A Qld Land Tax Question

[Gladstone]

Did anyone read the front page of saturday's Courier Mail (15/01/2005) about land tax?

The threshhold was raised from 150k to 170k for companies and 200k to 220k for individuals.

Is that per property or for total properties?

Searching the forum came up with a website: www.osr.qld.gov.au but couldn't get my acrobat reader to read the brochures.

Also on the search found that if IP's held in trust there is no threshhold ie start paying landtax at $0.00.

Is this a reason NOT to set up a trust or just one "against" argument that is strongly ouweighed by the "for" arguments for trusts.

Would anyone like to comment who has had some experience in this area?

Regards

 

[willair]

The threshhold was raised from 150k to 170k for companies and 200k to 220k for individuals.

Is that per property or for total properties?


gladstone,
i have not read the paper yet,but from my understanding
the values are taken on total property values i dont think
this accuratley reflects the value of any property.i know nothing about trusts set up so that another matter..
good luck
willair

 

[Jamie]

Hi Dave,

This is straight from the OSR website you were having trouble accessing:

Who is liable to pay?

Land tax is payable by the owner of any interest in freehold land in Queensland if the aggregate value of all land interests exceeds the relevant threshold.

There are various classes of taxpayers including residents (natural persons who ordinarily reside in Australia), absentees (natural persons who do not ordinarily reside in Australia), companies (includes clubs, associations etc.) and trustees (includes trustees of deceased persons' estates).
When is land tax chargeable?

For the 2003-04 financial year in Queensland, land tax is charged only if the total unimproved value of land owned is equal to or exceeds:
for a natural person who ordinarily resides in Australia is $275 997 and
for a company, trustee, club, etc. or a person who does not ordinarily reside in Australia (an "absentee") is $170 000

The rate of land tax varies with the aggregate value of taxable land however the maximum tax rate is 1.8 per cent on land owned in excess of $1,500,000.

Im not sure that the lack of threshold for a trust is a compelling argument one way or another - thats something you have to work out based on your own objectives and risk mitigation strategies.

Jamie.

 

[Gladstone]

Willair and Jamie

Thankyou

 

[Gill Bates]

Not sure which state this was in , but read in newspaper, that a states land tax department, was checking up on owner occupied premises exemption. If they found there was a "home business" or a business telephone at the owner occupied house address, then land tax was requested on this property. The land taxs department stated that since the property was earning income, ( because was place of business ) it was liable for land tax.

 

[geoffw]

In the ACT, as I understand, land tax can be levied on a portion of a house used for business or rented out.

 

[willair]

Gill Bates,
im just trying to understand this,why would the ATO,target this person
just because he or she has a so called business phone in the ppor,that they happen
to live in,do you know what paper this was in,i dont have a problem with land tax
because i get everything back anyway..
good luck
willair..

 

[quiggles]

Willair,

ATO is targeting no-one, as land tax is a State, not Commonwealth tax.

Particular states make their own rules (see the API this month for the truly wild differences). It comes down to how they classify the property, and if they decide that it is a place of business (esp if you do all your business there) then the ppor concession may be lost. It's up to the individual states to set their own rules.

Note that at no point did I argue that this makes sense.

 

[Jimmyjamjars]

Also on the search found that if IP's held in trust there is no threshhold ie start paying landtax at $0.00.

Would anyone like to comment who has had some experience in this area?

Dave,
According to the Qld OSR website, "If you are a company, Trustee, club, Association, Society or manager of time share schemes, you may be liable to pay land tax if the total unimproved value of the freehold land you own is equal to or greater than $170000".

I read that to mean that trusts DO receive a threshold.
JIM

 

[pjb89]

QLD Land Tax

Hiya

Are we expected to approach the OSR to make our contributions or are they (OSR) tasked with sending us the bill?

I would expect that they would be using the ULV??

Pedro

 

[Sunstone]

Is this a reason NOT to set up a trust or just one "against" argument that is strongly ouweighed by the "for" arguments for trusts.

Dear Dave,

Multiple trusts means multiple/infinite $170k levels. Haven't found a way to duplicate myself for multiple $275 997 levels.

Trusts are for professional investors.

Recommend you read Michael Croft's comments:
http://www.somersoft.com/forums/showpost.php?p=33946&postcount=4
http://www.somersoft.com/forums/showthread.php?t=5649&highlight=cell

Cheers,

Sunstone.