Property Development, Tax (and everything in between) Day

The right decisions from the start to the end of a property development project

One day only
Thursday, 30 November 2023

Our line-up

Neil Brydges
Principal Lawyer, Sladen Legal

Simon Calabria
Director, Webb Martin Consulting Pty Ltd

Michael Carruthers
Tax Director, Knowledge Shop

Craig McCormick
General Manager, TaxBanter

The Property Development, Tax (and everything in between) Day is for those who want to get to the heart of the key issues that arise when clients are making and acting on decisions about property development.

Using a single case study threaded throughout the day, each presenter will walk through not only the essential technical details of managing client requirements, but the practical application – the decision points, timing issues, calculations, and the ‘red flags’ that tell you it is all about to go wrong.

Our case study characters, Mr & Mrs Smith, will seem like they belong in Days of our Lives by the time we finish with them. We’ll walk them, and the audience, through the typical issues and problem areas that Mum & Dad developers face, the interaction between the tax and legal requirements, and the likely outcomes of important decisions at a granular level.

One day only. Don't miss it.

Total 6.25 CPD Hours (est.)

Dates & Details

Thursday, 30 November 2023

DoubleTree by Hilton Melbourne
270 Flinders St, Melbourne VIC 3000

8:30am registration
9:00am - 5:00pm property tax day

FAAA accreditation pending

Knowledge Shop members, register through the portal for the discounted rate (new portal | retiring portal)

Terms & conditions: All registrations to Knowledge Shop events are subject to our terms and conditions which include a cancellation policy. No refunds are provided for cancellations received 5 working days or less from the event date, you can however send a substitute. Between 14 and 6 working days, a credit note will be provided. Cancellations more than 15 working days from the event will be provided with a full refund.

What we cover

The property subdivision decision

w Michael Carruthers

One-off and Mum & Dad projects are common. Michael Carruthers sets the scene for our typical Mum & Dad case study, Mr & Mrs Smith. We'll walk through the decision points and issues that Mr & Mrs Smith face at every turn:

  • Why the revenue / capital distinction matters so much
  • The practical factors that need to be taken into account to reduce the risk of ATO challenge
  • The unexpected outcomes that can arise from partitioning arrangements
  • Switching from capital to revenue account
  • How to calculate the capital gain or loss from the project or figure out the profit that should be taxed on revenue account
  • When the main residence exemption can and cannot be applied
  • How to determine whether a client needs to register for GST
  • Claiming GST credits and the GST adjustment rules

Using option arrangements for property transactions

w Neil Brydges & Michael Carruthers

Clients and developers often enter into option arrangements but this can present some unique challenges. In this targeted session we explore the tax and legal issues that need to be considered before clients enter into an option agreement.

  • Common problem areas and how to structure option arrangements well
  • Timing issues under the CGT rules
  • Undertaking CGT calculations
  • Applying the GST rules to option arrangements

Sleeper issues for property owners

w Craig McCormick

There have been a series of changes over the last few years that impact on the viability and cashflow outcomes of property development projects and for clients who are building or buying rental properties. We show you how easy it is for our hapless clients, Mr & Mrs Smith, to fall foul of the recent changes:

  • Recent integrity rules and the unexpected outcomes that clients (and some practitioners) might not be aware of
  • Holding costs for vacant land
    • The complex interaction between the general deduction rules in section 8-1 and the specific integrity rules in section 26-102
    • The treatment of costs incurred while renovating or repairing a rental property
    • Understanding the exceptions to the rules
    • Common problem areas
  • Depreciation deductions
    • When depreciation deductions are denied
    • Inherited properties and other related party transactions that can lead to adverse tax outcomes
    • Renting out a former main residence
    • The flow-on impact when a property is sold

Common legal issues that impact on the tax outcome

w Neil Brydges

Mr & Mrs Smith are at the precipice of a world of pain. Neil Brydges, Principal, and Edward Hennebry, Senior Associate of Sladen Legal walk you through:

  • Determining when a contract has been formed when it contains conditions
  • When a heads of agreement could be treated as a contract
  • Partitioning arrangements
  • The use of back-up clauses in contracts to manage tax exposures and whether this is effective
  • What needs to be done to show that a property (or interest in a property) is held in trust for someone else (e.g. parent holding legal title to property that the adult child lives in / pays off etc.)

GST, property and the margin scheme

w Simon Calabria

The GST rules contain a number of concessions and special rules that are often relevant in the context of property development projects. We walk through the key issues, the process and outcomes with a special focus on the margin scheme:

  • When the margin scheme can be used to reduce the GST liability on sale of property
  • How to calculate the margin
  • When do you need a valuation and what are the requirements?
  • The complex rules that can apply to properties that have been inherited, acquired from a related party or acquired GST-free
  • Applying the margin scheme to property that has been subdivided or amalgamated
  • Applying the GST rules to mixed use properties (e.g. properties that contain residential and commercial components)
  • Determining whether an adjustment event has been triggered and how to calculate the GST adjustments when there is a change in use or intention with respect to a property that has been developed

Our presenters