Land tax issue

[rando]

Hi everyone:

I'd like to seek help about my current land tax situation.

I am based in QLD so I understand that I have a 600k threshold before I have to start paying land tax for my IPs. I am currently not far off the threshold as I purchased a property with a quite high unimproved land value (my mistake for not putting it under the family trust... ). I am currently looking to purchase an NRAS property and from what I understand buying an NRAS property under personal name is the way that can maximize the benefits of NRAS? I'd appreciate experts opinions regarding my situation as there's a space of only about $100K before I reach my land tax threshold. I couldn't find out what the unimproved land value for the 1 bedroom unit in Bowen Hill/fortitude valley would be but maybe $100k a fair guess?

Also I'd appreciate if someone could recommend a good accountant who is experienced in accounting for investment properties, (including structures etc) and maybe also in accounting for health professionals?

Thanks heaps once again!

rando

 

[Paul@PFI]

The contract will include the rates information and assist in understanding the unimproved land value. Ask the REA for that info.

Of course inflation may see your land values exceed the threshold in no time also.

 

[Terry_w]

QLD threshold is not linked to the CPI either - new is and increases each year.

 

[rando]

The contract will include the rates information and assist in understanding the unimproved land value. Ask the REA for that info.

Of course inflation may see your land values exceed the threshold in no time also.

Thanks heaps, I will ask.

 

[rando]

QLD threshold is not linked to the CPI either - new is and increases each year.

Hi Terry, thanks for the input. So, just would like to clarify, so are you saying land value (for the $600k threshold) for old/established properties is calculated on the unimproved value of the land at the time of purchase and does not increase even if the land value increases? thanks

 

[Paul@PFI]

No that wasn't the comment.

In QLD the threshold does not have automatic indexation. Its been unchanged a while. In NSW by comparison the threshold is indexed annually AND has a three year smoothing process that doesn't abruptly change values subject to tax.

 

[RPI]

Chris Wheatley at Scope accounting is pretty good according to some clients but haven't actually used him personally.

 

[rando]

No that wasn't the comment.

In QLD the threshold does not have automatic indexation. Its been unchanged a while. In NSW by comparison the threshold is indexed annually AND has a three year smoothing process that doesn't abruptly change values subject to tax.

Dope! Why did I move up from NSW!!

Thanks for the clarification.

 

[rando]

Chris Wheatley at Scope accounting is pretty good according to some clients but haven't actually used him personally.

Thanks RPI for the suggestion. Is he on Somersoft too? thanks

 

[Terry_w]

Dope! Why did I move up from NSW!!

Thanks for the clarification.

Doesn't matter where you are but where the properties are. QLD generally has more generous land tax thresholds and rates anyway.

In NSW trusts get no threshold at all. it is $300,000 per trust (in certain circumstances) in QLD.

In NSW individuals get a threshold of $412,000 but in QLD it is $600,000.

In NSW the rate is a massive 1.6% per year, but in QLD it is only 1% for $600k up to $1mil, then it jumps to 1.65%.