Joint Tenants in Common Explained: 2025 Guide for Australians

For many Australians, pooling resources with family, friends, or business partners is the only realistic path to property ownership. One of the most flexible ways to co-own property is as Joint Tenants in Common (JTIC), a structure that’s gaining traction in 2025 as housing affordability challenges persist. But how does JTIC actually work, and what recent legal and tax changes should buyers be aware of?

How Joint Tenants in Common Works

Joint Tenants in Common is a property ownership structure where two or more parties hold shares in a property—these shares don’t have to be equal. For example, one party might own 60% and another 40%, or any other split that suits the owners’ contributions and intentions. Unlike ‘joint tenancy’, where all owners have an equal stake and the ‘right of survivorship’ (the property automatically passes to the surviving co-owner), tenants in common can leave their share to anyone in their will.

• Flexibility: Each owner can sell, transfer, or bequeath their share independently.

• Defined ownership: Shares can reflect each person’s financial input or agreement.

• No automatic survivorship: If one owner passes away, their share forms part of their estate, rather than automatically going to the other co-owner(s).

This flexibility makes JTIC a favourite among investors, family members contributing unevenly, and friends buying together. But it also means careful planning is essential—especially when it comes to legal agreements, exit strategies, and estate planning.

2025 Legal and Tax Changes Impacting JTIC

Recent policy updates are changing the JTIC landscape in Australia. In 2025, several states have revised stamp duty rules and capital gains tax (CGT) triggers for shared property ownership:

• Stamp duty concessions: NSW and Victoria have expanded eligibility for first-home buyer stamp duty concessions to tenants in common, provided each applicant meets the criteria. This opens up more opportunities for families to help children enter the market by co-purchasing.

• CGT awareness: From 1 July 2025, the ATO has clarified that selling part of a JTIC share (for example, transferring 10% to a new co-owner) counts as a CGT event, requiring careful record-keeping and tax planning.

• Dispute resolution: The Federal Court has streamlined procedures for resolving JTIC disputes, introducing faster mediation options to address the increasing number of co-ownership breakdowns.

These changes highlight the importance of up-to-date legal advice and formal co-ownership agreements, which should cover:

• How costs (mortgage, rates, maintenance) are split

• Exit strategies if someone wants to sell their share

• Dispute resolution mechanisms

Real-World Scenarios: When JTIC Makes Sense

JTIC is more than just a technicality—it’s a practical tool for Australians navigating a tough housing market. Here’s how it’s being used in 2025:

• Parents and adult children: The ‘Bank of Mum and Dad’ is alive and well, with parents often taking a minority share in a property to help their children buy their first home. JTIC allows the split to reflect each party’s contribution and provides clarity in estate planning.

• Investor syndicates: Property investors are forming JTIC arrangements to buy regional or multi-unit dwellings, allowing flexibility in shareholding and exit.

• Friends buying together: With affordability at the forefront, more friends are entering the market together, using JTIC to set out clear ownership splits and responsibilities from the start.

Consider the case of two sisters in Brisbane who bought an investment property as tenants in common. One contributed 70% of the deposit and ongoing costs, so they structured ownership accordingly. When one sister decided to sell her share in 2025, their formal agreement made the process straightforward—minimising stress, legal costs, and tax surprises.

Key Takeaways for Aspiring Co-Owners

JTIC offers a flexible, customisable path to property ownership in Australia, but it’s not a ‘set and forget’ arrangement. New stamp duty concessions, clearer CGT triggers, and updated dispute resolution pathways mean that careful planning is more important than ever in 2025. Always formalise your agreement, keep detailed records, and review your arrangement as your circumstances change.