Australia: house purchase loan sample

Property Price :$500,000 AUD,Loan 50% = $250,000,Currency: Australian Dollar (AUD)
Annual Interest:5.5%→$250,000 * 5.5% = $13,750(Creditable)
Rental Income:5% of property price→ $25,000(basic taxable amount)


Creditable item Amount Remark
1. Australian Accountant Fee $ 550 AUD
2. Flight Ticket $ 1,000 AUD
3. Property Management Fee $ 1,650 AUD
4. Furniture Discount $ 2,000 AUD
5. Annual Loan Interest Payable $ 13,750 AUD
Total $ 18,950 AUD

(Amount only for reference, actual amount may be vary.)

Annual Taxable Income: ( $25,000–$18,950)=$6,050 
Annual Tax Payable: $ 6,050 * 32.5% = $1,966.25

Australia: Comparison between purchase with bank loan in Taiwan and Australia.

= 台灣貸款購屋範例 =

房價:$500,000 AUD,貸款 50% = $250,000,計算單位: 澳幣(AUD)
年息:2.2% → $250,000 * 2.2% = $5,500 (無抵免)
租金收入:5% 的房價→ $25000(初應繳稅額)



抵免項目 抵免費用 備注
1. 澳洲會計稅務處理費 $ 550 AUD
2. 機票 $ 1,000 AUD
3. 物業管理費 $ 1,650 AUD
4. 家具折抵 $ 2,000 AUD
合計 $ 5,200 AUD

(範例內之費用金額僅供參考, 實際費用可能有所不同.)

年度應稅收入金額: ( $25,000 – $5,500) = $19,500 
年度應繳納金額: $19500 * 32.5% = $ 6,337.5

Australia: How much income tax should I pay?

At 30, June 2013, John sold his Melbourne property (property A) worth $800,000 in order to invest two new properties. Property ‘A’ purchase at 1, January 2011, basic cost is $500,000, component are as following:

Purchasing price            - $429,530

Legal fee                         -$4,400

Stamp duty fee               -$25,070

Real estate agent fee     -$16,000

Renovation fee              -$25,000

Total                               -$500,000


He should declare his $300,000 capital gains at year 2013 caused he acquired $300,000 when he sold his investment property in year 2013. He get 50% of capital gain tax (CGT) relief at 7, May 2012 because holding that property for more than 12 months. At 7, May 2012, market value of the property is $700,000, with 50% of capital gain tax relief, his taxable capital income should be reduce from $200,000 to $100,000. From 8, May 2012, capital gains tax will levied according to normal rules. Therefore, his taxable amount should be $72,000, this means that the tax rate is only 24% when he sold out his Property 'A’.

Australia: How to reduce my capital gains tax?

Increase the investment property costs could reduce capital gains tax.

Please notice that purchase price is only a part of the costs. Other costs may also be included.

Other costs which may be included are:
Purchase price of the property
Legal fees when purchasing or selling property
Stamp duty paid when purchasing property
Agent fee when selling property 
Renovation costs

Australia: Which income should be taxed for capital gains tax?

Capital gains tax means a tax payable when you make a profit through selling your capital asset.

In simple terms, capital gains mean net profits after deducting all the costs.


Australia: Which income should be included in my tax payable?

It is easy to determine.

All incomes related to your Australian property, include rental income and homeowners insurance costs, are to be filed in your tax return.

Once you receive an amount of money, whether it's directly or indirectly through an agent, or which you are entitled to, it will be considered as your income.


Australia: How to reduce my tax payable?

Most effective way to reduce your tax payable is apply the tax relief thru the right way.

Compared with rental income, is more difficult to determine which expenses could be used for tax relief. For example, some expenses can be credited immediately, but some only can be credited with tax revenue in future.

Following are three common rental expenses:

A.  Can be credited immediately

  • loan interest
  • Secretarial and sending fees
  • A tax-related expenses (such as tax advisory and service fee)
  • Transportation fee(such as flight ticket and accommodation for property inspection)
  • Real estate agent’s fee and rental
  • Advertisement fee
  • Bank charges
  • Corporate Body fee
  • Insurance fee
  • Land tax, ect

B. Can be credited in future

  • Loan expenses
  • Fixed asset in property (such as dishwasher, oven, etc.) may be tax deductible by the accumulated depreciation.
  • Renovation cost (such as replacement of carpet, sealed of driveway, etc.) may be reduce thru construction cost.

C. Expenses that cannot be tax credited

  • Cost of purchasing and dispose of property
  • Cost incurred when using their own property


Exclusive News

Real estate investors look to Southeast Asia
〔THE CHINA POST〕 TAIPEI, Taiwan -- Facing a low-performing local real estate market, Taiwanese investors are reportedly putting their money abroad in up-and-coming development properties throughout Southeast Asia. Two large international real estate firms hosted separate press conferences on Tuesday to analyze the latest trend in real estate purchases. According to Executive Director David Chin (泰啟松) of Asia Pacific International Property, the firm, which specializes in real estate transactions in the Asia-Pacific region, made nearly NT$7.3 billion in sales.