I didn’t really pay attention to this when I paid my rates notice. However, I will have to pay land tax this year and I just noticed on my rates notice that my ‘Capital Improved Value’ value and Site Value have both been assessed at the same amount. My C.I.V was assessed at $700k and so was the site value. This effectively is saying my building has no value. Will I have to pay my land tax on an inflated Site Value when it is clear that it should not be the same as the C.I.V. I did not attend to this in February as I did not think I would have to pay land tax.
Also, do the SRO office and ATO work together to identify who has to pay land tax? I have been told that when you only own 1 property the SRO generally don’t pick it up and it only shows as soon as you buy a second one. Was is the relationship between these two bodies? Do they co exist?
Do you prepare your land tax assessment with your ATO tax return? Land tax is assessed at the end of each calendar year whereas the ATO do it on a financial year. So should I wait to Dec 31?
"You must lodge your objection with the SRO within 2 months of receiving your land tax assessment notice. You are taken to have received your land tax assessment notice two business days after the assessment notice was issued. For example, the SRO issued a 2011 land tax assessment to XPZ Pty Ltd on 1 March 2011. XPZ Pty Ltd is taken to have received the assessment notice on 3 March 2011 and should lodge an objection so that it is received by the SRO on or before 3 May 2011.There is no discretion under the VLA to extend the 2 month period so it is important that you lodge your objection on time in order for the relevant municipal council to consider your objection."
So is it my responsibility to pay land tax only if I receive a land tax assessment notice? Or do you have to register? By that I mean is land tax like the ATO tax return where its a self service basis?
Its your responsibility to register and pay for land tax if required. SRO is a state govt department and ATO is Commonwealth so they don't work off the same tax returns of work together but they do share data. There are also different rules such as the absence from your main residence exemption with state laws being much tougher than the commonwealth tax acts – at least in NSW>
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
The website says they send out assessments every march and may. How do I register for it?
Why does everyone say if you own one property SRO doesnt pick it up but as soon as you buy your second they get on to it?
Why is my C.I.V and site value the same?
Thanks
Contact the osr to register
What do u realistically think the land value is?
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
Definately not $0.
Atleast 200k
Hiya,
I don't know much about Land Tax, but this is my 2cents worth:
1. OSR does send valuation March – May but your property is only valued every other year or even longer depending on the zone. But definitely not gonna get the valuation notice every year.2. OSR calculates your tax based on their valuation and a specific formula which includes threshold and PPOR. It is only negotiable if you disagree with the land valuation, which you need to lodge a complaint on asap.
3. ATO's tax is self-assessed ie. you tell them what income you have + allowable deductions – tax you already paid during the tax year. The balance is your tax bill / tax refund. The allowable deductions include your Land Tax.4. It is not true that OSR get on to you if you have >1 property. As soon as you are over the threshold and a Land Tax becomes payable, you will get a notice letter from them. However, this is only for investment properties.
For example, if your ownership on a property is 5% and below the threshold, you will not get any letter. As soon as it becomes say 50% ownership ie. over the threshold, they'll be on your back. And they will know the change in ownership as the lawyer's paper work flows to them.
Another example is, if your PPOR becomes an IP. So still only 1 property but now over the threshold.Hope this helps?
CattsCattleya
Here to learn the ropes of property investing & share knowledge, not trying to sell anything at all.
But if I have recently moved out of my PPR and rented it out how will they know that if I don't tell them?
propertyboy wrote:But if I have recently moved out of my PPR and rented it out how will they know that if I don't tell them?
They probably won't know.
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
Land tax is the one item that confuses most property investors and there are so many myths about how it works. Check the website of your state's revenue office for guidelines and FAQ's and if all else fails – call and ask.
Oh and they would know you moved out of your PPOR and are renting it out if your property manager is mega efficient they may have notified the State Revenue Office that they are the managing agents and to forward all correspondence etc etc… Then they would know. (I ask first)
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