Property development in Queensland offers significant profit potential, but it also brings complex legal and tax challenges that must be carefully navigated. From acquiring land and structuring projects to managing sales and settlements, developers face a range of tax obligations that, if not handled correctly, can lead to costly consequences.
Working with a property lawyer ensures your development is not only compliant, but also structured in a way that maximises returns and manages tax risk.
Tax Issues Developers Commonly Face
Property developers regularly deal with a broad spectrum of taxes and regulatory obligations, including:
- Stamp duty on land and off-the-plan acquisitions
- Goods and Services Tax (GST) on new residential and commercial sales
- Capital gains tax (CGT) on disposals of property held for investment
- Land tax on holding undeveloped land or multiple sites
- Withholding obligations under the foreign resident CGT regime
- Development structuring and compliance for trusts, companies, and joint ventures
Each of these tax considerations intersects with legal strategy, making early legal advice critical.
How a Property Lawyer Can Support Developers
Here is how our legal team helps property developers navigate real estate tax issues at every stage of the development lifecycle:
1. Strategic Structuring of the Development Entity
We provide advice on the best legal structure for your project – whether that is a company, trust, joint venture, or partnership. The right structure can:
- Reduce tax exposure
- Protect personal and business assets
- Optimise capital flow and profit distribution
We also ensure the structure aligns with your long-term development goals.
2. Stamp Duty Planning and Concessions
Stamp duty is a major cost consideration in site acquisition. We assess:
- Whether concessions apply for off-the-plan or related-party transfers
- The duty implications of entity restructures
- The impact of “aggregation” rules on multi-site acquisitions
Understanding your duty position early can improve your financial modelling and reduce transactional risk.
3. GST on New Developments
GST applies to most sales of new residential property and can significantly affect your cash flow and pricing strategy. We assist with:
- Determining whether GST is applicable
- Applying the margin scheme where eligible
- Ensuring contracts are properly drafted to reflect GST treatment
- Meeting GST withholding obligations at settlement
Poorly managed GST compliance is one of the most common pain points for developers. Early legal advice can prevent errors.
4. Land Tax Management Across Development Sites
Holding multiple development sites can expose you to significant land tax liabilities. We help developers:
- Understand land tax thresholds and exemptions
- Avoid triggering additional liabilities through poor structuring
- Plan acquisitions and disposals around land tax dates and valuation cycles
5. Contract Drafting for Sales and Off-the-Plan Projects
We prepare and review sale contracts to ensure they reflect:
- GST treatment
- Sunset clauses and staged development timeframes
- Disclosure obligations under the Land Sales Act and BCCM Act
- Compliance with FIRB and foreign buyer surcharges (if applicable)
This helps reduce the risk of buyer disputes, delayed settlements, and financial penalties.
Why Legal and Tax Strategy Must Work Together
Tax planning is not a separate consideration from your legal obligations—it is deeply embedded in every aspect of a property development. By engaging a property lawyer with development expertise, you ensure that your project is not only legally sound, but also financially optimised.
Final Thoughts
Whether you are planning your first small-scale development or managing a large subdivision or mixed-use project, the legal and tax stakes are high. Our property law team works closely with developers to provide commercially focused legal advice that supports success and reduces risk.
Contact us today to discuss how we can assist with your next project—from acquisition to settlement and everything in between.
