Guide to property

Property development, building and renovating

Renovating for profit

You are likely to be entering into a profit-making activity if you acquire a property with the intention of renovating and selling it at a profit, and go about it in a business-like way. This could have implications for the way the profit is treated for tax purposes (income or capital), and for GST.

Building and construction - residential premises

If you build new residential premises for sale:

• you can claim GST credits for the construction and any purchases you make related to the sale of the premises (subject to the normal rules on GST credits)
• you are liable for GST on the sale.

GST does not apply to the sale of residential premises that have been sold before.

	Building or renovating your home Generally, there are no income tax, capital gains tax or GST implications if you build or renovate your own home, provided it is your main residence and you undertake the work for private purposes. For more information, see the section Your home.
	Taxable payments reporting - building and construction industry From 1 July 2012, businesses in the building and construction industry need to report to the ATO each year the total payments they make to each contractor for building and construction services. These payments are reported to the ATO on the Taxable payments annual report. The report is due by 21 July after the end of each financial year. For more information, see Taxable payments reporting - building and construction industry.
	Property - home

Sections within Property development, building and renovating

• Renovating for profit
• Building and construction - residential premises