Property Development Structures
Asset Protection
MGS Private advises on structuring property developments so that retained property is protected from development risk — and income tax, GST and duty consequences are managed across the full development lifecycle.
Separating development risk
from retained assets
The central challenge in property development structuring is separating the entity that carries development risk from the entity that retains developed stock or other long-term assets. Without this separation, liabilities arising from the development — contractor disputes, defect claims under the DBP Act 2020, tax assessments — can reach retained assets held by related entities.
MGS Private advises on structuring the development so the active development entity is distinct from the passive holding entity — including the income tax, GST and duty consequences of moving retained stock from the developer to a separate entity at the appropriate stage of the development.
- Establishing an appropriate development entity — company, trust or joint venture
- Separating the developer/builder from the holding entity — asset protection and tax efficiency
- Moving retained stock to a separate entity — income tax, GST and duty consequences
- CGT treatment of transfers of developed property between related entities
- GST — new residential premises, commercial property, the margin scheme
- Income recognition — project income vs ordinary income vs capital gain
- Division 7A management — developer and builder related-party transactions
- DBP Act 2020 — liability implications and the need for structural separation
Key Legislation
The legal framework for development structuring advice
Planning a property development?
Structure the entities before commencing — not after problems arise. Brief MGS Private through your accountant.