Property Update - February 2006

in this issue:

• New grab for revenue revealed: more land tax
  
In what has come as a shock to many in the property industry, a unit trust holding property in a special trust now incurs an extra $5,884 of land tax.

• Watch out for GST traps in a slow market

When the sale market is slow, it is not uncommon for developers to refrain from selling, and instead rent out a property until the market improves. Developers who go down this route should be wary of a potential clawback in input tax credits.

• Large deposit
s and GST
Most sales proceed on the basis of a 10% deposit. But be wary of a deposit greater than 10%.

In what has come as a shock to many in the property industry, a unit trust holding property in a special trust now incurs an extra $5,884 of land tax.