stamp duty clawback question

[CCOVICH]

well ccovitch...i am not sponging off the aussie state as i already have a job with my company over there...it is purely a temporary situation and that is why i think it is worth the risk. i wont be crying if i do get caught as it is a calculated risk and the potential returns outweigh costs if i do get caught.

You could make the same argument for robbing a bank. What you are planning to do is tax evasion-which is illegal-and when Revene get finished with offshore accounts and sifting through the evidence gathered from tribunals, don't think they won't go after the 'little guy'.

 

[Howitzer]

well ccovitch...i am not sponging off the aussie state as i already have a job with my company over there...it is purely a temporary situation and that is why i think it is worth the risk. i wont be crying if i do get caught as it is a calculated risk and the potential returns outweigh costs if i do get caught.

Potential gain: Rent of apt for 1 year (I assume) @1,200 x 12 = 14,400
This is the absolute best case scenario and assumes no tax paid on rental income and no voids and no breakages.

Potential loss: Stamp duty clawback ? 10,000? + interest + penalties. Say 12,000 for argument. Tax on rental income (@42?) + interest + penalties. Say 8,000 for arguement.
A lot of guesses gives a total potential loss of 20,000.

Potentially CGT may also need to be paid if the term of rental exceeds 1 year.

Breakages/maintenance such as fire damage or bath flooding obviously give rise to unlimited liabilty since your insurance wouldn't cover you whilst renting out your property illegally.

The potential returns don't outweigh the potential costs to my uneducated eyes. Have I missed something?

 

[liteweight]

IOtherwise, if the apartment was new, then when calculating the clawback, you can discount 13.5% VAT, which may put you in a lower stamp duty bracket, and possibly eliminate stamp duty altogether.
.

It's true that you subtract vat but it's highly unlikely that there will be no stamp duty as the new rate will be that of an investor. Investors are exempt up to 127K only.