Me and my wife bought a Investment Land with House on it in 2019, House is rented since then till now. Currently the property has two Lot Subdivision Approval from Council since 2023, Subdivision of Land has Bigger Lot 1 as 18 smaller lot subdivision approval and Lot 2 has Original House on it, which is rented out since beginning. Now there are two separate titles for each Lot.
This month i.e. April 2026 we sold both the lot and now confused about what expenses can be deducted to reduce the CGT tax. Subdivision/DA Approval expense was done by another Company we had MOU with, where company gets 20% of SALE Price. Would appreciate if below queries can be solved.
1. Company will invoice us 20% of Sale price, can this expense be deducted as Cost for holding investment?
2. Can we claim Interest paid for Loan in last 6 years and other finance expenses?
3. Can we contribute to Superannuatioin to reduce CGT? As I am Sole Trader with NO Super paid ever.
4. Contract of Sale is Single for both lots/Title, sale would be considered as Land with House or Vacant land and A House separately.?
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Author: Taxduck(Taxicorn)Taxicorn 3 May 2026
To calculate CGT the cost base is deducted from the sale price. (there are no deductions off CGT).
The cost base is made up of 5 elements. These are outlined below
Cost base of assets | Australian Taxation Office
Costs incurred during your ownership period of the property can be included if they meet one of the cost base elements.
Costs of subdivision (point 1) would be an element 4 cost.
Interest on loan is an element 3 cost. (although can't be included if claimed as a tax deduction off rental income)
You can contribute to super depending on contribution rules. Claiming a tax deduction is possible under personal super contributions (and also utilising earlier years unused concessional caps). Again there are eligibility rules. Links below provide information.
Personal super contributions | Australian Taxation Office
Concessional contributions cap | Australian Taxation Office
With point 4, the following link provides information
Land adjacent to the dwelling | Australian Taxation Office
The complexity of this undertaking is such you should seek professional tax advice.
