states. A new property is subject to GST.

Ongoing taxes include Land Tax and Income Tax. In SA you will pay an Emergency Services Levy. Other states also charge other taxes, levies and charges. Commercial leases are subject to GST. Generally, residential leases are Input Taxed so you pay GST on supplies but you don’t charge it on rent. Talk to your accountant about these.

And, don’t forget Capital Gains Tax when you sell.

Mum

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