Land Tax in NSW for Tenants in Common

[sahi]

Hi,

I hope someone can clarify how the property ownership is determined for Land Tax threshold in NSW.

For example:

1. Mr and Mrs A own 2 residential properties as tenants in common with 99% / 1% split. Land value - 300K

2. Mr and Mrs A own 1 residential property as tenants in common with 80% / 20% split. Land value - 200K

3. Mr A owns property in his name land value 350K

How will land tax be assessed?

Thanks,
Sahi

 

[Macca]

Hopefully better qualified people will answer but it is my understanding that the ratio of ownership will be applied to the valuation for each property.

This will then be totalled for each person and the land tax calculated accordingly.

 

[sahi]

I called OSR they explained the following:

OSR will not differentiate cases 1 and 2. From their perspective as long as the land is owned by Mr and Mrs A, the percentage doesn't matter.

However, if MR A also has land in his own name, they will assess all the land owned by him and will look at the joint ownership, so the total land value will be calculated as:

0.99 * 300K + .8 * 200K + 350K.