Landtax Question

Discussion in 'Accounting & Tax' started by Kelly88, 5th Jan, 2021.

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  1. Kelly88

    Kelly88 Well-Known Member

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    Hi,
    I have a question to ask for my friend. She currently has a few investment properties and wants to start renting out her house soon (her main residence) as she wants to move to another city. Will she have to paying land tax for her house ? Currently, it's exempted. Will the land tax office automatically know or does she have to inform them?

    Thanks
    Kelly
     
    Kelly88, 5th Jan, 2021
    #1
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Land tax is state based law so it will vary from state to state. In NSW there is a threshold which is $755,000 atm, total land holdings under this amount, excluding the PPOR, is exempt.

    You have to register for land tax, they won't know otherwise.
     
    Terry_w, 5th Jan, 2021
    #2
  3. Kelly88

    Kelly88 Well-Known Member

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    Thanks Terry. Currently, she pays land tax on her investment properties. What happen when she starts renting out her house. What does she need to do ? Does she have to inform land tax office ?
    What do people normally do ? Thanks

    She plans to move back in the house or sell it in a few years time. It is in Perth.

    Kelly
     
    Kelly88, 5th Jan, 2021
    #3
  4. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Terry_w, 5th Jan, 2021
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  5. Scott No Mates

    Scott No Mates Well-Known Member

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    There is a similar portal for NSW, she can use her previous land tax letter or assessment to access and update her properties.
     
    Scott No Mates, 5th Jan, 2021
    #5
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