How does site value aggregate work as joint owners for land tax

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Hung T N
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@nguht025
Join Date: 2013
Post Count: 2
December 8, 2016 - 4:05 pm
Hello Property Investing Community,
My wife and I are looking at purchasing a couple of investment properties in the near future and I wanted to enquire into the land tax implications in South Australia as a result of purchasing the new properties.
We current own 100% of one property each and intend to acquire more with a 50% ownership each. How would the aggregation of site values and land tax apply in this particular scenario?
I cannot find any specific regarding joint ownership with multiple properties. Any information provided, is greatly appreciated.
Regards,
HTN
Hung T N
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Corey Batt
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@cjaysa
Join Date: 2012
Post Count: 1,010
December 8, 2016 - 9:47 pm
Revenue SA actually has a land tax calculator which talks about joint land tax considerations. Also speak with your account about how trusts relate to land tax (SA gives additional thresholds to trusts).
Corey Batt | Precision Funding
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Hung T N
Participant
@nguht025
Join Date: 2013
Post Count: 2
December 8, 2016 - 11:18 pm
Hello Corey,
Thanks for the reply, still can’t find much information regarding joint ownership.
I was intending on using the information to determine if and when to start buying property under trusts or other to avoid excessive amounts of land tax.
If I can’t find a definitive answer I’ll get it touch with an accountant.
Thanks again.
Hung T N
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Terryw
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@terryw
Join Date: 2001
Post Count: 16,213
December 8, 2016 - 11:57 pm
This is legal advice so best to speak to a lawyer as it relates to state taxes.
See s 12 Land Tax Act
http://www.austlii.edu.au/au/legis/sa/consol_act/lta193690/s12.html
12—Tax in cases where there are two or more owners
(1) Subject to subsection (2)
, where two or more persons are the owners of land, the same amount of land tax is payable in respect of that land as if only one person were the owner.
(2) Subsection (1)
does not affect the operation of any provisions of this Act under which the value of land is aggregated, for the purpose of the assessment of tax, with the value of other land.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au