Hi, I have 2 houses on same block under 1 Title. I live in 1 house and my parents live in the other house. My parents owned the house I live in, 22 years ago I bought their house and then we built another house at the back for my parents, but we never subdivided. I don't get any rental income from the house at the back as it is for my parents but now the SRO wants me to pay Land tax on the house at the back, I think this is because value of the house at back has crossed the threshhold. My question is that even though it is not an investment property do I still have to pay the land tax or is there a way to applly for an exemption in this situation.
Land tax is for the valuation of the land. It has nothing to do with being an investment or primary residence. I think you are confuse about those terminology.
Sorry, but I think that's wrong. PPORs are land tax exempt, as far as I'm aware! Edit: This is NSW, but I think it's the case for all states.
He didn't say - so I can only say what I said. Was it register as PPOR on the title. Which he didn't mention.
have a read of s54 LAND TAX ACT 2005 - SECT 54 Principal place of residence exemption and s62A LAND TAX ACT 2005 - SECT 62A Partial exemption if separate residence is leased for residential purposes Then seek legal advice.
You need to seek Victorian legal advice since Vic laws are different to NSW. You are likely to be affected by the "contiguos land rule" or not ? Check the bold and italic highlights below which indicate a issue. This rule basically allows SOME of the extra land to be exempt only where it does NOT contain a seperate dwelling. This could be impacted by how the title for the two areas is determined. ie are there two titles or one ? If they are two titles the continuous land rule is likley NOT met. If its one title then the land may be exempt. Seek legal guidance as defending your exemption may be valueable. Exemption for land contiguous to your principal place of residence The exemption can extend to contiguous land owned by the individual owner or eligible trustee which is on a separate title. Contiguous land must adjoin the principal place of residence land or be separated by only a road, railway or something similar that you can reasonably move around or across. The contiguous land must not contain a separate residence, but must: enhance the principal place of residence land, and be used solely for the private benefit and enjoyment of the individual owner or the vested beneficiary living on the principal place of residence land. A separate residence is a building affixed to the land that is capable of separate occupation. Accordingly, if the contiguous land contains a house or granny flat, the exemption cannot extend to the contiguous land. A building without all the amenities of an ordinary home, such as kitchen and bathroom facilities, is not considered a separate residence for the purpose of the exemption. Examples that may qualify for this exemption include contiguous land containing a pool, tennis court or garden, provided there is no separate residence. From the 2020 land tax year, we assess the contiguous land for land tax unless you have consolidated the land containing your principal place of residence and the contiguous land into a single title. The Registrar of Titles must have registered the plan of consolidation by 31 December 2019 to ensure the consolidated title is eligible for the principal place of residence exemption for the 2020 tax year.
Your statement was saying that it doesn't matter whether it's an IP or PPOR for land tax reasons, unless I misread it?
