Vic Land Tax

Absolutely. I’m out of Victoria for now.

 

Huge problems. I can tell you my family’s paying in excess of half a million now in land taxes. Just outrageous stuff

 

Horrible problem to have. Does the SROV send you a Christmas card?

 

Of course not... we’d be lucky not to be treated like criminals and have 20% penalty interest applied for being 10 minutes late with payment.

 

@Omnidragon - they mustn't value the relationship.

 

Is it recoverable from the tenants ?

 

Nah as rents falls under RTA, hence cannot pass on land tax.

 

The strategies for property owners should always consider land tax and expected increased value.
Strategies can include:

• Different owners to access multiple thresholds if possible eg Dad, Mum, Dad & Mum, SMSF, Trust, Company. This strategy will be affected by state laws too.
• Holding property that has a low element of land v total value ie apartments
• Holding property in multiple states to use each state threshold, per owner as well.
• Spouse transfer/s at a trigger point that may avoid duty and address ownership
• Divestment of property when land tax is not a sustainable cost. Need to consider CGT cost at same time. Sometimes a partial disposal may be effective.
• Be wary of potential inheritance of property. Sale by an executor could address the concern.

Many land tax problems arise from joint ownership of three or more properties. The problem often traces back to lack of consideration of structure and options when buying.

 

I have a property in QLD which looses the first 3 months of rent straight to land tax and council rates.

 

I have been paying land tax for about 10 years. Bracket creep is real and only up to recently the true value of the land was always way higher than the assessment value. Same as council rates as a few years back you would hardly see a property sell less than the rates notice valuation.

There was some investors just basing their investments on that so a good deal would be a purchase price under rates notices valuation

 

Received our VIC land tax, and it was almost doubled from last year. The Vic govt has copied Qld govt - our land tax there increased 3 years ago! Problem is that rent has not been increased for the last 3 years ... So back in negative cash flow territory

 

Just got land tax and it's tripled from last years. Looks like the land tax rate has jumped sharply as well as the values.

 

Yep - me too. Extraordinary increase. But what can you do? Not like you can shop around like you can with insurance.

 

We can start a petition to review the Land Tax formula, it wasn’t changed for 10 years, need someone who can lead it, better some known PI educator or industry insider. Any takers?
Start a petition · Change.org

 

Just got land tax catch up from 2015 - now for one property

Uncle Dan Andrews must be feeling the effect of reduced stamps revenue

 

That’s amazing.

My land tax bill doubled this year. All ips in vic. Was a shock. I’m feeling investors are under siege now with Labor’s proposed changes, Apras handiwork, property decreases etc.

 

Mine went up too. But so did the value of the property.

Can’t have it both ways!

 

People will find their property price going back to 2015 but land value at 2019