Real Estate & Holding Companies Accounting & Tax in Australia

Our services cater to two distinct but related groups:

• Real Estate Investors: Individuals and companies holding residential or commercial properties in Australia for rental income ('negative gearing') or capital growth.
• Property Developers: Businesses undertaking construction projects who need to manage project costs, GST on development, and margin schemes.
• International Holding Companies: Businesses that use an Australian Pty. Ltd. company to hold shares in foreign subsidiaries (particularly in the APAC region).
• Foreign Investors in Australian Property: Non-residents who need guidance on Foreign Investment Review Board (FIRB) approval and specific tax rules for foreign owners.

From the moment of acquisition or incorporation, specialized accounting is essential. It becomes critical at these stages:

• Before Acquiring Property or Assets: To advise on the optimal ownership structure—whether personal, company, or trust—to minimize tax and protect assets.
• During Property Ownership: To track all income and expenses, prepare quantity surveyor reports for depreciation schedules, and manage land tax obligations.
• For Holding Companies: To document inter-company loans and ensure compliance with transfer pricing rules and foreign income tax offsets.
• At Year-End: To prepare financial statements for the company and provide the necessary information for filing company and personal tax returns, ensuring all deductions are maximized.
• When Selling an Asset: To accurately calculate the Capital Gains Tax (CGT), apply any eligible discounts or exemptions, and manage GST implications.

The cost of professional real estate accounting is an investment in compliance and maximizing your after-tax return.

• Small Real Estate Portfolio (1-3 properties): AUD $500 - $1,200 per month for bookkeeping, reporting, and tax planning.
• Simple Holding Company: AUD $800 - $1,500 per month to manage compliance and basic reporting.
• Development Projects or Complex Portfolios: Custom pricing from AUD $3,000+, involving detailed project accounting and strategic tax advisory.

Investing in Australian property or using a holding company without expert financial management carries significant risks:

• Incorrect CGT Calculation: This is a major ATO audit trigger. Failing to correctly calculate the cost base of a property or applying the wrong CGT discount can lead to substantial tax adjustments and penalties.
• **Improperly Claimed Deductions:** Incorrectly claiming capital works vs. standard repairs, or miscalculating negative gearing benefits, can result in significant tax liabilities.
• Land Tax Non-Compliance: Each state has its own land tax regime. Failing to register and pay on time leads to penalties.
• FIRB Approval Failure: Foreign investors who purchase property without the required Foreign Investment Review Board (FIRB) approval can face severe penalties, including forced divestment of the property.

Australian property tax law is a minefield of complex legislation that is constantly changing. Outsourcing your accounting to YourLegal's property specialists ensures you are always compliant and maximizing your tax efficiency. We help you from the very beginning, advising on the right ownership structure for your goals.

For holding companies, we provide the critical expertise to structure your entity to manage dividend flows efficiently and comply with Australia's international tax rules. By handling the complex financial administration, we empower you to focus on what you do best: finding and managing valuable assets.