Land tax for settlement of land

Hi all

Bought a land and it will be settled soon. Conveyancer sent through a statement of adjustments and it seems that we are being charged land tax from date of settlement till end of the year?

I thought we only pay land tax if it is an IP and exceeds land tax threshold. This will be a PPOR.

Is this normal?

Do we pay this first and then claim it back at later stage?

 

What did you agree to?

You won't be able to claim it back later

 

You didnt get legal advice on the contract before signing I assume. Land tax is incurred at a point in time (eg Midnight 31/12 in NSW) and many developers will try to pass on some of the liability this way. If you agreed it is legit that you have just agreed to subsidise their land tax bill.

You cant seek exemption for land tax assessed to other owners. For next years land tax you can claim the exemption for land INTENDED to become a future PPOR after construction

 

We actually did, but from memory it was a developer's contract and nothing could be changed anyways. It was signed 2 years ago.

Yeah, according to our conveyancer, the developer has been charged land tax for 2020 which is why we need to pay the remaining balance.

 

we probably did agree to paying this in the contract.

but moving forward, is this something that we not want to pay for future purchases?

come to think of it, its kinda fair to pay for it as the vendor has sold it to us mid- year.

 

Your goal should be to pay as little as possible for a property!

 

yeap. lesson learnt. learning everyday