Land tax on inherited property (Vic)

Discussion in 'Accounting & Tax' started by All Mixed Up, 30th Jun, 2021.

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  1. All Mixed Up

    All Mixed Up New Member

    Joined:
    30th Jun, 2021
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    Melbourne
    First time poster here, with a query which may require dedicated legal advice, but I thought I'd ask here in case there are any quick and easy answers.

    My sibling and have inherited our parents' house, half share each, and my sibling wants to live in it.
    I have no need to convert the asset so am happy for this to occur and charge no rent to my sibling.
    But I'm concerned that I'll now be liable for land tax.
    The land is worth close to $1M and the SRO land tax calculator gives a land tax estimate of around $20k pa, so I guess I'll be up for ~$10k pa.

    My question - is there any way I can avoid this land tax given my sibling will be living in it and I will not be earning any income from it?
     
    All Mixed Up, 30th Jun, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Sounds like it should be exempt
     
    Terry_w, 30th Jun, 2021
    #2
  3. Paul@PAS

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

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    If ONE owner resides in a residential home the land may be 100% exempt. When you resister for land tax (recommended) the exemption can be applied for and determined. This will safeguard any arrears issues.
     
    Paul@PAS, 1st Jul, 2021
    #3