BARDI77

Hi,

I have 2 different quetions regarding tax. Every body's opinions/experience is much welcome and appreciated.

1- Can someone buy a apartment for his/her spouse without having to pay Gift Tax? Will any of both parties have to pay any kind of tax if this is their only property ?

2- Suppose a couple ( husband and wife ) have a certain amount of money in their seperate bank accounts. Is it 100% legal if they balance their money in their bank accounts so that they dont pay tax for their interest income? for example if wife has 100k and husband has 200k , can the husband transfer 50k into his wife's bank account so that none of them meet 6000 dollar treshold and accordigly don't pay interest tax? ( while if the 200k had remained in the husband's bank account , he would have had to pay interest tax because the interest he would earn would be more than 6000 dollas). Both are students and dont have any income other than interest.


Thank you very much beforehand.

BARDI77

Any ideas/similar experiences ?

ABCDiamond

If the couple owns two properties they 'may' pay land tax on one as an investment, but may not if they do it correctly.

You can split the couples funds into seperate accounts any way you like, and take advantage of the individual thresholds.

I have all my wifes money in my savings account, as I pay no tax, but she does.

BARDI77

Thank you for your reply.

No, the couple only own one property altogether.

By the way, how is that CORRECT way? is it 100% legal?


Congratulations!

But I didn't get it! Why your wife pays tax while all her money is in YOUR bank account???! Is she paying tax for the money which is in YOUR account?

EvannTel

1. There is no gift tax in Australia "as such"
2. You will both pay tax on any interest earned in UK accounts. Put ALL the money into the account of whom pays the lower tax. There is no $6000 allowance. This is what I guess ABC does.

ABCDiamond

She pays tax on her earned income, I get all the interest income, and pay no tax due to the threshold.

Due to the tax laws, offsets, rebates here, you can earn about $15,000 before you pay any tax.

Everything is legal if it is done right Sometimes you just need to get tax advice on setting things up correctly in the first place.

BARDI77

Thank you for your replies.


To sum up, can we conclude that : Any money transfer to your spouse bank account anywhere in the world or Buying any property for your spouse anywhere in the world is totally free from taxing in Australia for both parties ? ( free from Gift tax, CGT tax, Income tax etc. or any any other possible tax which I may not know). Note that They are Permanent Residents of Australia.



The couple have no property at the moment and if the husband buys a property for his wife, this will be their only property they have.

Thank you once again.

EvannTel

No that can't be concluded. Your friends situation is obviously not quite the norm and without full information its difficult to give advice and really anyone should get professional advice.
From what you have said I see an income tax liability from they interest that are earning from bank accounts. Whether they can avoid this liability will depend on their circumstances.