Hi all, In 2019, we bought a house as our new PPR. Our former PPR, an apartment, became our only investment property a few months after we moved out. The site value according to the council notice is about 80k. Both properties are in Victoria. I've heard nothing from the Victorian State Revenue Office regarding Land Tax. Does that mean we won't receive any assessment because we don't have to pay land taxes? Or, is just the SRO doesn't know that the former PPR is now an investment property? I would assume the conveyancers from our purchases must have registered our properties with SRO at the time?
Other than performing a land tax clearance for the property being purchased, they have no involvement in your other properties which aren't being transacted. It is up to the property owner to advise the SRO.
Excepting QLD I would suggest you maintain land tax registration at all times so you dont have a unexpected arrears issue if it creep above the limits. Vic has a low thereshold and scaled land tax which can quickly and easily catch people out. Unlike NSW which has a high thereshold and it is indexed annually. The land tax issue is not the responsibility of a conveyancer, solicitor or tax agent. Arrears of land tax can be assessed and penalties can apply but lost deductibility is also a risk. When selling property a clearance is sought to check arrears anyway. And they seem to eventually catch up and it creates deduction issues and more. Registration avoids all that. If you move just make sue you update the postal details Register for or log in to My Land Tax | State Revenue Office QLD has a regime that is managed by Govt and requires limited updating for things like former homes becoming IPs etc. They track sales and purchases. They also still get it wrong.
Thanks for the info. The 'My Land Tax' registration does not work for me as I do not have SRO customer number nor a land tax assessment number. Are there any other ways to register an investment property with the SRO?
The website includes a clear "Register" process. Why it is easier to post than it is to read the website ? ie "register for OR LogIn". My Land Tax | State Revenue Office
Paul, I cannot register on that website because I don't have a SRO customer number and I don't have a land tax assessment number. I would receive these numbers if the SRO thought I needed to pay land tax. Anyway, I called the SRO and both my properties are registered. I didn't receive any assessment because the site value of my apartment is below the threshold - as some of you already said. But, it's good to know that everything is in order.
That's what you'd think (I checked it myself last night & was going to post DYOR but in this case, to register you need to have received correspondence from the SRO in the first instance )
Government do everything the hard way. Phone them. NSW do same but phone support is very straight forward
Dont worry about it. You should be well below the threshold. If they want your tax you will hear from them. Any tax due is better in your pocket or your share portfolio than in the hands of a corrupt treasonous government .
It's as Ruby said, you're a long way off paying land tax. You are not assessed on the PPOR, for the investment property the value is split between you and you each have a threshold of 250k before having to pay land tax.
Thanks Terry. So if I held 50% of an investment property with an assessable value of $300k: I would receive a joint assessment, with land tax to pay as it is over $250k I would receive an individual assessment of NIL because my proportion is $150k (below $250k) Is this correct?
Joint owners as assessed as single owners so you would be $50k over the threshold and assessed on that.
I don't understand our current land tax bill. 1) Investment in partners ownership 100% (tax value of $325k = $460ish proportional tax) ("Plus" 2) 50% joint ownership on investment property purchased less then 10 months ago. (tax value $64k = proportional tax of $91 approx ($45.49 each for our individual tax?) ). 3) PPOR - Tax free. Why am I confused? Investment 1 is "online valued at $550k - $600k, while investment 2 is valued at $400k - $450k. What's with the tax difference for each property? nearly $500 and less then $100! Property 2 quotes " only your share of site value is shown (partners name), should that mean I need to setup an account or get a seperate bill?
