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PPR and Land Tax

Discussion in 'Accounting & Tax' started by wayne, 4th Jun, 2016.

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  1. wayne

    wayne Active Member

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    Hi all,

    Are you able to have a property deemed your PPR if you do not live in it and if so will this have any affect on your land tax threshold entitlement.

    Cheers
    Wayne
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    if you want to talk about land tax you are going to have to state where the property is located as this is all State law and varies.
     
  3. wayne

    wayne Active Member

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    The property is in NSW.
     
  4. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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  5. wayne

    wayne Active Member

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    The reason behind the question is:

    As above, we have a PPR we lived in for three years and have now moved into rental accommodation for work, firstly we would like to know if we can still call it our PPR and be land tax exempt, reason being we have a trust holding 2 NSW properties.

    The question is: Can our property not currently lived in by us, be deemed our PPR and be land tax exempt.

    And, is the individual (person) and the trust entitled to their own land tax threshold, or is it all combined.
     
  6. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Did you read the direct link to the law I provided?

    Trusts get no threshold in NSW.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    The spoon wasn't the right kind.
     
  8. wayne

    wayne Active Member

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    Thanks Terry,

    In accordance with clause 8, we anticipate we will exceed the 6 year limitation, as being in defence we are not expected to be posted back any time soon. If this is the case I expect we will be liable for land tax, and the threshold.
     
  9. wayne

    wayne Active Member

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    Yes Terry, we do understand no threshold for trusts (maybe a reason to remove them from the trust).
     
  10. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    If you read closer you really only get 6 months if it is rented:

     
  11. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Paying land tax is probably not a good enough reason on its own to justify the costs of stamp duty and CGT in transferring properties from a trust.

    If you end up owning them you may be over the threshold anyway and still need to pay the same land tax amount.