Land Tax Issue

[Bazza]

Hi Guys,

OK we have decided not to buy our next IP in our HDT. So now we may have a land tax issue.

In Queensland an individual person has a land tax threshold of $600k. This means that I could buy 2 IP's (land value $300k each) and my wife could buy 2 in her name without attracting land tax.

If we buy properties in both our names can we buy four or just two before we hit the threshold?

Cheers,

Bazza

 

[lizzie]

i believe the answer is two - but check with your accountant.

 

[Bazza]

i believe the answer is two - but check with your accountant.

Thanks Lizzie - thought so.

In Vic the threshold is $200k but it does say:
The 2008 assessment is calculated on the total taxable value of all land owned (either solely or jointly) at midnight 31 December 2007, excluding exempt land.

Cheers,

Bazza

 

[Bazza]

OSR Queensland states:

For the 2008-09 financial year an individual landowner resident in Australia may be liable for land tax if the total relevant unimproved value of freehold land held by that person (i.e. the owner's share) in Queensland as at 30 June 2008 is equal to or greater than $600,000.

Similarly, a company, trustee (including trustee/s of deceased estates), or an absentee, may be liable for land tax if the total relevant unimproved value of their share of the freehold land held as at 30 June 2008 is equal to or greater than $350,000.

So, the owners share can not exceed $600k. Looks like I'm OK then

Cheers,

Bazza

 

[wishing_well0]

I would drop them a line at the OSR and asked the question - but the way it was explained to me was that in QLD it is based on each person so - technically if all properties were bought in joint names and equal ownership two people could own up to $1.2M.

This was from the link noted below :-

"For the 2008-09 financial year, resident individuals will be liable for land tax if the total relevant unimproved value of the freehold land owned by that person as at 30 June 2008 is equal to or greater than $600,000"

http://www.osr.qld.gov.au/taxes/land/faq.shtml

But.....I am no expert and as I have found when you call the OSR it can depend on who you talk to and what way the wind is blowing that day.

Bye,

 

[Bazza]

Thanks Wishing Well.

I spoke to the OSR and they said that we can each have up to $600k shared between properties and we are still exempt on our PPR.

So, value of PPR doesn't matter and we can own up to $1.2m between us.

This is a government dept I like

Cheers,

Bazza

 

[Petal]

QLD is pretty good for land tax. Although I don't think there is any land tax in the NT and the ACT. Must be a Territory thing!!

 

[yo yo ma]

QLD is pretty good for land tax. Although I don't think there is any land tax in the NT and the ACT. Must be a Territory thing!!

Only the NT is exempt

http://www.revenue.act.gov.au/land_tax

Queensland rates start off low but increase to middle of the range. See this post for some examples

 

[Petal]

Thanks Yo Yo for the edification.

For some reason I thought it was two states. I think we will be paying some land tax this year

 

[lizzie]

hey - thanks for correcting me. queensland is great - in nsw basically you are liable for everything even if you only own a share.

and they wonder why nsw is not attracting any development ...

 

[Dazz]

That link was absolutely spot on yo yo ma.

You obviously put alot of effort into gathering all that info.

Big kudos coming your way.

 

[yo yo ma]

Thanks Dazz... appreciated