New company for new purchase and Land Tax (NSW)

Mrs and I own a few investment properties in NSW which now combined are over the land tax threshold. As such, we are paying a fair chunk of money to the NSW coffers (all good - roads, hospitals, schools costs money).

We're considering our next purchase in commercial property in NSW ideally with upside potential (rezoning, light development, etc) and purchasing this under a company entity with 50/50 split b/w Mrs and I.

I believe new Company will now receive a "new" land tax threshold. Can someone confirm this? I won't get some clawback from OSR for using a company ownership (even though we are the beneficial owners via our company shares)?

 

Yes in NSW a company gets a separate threshold to its shareholders as it is a separate legal person.

Watch out for the aggregation provisions.

 

Correct. But many other issues. Final tax rate could be higher than if personally owned. Land tax us just one element

Eg company gets no cgt discount. Shareholder will then b subject to final tax on company profits

 

What do you mean, and is this really the best way to own the company shares?

 

Probably not!