Victoria spouse transfer strategy

I have seen this mentioned a few times in the past and just saw it in another thread and wondered if someone could explain the strategy of using this process and particularly the costs involved as it may be of interest in the future given I live in Victoria (naturally I would get specific advice at the time). I have read through the sro website and it looks like you just fill in the land transfer form and its all done but I am sure there must be more to it as it needs to be a 'sale' not a transfer ?.

Assuming you had an investment property fully paid off (guessing this option is particularly useful if you paid it off instead of having funds sitting in an offset as otherwise I am not sure of the value of this strategy but would love to hear more) bought at 200k and after a few years you now think it is worth 300k.

Are there rules around setting the value to start with ? Is step 1 to get a proper valuation done so you can sell at market value ? or can you just get a figure from a realestate agent ?

Given the figure then you can then calculate CGT for the period to make sure it worthwhile going through with the sale but you dont pay stampduty (so you would currently save about 13K using this) .

conveyancer sorts of normal sale type paperwork for you etc

then sort out loan or physically shift money/redraw to an account to match the new 300k figure, .

You end up with fresh deductible debt now in the spouse name with the possible side benefit of shifting land tax liability across to a different name as well

Anything I missed ?


thanks
 
A spouse sale should occur at market value as that is the value used for CGT anyway. There is a CGT trigger to this !! Make sure you know that cost before acting.

If a borrowing is involved then a solicitor should assist.
 
There have been a few forum members who have gone to the expense to transfer title and buggered things up so that no interest at all will be deductibe.

You should seek legal advice on this, tax advice on the deductibility of interest, and maybe even financial advice on the cashflow - is it worthwhile or not?

Costs:
Advice
Covneyancing (by a lawyer!!)
loan exit fees
loan entry fees
CGT

Incidental legal advice is also a good idea on the estate planning aspects, sucession, asset protection
 
Back
Top