Land tax

I contacted OSR Queensland and they said we do not need to register for land tax (in Queensland) and that they only contact people if they are over the threshold. I also confirmed with her that as we each own 50% we are not over the threshold.

 

I recommend registering for land tax when you buy any property OTHER than a main residence.

1. You will overlook this later otherwise. If rates rise, values change of land tax thresholds and rules change you will know
2. OSR will bug you freom time to time to register and even make enquiries if you dont register. From time to time they do mailouts are the wording in them suggests avoidance etc and it just gets annoying and a concern that can be avoided

 

Paul, I asked them if I could register and the woman on the phone said no, it's not something you do in Queensland. They have the records and will send a notice if we are above the threshold. Perhaps I should ring back another day?

 

There you go. I guess thats logical except when people own multiple properties....I have never seen a Govt Dept with great records. I guess the onus is on owners to correct any error - ie undertaxed ? I question how they can later impose penalties ? In NSW and Vic registration is as afety net.

 

It's when the contract was signed I think not when it was settled.
And yes, if bought in both names than $600K each is split, otherwise trusts have lower land tax thresholds up to $350K only!

 

Its when it was settled NOT when it was contracted. Its based on land TITLE

 

Its not based on title, in QLD anyway, but on entitlement to a freehold estate and being in possession. I think if you have settled but the title has not been changed then you would be classed as the owner and therefore liable to land tax.

if you have sold and the title is still in your name and you have given over possession then you would no longer be the owner for land tax purposes even though you must still be the registered owner.

 

But also capable of appeal. Owner is what the Act refers to. s8

 

See section 10

10 Meaning of owner 10 Meaning of owner
(1) The owner of land includes the following—
(a) a person jointly or severally entitled to a freehold estate in the land who is in possession;
(b) a person jointly or severally entitled to receive rents and profits from the land;
(c) a person taken to be the owner of the land under this Act.

 

Yes. So if OSR assess you it may be a issue requiring advice. Includes means ALL could be assessed. Eh ? Love option 3....A person "taken" to be the owner. Its a lucky dip. Basically an ati avoidance rule

LOL go see a lawyer

 

That means there are other sections of the Land Tax act which deem a person who is not the owner to be an owner and these persons can be taken to be an 'owner' under the definition of s10(1)(b).

an example is a beneficiary of a deceased estate who may not be entitled to the freehold estate (yet) nor in possession of the land.
see s23 for example
http://www.austlii.edu.au/au/legis/qld/consol_act/lta201090/s23(3)(a).html

 

Also if you lease a property (or part thereof) from a government body/council you are liable for land tax (even if it is a gross lease)!!! The only time that I got out of it has been when the building was leased (taxed) and the carpark was licensed (not able to be passed on).

 

This might be due to contract rather than legislation??

 

Even the website says you cannot register by phone - use the form so you take the responsibility for the information provided not the person answering the phone.

 

In NSW Land Tax Management Act 1956 No 26 Pt 4 S21c (2) deems the lessee as owner for land tax purposes but similar provisions don't apply to licencees due to the non-exclusive nature of tenure.

 

Many commercial leases contain clauses which indicate that the tenant pays the landlords land tax. Perhaps they can exempt themselves ... Public charitable or benevolent purpose ? Or they paid the notice directly ?

 

Charities & NFP sector are exempt under Pt 3 Cl 10g

 

I wondered if they self exempted themselves as a NFP

 

Hey all, quick land tax question.
If I move into my PPOR and change my address on licenses etc, do I need to notify OSR to exclude this from the next land tax assessment, or will they know from other sources?

 

You need to notify if you don't want to pay