I received a land tax bill for two properties that were listed under the QLD government as non-principle place of residence. I actually moved back into one of the houses on the 9th of May and despite updating my details with council for rates, I still received a land tax bill. I've logged on to request and exception and the website says that you have to have lived there since 1st of January to be exempt. I was under the impression that it's simply taken as of 30th of June and as long as you're in there, you are exempt. If I'm wrong then that's pretty messed up as I bought a house and settled it in June and it's already charged at full rate even though I've owned it less than a month. Is it correct that I should get a full exemption or am I stuck paying the full rate?
read section 36 of the land tax act LAND TAX ACT 2010 - SECT 36 Land used as the home of a person and tell me what you think
Well that sucks. Looks like they slug you if you own it for one day prior to June 30 but you need to live in one for 6 months. That's pretty crappy considering I moved from one PPOR back into a former rental. Does that mean if you own two properties and move between them between Jan-Jun, you get hit with land tax on both?
Have a look at the legislation and see if the commissioner has any discretion. I think the new allows for some.
There is not one but three main PPOR exemptions 7a...The 6 months prior residency. Obviously not met 7b...The deeming test. More relevant to an absence. 7c.....This is the exemption that must be applied for using the relevant form or online form. If you can demonstrate that your intended residency was prior to the taxing date but less than 6 months but also occurs continually after the taxing date (min 6 months) then the Commissioner should consider this and permit exemption. In practice the Commissioner will hold a contingent liability if the 6 months + are not met.
