Land tax exemption clarification

Is it legally possible to buy another property to live in as primary residence, but still claim land tax exemption on the previous PPOR (which would be leased out)?
I could not find details on OSR website.

 

which state is the property located in?

If NSW yes, but very tight conditions, see Schedule 1 of the land tax management act.

 

Yes, it's in NSW. I have read up the schedule, but couldn't figure out those tight conditions.

 

basically you might be able to claim the main residence exemption if it is rented out for 6 months or less.

 

Ohh, I was planning to rent it out for a long term.
Well, in that case I might have to buy out my spouse's share paying the stamp duty again, rather than paying 5k+ extra each year.

 

The calculations are getting my head in. Hope someone can make it easy for me.

My average land values for properties in NSW. All owned as TIC.

IP1: 346000
IP2: 260000
PPOR: 355667 (planning to change this to IP soon)

Currently, I am paying around 2k+ land tax.
Once, I convert the PPOR to IP3, I will incur land tax around 7k+

Will transferring one of the properties from TIC to single title help to make the land tax hit a bit lower?

 

yes

 

Thanks Terry.

Sorry to vex you (and anyone else, which is watching this thread), but I am still not very clear on how the land tax will be calculated with the new arrangement.

At the moment, the taxable land value is $606000 (2 IPs) and threshold is $482000, so one entity (I and wife) pays $2k.
I change the title on PPOR to myself and then convert into IP.
Taxable land value for the joint owners will still be 606000, but for me it will be $606000 + the taxable land value of new IP. (I hope i got this part right)
How does the threshold work in this case? How is that calculated and roughly how much it would be?

 

each person gets their own threshold. Joint purchasers are taxed as one person with the individuals getting a credit so that they are not double taxed.

 

Thanks again Terry. Makes sense.