Property and tax is a tricky subject that goes beyond these rent relief measures and concessions. As the schemes start to dial back, it’s important to remember that tax and your dealings with property is an ongoing conversation you may need to revisit and reacquaint yourself with.

Over the last 18 months, there have been many notable schemes promoted by state and federal governments to assist businesses and individuals with much-needed tax relief. Numerous relief schemes have been put into place to assist those with rent relief for their businesses.

Tenants who receive rent concessions from their landlords and landlords who give rent concessions to commercial tenants need to be aware of the difference between payments that are waived and deferred. Getting the two wrong can be costly, as rent payments are often a significant impact on the cash flow of a business. Missing a payment due to a misunderstanding of the rental concession type you may have been afforded could be detrimental.

If you own, lease or rent a property that is used for business purposes (whether commercials, such as a shop or an office, or even your own home) you need to be aware of the tax implications and obligations that you will have to fulfil.

If you are in possession of a property that is used in such a manner, you:

  • must include any rental income in your tax return
  • can claim deductions for some property expenses
  • will be liable for capital gains tax on any capital gain if you sell the property
  • may have GST obligations and entitlements.

In your dealings with property, you will also likely have additional tax obligations, including those relating to one-off transactions (such as the buying, selling, leasing or developing of property).

This could result in the Australian Taxation deciding that those one-off transactions should deem you as conducting an enterprise. If the turnover from these activities is more than the GST registration turnover threshold (what you are allowed to bring in before reaching a limit), you may be required to register for GST.

Ensure that your tax obligations and consequences are met by consulting with us. We are equipped with the knowledge to assist you. You can also enquire about potential tax concessions surrounding rent and property. There may be more available to you and your business than you might think.

We’re here to help. Please contact our team to assist you +61 3 9820 6400.

This is not advice. You should not act solely on the basis of the material contained in this post. These are general comments only and do not constitute or convey advice per se. Also changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of these areas.

Key Contact
Robert Lissauer

Tax Director

Key Contact
John Christopoulos

Business Services Director

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