Free tool · Property developers · Victoria
Will your townhouse project make money — even if the market softens?
Tell us what you think the block can take — one to four townhouses — pick a build spec, and see the profit across three markets and which ownership structure keeps the most after tax. Every cost is pre-filled with a typical Melbourne figure you can change. Nothing you enter leaves your browser.
The site
What you'll build
The market
Who owns it
Funding & timeline
Council levies & statutory charges
Consultants, council & contractors
Typical Melbourne figures — change any of them. The this project column shows what each line actually adds at your current townhouse count: items marked each scale with the number of townhouses, and subdivision items switch off automatically for a single knock-down rebuild. Untick GST for council fees and levies, which sit outside the GST system.
| Item | Cost incl GST | GST | This project |
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Three markets, side by side
Same land, same build, same costs. Only the sale price moves. The tax line uses the structure selected in Who owns it.
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Which structure keeps the most
Same project. What changes is who signs the land contract — and that changes the duty going in, the land tax while you hold it, and the rate on the profit coming out. In-hand figures are shown for all three markets.
| Structure | Duty in | Land tax held | In hand — optimistic | In hand — realistic | In hand — conservative |
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This is the modelling we do properly under business structure advice, and implement under company & trust setup — before the land contract, because after settlement it costs duty twice. Comparing structures for a trading business instead? Use the sole trader vs company calculator.
Where the money goes
Realistic-case numbers, using the structure selected in Who owns it.
| Item | Amount | % of cost |
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The GST question most feasibilities get wrong
On a new residential build you charge GST on the sale. Under the margin scheme you pay one-eleventh of the difference between the sale price and what you paid for the land, rather than one-eleventh of the whole sale price.
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You are keeping 0 of the townhouses — that changes the GST.
Credits on the retained share are denied in the figures above, because renting new residential premises is an input-taxed use rather than a taxable sale. That much is modelled. What is not modelled is the adjustment machinery: renting before you sell can trigger Division 129 adjustments over a ten-year period, and holding for five years of continuous rental changes the character of the eventual sale altogether. Both are worth advice before you decide to keep one.
The margin scheme is not automatic. It must be agreed in writing with the seller before settlement, and it is unavailable where the land was acquired in certain ways — including from a seller who applied the full GST method. This cannot be fixed after settlement. Test your eligibility properly, or read how the margin scheme works. We handle the development's ABN & GST registration and the quarterly BAS lodgement that recovers the credits above.
Run your real numbers with us
This uses market-typical assumptions and a simplified view of your tax position. A live project has a specific land contract, a specific build quote and a specific family situation — and as the structure table shows, that last one is worth six figures.
More on how we work with property investors & developers and building & construction, or see tax planning for the year the profit lands.
Rates used. Victorian land transfer duty at the general non-principal-place-of-residence scale, including the premium rate above $2 million. Foreign purchaser additional duty at 8%. Victorian land tax at the general and trust surcharge scales for the 2024–2033 land tax years, plus the 4% absentee owner surcharge where selected. Resident individual income tax at 2026–27 rates (15% from $18,201, 30% from $45,001, 37% from $135,001, 45% above $190,000) plus the 2% Medicare levy. Company tax at the base rate entity rate unless changed, with the bucket company rate set separately because a company receiving trust distributions is frequently not a base rate entity. The metropolitan planning levy threshold and rate, and the public open space percentage, are all editable under Council levies & statutory charges — the levy threshold is indexed annually by the State Revenue Office, so confirm the current figure before relying on it.
Assumptions and limitations. Land tax is estimated on the site value entered, assessed once per 31 December during the holding period, and assumes no other Victorian landholdings — aggregation with land you already own will increase it. Development profit is treated as ordinary income unless the capital account option is selected. Acquisition costs carry searches, registration and settlement adjustments only — the solicitor's acquisition fee is the separate line in the consultants table. The public open space contribution is charged on the site value from two lots up and can be switched off where it has already been paid on the land; the percentage varies by council. Net GST can be negative, meaning the project is in a refund position. Retaining a dwelling denies the input tax credits on that share, but Division 129 adjustments and the five-year rule for rented new residential premises are not modelled. The number of townhouses entered is your own estimate; this tool does not check planning rules, setbacks or whether the dwellings physically fit the site — speak to a town planner before contracting.
This calculator produces an estimate for general information. It is not financial, taxation, legal or planning advice and does not take account of your circumstances. Obtain advice specific to your project before committing to a purchase. Nothing you enter leaves your browser.