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Deborah Awyzio
Deborah Awyzio, Solicitor
Category: Australia Law
Satisfied Customers: 863
Experience:  Bachelor of Laws (QUT), BIT (QUT), Family Law Accredited Specialist, over 12 years experience
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I am trying to establish how the payment structure

Customer Question

I am trying to establish how the payment structure concerning tax is managed when you sell an item land managed by a “public company ltd by shares” . The land title is transferred on receipt 60% of the of the land cost and the remainder which comprises common area and infrastructure; is then amortised 40% and paid over 21 years. Is tax paid on the total value of the land transfer or is tax paid based on the sum received ( actual income ) 60%, of the value. With the remainder of the tax 40% paid on an annual basis as income is received ?
Submitted: 11 months ago.
Category: Australia Law
Expert:  Leon replied 11 months ago.

Good Afternoon

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

The only tax that is paid on land to the ATO is capital gains tax based on profits made on the sale.

There is also stamp duty on the purchase but that is paid by the purchaser.

You cannot defer tax. It is paid in the year that the contract is exchanged

Here is information for you

https://www.ato.gov.au/General/Capital-gains-tax/Your-home-and-other-real-estate/Timing-of-a-real-estate-CGT-event/

You cannot delay the tax being paid. It falls due in the financial year the contract is entered into

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