Land tax threshold victoria

Discussion in 'Accounting & Tax' started by JK200SX, 7th Feb, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. JK200SX

    JK200SX Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    527
    Location:
    Melbourne
    Does the land tax threshold apply per person in VIC if owning a property in joint names. ie is it 250K per person?
     
    JK200SX, 7th Feb, 2017
    #1
  2. tobe

    tobe Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,814
    Location:
    Melbourne
    My wife and I own an apartment together and she doesn't pay land tax. Half of the land value for that property is added to mine.

    So yes it's per person.
     
    tobe, 7th Feb, 2017
    #2
  3. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    Terry_w, 7th Feb, 2017
    #3
  4. JK200SX

    JK200SX Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    527
    Location:
    Melbourne
    OK, I think I will need a solicitor to to help me understand what's in that document:D

    So, lets say a husband and wife own property in the following scenarios in VIC:

    a) They own a property in joint names with land holding component of $249,999, they owe zero in land tax?

    b) They own one property each in their own name with land holding component of $249,999 for each property, they owe zero in land tax each?

    c) They own a property in joint names with land holding component of $999,999, they $2975 in land tax total?

    but, if

    d) They own one property each in their own name with land holding component of $599,999 for each property, they owe $975 each in land tax each?

    So, owning 1.2Mil in land holding separately over 2 people incurs much less land tax than both people owning property jointly of the same total value?
     
    JK200SX, 7th Feb, 2017
    #4
  5. Terry_w

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

    Joined:
    18th Jun, 2015
    Posts:
    42,001
    Location:
    Australia wide
    Terry_w, 7th Feb, 2017
    #5
  6. Jpm

    Jpm Member

    Joined:
    27th Jan, 2017
    Posts:
    10
    Location:
    Melbourne
    Just got a bill shock with my land tax statement.
    2 iP's in VIC
    Both in joint names
    Total taxable value $1,149,000

    Land tax payable : over $4k ..mmm
    Thanks for coming says the state govt!
     
    Jpm, 8th Feb, 2017
    #6
  7. Paul@PAS

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

    Joined:
    18th Jun, 2015
    Posts:
    23,537
    Location:
    Sydney
    Land tax has been a feature of property ownership for a long long time.
     
    Paul@PAS, 8th Feb, 2017
    #7
  8. JacM

    JacM VIC Buyer's Agent - Melbourne, Geelong, Ballarat Business Member

    Joined:
    12th Jul, 2015
    Posts:
    2,220
    Location:
    Melbourne, Australia
    The basic summary is that you add up the land value of all your properties. If the total comes in under $250k, you pay no land tax. If it goes over $250k, you pay land tax. The "unimproved land value" figure on the council rates notice is what is used.

    Each entity gets its own threshold. So for instance if you had an SMSF, it would have its own $250k threshold.
     
    JacM, 8th Feb, 2017
    #8
  9. leicachamp

    leicachamp Well-Known Member

    Joined:
    6th Nov, 2015
    Posts:
    84
    Location:
    Melb
    Threshold should increase with CPI. 1 mil is not much nowadays.
     
    leicachamp, 9th Feb, 2017
    #9