A strata building bond is a type of insurance policy that provides financial protection for the owners of a strata title property in the event that the strata company is unable to pay for repairs or other expenses. The bond is typically issued by an insurance company and is required by law in some jurisdictions.
Strata building bonds are a type of insurance that helps protect strata owners and tenants from the financial losses that can occur if their strata building is damaged or destroyed. The bond also provides cover for any legal liability that may arise from the damage. You can avail the benefits of strata building bond service at Archi-QS.
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While the cost of taking out a strata building bond can seem like an unnecessary expense, there are actually a number of tax benefits that come with having one in place. Here are some of the key tax advantages of holding a strata building bond:
1. Lower income taxes: The interest paid on a strata building bond is generally tax-deductible, which means it can help to lower your overall income tax bill.
2. Capital gains tax exemption: If you sell your unit within 12 months of taking out the bond, you will be exempt from paying capital gains tax on any profit you make from the sale. This can be a significant saving if your unit has increased in value over time.
3. GST exemption: Strata building bonds are also exempt from Goods and Services Tax (GST), meaning you won’t have to pay this additional tax when taking out the bond or when making claims under it.
4. Reduced stamp duty: In some states, such as Victoria, you may be eligible for a reduced rate of stamp duty on your property purchase if you take out a strata building bond at the same time.