Here are my answers

1. Legal ownership changes at settlement, but you would have a beneficial interest in the property at exchange.

2. In NSW the stamp duty is payable within 3 months of contract date or at settlement whichever is earlier

3. This would be treated as a sub sale so both you and the new person would pay stamp duty – unless a family member under some circumstances.

4. No min

5. Both pay

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Office of State Revenue would request you get a valuation done for stamp duty purposes. This should satisfy Centrelink too.

Why do you want to find these properties?

Hi Tom

Yes, a percentage of the loan would be deductible but the problems arise when a person tries to pay down the non deductibe portion. If it is a mixed loan then any repayment to the loan will need to come off the deductible and non deductible parts in proportion to the loan mix. This is a mathematical nightmare and not tax effective as you would be reducing your deductible interest with each repayment.

One draw back is that your new property will be subject to CGT

Tax returns are done separately but there is a little section regarding adding your spouse and her/his income.

Every $1 you pay off the existing loan on PI means more tax later.

Yes, change PPOR to IO and get a 100% offset to save interest in the meantime

Tom is correct and it could result in the main loan becoming a mixed purpose loan which will also cause problems.

Look at trusts instead – with a company as trustee.

Companys have a few disadvantages. One is the 50% CGT reduction which is not available so the company will be paying a flat 30% CGT rate where as the individual (direct or via  a trust) will pay a max of 24% but probably much lower.

Another disadvantage is that the income of a company does not retain its character. So if you have a capital gain in the company and this distribute it to a person then income is no longer capital gains but dividends. This means a person with a capital loss could not use the income to offset the loss.

Asset protection is another one. Companies offer limited liability but the shares are property so if you are sued then the company provides no asset protection benefits if you hold the shares. If you are going to use a discretionary trust to own the shares then you might as well use the trust to own the property.