Land tax NSW

Hi everyone,

I have a question about land tax in NSW, involving husband + wife joint owners and also the husband owns IP in his name only. How does the land tax get calculated.


For example

PPOR: in husband and wife name: land value $600k

IP1: in husband name only. Land value $800k

IP2: in husband and wife name: land value $1.2m


How does land tax get calculated?


Is it liability calculated has


entity 1 (husband and wife) so ($1.2m – $549k threshold ) x =1.6% = $10,416

entity 2 husband only so ( $800k - $549k threshold ) x 1.6% = $4016


Husband liability = $10,416 x 50% + $4016 = 9224

Wife liability = $10,416 x 50% = 5208

 

See this
Tax Tip 124: NSW Land Tax: Comparison of Joint v Single Ownership https://propertychat.com.au/communi...comparison-of-joint-v-single-ownership.10876/

 

Land tax for entity 1 (husband+wife): ($1.2m - $549k) x 1.6% = $10,416
Land tax for entity 2 (husband): ($1.2m x 50% + $800k - $549k) x 1.6% = ($1.4m - $549k) x 1.6% = $851k x 1.6% = $13616

The 600k land value is taxed twice for the husband.
The % of 600k in $1.2m is 50%, so $10,416 x 50% = $5208 is taxed on the 600k
The % of 600k in $1.4m is 600/1400=42.86%, so $13616 x 42.86% = $5835.43 is taxed on the 600k

The government is "kind" enough not to double tax the husband by reducing the LESSER value.
In this case, $5208.
So husband's liability is $5208 + $13616 - $5208 = $13616