QLD land tax - adjustments when selling?

Hi all. Just hoping someone with a bit more knowledge can help me out.

I'm selling an investment property which is due to settle shortly.

I received my Land Tax bill for this financial year which hasn't been paid yet. (Lets say $10k)

My conveyancer also received an "Amount payable to secure a Land Tax Clearance Certificate" stating the land tax potentially liable for the IP is ~$2k.

My conveyancer said she'll take the 2k out of the settlement funds and for me to call OSR and they should re-issue a new statement without the above IP.

I just wanted to confirm if that's correct. I don't want to be stuck having to essentially pay land tax twice on the same property.

Many thanks

 

Sounds like they are going to pay the land tax for this property out of your proceeds. Why would you need a new statement? You would still need to pay the remaining amounts, but I guess you won't know the exact figure perhaps?

 

You're right Terry.

I just wanted to make sure this was a normal process and a new statement was issued so I know how much is remaining. I tried to calculate my land tax on that property alone and it was actually more than the 2k quoted.

Tried calling OSR but realised it's a public holiday in Brisbane

 

If I recall you pay in full. There isn't any pro-rata on the land tax.
I could be wrong about it.

 

I can't see how you could end up paying more than you owe. If you owed $10 and paid $2, then you would still owe $8.

 

Land tax is a first charge so if its unpaid at settlement the buyer will retain $10K and discharge the debt on your behalf. So you pay it one way or the other. It is sometimes easier and faster to communicate with your conveyancer to pay the debt prior to settlement and then there isnt a issue to adjust by both parties. Worst of all is you pay it the day prior and you end up with paying it twice !!! The conveyancer wont recheck the day prior. Communicate with them on the issue. If the conveyancer has performed a estimate you want to make sure they have a copy of the actual assessment so they adjust the correct value.

How the contract is worded will determine IF the buyer has a settlement adjustment to pay you for any of the land tax which would reduce your net cost.