NSW Land Tax - Low Cost Housing

Discussion in 'Accounting & Tax' started by Paul@PAS, 31st Jul, 2019.

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  1. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Exemption: land used and occupied primarily for low cost accommodation – 2019 Tax Year

    Land Tax Ruling LT 105 deals with the low cost housing concession.

    In a nutshell it applies to land located within a tight radius of the Sydney CBD that is partly or full used for low cost housing. Threshold on the rent apply. You must annually APPLY for the concession and meet some tests.

    1. The rental threshold test
    2. The lease must contain a clause concerning passing on the land tax reduction to the tenant or conducting improvements etc. That a sort of circular issue since it means if you save $3K your rent drops $3K or you must spend the $3k in other ways. I also love the "broadly speaking" reference in the ruling. So precise o_O

    I also find it ironic that the test applies to a radius of 5km from a costly luxury hotel (and Macquarie Bank !!) that occupies for former GPO site.
     
    Paul@PAS, 31st Jul, 2019
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    Simon Moore likes this.