Generally, Income Tax will only impact your property if it is used for investment purposes. However, there may be some limited circumstances when Capital Gains tax implications need to be considered.
There is an example of how an investment property, negatively geared, may affect your tax affairs in the “Negative Gearing” section of this site.
Even if you do not intend to use your property as an investment when you first purchase it, it is worthwhile taking into consideration the intended future use of the property. If there is a possibility that the property may be used as an investment in the future then there are some important considerations to make when you first purchase the property.
Find out more about how tax may affect you and your property decisions
Another way in which tax may affect your property decisions is if you dispose of a property that is subject to Capital Gains tax provisions.
How Capital Gains tax provisions apply will vary depending on circumstances and there are numerous ways in which a gain can be reduced or minimized. These are best discussed with an appropriately qualified tax professional.
Talk with a tax professional regarding Capital Gains tax and your property affairs