Secondary assessment for land tax in NSW

Discussion in 'Accounting & Tax' started by OllyOliver, 14th Mar, 2021.

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  1. OllyOliver

    OllyOliver Well-Known Member

    Joined:
    31st Dec, 2020
    Posts:
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    Location:
    NSW
    Hi,

    For all you smart people out there, I'm struggling to get my head around the secondary assessment for land tax.

    My wife and I have a PPOR (land value 1.44mil) and a recently purchased IP (land value of likely 1.7-8mil) both in Sydney, NSW and under joint tenants.

    We are thinking of purchasing another IP (land value 1.3-4 mil), which will also be in Sydney and I can't seem to understand whether it would have more land tax savings to purchase this only under 1 of our names, or whether if it was also still under both there would be a difference. Disregarding potential negative gearings benefit, and that it might make more financial sense to purchase interstate to reduce land tax, which arrangement is better?

    Thanks.
     
    OllyOliver, 14th Mar, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

    Joined:
    18th Jun, 2015
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    Australia wide
    prob not as you already have used up the threshold.
    You could have saved around $11k per year by buying in single names however - one each.
    Get some legal advice on the joint tenancy too.
     
    Terry_w, 14th Mar, 2021
    #2
    OllyOliver likes this.
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