How to calculate Tax Liability for Feasibility study (Vic)

Hi All,

I am venturing into my first subdivision project; 1 to 2 lot subdivision (keep existing dwelling and build new dwelling to the rear. Battle axe configuration.

I am trying to figure out my end profitability values through a feasibility study, however I am getting stuck/confused when calculating tax liability:

The property to be subdivided is currently my PPOR. Purchased in 2018 for 750k. The plan is build a new 3/4 bed room townhouse to the rear, then sell both the existing dwelling.
I estimate the existing dwelling will sell for 650k while the new dwelling will sell for 850k.

Can anyone provide advice on how calculate the tax liability? I'm probably a bit light on detail, but even you if could point me to some resources of recommend someone to talk to about it.

 

Our devloper toolkit may be a start point for basic knowledge. We dont guide costing a property development. There can be a range of tax issues with use of tax exempt land that is then used as a property site. The past exemption for the main residence will b partially lost as if it never existed. Then the existing land and its costbase will need to be apportioned too and a valuer will need to guide this but tax advice will be needed first.

The information provided doesnt assist in any way to calculate profit or GST. (GST applies to the new build&land not the existing % of land + dwelling). Nor whether you can use the margin scheme and is merits

Profit is based on ex-GST costs and selling price.

Finance is a further element.