PPOR - Running business / home office - LAND TAX

If I run the business from my PPOR.

It could by using company structure / Sole trader. and claim home office expense.

Am I liable for land tax on the portion of PPOR?

 

Depends which state and the circumstances

 

In Victoria (Melbourne)

 

I will set aside the land tax issue.
1. If you are a sole trader consider the CGT impact
2. If a company trades from the home CGT is not impacted BUT the company cannot incur any cost of the home merely through use and specific tax advice should be given as to any deductions that can or could be claimed. A % of gas and electricity is often normal where ownership costs may need specific advice. It is an area that many accountants get wrong.

Generally where you reside in a home that is owned by the individuals then a business will not trigger land tax unless the use is significant . But other use of Victorian land should always be considered as it may not remain exempt.
Principal place of residence (PPR) exemption from land tax | State Revenue Office

Example. Fred lives on a 4 acres lot in Pakenham. He lives in the cottage. In addition, Freds land includes a vast area set aside for use by his scaffolding business which uses several sheds and open year areas for storage. This is approx 40% of the land. The office occupies a shed. Freds fleet of 6 vehicles also are parked here each day with employee parking to suppport this. Fred may only access a partial exemption as the land use for business is significant.

Example 2. Wilma and David own a large lot in Kew with their home and another dwelling ( a granny flat / bungalow) on it. The other dwelling area is fenced and let. Wilma and David may only access a partial land tax exemption for the proportion of land area set aside for their own dwelling. Note that this also applies to Victorian homes with a grany flat.