Land tax

S 22 on co-owners
www8.austlii.edu.au/cgi-bin/viewdoc/au/legis/qld/consol_act/lta201090/s22.html

 

Thank you. My reading of s22 indicates the commissioner won't be able to make a subsection (4) determination unless there are at least 5 co-owners of the land. So 2 companies owning the land jointly, would not be assessed jointly or in the manner described in subsection (4) allowing them to legitimately avoid triggering the land tax threshold.

I am awaiting confirmation from QLD OSR.

 

Each legal entity has its own threshold, land tax for trusts are based on the trustee. One trustee can have a threshold for each trust (unless a cloned trust) and separate to the individual trustees threshold - these relationships need to be outlined to OSR and clearly demonstrate who holds what on behalf of whom.

 

I think you are reading ss4 wrong. It is saying the opposite - if more than 5 owners they could be assessed as one.

 

Aren't we saying the same thing? 2 entities co-owning the property is fine with each getting the benefit of the tax free threshold. But if there are 5 or more co-owners then they can assess it as if it is owned by 1, which means only one threshold can be applied.

 

Yep

 

Got my first Land Tax Bill today.
Combined Land Value of 632k. All properties in QLD. All 100% in my name.
My question is, one of these properties is currently my PPOR. Is a PPOR not exempt from Land Tax calculations, or are you taxed on your TOTAL holdings?

 

main residence exempt - unless you hold it as trustee.

 

Thanks Terry.
I'd best make some calls to save the mistake.

 

Registration is strongly suggested and unexpected changes to land tax can occur and impact a unregistered owner. eg land value changes, threshold changes or land tax changes in a budget etc. Unregistered owners can get bombarded with frequent reminders.

 

Each state has a process. Good the hear its more automated in QLD. Then maybe you cant be held liable for penalties if they miss your land I would think. You may need to ensure exempt land is noted as exempt. (eg PPOR)

 

I tried to use the online form to check the land tax eligibility through the VIC SRO.
Not sure how can I find the land value of a townhouse? For ex ; 290 sqM land with a townhouse. (IP)
Thanks

 

That's what I was thinking....they might send you the land tax invoice but you would just send it back/contact them and let them know you didn't own the property at midnight on the 30th....so gagf etc.

 

Who do you appeal to for land tax values? We have 2 properties in Vic same street, same side of the street, same block size, 3 doors from each other. One's land value is 60k more than the other.

 

Whoever sends out the valuation eg SVO, valuer general etc have an appeals mechanism.

One block is worth more than the other because it's on the sunny side of the street.

 

Although ATO ID 2010/192 has been withdrawn the ATO holds the same position as indicated in its rental properties guide 2017

You cant clain arrears for land tax in the year they were paid.

 

The unimproved land is what is assessed under the Act. However, they take the view that obstructed views arent made good if the neighbours house was theoretically removed and neither do they increase values for a tall house with ocean views that can be seen from the top level. The land then has no view. That said some lots values are enhanced by a view as the demand for the lot is considered higher than a lot without view. This is based on an average square metre value for that area. So two lots one with a trivial view may have a small number of high value metres incorporated into the value and more land at a lesser value where its neighbour may have a high proportion of view. Land with a contour that provides a view will have a higher value than one without but each lot may need specific valuation and not use a generalised estimate like many suburban areas. Much of this can be done by desktop now where field visits used to be needed.

This principle was used with success a few years back when I assisted a land tax dispute about a heritage impacted site. The whole of the property sat above it but not on it and technically it could not be improved or demolished or the land even touched. One of the most protected sites for history and heritage and culture in the country both colonial and indigenous.

The land value was held to be materially valueless on appeal. Only the improvements on and above the land held the value and that the heritage issues literally meant the land was not capable of use by the owner. The heritage and other limits didnt even allow them to touch their land despite access being available. If the property was destroyed evidence was given it would never be rebuilt and beyond council and state powers to approve development of any kind. And likely then compulsorily acquired by the Govt and no rebuild would be allowed. The owner possessed a right to the air above it despite a title deed which implied otherwise. That right to the airspace was held to be on the land as an improvement and not part of it . And any new owner would suffer the same limits seriously affecting land dealings. That said I believe it is a unique situation and the appeal decision even suggested that.

 

Tax is always unfair. It just has to be reasonably fair to most people (that bit is never mentioned in the relevant act). The objection process is weighted in favour of experts v's owners.

I encountered a old lady who after several years raised the issue with OSR who agreed with her (her lot was surrounded by blocks suitable for units - Not hers). And amended the present year ONLY. She asked if they would apply that to past years...No. The amendment period is quite short they said

Your objection must be lodged within 60 days of service of notice of your assessment or notification of a decision of the Chief Commissioner

I suggested she try the Commissioners discretion and object to his decision making. A decision of the NSW Commissioner has a longer time period. The decision to accept a excessive valuation could be open to objection. She wrote back and demonstrated how the land tax affected her income etc and gave a lovely story and asked why the Commissioner didnt himself object to the valuation. They allowed four years.....