Vic Land Tax

Discussion in 'Accounting & Tax' started by Omnidragon, 17th Feb, 2019.

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  1. Omnidragon

    Omnidragon Well-Known Member

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    havent started a thread for years but seriously... how do we kick this mob out of office?
     
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  2. Paul@PAS

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

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    Not sure of the nature of this new thread.
    Is it some gripe about land tax (did you know the new Vic govt hasnt made a single change to land tax) ?
     
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  3. poordeveloper

    poordeveloper New Member

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    Yes, and that seems to be the problem. We've had huge growth in property prices but no adjustment to the land tax brackets.

    Valuer general has bumped my valuations 25% and 20% in the past two years respectively. Which doesn't seem to reflect actual market value - even at the peak. Yes, I am raising an objection ..
     
  4. Johnb1

    Johnb1 Member

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    In Victoria, how do you do object or request a re-valuation of a property and therefore taxable land value?

    I have a client who has received a whopper $43.5k land tax bill.

    To make matters worst, she is kindly letting her family members live in the property rent free so she has to pay it herself.
     
  5. Paul@PAS

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

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    The objection process is on the OSR website. You dont "re-request"a valuation. They would refuse that by ignoring it (Yes thats the process). You need to object to the value as being excessive and do so in a manner that complies.. And within the time frame required under the Act.

    If there are characteristics of the land which affects its unimproved value (eg a big rock with cultural heritage markings, a creek or a prominent land mark issue etc) that could impact. Land tends to be valued for clusters with commonality. Then this value is uniformly applied to many homes. If a specific parecl is too narrow to build to modern standards v's other lots that could affect value. It may assist to seek a professional view from a valuer.

    The VG uses professional valuers to do the valuations on a contract basis. They dont individually look at parcels.

    Land valuations | State Revenue Office
    and
    Object to the site or capital improved valuation of your land | State Revenue Office
     
    Last edited: 21st Feb, 2019
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  6. Johnb1

    Johnb1 Member

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    Thanks very much for your answer.

    Do you know I have to get a valuation done prior to the objection or could we do after the objection?

    I looked at the website objection form and you can upload supporting documents but doesn't state what supporting documents are, so I'm not sure if you must have a official valuation done by an approved valuer before hand.
     
  7. Paul@PAS

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

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    No you need not do that. They will do that.

    Why do you think it is over valued ? What makes you say that...eg Local land sales ?? Provide details. But arguing property sales are down doesnt mean the unimproved land value has fallen. And make sure the dates are right. Using data after the valuation date wont work.
     
  8. Warrenkh018

    Warrenkh018 Member

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    I am getting ripped off big time. 20% in one property and a whooping 65% in another. So basically, my land tax bill nearly doubled. This is high way robbery!
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

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    @Warrenkh018 - were you on a very low amount previously?
     
  10. Paul@PAS

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

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    I had a client object and they raised the land value. Apparently in prior years the land was really undervalued to a mistaken boundary. When they objected the boundary was corrected and up went the value.

    I have also seen a land owner challenge their land being of use. One was land affected by a fenced protected koala habitat. No valuer dared to climb the hills of Coffs Harbour to phyically check the land which was once a banana plantation and it was assumed it was still in use despite years of no use. On review the habitat impact was found to make the land of little value and incapable of sale without that limit - who would buy it ? In the end it was gifted to council (and all land tax and rates arrears waived) as a recognised habitat and council fenced it off from foot access to let the little guys thrive.
     
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  11. The Y-man

    The Y-man Moderator Staff Member

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    I suppose the question comes back to "where is the money going"?

    Will the "next mob" with lower land tax raise something else to fund it's activities?

    The Y-man
     
  12. Omnidragon

    Omnidragon Well-Known Member

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    I know
    Hence bracket creep. $3m used to be a lot of money so fine 2.3%. Not any more
     
  13. Omnidragon

    Omnidragon Well-Known Member

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    I have 150% increase in one. 100% in another . 75% in my lowest.
     
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  14. Omnidragon

    Omnidragon Well-Known Member

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    Building a metro connecting North Melbourne to the CBD of course. Because as we all know, North Melbourne is so far.
     
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  15. wylie

    wylie Moderator Staff Member

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    Those are crazy increases. It is the land tax that has finally made us change course and decide to look to hold less property. And we don't have a lot of property anyway, but the land component and value is high.

    I cannot imagine with the holdings some on this forum have that the land tax isn't becoming a very big problem.
     
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  16. Coffee

    Coffee Well-Known Member

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    I pay the local Canberra government $3977 land tax per year for my townhouse being an investment property. If it was a PPOR, I would save that amount. Super glad I don't own a unit as a IP here.
    And the general public wonder why rental shortage and increase rents. I do wonder how the new rental reforms in Victoria will effect IP - rents in years to come.
     
  17. Beano

    Beano Well-Known Member

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    yeah i think the next mob will get rid of land tax completely
    It will follow NZ
    In NZ they got rid of land tax in the 80's a higher GST will be more evenly spread over the years and over a larger population base.
    Of course with the big savings and big increase in income we will pay a lot more income tax!
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    Not going to happen (I may live to regret saying that).

    At present it's a separate state based tax, they keep 100% of the tax charged. NSW would be particularly disadvantaged if it became a part of the GST tax take sad much of the gst raised in NSW goes to the less populous states.
     
  19. Beano

    Beano Well-Known Member

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    That's what they said about the berlin wall
    That's what they said about the election of Trump :)
     
  20. Terry_w

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

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    Also if different laws in each state they can discourage investment in one state and encourage in another