land tax NSW double taxation?

hi guys,

got a technical questions to ask regarding land tax in NSW.
1. was the land tax threathhold applied to individual based on their ownership share of the property? say if you jointly own 1 million land value, then each have 500k value , then land tax is free for both . but if you own it 99 Vs 1% , then you end up paying more land tax (but only to the point that the other party reaches threathold , then after both of you reached the threathold, it will make no diffrence what owner percentage ( to a general stand,,i mean the weird calculation about double deduction(see my 2nd question below) maybe make a small amount of difference ))

2. I was checking the URL below and found it was hard to understanding why they use this
to avoid the double dedcution? see below , why the decution is allowed here ? I mean to have a deduction is always good, but i just can not get it. it’s not like that the tax has been paid already for the 800k joint properties from Mr.A .. ? so for Mr. A , he already taken 50% of 800k =400k plus 200k of his sole ownership , and paying whatever the portion of his fair share, why the office of revenue still give him that deduction… that calulation of the deduction is bit werid too…. no idea why they use the 400k(his joint holdings) out of 600k ( his total holding) and multiplies the tax rate ? what is the logic behind this ? this seems quite strange, and it didnt make any logic sense to me???? I think $916 is the fair land tax for Mr. A to pay , and i was suprised that Tax revenue office gives backs money? and Mr. A owns together 600k worth of land vaue, only paying $305 land tax ?

http://www.osr.nsw.gov.au/taxes/land/factsheet/double-taxation

ssessment for joint owners Mr A and Mr B (Property 1)
Total land tax payable on Property 1 (land value $800,000) $4,116
Mr A’s 50% interest in Property 1 $400,000
Mr A’s individual assessment (his share of Property 1 and Property 2)
Mr A’s 100% ownership of Property 2 $200,000
Mr A’s 50% interest in Property 1 $400,000
Total land value of Mr A’s interests in Properties 1 and 2 $600,000
Land tax payable on total land value of $600,000 before deduction $916*
*Minus the deduction to prevent double taxation – whichever is the lesser of calculation i) or ii)

Calculation 1: ($400,000 divided by $800,000) multiply by $4,116 = $2,058.

Calculation 2: ($400,000 divided by $600,000) multiply by $916 = $610.70.

Mr A’s allowable deduction is $610.70, so his total land tax payable will be: $916 minus $610.70 = $305.30.

• This topic was modified 7 years, 10 months ago by  Coogee126.