WCC - Backyard Developments: Big Profits or Tax Disaster? What Every Investor Must Know

Backyard Developments: Big Profits or Tax Disaster? What Every Investor Must Know

May 20, 2025 | Podcasts, Wealth Coffee Chats

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Thinking about subdividing or building out the back of your property? Before you grab the shovel, tune in to this Tax Tuesday episode where Daniel McPherson explains the hidden risks in backyard developments. From finance pitfalls and GST to losing your main residence exemption, this session breaks down why these “mum and dad” projects require serious planning. Learn how to avoid costly mistakes and unlock your equity the smart way.

🎥Chapters:

00:13 – Welcome & Property Summit Reminder
02:22 – Meet Daniel McPherson: Tax Tuesday Edition Begins
03:15 – Backyard Development: What It Is & Why It’s Trending
06:10 – Common Traps: Finance Gaps, Demolition Risks & Lending Issues
08:45 – GST vs Capital Gains: When Development Income Gets Taxed Differently
11:16 – Margin Scheme Explained: How to Save on GST
12:07 – Main Residence Exemption: When You Lose It & Why
14:47 – Key Considerations: Council, Cash Flow, Structures & Feasibility
16:24 – Final Advice: Treat It Like a Business, Not a Reno

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