Sunshine Coast Region, Queensland
Accountant in Rosemount
Splitting the block, and easing out of work
Capital gains, GST and super planning for Rosemount builders, tradespeople and landholders, from a CPA practice and SMSF Specialist.
Rosemount lies immediately east of Nambour, bordered on three sides by Petrie and Paynter Creeks, with Upper Rosemount Road following the ridge of the Rosemount Spur. Its name comes from an early cane farm on Petrie Creek. In the 2021 Census, House Construction and Electrical Services were among the top industries of employment for its residents, and the median age was 48.
Rosemount then and now
From a provisional school in 1886 to the 2021 Census.
Rosemount Provisional School opened on 7 April 1886, became Rosemount State School on 1 January 1909 and closed on 16 September 1946. There are no schools in Rosemount today.
In 2021 the locality had 1,851 residents, up from 1,585 in 2016. Of the occupied homes, 78.3% were separate houses and 19.8% were semi-detached or townhouses; 40.4% were owned with a mortgage and 36.2% outright. Residents aged 60 to 64 made up 7.5%, and those aged 65 to 69 and 70 to 74 were 6.9% each. Managers were 17.1% of employed residents and Technicians and Trades Workers 16.9%.
Land and retirement: three questions to settle early
Subdividing: capital gain or business profit
Why it happens
A landholder splits a block into two or more lots, or a builder buys land to subdivide and build on.
Why it matters
Subdividing does not itself trigger a CGT event while you keep the blocks; each block keeps the original purchase date and the cost base is split across them on a reasonable basis. But the profit is ordinary income, not a capital gain, if your purpose was to make a profit and it was made in carrying on a business, a business operation or a commercial transaction, even a one-off. That changes whether the CGT discount can apply.
How we help
More than just lodging on time, we help you plan ahead, optimise your position, and avoid surprises. Write down why you bought the land and what you planned for it at the time.
GST on the lots
Why it happens
The subdivided lots are sold, sometimes with houses built on them.
Why it matters
GST may apply to a subdivision sold with a profit motive in a business or commercial setting. Where the position is unclear, the ATO suggests applying for a private ruling before the sale.
How we help
We handle the complex rules and reporting requirements so you can stay confident that everything is under control.
A transition to retirement pension
Why it happens
Someone in their 60s wants to cut back their hours but keep working, and use super to top up income.
Why it matters
A transition to retirement income stream can start once you reach preservation age, which is 60 for anyone born after 30 June 1964. Payments each year can't exceed 10% of the account balance at the start of the financial year. Earnings on the assets behind it are taxed at 15% until it moves into the retirement phase, at 65 or on retirement, and payments to members over 60 are generally tax-free.
How we help
Lomandra Accounting offers contribution strategies, pension commencement and complete documentation. Expert SMSF administration and strategic advice for your future.
Frequently asked questions
Is profit from subdividing my Rosemount land a capital gain?
It depends on your purpose and how the subdivision is carried out. If you set out to make a profit in a business-like way, the profit is ordinary income. If not, it is a capital gain when each block is sold.
Do I pay GST when I sell subdivided blocks?
GST may apply if the subdivision is a business or commercial venture with a profit motive. The ATO suggests a private ruling if you are unsure.
What is a transition to retirement pension?
An income stream from super you can draw from preservation age, 60, while still working, of up to 10% of the balance each year.
How much can I draw from a transition to retirement pension?
Up to 10% of the account balance at the start of each financial year.
Where to next
Have a question?
Before you subdivide
We aim to respond to all inquiries submitted through our online contact form within 24-48 hours.
Lomandra Accounting is a CPA Practice, registered with the Tax Practitioners Board and an SMSF Specialist. Emma, the Director, is a Certified Practicing Accountant (CPA) with extensive experience in commercial business management, and specialises in Self-Managed Super Funds (SMSFs).
- 07 5234 9201
- admin@lomandraa.com.au
- Sunshine Coast, QLD
- Monday to Friday, 9am to 4:30pm