So I just come home to a letter telling me I have a land tax bill of $360! This is for the land I am constructing my PPOR on. The process has taken me a long time and won't be finished for about 6 months when I will move in. Do I need to pay this? Or can I explain to them it's land I'm constructing my OO on??
Is land tax in VIC determined by the size of the land? ANy impact if the property is in single name or joint name? Thanks in advance.
You only have a defined period to build, inhabit and sell the other property. In NSW it's 6 month overlap.
I would pay it and then seek to remedy and get a refund. SRO Victoria employmonkeys whose left hand doesn't know what their right hand is doing. They are inept and slow. I know the principle is to not pay and just explain the situation however it's only a few hundred dollars and I wouldn't risk the delay of being overdue even though the impost is for a PPOR. They do refund their errors eventually.
I think there is some misunderstanding how Vic land tax works. Technically unoccupied land cannot be a residence and be exempt. However if a property is being constructed and is later completed AND occupied the OSR will provide a concessions once these events occur. You must apply in writing and provide evidence of occupancy and ownership (utilities, rates etc) and a occupation certificate indicating the dwelling is complete and habitable. The correct process is that the land tax is assessed and paid and then the home owner occupant can seek a refund through the correct concession. There are specific time limits and the 6 months may be a concern....I dont believe you meet the conditions this year but will next year. Occupancy requirements Where the landowner is an individual owner or eligible trustee, that landowner or the vested beneficiary of the eligible trust must live on the land for at least six months since 1 July of the year before the assessment to be eligible for the PPR exemption. We may defer the payment of land tax for six months if landowner or resident vested beneficiary is unable to meet this requirement because either: They started occupying the land after 1 July of the year before the assessment, or The land was purchased after 1 July of the year before the assessment and they didn’t start living on it in the year before the assessment After that six-month period, provided the land has been continuously used as a PPR by an individual owner or resident vested beneficiary, an exemption will apply to that land for the relevant assessment year. Specific PPR Construction Rule Where a landowner is unable to occupy land as their PPR because a residence was being built or renovated on it, he or she is required to pay land tax whilst it is unoccupied. The landowner may, however, apply for a refund of tax paid for the year in which they started or resumed using and occupying the land as their PPR for six continuous months. Similarly, a trustee of an eligible trust may apply for a refund of land tax paid for the year in which a vested beneficiary started or resumed using and occupying the land as their PPR for six continuous months (in accordance with the proportion of their beneficial interest in the land). Any application for a refund must be made before 31 December of the year after the year the landowner or resident vested beneficiary started or resumed using the land as their PPR. A refund of tax paid may also be available of up to an additional three years back. To qualify for a refund for the first prior year, the landowner or trustee must not have been eligible for a PPR exemption on any other land during that year. The refund may be extended for up to a further two years back if the landowner or trustee was not eligible for a PPR exemption on any other land during those years and the Commissioner is satisfied there was an acceptable delay in the commencement or completion of building work which was beyond the control of the landowner. This is intended to cover delays caused by unexpected events, planning delays, damage or destruction.
Thanks so much for all your quick and detailed responses. I will just pay it and then see if I can apply to get a concession. As always, much appreciated!
