Answer this curly one - land tax

Discussion in 'Accounting & Tax' started by Keentolearn77, 16th Jul, 2020.

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  1. Keentolearn77

    Keentolearn77 Well-Known Member

    Joined:
    1st Sep, 2016
    Posts:
    400
    Location:
    Melbourne
    For those in the know about Land Tax
    I received my Vic landtax bill earlier in the year (paid last month) for the period 1Jan - 31Dec 2020
    In the recent past few months my property subdivision has been completed / registered

    ie: Provisional land tax for property is $4000
    The subdivision has created 4 titles (ie: in effect unofficially $1000 per title....)

    I have a tenant who has submitted a request for covid19 financial hardship
    SRO is providing a small amount - 25% payback / tenant assistance so to speak - against landtax

    Q. With the fact that I have 4 titles, 4 tenants, to correctly aportion for this year, would I likely find when I call SRO tomorrow, that I should simply split the $4000 payment divide by 4, thus 1 property = $1000 land tax / 25% assistance rebate etc = $250 that I should get back based on me providing atleast that amount / or more in rental reduction to the tenant during the said period of time.....
     
  2. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    15,654
    Location:
    Sydney
    Land tax notices are not issued "for the period". They are issued at midnight of the assessment date. ie 31/12/2019 = 2020 Land Tax (think of land tax year is the year asessed & paid BUT the ownership is the actual prior year)

    Applications for 2020 Land Tax Covid Concessions : Apply for coronavirus land tax relief | State Revenue Office

    Concessions can apply for newly vacant property as well as those impacted with rent reductions (or as the Vic Govt calls it you gave the tenant rent relief consistent with the requirements). It can get quite complex. And dont forget the residual land tax payment can also be deferred and doesnt need to be paid asap. It doesnt change the tax deductibility at 30 June 2020 !!