VIC Land Tax - Joint Ownership

I joint own an IP with our trust and the land tax is as such:

Trust is calculated at 50% of land value.
I have been calculated at 100% of land value, this does not seem correct.
Should I also be calculated at 50% of the value as it it jointly owned?

We do not have any other land apart from our PPOR.

 

Joint owners are assessed as if they were a single owner and then assessed on their share of the land taking into account other land owned with a calculation to avoid double taxation. See s38 Land Tax Act

A trustee is assessed at surcharge rates - s 46A

 

Still find it confusing and all examples have one joint owner who owns other land as well.
From the way I read it we should both be taxed on a 50% share and trust side gets surcharge rate?

 

@andnic - The property is assessed at 100%, so it will sit above the land tax threshold. You are then assessed on 50% of the charge. The other party is assessed with a surcharge.

 

It would take me effort to work it out.

But what does "I joint own an IP with our trust" really mean?
A trust is not a legal person so cannot own property. Do you mean you are joint owner with someone else who is a trustee of a trust?
If so that in itself would be most unusual, but could happen as a result of a will.

 

Sorry had that part wrong, it is owned by myself and our company which is through the trust.
Just want to confirm we should both be taxed on 50% of the value?

As it is now company is taxed on 50% and I am being taxed on 100% of the land value.

 

What does that even mean? Is the company acting as trustee?
What % do you own and what % does the company own?

(and why is it held this way?)

 

Very unorthodox. If jointly I have concerns. You die and the property passes to a disc trust and may be outside the will. I have seen it a few times with a unit trust and its still not quite right but can be in rare cases.

 

Hi Terry

In Vic are joint owners and tenants in common treated the same way?

 

That depends. Is it a unit trust or individuals

 

JT is treated as if TIC in equal shares.
TIC in unequal shares is treated differently because of secondary assessment

 

Thanks Terry.

 

We have a Unit Trust of which the Company is the Trustee.
There is a partition agreement in place for when the land is subdivided.
Company has 56% share and I have 44%.
When subdivided company owns back block and I own the existing house.
Should the land tax be based on 56% of land value for company (Which it is) and 44% of land value for me (Currently taxed on 100% of land value)?

 

no i dont think so. get some specific legal advice.

 

Hi @Terry_w , should there be a land tax in Vic if the land site value is $383k which has the joint ownership of 50/50 between a couple? I thought it would be assessed as half half which would make it under $250k threshold.

 

Yes as joint owners are assessed as if they were one owner.

 

Thank you, @Terry_w.