Land Tax

Just got a nice letter from Qld State Revenue about all the Land Tax I owe.

Bad news is, it's a decent chunk of $$$.

Good news is, they are telling me I own 2 addition properties worth about 2 Million I never knew about. Guess I should of believed that Nigerian Price on the internet after all.

 

A few years ago, I had the other sort of good news. I thought I should be up for Land Tax but never got a bill.

Then one year they sorted out the mismatch and was hit with 5 years Land Tax on the one bill.

I tried to plead hardship so I could spread out payment but it was going to be too onerous to prove . So we just paid it when it was due.

Apparently there was another trust with the same name as ours and they assigned two of our IPs to that trust. Then when that trust hit the threshold, they objected to having our two IPs on their calculation sheet and the mismatch was realised .

 

A question on Land Tax in QLD for the brains trust.

According to the QLD Govt website, land tax starts being charged at $600k of property ownership:
Rates for individuals | Environment, land and water | Queensland Government

This does not include the value of the property, but the "interest" in it, which I take to mean equity. They show this in example 1 (Ben) here:
Taxable value of land | Environment, land and water | Queensland Government

As I understand it, as long as you have not "paid off" equity of $600k or more then you will remain free from land tax in QLD.... ergo, keep all of your monies in offset accounts and be land tax-free...

It seems too good to be true, what am I missing?

 

@Phineas unfortunately it cares little that the bank "owns" the property but is more about who are the owners on the title and their percentage of ownership or interest

In the example Ben presumably is part owner with someone else where he doesn't hold 100% ownership or interest

 

'Interest' doesn't mean 'equity'

 

In the example Ben owns a few properties - some with others the 1% for example would mean he owns 1% with one or more persons owning the other 99% as tenants in common.

 

The definition of "interest".

 

@Terry_w, thanks for clarifying

 

I wish that was the case .

If it was, I wouldn’t have to pay any Land Tax .

 

Imagine the land tax bill for a bank if land tax was based on non-ownership interest...and the rate of interest they would need to charge

 

What rate would they charge on a lease-hold interest - I can see all of the residential tenants being up in arms about paying land tax.

 

Land tax could become a more broadly based tax and assessed by local councils and paid with rates. The idea has merits and huge negatives (ie owner occupied would then be taxed)

 

Another legal question. Registered tax agents are not authorised to provide advice on state tax issues. Despite many of them doing so in contravention of the law.

 

Hi all - I was wondering about this same question - I have got 5 investment properties and the only time I got a land tax bill was in around 2011 around the time I bought by 3rd or 4th IP... I think I paid a few hundred bucks and I have never been sent a land tax notice since then.

I am located in NSW and I have never contacted the land tax office. Lets say I've got around $1 mill in equity - based on this, do you think I would be liable to pay land tax, and if so, how much? A ball park will be fine. I am worried about a big tax bill based on the above stories.

Thanks

 

it is irrelevant how much equity you have as land tax is based on the value of the land. It also doesn\'t matter where you are located but where the land is located.
In NSW the threshold is $629,000 and if you own land in NSW other than the main residence with a value exceeding this you would be liable.

Best to ring the OSR to check as if you have missed out on previous years you won't be able to tax deduct them, even if you pay the back log this year.

 

That has nothing to do with it.

It is the land value shown on your notification from the valuer general.

$1m would equate to Linky

 

Wait... so land tax is tax-deductible?

Nice

(At least until Labour...)

 

Thanks for both your comments.

Ok ,I think I asked the question incorrectly.... lets say total value of the properties is $2.7 million, made up of 2 houses, 2 townhouses, and 1 apartment, all in NSW.

On average, roughy what % of the property value would the land be worth? I can then use the land tax calculator on the NSW govt website to see what ballpark number of land tax I might be dealing with...

 

On average ? Would be impossible to answer that question. No suburb name. No area size. No details re type of land. How the land is held. Individual names ? Company ? Trust ? Foreign persons involved ? Zoning. Etc. Pluck whatever figure you like out of the air and insert it into said calculator. The result will be as accurate as your estimate.

 

Labor has not provided any commentary about a policy decision to make land tax non deductible.