Registering a property in your child’s name in Australia can have several disadvantages and considerations that you should be aware of before making such a decision. Here are some key disadvantages:

1. Legal and Financial Control:
   • Limited Control: Once the property is registered in your child’s name, you lose direct control over it. Your child, upon reaching legal age, can make decisions regarding the property without your consent.
   • Potential for Disputes: If there are disagreements in the future between you and your child, resolving issues related to the property could become challenging.
2. Tax Implications:
   • Capital Gains Tax (CGT): When the property is eventually sold, CGT may apply. If your child is not living in the property and it’s not their primary residence, they may not be eligible for certain CGT exemptions or discounts that owner-occupiers enjoy.
   • Land Tax: Depending on the state or territory, additional land tax could apply to the property once it is transferred to your child’s name.
3. Impact on Financial Aid Eligibility:
   • Student Financial Aid: If your child is studying and applies for student financial aid or government benefits, owning property could affect their eligibility, especially if the property is income-producing.
4. Loss of Eligibility for First Home Owner Grants:
   • Grant Eligibility: If your child eventually wants to purchase their own home, having property already registered in their name might disqualify them from certain first home owner grants or concessions.
5. Family Law Considerations:
   • Divorce or Separation: In the event of your child’s divorce or separation, the property could potentially be considered part of their marital assets, subject to division in a property settlement.
6. Estate Planning Challenges:
   • Inheritance Considerations: If the property is intended as part of your estate planning, transferring it to your child’s name directly might complicate the distribution of your assets among multiple beneficiaries.
7. Potential Legal and Financial Risks:
   • Liability: Your child could potentially face liability issues related to the property, such as accidents occurring on the premises or disputes with tenants if it’s an investment property.

Recommendations:

• Legal Advice: Before transferring any property to your child’s name, consult with a qualified property lawyer or conveyancer to understand the legal implications and ensure that your decision aligns with your long-term goals and circumstances.
• Financial Planning: Discuss the financial implications, including tax considerations and potential impacts on your child’s financial future, with a financial advisor.
• Open Communication: Have open and transparent discussions with your child about the reasons behind the property transfer and ensure they understand the responsibilities and implications associated with property ownership.

By carefully considering these factors and seeking professional advice, you can make an informed decision that best suits your family’s situation and long-term objectives.