Hi PI,
I am hoping someone can shed some light on Land Tax calculation in Oz.
I am looking at purchasing my first PI and want to get a better understanding of how it works, i have tried googling but feel this is a better website to learn from.
Can someone please tell me if Land Tax varies from state to state?
At what point do you have to pay land tax? and what calculation is it based off?
Do you pay land tax on units? or only of houses?
Is Land Tax tax deductable?
Any other info you may feel is relavent to pass on what be great?
I have very little undertsanding in this area, any kind of figures to work off would be great… e.g. 300k property equates to X amount ??
I appreciate any feedback if possible.
KR,
Steve.Hi Steve
In essence Yes Land Tax varies from State to State and is charged on the unimproved value of Land held as at the 30th June each year.
As a consequence it is paid on Units as well as freestanding dwellings although in most States depending on what entity owns the property there is often a minimum threshold before you are Taxed.
If is a deductible expense and to find out more suggest you log into the Office of State Revenue office in the State you are looking at purchasing.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
In NSW it's based on land value as at 31st December each year.
Land tax is the reason people tend to diversify in different states once they get close to the threshold of one state.
Catalyst wrote:In NSW it's based on land value as at 31st December each year.Land tax is the reason people tend to diversify in different states once they get close to the threshold of one state.
Land tax is one of the key reasons interstate investors look to buy in Brisbane, there is a strong incentive from the federal government to invest this way, one of those strange tax rules we have in this country.
You get slugged for it on each IP in the ACT
On the flip side, you get to claim stamp duty in the first year
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi Steve,
I believe in giving people the tools to fish instead of giving them fish. Here are the tools
www.osr.nsw.gov.au
www.sro.vic.gov.au
www.osr.qld.gov.au/land–tax
www.dtf.wa.gov.au
www.sro.tas.gov.au
www.revenue.act.gov.au
www.revenue.nt.gov.au
www.revenuesa.sa.gov.auAll info are now on your finger tips and can make educated decisions.
Hope this helps.
Angel
you have all been very helpful, thank you…
I think the threshold limits would be handy to know, and it looks like something PI should highly consider when purchasing IP.
Will look into the websites Angel, thanks.
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