I’ve seen similar talks about people doing it here as well, but not for hours. I think you have to manage it yourself for certain hours a week for it to qualify. I am not sure.
But the part I don’t understand is, the taxes they have to pay when they sell their house that they did not reside in, should have a lot more tax than the tax they have to pay on salaried income. Is that not the case? I’m not into business side so I’m not knowledgeable about these, but it makes sense to tax more on business profits compared to someone’s salary.
And if you have tax brackets, paying little taxes now might be better than paying no tax and later having to pay huge tax on the same amount because it’s not distributed across tax years when you sell
I’ve never had the opportunity to own a home so idk the ins and outs of it all, but at the rate the property prices are growing I assume it’s profitable at sale time. Houses are the investment to have in Australia, and the government is doing everything it can to prop up the value of the investments.
A quick look at the tax office info tells me you have to pay capital gains tax on property you have used as a rental, but it’s discounted by 50% if you owned it more than 12 months, and can be offset by capital losses - in this case your negative income from the rent can offset a good chunk, if not all of it. And as far as I can find CGT is the extra fee for selling a house you never occupied.
I’ve seen similar talks about people doing it here as well, but not for hours. I think you have to manage it yourself for certain hours a week for it to qualify. I am not sure.
But the part I don’t understand is, the taxes they have to pay when they sell their house that they did not reside in, should have a lot more tax than the tax they have to pay on salaried income. Is that not the case? I’m not into business side so I’m not knowledgeable about these, but it makes sense to tax more on business profits compared to someone’s salary.
And if you have tax brackets, paying little taxes now might be better than paying no tax and later having to pay huge tax on the same amount because it’s not distributed across tax years when you sell
I’ve never had the opportunity to own a home so idk the ins and outs of it all, but at the rate the property prices are growing I assume it’s profitable at sale time. Houses are the investment to have in Australia, and the government is doing everything it can to prop up the value of the investments.
A quick look at the tax office info tells me you have to pay capital gains tax on property you have used as a rental, but it’s discounted by 50% if you owned it more than 12 months, and can be offset by capital losses - in this case your negative income from the rent can offset a good chunk, if not all of it. And as far as I can find CGT is the extra fee for selling a house you never occupied.