Australia investment housing rental
The basic algorithm of Australian investment housing tax return
Foreigners who have investment properties in Australia need to apply for personal income tax if they invest in Australia. You need to apply for an Australian tax file number. Each year, June 30th is the financial year settlement day. Settlement is the first June 30th after the start of the lease of the investment house. It is generally recommended to bring the relevant documents with you from July to September, and you can find an accountant to file a tax return. Please note that filing a tax does not mean paying taxes.
The basic calculation method of lease taxable income is as follows:
Rental income-interest-expenses-depreciation = taxable income
Interest is the interest part of the monthly payment, not the principal.
Expenses include all agency fees, insurance, maintenance, cleaning, municipal fees, pest control, attorney fees, advertising fees, etc.
Depreciation is only for construction and interior decoration, and does not include land prices. Generally speaking, the building depreciation is 40 years, and the interior decoration appliances etc. range from 5 to 15 years.
Usually new houses are depreciated very much, and the taxable income is generally negative and there is no need to pay taxes.
Generally, customers will try their best to control loans to maintain a positive cash flow, and their finances will be relatively stable.
Rental income-monthly payment-expenditure = cash flow
