John and his wife, Mary, bought an investment property in Victoria around 2013 for $300,000. The property title was registered as follows: "Tenants in common as to 19 of total of 20 equal undivided shares Sole proprietor John Smith, As to 1 of a total of 20 equal undivided share Sole proprietor Mary Smith". In short, John owns 95% of the total ownership, and wife Mary owns 5% of the total ownership at the time of purchase.
In 2024, both decided to change the beneficial ownership. John decided to transfer 90% of his ownership to Mary and launch an online application with the OSR Department Victoria to modify the title. As a result, John now owns 5% of the total ownership, and wife Mary owns 95%.
The market valuation of the investment property in 2024 is $400,000. They do not want to sell the property. In this scenario, will John or Mary or both need to pay any capital gains tax after title change?
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