FAQ 45 Am I classified as “Being in the business of Real Estate”

If you are classified as being in the business of Real Estate then CGT no longer applicable
Because of this the 50% CGT exemption when owning property for more than 1 year also does NOT apply

When operating like a business the taxation will be like a business
An assessment will be made on profits that are made and tax will be payable at the appropriate rate for the applicable entity. So if operating under a company structure, tax  will be paid at a rate of 30%. If operating in your personal name tax will be paid at personal marginal tax rates If operating within a trust tax will be paid by each beneficiary on the distributions received  at each beneficiary’s tax rate.

Please read this article if not wanting to operate like a business

http://www.bantacs.com.au/booklets/How_Not_To_Be_A_Developer_Booklet.pdf

Michael & Sara