Pays to stay on the right side

If you are a property owner and you want to reduce your tax bill, do it legally. It simply isn’t worth trying to cheat the system.

First tip:  Own your property for at least 12 months before you sell.

You might be keen to sell your investment property straight away, but if you can resist for 12 months you are eligible for a 50% discount on the rate of capital gains tax (CGT).

You are generally required to pay CGT on any property you own but don’t live in. For properties that you have lived in for a time but have also rented out as an investment, you are generally required to pay CGT on the period where you were not the occupant.

SOURCE: RE/MAX Australia