Land Tax NSW

Hi Everyone,

I am new into this forum and I hope one of you guys can assists me.

I have two investment properties in Sydney and value of land definitely is above the threshold for a few years now. However, I have not received any notification. Perhaps they have some information wrong regarding my profile.

Shall I voluntarily inform them? What would be the possible consequence if I don't?

Thanks in Advance,

 

You are required to register for land tax. Your bill will be several years in arrears.

Your solicitor doesn't do it for you when you buy, so don't blame them.

You may have already lost any deduction for previous years.

 

Thanks for the reply. Can I claim the previous years in my tax return for current or future years?

 

no

Tax Tip 8: Forgotten land Tax Tax Tip 8: Forgotten land Tax

 

Have you registered and have aO SR "client ID ??". If not register online. Registration is a matter for landowners in most states (QLD is automatic). If detected by OSR they can issue penalties and interest. On sale a clearance certificate is required so avoidance is futile. They eventually catch you.

Land tax is deductible based on the assessement date (eg 31 December 2020 etc) and is claim in the year when the assessmnet should have been issued. This is because it is a statutory charge. deductible at the assessmnet date NOT when paid. Amending past returns could become out of time. Any resulting non-deductible land tax could be a third element CGT cost to reduce future gains.

 

Thanks for the advice. I rang them today. The problem was that they opened two client ID's for my both properties however they have been always under my name. That was the reason that it never passed the threshold. They accepted their own fault and are going to send me a bill for previous years. The liability commenced in 2018. I believe there is still avenue to amend the return.

 

2 year amendment period generally applies.....except if you not a short period of review taxapayer.

I still query whether the grounds you explained should allow for no amendment to be needed. ie they are assessing "today".....I have never seen anyone object to the Commissioners view based on this matter and request a binding private ruling that allows the Commr to depart from their "general view" in the Rental Properties Guide (used to be a ruling but was withdrawn). I would argue the Commr earlier assessmnet has been cancelled by the Commr and is now changed. DONT lodge on this basis without a ruling.

Its worth a crack as the TOTAL may bring a total deduction that enhances the tax rate benefit vs splitting across several years !!!

 

Thanks. that's a fair point. I give an update as to how this matter settled at the end.

 

I never registered. I just got a bill the year I went over the threshold. And obviously got one every year since. Are they both in your name? Different entities?

 

Yes they are both under my name. They already registered me but mistakenly under two separate files with two different client ID's. That's why aggregated land value of both properties never been considered otherwise it would have been above the threshold in 2018. Each property on itself is still below the threshold.

 

Just abit confuse with the last quote. You mentioned earlier that we cannot claim the amount in arrear in the current income tax year. Why would you suggest claiming the total in one year?

 

Can you leave it as 2 separate ID? so you are always under the threshold Or will they pick up at a later day?

 

On sale of one it is almost certainly identified if not beforehand