Land tax adjustment [sa only]

Are there any conveyancer from SA here? I was told the land tax is liable for the whole year from 30th june to the next year. Now, if you sold a property within this year to someone who bought it as investment only (not PPOR), then the land tax for the remainder of the year for that property will be excluded. Now, i was wondering...

* Is it the contract date or the settlement date that takes into the adjustment here?

* And does it work quarter by quarter or it can be any date and the conveyancer work out the remaining days proportionally?

Appreciated.

 

First you have to get the purchaser to agree to a land tax adjustment.

 

No, you don't. That's just how it works, according to the official department.

 

These are contractual matters and not law so what does the contract say?

 

From the state govt website:

The owner of the property as at midnight 30 June is liable to pay the land tax assessed for the forthcoming financial year. Where a property was sold after 30 June, the vendor (seller) is still liable for the land tax.

The Land Tax Act 1936 does not provide for pro rata payments or apportionment of the land tax where properties are sold and/or purchased during a financial year.

It is a common practice (although not a legal requirement) for land conveyancers and solicitors to arrange a proportional adjustment between the purchaser and the vendor of land, for any applicable land tax at the time of land settlement. This adjustment should be calculated as if the property being sold is the only taxable property in the ownership.

Any specific questions regarding the apportionment of the land tax or payment of the tax at settlement should be directed to your land conveyancer or solicitor.

 

I take that to mean, that if settlement has already occured bad luck