QLD land tax threshold

Discussion in 'Accounting & Tax' started by hash_investor, 8th Mar, 2017.

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  1. Gockie

    Gockie Life is good ☺️ Premium Member

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    What i understand is a Trust pays from dollar 1 if the land value is over 300k in Qld.
    But I'd prefer it if I was wrong....
     
    Gockie, 20th Mar, 2017
    #41
  2. Terry_w

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

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    $350k
     
    Terry_w, 20th Mar, 2017
    #42
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  3. wylie

    wylie Moderator Staff Member

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    Oh, I think this is where I'm confused. So over $350k threshold, the land tax is paid from the first dollar. I know we are losing $6k from just one house in a trust, but the land value has been well over $350k for a while, so I've never worked it out.

    Rates for individuals
    $0 - $599,999 = $0
    $600,000 - $999,999 = $500 plus 1 cent for each $1 more than $600,000

    Rates for companies, trustees and absentees
    $0 - $349,999 = $0
    $350,000 - $2,249,999 = $1,450 plus 1.7 cents for each $1 more than $350,000
     
    wylie, 20th Mar, 2017
    #43
  4. Gockie

    Gockie Life is good ☺️ Premium Member

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    But still too low...
     
    Gockie, 20th Mar, 2017
    #44
  5. Terry_w

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

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    And it doesn't rise with inflation either.
     
    Terry_w, 20th Mar, 2017
    #45
  6. aussieB

    aussieB Well-Known Member

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    What other things should be considered when deciding on the ownership structure ?
     
    aussieB, 21st Mar, 2017
    #46
  7. Terry_w

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

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    Many things

    Succession on death
    Control in incapacity
    Family law
    Bankruptcy
    Income tax
    Cgt
    Land tax
    Stamp duty on restructuring
    Ability to use various strategies such as related party loans and transfers
    Ability to get it into super later
    Social security

    Etc

    Just some of the many things
     
    Terry_w, 21st Mar, 2017
    #47
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  8. JK200SX

    JK200SX Well-Known Member

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    Does anyone know if there will be any plans in QLD to increase the threshold from 600K?
     
    JK200SX, 13th Sep, 2017
    #48
  9. Terry_w

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

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    Not that I have heard of/
     
    Terry_w, 13th Sep, 2017
    #49
  10. Lacrim

    Lacrim Well-Known Member

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    That's what sucks. Insidious creep/breach into land tax territory.
     
    Lacrim, 13th Sep, 2017
    #50
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  11. Paul@PAS

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

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    UP TO $1.2 of unimproved land value.
    Wife could have $1m and you have $200K and you will be exempt but she would pay tax. You dont share two thresholds.
     
    Paul@PAS, 13th Sep, 2017
    #51
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  12. Paul@PAS

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

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    QLD and Vic dont adjust it. NSW indexes theirs. I have always wondered what may happen if the budget froze the threshold. Rebellion ?

    I question if the threshold is reverse engineered rather than truly reflective of property value and a "fixed tax rate" ie 1.6%....eg taxable value of land in 2018 is $XXX trillion and so they work backwards to ensure a budget value of (example) $10b hits state coffers.
     
    Paul@PAS, 13th Sep, 2017
    #52
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