First time duplex build newbie questions

Hi

I am going to start my first duplex build once I can get back to Aus (stuck overseas now), currently I own 50% and wife holds the other. I plan to pay cash for it (not from other borrowings) unless I can be convinced otherwise (tax destructibility on construction loan?)

- do i need to inform my lender about my redevelopment plan (property has LTV <20%) now or later? what will be the implication on the outstanding loan?

- once the new titles are done (I guess this is after DA approved and construction begins) would the sum of land value increase? e.g. if I was to lease out the property where I would be paying $20k land tax per year , after the split and assuming if i keep both would my land tax remain the same or likely increase?

- in the case I want to sell both off, to reduce CGT what is the best way? would it be possible to:
1) claim one side as PPOR (live in one side for a few months then sell)
2) leave the other side empty and move into it a few months later for 1 year -> then onsell -> would I be able to completely avoid cgt this way?

thank you

 

I am interested to know the above outcome. Anyone can share ?

Especially this outcome to minimise CGT ? I am wanting to do something similar ( no finance on the build)

- in the case I want to sell both off, to reduce CGT what is the best way? would it be possible to:
1) claim one side as PPOR (live in one side for a few months then sell)
2) leave the other side empty and move into it a few months later for 1 year -> then onsell -> would I be able to completely avoid cgt this way?

 

I've searched the forum and cannot find answer to these questions.
I'm surprised it's not a pinned "sticky" answer somewhere. Maybe I missed?

 

There wont be any CGT if selling. Its ordinary income, not a CGT asset and there is therefore no CGT discount or main residence to consider. And its a taxable supply involving GST. CGT is a "modern tax" and prior to CGT profits were always taxed. Nothing has changed. Tax and GST both impact profit and net cash after completion.

TD 92/135 explains the issue with living in it. It doesnt help the tax issue.

Holding costs during the construction phase arent deductible but roll into the cost so when sold the profit will include those costs as "deductible"

Our developer toolkit explains the fundamentals. This is suggested reading prior to personal project tax advice.

Loan agreements generally include a requirement for lender consent to demolish their security.