I will be moving a house from a trust that my brother and I control into my own control.
With a trustees or companies (in Qld) having a $349,999 threshold and an individual having a $599,999 threshold, and the UCV of the block in question being $560K I could hold it in my name, but as soon as the UCV hits $600K I'll pay $500 plus 1 cent for each $1 over $600K.
Once UCV hits $650K I will be paying $1K in land tax per year (using 2013-14 calculations).
If I put this same block into a new trust, controlled by me, then immediately I move it the land tax on the current value will be $5,020 per year. ($1,450 plus 1.7 cents per $1 more than $350K).
One of the reasons for moving this house is to pay less land tax, so it seems nonsensical to put it into another trust.
Question 1. Can I set up a trust, controlled by me and hold it half/half (half owned by me as an individual and half owned by a new trust controlled by me)? Would this mean the land tax is divided between the two entities? Or would this be seen as a way of avoiding land tax?
Question 2. Can I set up two trusts, both controlled by me to get to the same end result as question 1?
Question 3. If I can minimise land tax via the above scenarios, would the cost of administering, auditing(?), tax returns etc on the trust/s be worthwhile to make the saving? I don't want to spend $3K in accounting fees to save $5K in land tax?
yes. No auditing need, just a tax return, and annual ASIC fees of about $242