What Are the Tax Traps When Selling Blocks of Units? 2026 Owner Guide (Victoria)

Every block sale is a serious financial step—there are real tax issues that can surprise owners, even experienced investors. Simon Abbott’s 2026 guide covers the biggest tax traps and how to plan for a smooth, profitable result.

Capital Gains Tax (CGT)

• Block on one title? Disposal usually triggers CGT on the entire property. Timing matters (consult your accountant before contract exchange).
• Strata titling pre-sale may spread/optimise CGT but involves professional advice.

GST Issues

• If the block comprises new units or is sold as a “going concern”, GST consequences vary. Most standard residential blocks are not GST-able, but mixed-use sites and new builds must be checked in detail.

Withholding/Treatment on Foreign Vendors

• Non-resident owners may trigger foreign resident withholding tax rules at settlement.

Deductible Costs Often Overlooked

• Legal fees, agent commission, pre-sale renovation outlay, and even marketing costs affect the profit-and-loss picture.

Scenario

Simon worked with a syndicate caught off guard by retrospective GST treatment on a partially-renovated block, slashing after-tax returns. Advance advice would have saved significant sum and stress.

For a complete off-market and tax strategic review before you lock in a sale, speak to Simon Abbott and his investor-savvy team at Collings.