Logan Rates (increase)

So I received a letter from Logan council for each of my 3 properties in the region.
They have increased the rates across the board to $217,500 (land value)..
I find it amusing that 1 of my properties is 568sqm, and another 814sqm, yet the assessed land value is the same.
For those who have larger blocks it is a win, but for those with smaller blocks...
From $175K to $215K is a bit rich in my book..
I am sure they won't be as keen to decrease the land value next year when the market softens...

 

I think you will find it's irrelevant for the purposes of calculating your rates

The minimum rateable value in logan is $231,260 or $216,047 and that is the "floor" for calculating fixed rate component

Most land values in logan would be below that

 

A number of mine have gone up dramatically, but weirdly- quite a few haven't gone up at all, and there doesn't seem to be any rhyme or reason to it. One in Woodridge went up 35%!!!!!!

 

One of mine is $182.5k -> $210k which is 15% over two years, so not too unreasonable. A bigger issue is how it impacts land tax and whether it pushes investors over the threshold.

 

Mine went up by 32% and 17% - both around 50k up each. It’s a huge jump for the lower end property one

 

The problem with QLD land valuation is almost market value (land + improvement). In NSW it is much lower than market value so it feels it’s just land value not including improvement
The QLD threshold haven’t changed for a very long tim

 

Yes but if you have a couple of properties anywhere in Qld you will hit the threshold pretty quickly with rises like that and no change to the threshold. It’s a cumulative state based tax.

- Andrew

 

Welcome to the new way, we will find a way too screw you, oh, and in QLD, we will screw you more cause your an investor...

 

And then you have some resident forum knuckleheads who think this means th eplace they have is worth more on the free market.....let us all pray for the highest rates possible.....sigh

 

Hi Andrew

Isn't the minimum rateable value per property?

I.e. rates will increase by either the minimum threshold increasing or the land value increasing (if the particular property has land value > the threshold)

This investors property values were below what I understand to be the per property threshold so his increase would have been due to the minimum rateable value increasing

Not sure what that had increased by

 

Once over the threshold, tax is payable which will be me this year. As an investor though, is some of this tax deductible as someone told me yesterday? I thought this might not be the case being a tax itself?
On another note my logan land went up according to the new rate, but I know the market is flat so in reality it’s not the case if I was to sell. I’m still positive though once the sediment changes and the doom and gloom talk is done with we will see some nice 4-5% growth in that market in the coming years to compliment the yield.

 

I’m talking about a state based land tax threshold, not rates. Land tax is payable once you own an accumulated land value that exceeds the threshold in the given state. In Qld the threshold is $600,000 so once your accumulated land value goes beyond that (either via single or multiple properties), you are liable for land tax calculated in a similar fashion to how income tax is calculated.

See link below for more information.

Rates for individuals | Environment, land and water | Queensland Government

- Andrew

 

Does anyone know how much is the Logan city council rates roughly for an average 600sqm land that values to ~$220K? Thanks.

 

FYI Logan rates include water infrastructure charges vs some councils where they are separated

The total of those two components is around $750 a qtr

Water usage then goes on top of that and can be on-charged to the tenant