Joint owner or separately own?

Hi,

This seems a common question but I can't find answer in previous threads. My question is with regard to land tax.

Here is my question.

Would it be better to own property as joint owner or separately?

Example:
I and my partner are planning to buy two lands $500k each.
if we buy both lands as joint owner then total land tax would be : (500,000 x 2 - 432000) @1.6% +100= $9788

if we buy separately then each can utilize threshold, so each will pay (500000 - 432000) @1.6% + 100 = $1188
total = 1188 *2 = $2376

So if buying jointly total tax = $9788
if buying separately total tax = $2376

that is a massive difference.

Is my calculation correct?

 

Yes (for NSW). But your maths is wrong.

Also assuming that the ucv = purchase price.

 

Land tax is just one aspect. Look at Strategy: Buying Investment Properties in 1 name only

 

Jointly or individually is the same until you exceed threshold. Then its still the same. Your calcs are not correct. Once you exceed threshold in joint property it also adds to respective ownership. This is called secondary assessment. Its designed to stop double dipping.

You cannot double dip thresholds except by using company or SMSF ownership. Even a unit trust counts to thresholds.

Using unimproved land value ??

 

see NSW Office of State Revenue