Tax Minimising or Avoidance?

I have an opportunity to buy two properties which is a duplex house across two separate titles. There is a common wall along the middle of the house. The sellers (who currently own both) are selling the properties at the same time but want to sell to one buyer. Effectively there will be two offer and acceptances. My intention is to demo the duplex and keep and build on one side and sell the other. Each duplex is rented: Property 1 for $550 and Property 2 for $350 per week. I was intending writing up an offer of $300K for Property 1 (which is the one being rented for $550) and is the one I'm keeping and putting an offer in of $550K for Property 2 - this is the one I am selling. I am going to claim the first house as PPOR and sell the other. By loading up one side I am reducing any opportunity for profit on the block I'm selling in fact I might even make a loss. Basically it will make the block I will be building on quite cheap. As I'm doing the deal at the same time and placing a condition on each purchase that I have to buy the other property could I be seen to be avoiding paying CGT by electing to place a much higher purchase price on one block? The houses and block sizes are exactly the same and the one I'm keeping has a slightly better aspect and higher rental return. I thought as they are separate offers and one separate titles I could choose whatever price I like to offer on the property. The seller just wants $850K in aggregate.

 

avoidance

 

Nope. As above....I can hear a knock on the door, a few years from now.

 

The SRO will also want it's stamp duty on $850k not $550k & $300k as they will be seen as a related transaction.