FAQ: The dreaded Land Tax

Discussion in 'Accounting and Tax' started by always_learning, 6th Jun, 2003.

  1. handyandy

    handyandy Member

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    My belief is that you have a discretionary trust and as such you will not be eligible for a tax threshold.

    It used to be a unit trust still befitted from a threshold but I think that this has also changed. The Chan special property trust PIT was based on a unit trust and has since lost out to the dreaded landtax threshold.

    Cheers
     
  2. Indulgedbelle

    Indulgedbelle Member

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    Asic

    Hello, could someone please tell me what a form 309A Notification of details of charge is?, I just did a search on the ASIC site to find two lodgements one 2005 and one 2009 in relation to my company. I have borrowed money without a problem during that time, so I am assuming it is not a negative thing, however best I find out Thankyou
     
  3. KenS

    KenS Member

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    A trust would have to be a fixed trust, which beneficiaries must be all natural persons and be presently entitled to income and capital of the trust, have a natural person as trustee and at least one beneficiary must use and occupy the property as their principal place of residence, to enable an exemption for principal place of residence to be applied to the property.
    (A reply from the OSR on this)
     
  4. Dazz

    Dazz Banned

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    What a fascinating thread from always learning back in 2003. Where are ya champ ??

    Steve (yo yo ma) chipped in with a cracker from 2007 in post # 32. Compulsory reading for all newbies. That one post with all of it's clicky links would sort out every Land Tax question that comes up on the forum.

    Ol' Lev burst onto the scene with his academic buddies - hundreds of 'em, all just as poor as they were highly qualified to comment on economic theory. Alas, he buggered off again just as quickly, never to be seen again.

    Land Tax - it was important way back then, and probably more so now. It was certainly one of the major planks that forced us into what we do nowadays.
     
  5. Steviejae

    Steviejae Member

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    Land Tax - WTF!

    Great forum post and very informative, but what bugs me the most is the plain fact is that there IS A LAND TAX!!! Just another money grab by the government if you ask me!!! There are a lot of people suffering trying to make ends meet with potential rate rises on the horizon and yet there's the government spotting another opportunity to rake in some more money....Don't even get me started with the rumors of the energy efficiency ratings that may be introduced...So what will happen with the older (and potentially more beautiful) homes out there - will they require to pay up on carbon usage?...but i digress.
     
  6. Kristine..

    Kristine.. Broker and Raconteur

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    Yeah, well

    As alwayslearning commented, if you had shares (or other capital assets) you don't pay a tax on the capital value of those assets, but we are taxed on property holdings

    When this thread was started back on 06-06-2003, our Land Tax was just wishful thinking.

    Now, our Land Tax bring tears to our eyes and invokes considerable weakness in the knees

    In just 8 years, the market has delivered us significant capital growth on which we are taxed while we hold the assets and will be taxed when we sell the assets.

    Musn't grumble, but all we are trying to do is make sure that we are not going to be reliant on the Pension, yet we are now paying more than the Pension each year in Land Tax!

    Oh, well - off for a Bex and a good lie down!

    Cheers
    Kristine
     
  7. Aaron_C

    Aaron_C Finance Broker

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    This is a good reason to buy strata title rather than land
     
  8. davidw89

    davidw89 Member

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    I currently have a property under my name that I have to pay land tax on. Any idea on how much it cost to move this into a trust structure? Will I be exempt from land tax that way? Land tax is about $1,500 per year and rising.
     
  9. donkey

    donkey Member

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    I totally agree that its just a money grab by the govt. Ive met many folk who have sold I.Ps due to the land tax- including myself. Australia is hard enough to get ahead and keep up with the bills as it is
     
  10. Kristine..

    Kristine.. Broker and Raconteur

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    Hey David

    Wait until you are paying an amount equivalent to the Couple's Old Age Pension in Land Tax each year!

    Each State charges their own property taxes. Read the State Revenue Office website for your State for information on calculation of the tax and whether you will pay more for property held in incorporated structures. In Victoria Trusts are charged more than Natural Persons and it is probably the same in all States and Territories.

    Selling your property to a trust seems to be excessive to avoid something as minimal as $1,500 per year - I pay $1,500 in Insurance per property and at least $1,500 per year Council Rates for each property, plus Water Rates and other outgoings.

    However, if Australia adopted the English system, whereby residential tenants pay the rent to the landlord but then pay all outgoings including property taxes, directly, we may see a revision of this quite punitive and to my mind, unjust tax.

    This will probably happen shortly after the TARDIS appears in my back yard.

    Cheers
    Kristine