Stamp Duty/Titling costs when subdividing

Discussion in 'Development' started by holdingbags, 12th Jul, 2021.

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  1. holdingbags

    holdingbags Member

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    Hi All,

    I'm venturing into my first development. 1 to 2 lot subdivision (keep existing dwelling and construct new dwelling to the rear. Battle axe configuration.

    When the project is complete and subdivision is issued and the 2 lots title, are there any costs associated the titling eg stamp duty? I need to understand these costs for my feasibility study
     
    holdingbags, 12th Jul, 2021
    #1
  2. Chad Macri

    Chad Macri Member Premium Member

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    hi im in the process of a battle axe myself with the plan to move and existing house onto the back block, did you find any information in regards to taxes or other hidden expenses. thanks
     
    Chad Macri, 25th Oct, 2021
    #2
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Directly ? No. However council will split the lot for rates and it will cost more. Also a land tax issue...Two titles not one. Water will also 2 meters. Electrtycity etc... Subdivision is a consequence of a DA approval where the fees in that are incurred up front or during the build. Bank may have some fees fpr their legal costs and remortagaging titles.
     
    Paul@PAS, 25th Oct, 2021
    #3
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  4. Chad Macri

    Chad Macri Member Premium Member

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    that's all the cost im aware of and allowing for thanks
     
    Chad Macri, 25th Oct, 2021
    #4
  5. Terry_w

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

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    No stamp duty on subdividing unless ownership changes. Generally
     
    Terry_w, 25th Oct, 2021
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  6. holdingbags

    holdingbags Member

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    Not yet mate. My town planner has just submitted the application to council, and the the project is about to get advertised. As i progress i'll keep you posted.
     
    holdingbags, 30th Oct, 2021
    #6
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  7. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If the house was / is a main residence this will have some tax issues.
     
    Paul@PAS, 8th Nov, 2021
    #7
  8. holdingbags

    holdingbags Member

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    Can you elaborate please Paul?
     
    holdingbags, 8th Nov, 2021
    #8
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