Victoria Land Tax surcharge for absentee owner

Discussion in 'Accounting & Tax' started by Lim Choon Kiat, 20th Nov, 2019.

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  1. Lim Choon Kiat

    Lim Choon Kiat New Member

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    I am investing into house in Victoria as a non-resident investor and confused with the land tax surcharge for absentee owner.

    1) Is it applicable for taxable land value of $250,000 and above only or regardless of the taxable land value?

    2) Can this be factored into the cost base when computing CGT when the property is sold? Or are there ways to claim/rebate for the taxes paid over the years of holding the property.

    Need advice. Thank you in advance.
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney

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    2. You can include in cost base expenses if you don't claim it against income
     
  3. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    If you are an investor and the property is rented then the land tax charges are deductible against the rental income for the absentee 1.5% surcharge together with any base land tax. Based on the two tables for non-trust owners at this page it seems the first $250K is exempt from the surcharge also.
     
  4. Lim Choon Kiat

    Lim Choon Kiat New Member

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    Thank you for the advice.
     
  5. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Its not advice. Its just information
     
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