NSW Land Tax, daylight robbery

Discussion in 'Accounting & Tax' started by Eric Wu, 3rd Feb, 2016.

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  1. Scott No Mates

    Scott No Mates Well-Known Member

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    @Yson buy home units with minimal land component
     
  2. Terry_w

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

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    Not much you can do except:
    Company ownership
    Smsf ownership
     
  3. Yson

    Yson Well-Known Member

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    But can we have another set of threshold if buy through company? Or what benefits does it have with company ?
     
  4. Yson

    Yson Well-Known Member

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    As I was told by another investor about the unit trust which can enjoy the tax free threshold ( with each trust holding few 2-3 properties ), but I not sure how this works
     
  5. Terry_w

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

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    No it doesnt get a threshold. What happens with fixed unit trusts is that the unit holders are considered owners for land tax purposes. So if the unit holder is an individual they will be assessed as the owner and there wont be an additional threshold.
     
  6. Yson

    Yson Well-Known Member

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    What if the unit holder is a company ( with me being the director of the company), do we get additional threshold ??
     
  7. Terry_w

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

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    A company is a separate legal person and will get its own threshold.

    Where there are a few companies controlled by the same person they may only get one threshold because they can be aggregated as one person.
     
  8. Terry_w

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

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    Yes. If the company is not a trustee.
     
  9. dabbler

    dabbler Well-Known Member

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    LOL... I won't add much, but I think you should be upset if you were on a cashflow only strategy.

    You had CG....well done really.
     
  10. dabbler

    dabbler Well-Known Member

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    That's true, the real problem is a cashflow one, I seem to recall part of the reason is to force people to hold less, if your LVR is low and income ok, never a problem though really.

    I know people who have dumped property due to all the fees/outgoings, yet they have no problem having the highest phone plans, internet and TV plans, cars, toys etc.
     
  11. dabbler

    dabbler Well-Known Member

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    I think you may need some help, work out if you have been above the threshold now and in the past. If you have an accountant here, speak with them.

    I think it is up to you to register in NSW. You can't skip it, if you do not pay and you try and sell, it will be uncovered in the searches.
     
    EyesClosed likes this.