Stamp Duty after subdivision (duplex)

Hi, hoping for a bit of guidance on NSW stamp duty please.

My brother and I are looking to purchase an existing house to knock down and replace with a duplex.

The intention is that we will each own one house on separate titles after building and subdiving the land.

We will have stamp duty to pay on the initial purchase - both names on title - but I can't quite work out the stamp duty payable at the point we subdivide.

I think we'll each have to pay duty on the portion we are transferring (50%?) if the value has increased...? If anyone could provide a formula or a better, more clear description I would really appreciate it.

Of course we are seeking the appropriate professional legal advice before proceeding but I'm keen to research myself as well as we want to set up our ownership correctly from the start to ensure we're not unnecessarily paying additional duty/taxes.

Thank you!!!!

 

You would be joint owners, probably 50% each and ending up with one block each would mean transfer of ownership of 50% of unit A to you and 50% of him B to him.

A way to avoid this is to partition the property at purchase. See my tips on this.

 

Thanks. Where would I find your tips on partitioning? (New to this site - thanks again!)