Land Tax - Incorrectly charged?

Received a letter in the mail yesterday with a land tax bill from SRO of $793 for the period of 1/1/15 - 31/12/15.

I am unsure why I am being stung the land tax charge as to my understanding a PPOR is exempt from any land tax. If anyone can enlighten me as to why I?m being charged it would be greatly appreciated. Will be discussing with SRO this afternoon also.

IP1:

- Purchased 2011.
- Never used as PPOR
- Taxable value noted as $149,000

Taxable value below $250,000 therefor land tax charge should be NIL?

IP2: (Now PPOR)

- Purchased May 14?
- Statement of adjustments at settlement noted land tax from 1/1/14 - 31/12/14 as $373. (purchaser allows 218 days)
- FHO stamp duty reduction was claimed through SRO on the condition that the property would become my PPOR within the first 12 months of ownership which I noted as starting 27/2/15. The property however become my PPOR on 9/1/15.

Am I wrong to assume I should not be getting charged a land tax on my now PPOR from 9/1/15? I would have thought I would only be charged a land tax for the period between 1/1/15 - 9/1/15 as it was still an IP during this period..

One mistake I have made is not notifying SRO of my move in date from 27/2/15 to 9/1/15 as tenants vacated earlier than previously noted. I am hoping this can be amended.

Thanks in advance.
 
Guessing the state the properties are in is VIC?

Were you living in the main residence as at 31 Dec? Sounds like you were not and that is probably why subject to land tax. Investment is added to the PPOR.
It may have been a mistake to let the tenants stay 10 days extra.

Adjustments at settlement doesn't change things.
 
Guessing the state the properties are in is VIC?

Were you living in the main residence as at 31 Dec? Sounds like you were not and that is probably why subject to land tax. Investment is added to the PPOR.
It may have been a mistake to let the tenants stay 10 days extra.

Adjustments at settlement doesn't change things.

Properties are both in Vic.

Something I didn't even think of and I am surprised my conveyancer did not notify me of this also as I would have ended lease prior to 31st Dec if I had known.. So basically by law I am going to be charged a full year of land tax for a total of 9 days out of 365 with the property being tenanted? :eek:
 
Properties are both in Vic.

Something I didn't even think of and I am surprised my conveyancer did not notify me of this also as I would have ended lease prior to 31st Dec if I had known.. So basically by law I am going to be charged a full year of land tax for a total of 9 days out of 365 with the property being tenanted? :eek:

Yep. But you can't blame the conveyancer. You would have contracted them to transfer title only. I don't even think they would be allowed to advice on land tax.
 
Yep. But you can't blame the conveyancer. You would have contracted them to transfer title only. I don't even think they would be allowed to advice on land tax.

Thanks Terry.

Definitely not his fault although he did set up the forms to apply for FHO stamp duty reduction to SRO etc. and was very helpful in more than just the title transfer. Something I should have been aware of so only myself to blame.
 
Thanks Terry.

Definitely not his fault although he did set up the forms to apply for FHO stamp duty reduction to SRO etc. and was very helpful in more than just the title transfer. Something I should have been aware of so only myself to blame.

Certainly worth calling the SRO, I have had some good negotiations over the years on land tax with them. Had the bill reduced a few times with common sense ruling when technically they could have charged the full amount.

Good luck
 
Certainly worth calling the SRO, I have had some good negotiations over the years on land tax with them. Had the bill reduced a few times with common sense ruling when technically they could have charged the full amount.

Good luck

Spoke with SRO. According to the lady I spoke with there is nothing I can legally do to avoid paying the full years land tax.. Contemplating writing a letter although may be a waste of time
 
Perhaps you could ask to pay in installments - they may give an interest free loan. NSW did this recently to a client of mine.
 
Agree with "you don't know what you don't know". We were in a similar situation to dan_89, were going to move into the new PPOR sometime in 2015 whenever the tenants vacated. Luckily for us (although it was a bit stressful at the time), they vacated a week before Xmas, and we moved in the weekend before Xmas 2014.

Our land tax bill would have been $9k had they not vacated!! Since we moved in before 31 Dec 2014, our land tax bill was reduced to $1.5k. I had no idea the difference would be so drastic.

Note we are in NSW, not VIC, but the same principle applies re: 31 December being the cut-off date.

Shame though, about the land tax bill for a relatively minor timing issue :( You may be able to get an interest-free payment plan if you ask.
 
Agree with "you don't know what you don't know". We were in a similar situation to dan_89, were going to move into the new PPOR sometime in 2015 whenever the tenants vacated. Luckily for us (although it was a bit stressful at the time), they vacated a week before Xmas, and we moved in the weekend before Xmas 2014.

Our land tax bill would have been $9k had they not vacated!! Since we moved in before 31 Dec 2014, our land tax bill was reduced to $1.5k. I had no idea the difference would be so drastic.

Note we are in NSW, not VIC, but the same principle applies re: 31 December being the cut-off date.

Shame though, about the land tax bill for a relatively minor timing issue :( You may be able to get an interest-free payment plan if you ask.

I had a client in a similar situation but their accountant advised them incorrectly and they wanted to move in after new year. $9k extra land tax approx.
 
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