How does Land tax and apartments work? If you have apartments in your investment portfolio, do they fall part of the land tax calculation?
Land tax is calculated by the land content value of the property so as a general rule the smaller the number of units in an individual block the higher the land content. Refer here for more explanation: http://www.homebuyer.nsw.gov.au/sites/default/files/file_manager/ofs_lt02_curr.pdf
Depends where the apartment is too. A block in Kirribilli facing the harbour may have 6 units but the land worth $10m (ie $1.6m each) where a block of 40 in Auburn worth $50K a piece. And land tax accumulates for the owner/s...Eg Dave has three properties. 1. House $300K land 2. IP joint with wife $200K land 3. Apartment joint with wife $110K land So Dave holds taxable land worth $455K which exceed the t/hold. If property 1 was a PPOR he would have $155K taxable and be under threshold.
If you check the rates notice it tells you how much your land is worth. Well this is the case with Logan City and Gold Coast City Councils anyway. the council multiply the amount the land is worth by some other random number, and that is how much you pay. They also add waste water and rubbish and all the other stuff as well, but if you look at the cost break down it says how much the land component is costing you.
Sort of...In NSW a system of capped issues for council valuations and also smoothing can lead to variances. And a value for rates cant be objected to in same way as land tax etc. It should give a rough guide. If you voluntarily register for land tax you can call them and OSR will tell you to the dollar. Its one benefit of registering all land for land tax AFTER you buy it.
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