Buying Investment Property Through a Company

A practical, step-by-step guide for Australian investors purchasing property through a Pty Ltd company structure.

When does a company structure make sense?

Asset protection, flexible profit distribution to multiple shareholders, separate tax entity, lower flat tax rate (25–30%) on retained earnings. The major trade-off: companies do NOT get the 50% CGT discount on long-term capital gains, which often favours discretionary trusts or personal ownership for residential property. Modelling the 10–15 year exit case before committing is essential — talk to your accountant.

Setup & Compliance

Register the Pty Ltd company

Lodge with ASIC: company name, registered office, directors, shareholders, share structure. You can do this directly with ASIC or via a registered service provider. (1–3 business days, $590 (ASIC fee, one-off) + provider fee if applicable)

Director identification number (Director ID) is mandatory for every director — apply via ABRS BEFORE registering the company.

Apply for ABN, TFN, GST registration

Register the company for an ABN and TFN. If your annual turnover from the property activity will exceed $75,000 (rare for residential rent; common for commercial) — register for GST as well. (1–2 weeks, Nil (free via ABR))

Constitution & shareholder agreement

Default replaceable rules apply if you don't adopt a constitution. For asset protection or multiple unrelated shareholders, a written constitution + shareholder agreement is strongly recommended. (1–2 weeks, $500–$2,000 + GST (legal))

Open company bank account

Open a dedicated transaction account in the company's name. Most major banks require ASIC certificate, ABN, ID for all directors + signatories. (1 week, Nil)

Pre-purchase planning

Stamp-duty modelling

Companies generally pay full stamp duty on property purchases — no concessions for owner-occupier or first-home buyer (these don't apply to corporate purchasers). Some states have a higher rate or surcharge for foreign-owned or trustee companies. Model the duty BEFORE you commit. (Same day, Nil (calculation))

Land-tax thresholds

Land tax in Australia is per-state and per-owner. Companies typically have a separate (often lower) threshold than individuals. NSW: $1.075m threshold for individuals, $1.075m for companies (no separate threshold). VIC: companies pay land tax from the first dollar of taxable land. (Same day, Nil (calculation))

Land-tax thresholds change annually and vary widely by state. Confirm with the relevant Office of State Revenue.

Loan pre-approval (commercial loan, not residential)

Buying through a company means commercial loan terms — typically higher interest rate, lower LVR (often 70%), shorter loan term (15–20 yrs). Director guarantees are usually required. (2–4 weeks, $0–$995 application fee (varies))

Purchase & Settlement

Due diligence

Same as a personal purchase — building & pest inspection, strata report (if applicable), title search, contract review by solicitor. (1–2 weeks, $1,000–$2,500)

Sign contract in company name

Contract is between the vendor and "[Company Name] Pty Ltd ACN xxx xxx xxx". The director signs as authorised representative. (Same day, Included)

Pay stamp duty

Stamp duty is payable to the relevant State Revenue Office, typically within 30 days of settlement (varies by state). (At settlement, Per state — see modelling above)

Settlement

Title transfers to the company. Company's loan funds disburse, deposit completes, vendor receives proceeds. Property is now an asset on the company's balance sheet. (4–8 weeks from contract, Conveyancer / solicitor fee — $1,500–$3,000)

Post-purchase ops

ASIC annual review

Every year on the company's registration anniversary, ASIC issues an annual review fee. Confirm details + pay within 2 months. Late = penalty. (Annual, $321 p.a. (proprietary company fee, ASIC, 2026))

Annual accounts + tax return

Company tax return (form CTR) lodged annually. Company tax rate: 25% if base-rate-entity (turnover < $50m AND ≤80% passive income); else 30%. Pure passive rental income usually means 30% — check with your accountant. (Annual, $1,500–$3,500 + GST p.a. (accountant))

Companies cannot access the 50% CGT discount on capital gains from property sale. This is the single biggest tax-planning factor when comparing company vs trust vs personal ownership.

BAS lodgements (if GST-registered)

Quarterly Business Activity Statement if registered for GST. Most residential property companies are not GST-registered (residential rent is input-taxed); commercial property typically is. (Quarterly, Included in accounting fee usually)

Track everything in InvestorJoint

Add the company as an entity, link the property under it with 100% ownership, capture loan + interest schedule, and let the depreciation and BAS workflow run on autopilot. (Ongoing, Free up to 3 properties)

Company purchase FAQ

Can a company claim the 50% CGT discount on a property sale?

No — companies are the one common ownership structure that cannot access the 50% CGT discount at all, regardless of how long the property is held. This is the single biggest tax trade-off against using a company, and it's why residential property is more often held personally or in a trust despite a company's lower flat tax rate.

Is the company tax rate always lower than my personal marginal rate?

For passive rental income, most companies pay the 30% rate rather than the 25% base-rate-entity rate (which requires ≤80% passive income), so the comparison depends on your personal marginal rate and whether you'd otherwise pay more than 30% on that income — and critically, on the missing CGT discount when you eventually sell. Run the numbers on a full holding-period model, not just the annual tax rate, before deciding.

Do company purchasers get any stamp duty concessions?

No — company purchasers pay full standard transfer duty with no first-home-buyer or owner-occupier concessions, since those concessions are only available to individuals. Some states also apply a higher rate or a foreign-ownership surcharge to certain corporate purchasers, so check this before signing.

What is a Director ID and do I need one to buy property through a company?

A Director Identification Number is a unique, permanent identifier every company director in Australia must hold — it's mandatory before you can be appointed a director, so you need to apply through ABRS BEFORE registering the company that will buy the property, not after.

Can I later transfer a company-owned property into a trust or my own name?

Yes, but it's treated as a full sale for stamp duty and CGT purposes — the company pays duty again on the transfer out, and CGT applies on any gain (with no discount available to the company). Because of this, the ownership structure decision is best made correctly before you buy, not adjusted afterwards.