Land Tax for Secondary dwellings ( Granny flat )

Discussion in 'Accounting & Tax' started by Gill Bates, 19th Nov, 2019.

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  1. Gill Bates

    Gill Bates Well-Known Member

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    Anyone have a property which is their PPR ( Principle place of residence ) and that has a secondary dwelling on it ( like a granny flat ) that is rented out ? My question, how is the land area apportioned for land tax purposes. ?
     
  2. Paul@PAS

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

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    None of it is subject to land tax where the land is occupied as a main residence in whole or part

    Apportionment will occur for income tax (and CGT) purposes.
     
    Last edited: 19th Nov, 2019
  3. Terry_w

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

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    Land tax isnt apportioned, at least in NSW. Land tax exempt if the PPOR, but if investment property land tax is on the value of the land as per normal. You can apportion it if you wish - but without effect
     
  4. Paul@PAS

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

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    If you reside in the GF and rent the main residence the land IS subject to NSW land tax. This is rarely detected by OSR but it can surprise when it happens.

    NSW LTMA Schedule 1A Clause 4(1)(b)... Clause 4(2) doesnt contain a GF exemption for a separate structure OR where there are two separate structures producing income each. In which case a REDUCTION in land tax may apply on application - Clause 10B

    Clause 4 :
    In addition to occupation by the owner as the principal place of residence, the owner is permitted to have one other residential occupancy on the land, from which income may be derived. That other occupancy may be in the form of a dual occupancy, e.g. a rented flat, a granny flat, a suite of rooms (not being a self-contained flat) or up to two rooms, each of which is separately occupied (e.g. by boarders). An owner providing a ‘bed & breakfast’ service would be entitled to retain the principal place of residence exemption provided the guest facility is no more than one of the permitted occupancies. If the ‘bed & breakfast’ occupies more of the property than that allowed by the permitted occupancies, a concession to reduce the taxable value of the land is available
     
  5. Gill Bates

    Gill Bates Well-Known Member

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    Situation is in Brisbane, Queensland , and I pay land tax on 50% of the lands valuation. I just wondered if this weas the case with other states and other queenslanders ...
     
  6. Terry_w

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

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    Each state has completely different land tax laws. Makes if difficult to keep track
     
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