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In Brisbane's high-growth market, a poorly structured purchase can sabotage your returns before you’ve even picked up the keys.
You’re Not Just Buying a Property. You’re Buying a Tax Outcome.
Many buyers assume their biggest risk is picking the wrong suburb. But often, the real damage is done quietly—through poor ownership structures, missed deductions, and tax liabilities that could have been avoided.
Get the structure wrong, and you’re not building wealth. You’re working for the ATO.
Step One: Match the Structure to the Strategy
The first question isn’t what suburb or what property—it’s: what is this purchase for?
A buy-and-hold investment with high yields might benefit from trust ownership. A future principal residence? Personal name could unlock powerful CGT exemptions. Planning to renovate and flip? Consider the compliance implications of company structures.
Each structure comes with trade-offs:
- Trusts offer flexibility in income distribution but require careful setup.
- Companies have flat tax rates but limited CGT concessions.
- SMSFs come with strict rules but long-term tax advantages.
Choose wrong, and you risk:
- Missing depreciation deductions
- Paying more CGT than necessary
- Locking profits in entities you can’t access without additional tax hits
Why the ATO Loves Poor Planning
One of the biggest traps? Misusing the principal place of residence exemption.
Live in a property for a few months, rent it out, then sell—and you could face CGT without even realising it. Many buyers assume they’re protected, but the rules are nuanced.
Likewise, fail to order a depreciation schedule, and you could miss out on thousands in deductions. Or worse, rely on an outdated one that doesn’t reflect improvements—cutting your annual return for no good reason.
Timing Is a Tax Lever, Too
It’s not just what you buy—it’s when you sell.
Offloading a property before EOFY vs. holding until the next can shift your taxable income into a different bracket. If you're approaching retirement or planning a restructure, even a few months can impact your net return significantly.
Done right, you can:
- Offset gains against losses
- Distribute profit through family trusts
- Reduce exposure to higher income brackets
Done wrong, you’ll wear unnecessary tax—and limit your next move.
Get Ahead of the Curve, Not Caught in Compliance
Smart structuring isn’t just about tax minimisation. It’s about:
- Protecting your assets
- Maximising your borrowing capacity
- Creating future exit options
At Property Insider, we work closely with accountants and strategic advisors to ensure every property fits into a broader wealth plan—not just your portfolio, but your lifestyle, your income, and your future.
Because if you don’t structure smart, you’re not investing.
You’re just working for the tax man.
Need help choosing the right structure before you buy?
Our expert team of active developers, financial planners, architects, town planners and builders will help you navigate the best structure for your personal circumstances.
