Land tax exemption - NSW

[tonyc00]

An article in the SMH today regarding a high profile banker (in NSW) being slugged for $1m+ for land tax despite his,

"objection to the tax assessments was that their expenses for those three years exceeded the income from the property and they were therefore eligible for a land tax exemption."

Can anyone shed light on the above exemption eg section of the Act.

Thanks

Tony

 

[D.T.]

http://www.osr.nsw.gov.au/taxes/land/exemptions/

Theres a list of all nsw land tax exemption reasons here. Exceeding income isnt one of them. I didnt see SMH, but if they're anything like any other media outlet in the world, than they very likely omit key details

 

[geoffw]

Link to the article:
http://m.smh.com.au/national/invest...llion-land-tax-on-mansion-20140315-34tvu.html

 

[Terry_w]

An article in the SMH today regarding a high profile banker (in NSW) being slugged for $1m+ for land tax despite his,

"objection to the tax assessments was that their expenses for those three years exceeded the income from the property and they were therefore eligible for a land tax exemption."

Can anyone shed light on the above exemption eg section of the Act.

Thanks

Tony

I know of nothing in the Land Tax Management Act which provides an exemption if the expenses for a property exceed the income. This would be the case with all negative geared investment properties.

 

[Scott No Mates]

I know of nothing in the Land Tax Management Act which provides an exemption if the expenses for a property exceed the income. This would be the case with all negative geared investment properties.

I've never come across that one either, otherwise every developer with vacant land or underdeveloped land would be getting off scott free.

 

[Paul@PFI]

I read that article and looked up the case. Sometimes a fool and their money are easily parted. Self representation isnt a smart legal move and this proves it.

They (unsuccessfully) argued that they would lose a lot of $$ if land tax was imposed. As already mentioned there is no exemption for profitability. The appeal quite candidly made mention that in many cases land tax applies to unoccupied and unimproved land which earns no income so the legislation doesn't have any concerns about whether a property earns income. They then also tried to argue that as a small oubuilding (a tennis / pool shed etc) was accomodated by family (not the owners however) it meant the property was owner occupied.

Its in the vibe of the Land Tax Management Act Terry !!

They are selling to pay the arrears and interest. OSR have given them a 12 month period of grace.

 

[skater]

My understanding is that the owners were overseas, however it was their PPOR. I know you get an exemption for up to 6 years for Capital Gains Tax purposes, buy have never thought about the consequences of Land Tax.

I'm guessing that there is no exemption for Land Tax if you move out and use it for rental purposes?

If that is the case, maybe there's a whole lot of people that could get caught out here.

 

[Terry_w]

My understanding is that the owners were overseas, however it was their PPOR. I know you get an exemption for up to 6 years for Capital Gains Tax purposes, buy have never thought about the consequences of Land Tax.

I'm guessing that there is no exemption for Land Tax if you move out and use it for rental purposes?

If that is the case, maybe there's a whole lot of people that could get caught out here.

The absence from PPOR exemption for land tax is much more limited for land tax.

See cl 6
http://www.austlii.edu.au/au/legis/nsw/consol_act/ltma1956173/sch1a.html

 

[Paul@PFI]

Tried to find the link on NCATs website - The link in my browser history no longer works - Did late Friday. I read somewhere decision was supposed to have suppression. Maybe they acted slow ??