Ownership structures

My wife works part time and earns 10% of my income.
Obviously it would be beneficial if a negatively geared property was in my name & positively geared property in her name (to minimise tax).

As I earn 90% of the income, I need to be on the loan. How do I structure the contract (ownership structure) to allow for a negatively geared property to turn positively geared & not pay the extra tax?

I've heard of discretionary unit trusts? I think this gives me the ability to change the apportionment of ownership without transferring the title. Is this the best way to go for me?

 

There is a lot more to consider than income tax. What are the consequences of transferring units? Stamp duty (maybe), CGT and new loans.

Where is the property?

 

Hi terry, the first property will be in qld

 

Spousal transfer strategies don't work well there because stamp duty will be payable. If it was in VIC you could transfer between spouses without stamp duty.

 

Do you know what the rule is in WA Terry?

 

Yes - s97 Duties Act
http://www5.austlii.edu.au/au/legis/wa/consol_act/da200893/s97.html

Pretty straight forward

 

Thanks Terry. What about transferring units into a family trust, for eg?

 

Transfer to the trustee of a discretionary trust would generally attract duty

 

how about Spousal transfer in NSW, will it attract stamp duty?
Can Spousal transfer be done many times from A to B then B to A and so on? I guess not but no harm in asking, right?

 

It can be done without stamp duty going from one name to 2 in equal shares or Joint tenants. Only exempt if it is the main residence. Transfer can be at full consideration too.