Hi Guys,
I have a bunch of commercial properties in NSW, one of which is valued above to premium tax threshold. For the property which has a value above the premium tax threshold, the tenants under the lease agreement to pay all operating expenses including land tax which is calculated on a single holding basis on assumption that land is not subject to special trust or owned by a non concessional company.
I was just wondering how much i should be asking to be reimbursed by the tenants. Would it be 1.6% for value under the threshold and 2% for amount over the threshold, or 2% of the whole value of the land.
Regards
Kenneth, the amount claimable will be calculated as the assessed value of the land less the threshold (about $376k – refer to the OSR website Land Tax Calculator). Simply use the calculator with the value of the subject land eg: $2,500,000 which will give you a land tax liability (on a single holding basis) = $34,888
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