Land Tax Noob question

Discussion in 'Accounting & Tax' started by Sashatheman, 20th Jul, 2015.

Join Australia's most dynamic and respected property investment community
  1. Sashatheman

    Sashatheman Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    164
    Location:
    Sydney (West), Australia
    How does Land tax and apartments work?
    If you have apartments in your investment portfolio, do they fall part of the land tax calculation?
     
  2. Jacque

    Jacque Jacque Parker Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,652
    Location:
    Sydney
    Propertunity and Sashatheman like this.
  3. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,207
    Location:
    Sydney
    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.
     
  4. Northy85

    Northy85 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    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.
     
  5. Northy85

    Northy85 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    443
    Location:
    Brisbane
    Then you just add up all the land amounts and see if you are over the state threshold.
     
  6. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,207
    Location:
    Sydney
    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.