Hello all. Seems that someone somewhere didn’t register a property I purchased for land tax. So have record a 4 year backdated tax. Breathe. What I can not work out and they can not help me with. I own a unit in my own. And they have taxed me for the other property we owned jointly and then added it again to my individual land tax. Are they double dipping here. I am told each entity receives the threshold but the value is added on both accounts. Land tax is so confusing. Can anyone shed some light as I just don’t get it.
You have articulated all your emotions, but none of the useful facts. List the properties you own, and in what proportion, and whether you live in it. e.g. Property A, state, land value (not market value) $x, own 100% in your name Property B, state, land value (not market value) $y, own 1% in your name and so on. That would help. Your emotional read of the facts and vague conspiracy theories do not help.
In NSW there will be an assessment for each joint ownership group. Then a secondary assessment for the individuals, in which you get taxed on your share/s of the aforementioned joint holdings. You do get credit so it's not double taxed (but the method of calculation is to the benefit of Revenue ). I watched this video only last week by Revenue NSW showing how it is worked out:
Land tax is a state tax. I assume you have property in NSW ? If so NSW is one of many states where the owner must register. I always recommed this as it means not missing an assessment. They get you eventually. When selling a land tax clearance certiifcate must be obtained and the arrears and penalties can be substantial. In NSW land tax is assessed on the joint land. And on the individual land. An "owner" gets a land tax threshold. If you exceed that you pay 1.6% plus $100. A joint ownership also counts BUT you will be given a credit for a share of the tax assessed so double taxation doesnt occur but in many cases full and final tax is based on the total ownership eg not two thresholds. So the addition of 50% of the other property and acredit for 50% of that amount (which was calculated with a threshold also) most likely means a step up occurs in the final amount due personally. This is referred to as secondary assessment. I assume you also have arrears for three years. Carefully note that you cant claim this when its paid. The year it is incurred is when its deductible. This means you likely need to amend prior tax returns BUT they could be out of time in some cases or need urgent action. Amending outside 2 years may need some tax advice to use the 4 year period. if it is available.
Joint owners are assessed as one 'entity' and then there is a secondary assessment but this is done to avoid double taxation. It is the taxpayer that is required to register for land tax. And, you cannot claim all 4 years land tax in one hit. Tax Tip 8: Forgotten land Tax Tax Tip 8: Forgotten land Tax
