The boom in the real estate market of Australia has signified emphasized the importance of tax consequences related with distinctive capital revenue since property related transactions are subjected to number of different assessment process under the applicable Australia tax law . The various tax consequences due to property transactions drive the level of complexity and therefore the distinctions were identified to address those requirements.
The capital defined in any property transaction is subjected to CGT (Capital Gain Tax). The revenue is defined on basis of capital gains made out of sale of land or any unmovable property and considered as a profit making activity or scheme. Classifying it in broad terms, the property assets (in form of land or unmovable property) gets disposed of and is characterized as trading asset that result in revenue generation. The revenue generated through sale of property results in CGT and those gain or losses are disposal under taxes related with capital gains.
The capital defined in any property transaction is subjected to CGT (Capital Gain Tax). The revenue is defined on basis of capital gains made out of sale of land or any unmovable property and considered as a profit making activity or scheme. Classifying it in broad terms, the property assets (in form of land or unmovable property) gets disposed of and is characterized as trading asset that result in revenue generation. The revenue generated through sale of property results in CGT and those gain or losses are disposal under taxes related with capital gains.
