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Haha exactly!!! I say this to my clients all the time.

Coming back to this, I think tax will be an issue which will erode profits. As mentioned above, first and maybe even second development like this may be treated on capital account and the CGT concessions taken advantage of, however after that this will constitute a development business and...

Income tax payable on CGT profits (if on capital acct) or Income tax would be payable on profits (if on income acct). But I understood what you meant! :)

Wrong, in isolation they are exempt from CGT etc but if they are a regular activity of the taxpayer then the taxpayer will be in the business of developing and subject to ordinary concepts 6-5 for taxation purposes, GST registration etc...

GST issues aside, I'd argue that if you repeat this venture it would no longer fall under capital account (thus CGT concessions), but under income account under ordinary concepts of S.6-5, due to a number of factors such as regularity of activity and seeking to generate profits rather than...