Land Tax is SENDING US BROKE

[Jacque]

GlenC,
Check with your accountant but I'm pretty sure that any transfer into another entity involves a sale, and you're up for stamp duty....
Don't you just love all this mindless revenue raising?
Land tax will really become a disincentive to portfolio building, especially over the next few yrs as values catch up with notices, and I really can't see why the govt doesn't do something about it. Oh, that's right! Silly me- it's a revenue that's currently so EASY to collect- why on earth would they want to stop?!

*Jax hides her sarcastic face*

 

[BUNDY]

I agree, land tax is a great burden, particularly on cashflow. In QLD, you cannot pay it on credit card either. Damn - no fly buys and 55 day interest free.

It has to be by cash or cheque, if it is not paid by the due date, they start charging you interest at 12% P/A!!!!!!! very Nasty.

When you get a bill of around $15k, you have to make sure you have put your pennies away during the year.

Perhaps we could have a survey on amounts of land tax forumites pay to try and get an average.

Cheers
BUNDY

 

[glenC]

Hi Bundy

I am taking up your challenge and stating that our Land Tax Bill for this year has risen to $16870.50 up from $13385.50 last year and $11291.67 the year before, with no more properties added to the portfolio and less rent actually coming in.

 

[skater]

Hi,
I spoke to someone at the NSW Office of State Revenue yesterday to clarify how they work out your tax free threshold in terms of jointly held property and was told the threshold was for each entity.

ie 1) Husband
2) Wife
3) Partnership

So, as a husband/wife partnership, if you split your properties between you in the right way, you can minimize your tax substantially. I always thought that you only had the one threshold to play with.

Of course this doesn't help for properties held in Trusts.

Cheers

 

[gad]

G'day glenc

"In the ACT any residential property that is rented or owned by a trust or company, pay land tax, there is no threshold."

Sorry, that probably wasn't all that clear. But this part on it's own should explain "any residential property that is rented" even if it is owned by an individual.

Hope that's clearer.

 

[fitguy]

hey guys heres how to avoid land tax cgt and stamp duty. go invest in new zealand,we have none of that crap!this country has too many stupid rules and taxes!personally we are taking our gains and heading back to nz,where most propertys are positive cash flow !the north island seems to offer the best returns.if you cant beat them,the vote with your feet!

 

[Owen]

I dutifully filled in my NSW land tax form last year and sent it in before April 31 and I never heard anything back. The property was in a trust so tax was from the first dollar and I rang them first and got all the official valuations so I knew what kind of bill I was up for but I have never recieved one.

Guess I should follow that up. For the record it was only about $800.

 

[Aceyducey]

Guess I should follow that up. For the record it was only about $800.

Owen,

You definitely should!

Land tax is one of those things that the government is incredible blasé about collecting....but they WILL get it out of you at the end if you don't pay it!

Cheers,

Aceyducey

 

[Nominees]

I was just looking through my land tax tonight and must admit that it is "extortion" as far as I am concerned.

I own land and property in partnership as well as some in my own name. What is so wrong is that as a partnership I have to pay tax on 100% of the value of the land that is owned in joint names and then I have to pay another 50% of the land in joint names in my own personal assesment!!!!!

nom

 

[glenC]

I was just looking through my land tax tonight and must admit that it is "extortion" as far as I am concerned.

I own land and property in partnership as well as some in my own name. What is so wrong is that as a partnership I have to pay tax on 100% of the value of the land that is owned in joint names and then I have to pay another 50% of the land in joint names in my own personal assesment!!!!!

nom

Where are you based? New South Wales appears to be the worst offender for Land Tax Increases due to the huge rise in values which are under Carr now being assessed every year. The used to be assessed every three or four years. Carrs Government have not increased the threshold at the same rate as value rises.