Hi everyone, Would really appreciate your help and input. I current have my PPOR and X2 IP: - IP1: land value $200K, in my name (call it H) - IP2: land value $400K, in joint name with wife (call it H + W) I would like to sell IP1 given the low capital growth in units and invest in a house jointly with wife (H + W). However, the houses I like to purchase have land value of circa $800K. The future (H + W) land value will be $1.2m ($400K + $800K), though individually we would be under the current thresh-hold ($600K vs $755K). Does the secondary adjustment allow us to pay nil land tax or do we have to pay 50% of the combined value? Which would be $7,220 (($1.2m - $755K) X 1.6% + $100). Much appreciated. TB
In NSW, land valuation is often deferred and based on when the VG reassesses value. And the a 3 year smoothing applies. Secondary assessment means 50% of the joint land is added to each individual owner behind he scene so if that triggers an assessable amount above the threshold yes then additional tax may apply to one owner for their 100% ownership of any property in their name + 50% of joint property. IF the joint assessment was payable then they are aso given a 50% credit for joint assessmnet tax so its not duplicated.