I have a property in Epping which had been rented but which I moved back into recently. I was moving my mortgage from one vendor to another but this was delayed due to ‘land tax’ being owed. I had no idea of the debt (which ended up costing $6.5K which had to be paid before the lending body could release the funds to me. I had never heard of this before so it came as quite a shock. What I want to know is:
1) Is this charge generally known to people
2) As the property was rented, can I claim it as a tax deduction even though I have now moved back into the property. The property was leased for about 4 years.
3) How do you go about avoiding this tax?
Any advise/assistance or previous experience by other members would be appreciated. Thanks RorqhualHi I don’t know alot on the subject – ut I do know that Land Tax varies from State to State and NSW seems to have the highest land tax from what I gather. Perhaps on some of he governonment pages you can find information.
rorqhaul
Another reason for buying in Queensland
Cheers Richard
[email protected]There is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Hi Rorqhual, you can find info on NSW tax at:
http://www.osr.nsw.gov.au/portal/page?_pageid=33,63650&_dad=portal&_schema=OSRPTLTNote that your PPoR is exempt, so you will have to notify them of the change. You should have been sent an assessment each year, so it’s strange that you have to pay so much now. I believe that most people are only aware of it when they receive their first assessment. I paid tax on my PPoR for 3 years before I finally noticed the exemption in a brochure they sent me last year, so I would be interested to hear if anyone else has been caught out by that. Land tax works on the total of your (your share of) official valuations of all your land minus the land your PPoR sits on, so make sure they have got it right. You can certainly claim it a a tax deduction. It a bit strange, the way the tax benefit effectively makes the federal gov’t subsidise the state gov’t. The only way you can “avoid” this tax is to have total land valuation less than $261,000 in NSW, $220,000 in Qld etc. Note that you can spread your properties around different states, and effectively add those thresholds together, because they are independent.
HTH,
JimHe who hesitates is sometimes saved!…Thurber.
In my opinion most property investors would be aware of land tax, as it is a tax which comes hand in hand with property investing.
Unfortunately there in no real away of avoiding land tax. Hopefully (realistically I’m dreaming) the state governments may reduce the rate of land tax as they are reaping heaps from the increase of land prices.
Don’t forget that not all principle place of residence (in NSW) is exempt from land tax, as land tax is payable on PPoR is your land value is over approxiamately $1.5 million (I can’t remember the figure off hand).
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