Hiya Harriet
If one of you earns $64K, and the other $30K, then there isn't much to choose between you with regards to tax.
Tax scales for $20 - $50,000 relate to each, so there's only $10,000 at 42% plus $4,000 at 47% to consider at the present time.
Yes, if you have heaps of depreciation on the property it may be worth while messing around with ownership ratios, but otherwise if you split the net income of the property ie rental income less all outgoings equals eg $1,000 per annum, shared between two owners equals $500 per annum each, how much tax are we really talking about here?
Land tax is something to consider, but as you don't live in Victoria perhaps it is not as significant for you. By owning personally, there is a generous threshold before the tax applies. Trusts do not enjoy this benefit.
It's really a personal choice. By the time you spend the money setting up fancy trusts and then pay the extra accounting fees each year, are you really any better off? And you've lost the 'negative gearing' benefits which may have made the property a more viable investment at least in the early years.
Personally, I like to see my name on the rates notices. I can buy, sell, mortgage, rent or otherwise deal with the properties as I see fit, when I own them myself or in shared ownership with my husband.
And as for trusts and divorce, I am yet to be convinced that assets in a trust are any more 'protected' from divorce, from being sued, bankruptcy etc than if they were simply owned by the people as natural persons.
Ditto the loss of capital gains threshold and tax concessions.
However, Harriet, I am but a voice crying in the wilderness 'Bah! Trusts!'
And remember, if you go the 'tenants in common' path, you must specifically will the balance of the property to each other. How would you feel if your husband willed his share to the local football club? It has happened!
Joint Tenants can still decide upon the apportionment of earnings.
Because the situation encompasses legal (ownership of title/inheritance/securities) economic (earnings differential) and taxation (net income 'if any' becomes taxable) hasten very slowly and don't rush into any gimmicky or fashionable ownership structures. After all, what seems like a good idea in 2003 may be a nightmare in 2033, when you are reliant on the income in your retirement.
Good luck, and happy investing. It's the best fun and certainly beats doing the dishes!
Cheers
Kristine