Is it possible to create a nonprofit corporation in Australia that will be tax exempt as it builds houses?

Question

Does anyone know the tax rules for a non profit and can we build houses for substantially less so that families can afford them? As immigrants we may not be able to accomplish this for 10 or 20 years but it looks like the problem is substantial enough to hang around that long. I've seen 2 bedroom condominiums for sale at 1/2 a mil. This is crazy. How do families survive?

Answer 1

Hi there.

That's a fantastic idea. I was just thinking the other day that more affordable public housing was the way of the future. Don't know much about it all. If you're in NSW, the Centre for Affordable Housing might have some answers for you re working in joint venture or something with state or local government:

http://www.housing.nsw.gov.au/Centre+For...

I'm not an expert in non-profit structuring. Maybe you'd be able to set up as a charity - public benevolent institution. You could be paid for your work but you wouldn't be able to keep the profits or assets for yourselves. You should give the Institute of Chartered Accountants a call - they can refer you to specialists.

http://www.ato.gov.au/nonprofit/content....

All the best :)

Answer 2

A fellow who goes by the name of Dr. James Wright builds and rents to people on low incomes and the rent is less than the market price.

i too have the same worry about affordibility.

We have homes  in Qld for $300,000 and homes in the country are cheaper.  

Good luck