Land tax assessment

Discussion in 'Accounting & Tax' started by rjw180, 17th Apr, 2019.

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  1. rjw180

    rjw180 Well-Known Member

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    So my land tax bill (in VIC) seems to have made a big jump this year on the back of some large increase to the property valuations. The value seems to be fairly high for the currently depressed market.

    Has anyone requested a review of the valuation this year and have it come back lower? I was under the impression the valuation normally comes back higher but then again we've been in an increasing market in the past, now not so much...
     
  2. Fpro

    Fpro New Member

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    I have the same issue here (Croydon vic)
    I also approached a RE agent as I might have to sell the property. His valuation was for the entire property (house, land and a planning permit) 20% lower than council valuation of the land only.
    I want it reviewed. Will address it next week.
    I also want other people experience.
     
  3. ChrisP73

    ChrisP73 Well-Known Member

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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    What are they complaining about? They aren't valuations for sale but for ratings, just means their rates won't increase as much or pay any more in land tax.
     
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  5. wylie

    wylie Moderator Staff Member

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    Crikey... that bloke in the article has lodged an appeal against his valuation and (the way I read it) he wants it to increase.

    Low land valuation is not going to affect the value of his property. Clearly he won't be paying land tax on his PPOR, but that is the first time I've heard of someone appealing on the grounds that they want an increase in value.
     
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  6. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    You cant object to a land tax assessment.

    You can object to a land valuation provided its within time. Usually 60days.
     
  7. Declan

    Declan Active Member

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    I have an IP in Sydney which im moving back into - my accountant has said that if we move into the property before December then no land tax will be applicable for this year.

    It doesn't seem right and I would have though it would be proportionate for the time that it was an investment?
     
  8. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It's not right and I have written a tax tip on this. If you can't find it let me know
     
  9. shorty

    shorty Well-Known Member

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    Read the thread below. You can object to a valuation. Do some research on prices and present a case Make sure you do it within the time allowed. Just be aware that the valuation date is 1 January 2018, not the value it is now, and you have to consider the value as it was back then.

    Who just received their latest land tax notice?
     
  10. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    No its not right. You need to have resided in the property for 6months prior to 31st December and not occipied anothere xempt property in that period too...You could lose exemption on both !! (this can be avoided but needs to be applied for) Land tax is not proportioned either. While its AT 31 December midnight there is the specific 6 month rule that also must be met. Terry Tip refers to it.
     
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  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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  12. shorty

    shorty Well-Known Member

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    Objected to my 2019 assessment and had valuation revised down by $100k again (3rd year in a row).

    Valuers appear to be cherry picking high sales to support inflated valuations. They wouldn't accept one of my comparable sales because it was 'too low'. I argued that their methodology was flawed if they included or excluded sales based on their sold price rather than the comparability of the property. They wouldn't budge on that one.

    Thought about going to VCAT but the application fee is higher than what I'd likely save on land tax if the property was valued correctly. Saved myself ~$1500 on land tax so I'll take it as a win.
     
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