Hi There,
I have read everything regarding land tax from the office of state revenue. All I can say is it is ungly and very unfair.Can I ask if people can provide ideas/strategies on what can be done to reduce your land tax bill? Specific to NSW would be great!
Thanks
Mathew
http://www.arrttt.com
Custom Oil PortraitsI don’t know of anything except buying in different states or maybe different names (eg family members)?
Terryw
Discover Home Loans
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http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks Terry.
Has anyone challenged their land value and won? How did you do it?
Has anyone requested an exemption and won? An exemption that is not stated as being an example that you can use?
I need to find ways to challenge it, I want to keep all my property in NSW but land tax is a very terrible tax. I see it rather as an erosion tax is you cop it regardless of whether your property value rises, falls or does not make any income.
Maybe a legal person can answer this?
If I try to request an exemption on the basis that I will be forced to sell thus removing available rental stock from the market. Do you think it could cut it?Thanks
Mathew
http://www.arrttt.com
Custom Oil PortraitsHi Matthew, don’t think that will cut it.
One of my clients tried an exemption as he kept bee hives on his property and tried to claim he was a primary producer – but the process wasn’t as easy as he suspected.
Terryw
Discover Home Loans
[email protected]
Send an email to get my newsletter.Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
There are many legal and illegal ways of reducing land tax. I dont feel its right to mention the illegal ways on a forum.
best legal way is to never own joint name investment properties. My wife, my self and two arms length companies each have the $352k threshold on our props before we pay land tax at 1.7%
If the prop was owned in joint names our “partnership” would only have one threshold of $352k
If you are a “lower end” investor Ie hundreds of $K rather than $millions, It may pay to restrict your portfolio to Home Units which have a very low UCV compared to Housing (per dollar of rent recd)
If you are a high end investor buy large scale Developments as the land tax is paid for by the tenants (other than 1st $352k) or reduces the purchase price according to the capitalization of net returns.
If you love broad acre developments (like me) you just shut up and pay the bills until I get my primary production Business plan in order.
By the way, did anyone else notice that this year you can only pay a max of $2k on credit card on you land tax, In the past it was $2k per day.
Thankyou for your responses.
Love my Car I have a question. How can you keep the land tax threshold though a company structure? I though companies as well as almost all, if not all, trusts do not get the threshold.
Im looking at an annual bill o ~$7k so Im happy to try alternate legal approaches.
Thanks
Mathew
http://www.arrttt.com
Custom Oil Portraitscompanies have a full threshold. trusts have no threshold..
But for $7k I wouldnt worry, We pay over $130k a year on our 12 props.
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