Potential Tax/Gst implications on property development

Hey guys, this question has prob been asked numerous times. But I need some advice on the below scenario:

Please see the below facts:

- Property was purchased in Dec 2010
- Client lived in the property as his main residence for six months.
- During this time he applied and was DA approved to construct a duplex. The intention was to build one which was his main residence and lease the other out as a long term rental.
- As soon as he moved out, he rented the property.
- In August 2012, he advised the tenants he needed the property back so he could construct the duplex.
- The duplex was recently completed and constructed as an owner builder.
- The client works full time 9 to 5 job and had the duplex managed by a site manager
- Bearing in mind the client does not own or run a construction business and hence is not registered for GST.

Can you please assist with the following questions:

1. If the client received a good offer for the duplex which was intended to be his main residence, would he be liable for GST, CGT or taxed on this as ordinary income due to fact this is new residential property? Can we argue a mere realisation and therefore pay CGT? Would we still be liable for GST?

2. If he does have to register for GST, will this mean he will be liable for GST when he sell's the duplex which is leased within 5 years of construction?

3. if he does move in as originally intended and used one of the duplexes as his main residence and then sells within 3 months will he be exempt from CGT and GST? And due to the fact he is not registered for GST, he should be able to sell the other investment duplex without having to pay GST as it was leased and therefore input taxed?

Your feedback would be appreciated :)
Thanks
 
I have a very similair question so am interested in the response to this. The timeframe between completion and sale seems very short to me.
 
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