Logan CC Valuation/Land Tax Jump?

Discussion in 'Accounting & Tax' started by TMNT, 9th Dec, 2019.

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  1. TMNT

    TMNT Well-Known Member

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    I just got my first land tax notice for my QLD props, I thought I had set everything up so that I wouldnt have to pay land tax, but BOOM,

    my 4114 properties land value has gone from $155k to $213k,

    and its a big tax bill, anyone else had their values jump on paper?

    im even thinking of transferring one of the props to a different name and paying stamp duty....
     
  2. 2FAST4U

    2FAST4U Well-Known Member

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    How much is the land tax?
     
  3. Thomacino

    Thomacino Well-Known Member

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    @TMNT

    You are liable for land tax when the aggregate of total land values exceed the QLD threshold.

    Unsure about QLD, but the notice of valuation has not been issued for the 2019 base date.
    If you think its is unwarranted you can object to the land values with the relevant QLD authority..

    $155k to $213k is a 35% ish increase over as at July 2018, not 2019.
     
  4. Gen-Y

    Gen-Y Well-Known Member

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  5. TMNT

    TMNT Well-Known Member

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    I have more than one:cool:
     
  6. Gen-Y

    Gen-Y Well-Known Member

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    Eventually it will go past the threshold of $600k.
    I just wish they index the threshold yearly. Wishful thinking. :oops:
     
  7. Terry_w

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

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    That is a lot of property!
     
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  8. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Not uncommon in QLD that a landowner buys three or four before thinking about threshold and value creep. After all you buy hoping it will appreciate in value. In NSW the value is indexed by the avg of 3 years with the threshold ALSO indexed. But a 1.6% rate. In QLD its a progressive scale...Up and down !!!

    Total taxable value Rate of tax
    $0–$599,999 $0
    $600,000–$999,999 $500 plus 1 cent for each $1 more than $600,000
    $1,000,000–$2,999,999 $4,500 plus 1.65 cents for each $1 more than $1,000,000
    $3,000,000–$4,999,999 $37,500 plus 1.25 cents for each $1 more than $3,000,000

    So on $650K of land the land tax in QLD is $500 at the lower threshold.

    Isnt the key issue NOT accumulating anywhere near $600K of land in any name so that the $600K tax free inst breached ? That decision occurs at purchase not when you get to the threshold.

    The costs of duty and changes (legals, refinance etc) need to be weighed up v's the marginal extra cost and other issues such as neg gearing. A trust that is neg geared may also be a incorrect change.
     
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  9. craigc

    craigc Well-Known Member

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    If the tables you quoted above are correct, I think this should be $1,000.00.
    $500 + (1c per $1 x $50,000) = $1,000.00.
     
  10. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Maths isnt my strength :)
     
    craigc likes this.

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