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Land Tax Noob question

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

  1. Sashatheman

    Sashatheman Well-Known Member

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    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 Buyers Agent and Bookworm, Sydney Business Member

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    Propertunity and Sashatheman like this.
  3. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    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

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    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

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    Then you just add up all the land amounts and see if you are over the state threshold.
     
  6. Paul@PFI

    Paul@PFI Tax Accounting + SMSF Business Member

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    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.