I got a question re. land tax. My husband and I have a joint property that is PPOR, valued about 1.2 mil. He has two IP prior to our marriage under his name with land valued just under the threshold, I also have a IP with land value under the threshold with room to purchase 1 more unit without exceeding the threshold to pay land tax. My question is: should I buy 1 more property under my name to keep it under the threshold to avoid paying tax, or should we get a joint property which we will pay land tax but then we can afford a much higher value house due to two income and serviceability. If we do decide to get a joint property how is land tax calculated? Is it 1.6% of all the properties we have? Or just the joint one? Very confused about land tax. Thanks!
that is something you will need legal advice, as there is much more to it than land tax. You don't list where the land is, but if nsw see Tax Tip 124: NSW Land Tax: Comparison of Joint v Single Ownership Tax Tip 124: NSW Land Tax: Comparison of Joint v Single Ownership
Are they (yours and husband's) all in the same state, it's a state tax so diversification across states can be of some benefit. Rates & thresholds vary depending on the state NSW is calculated at $100 + 1.6% above the threshold (threshold may not apply for trusts).
