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All part of tax planning. Identify the issues, the potential cost and then find the least cost basis.

No need to be a "development" which implies other meanings. Even selling the vacant land poses ordinary income. ATO view is that an isolated transaction is sufficient. If the house isn't rented prior it would also mean that any profit on the original land would also be ordinary income. The...

Underpaying tax is as much a problem as overpaying tax.

See above..Personal tax advice would be a good idea.

BLTN Ahhh ...Thats what Rob mentioned....all the facts If you proposed that the dev was on capital account I might recommend a private ruling. The media release isn't binding and relates only to a trust. The income tests Rob mentioned must both be satisfied. The ATO can argue one or both...

Good question Nat Intention to make a profit (or to repay a loan using proceeds) by changing the land and/or assets upon it. Once is enough...Not even a regular activity. Don't need a ABN, a licence, etc. Even your own home.... The MR exemption ends when you subdiv and create a new asset...

One of the common issues I disagree with here is investors who later change their mind and subdivide and build then sell some of their investment. They ask questions about the capital gain they expect to make...I then have to explain that there might be no CGT. It might be fully assessable...