If you buy a property under your name for a family member to live in – no income generated – is there a way other than family trusts to get a land tax exemption in Victoria? In these days of low rental vacancies and difficulty for young people to get in the market you'd think there would be allowance for housing family.
Simply put, no there isn't. It is treated in the same way as a holiday house or any other property (except productive rural land). I'm not sure what the threshold is in Vic but you would generally be liable for tax above the threshold. It would not be unreasonable to generate a nominal rental (or enough to cover the outgoings/insurance/rates/land tax/interest etc) and claim it as an investment property (speak to your accountant about this approach).
You can have a certain amount of land in any one persons name before you incur land tax in Vic.
I think it is about $300k or so.-remember it is only the land value, not the value of the buildings on it that is counted.
So if you already have land in your name, simply put the property into the name of a different family member.
You could potentially finance the mortgage in your name, and have the property in the other family members name.
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