I sold a property in QLD last month a both sides forgot the land tax payment before settlement. The buyers have sent me letter from QLD revenue saying they need to pay it!!! I intent to pay it but if I didn't does it become there responsibility? Weird setup!
Land tax not paid on settlement
- Thread starter HeadsOnBeds
- Start date
I don't think land tax gets pro-rated, because it varies according to individual circumstances; I think it's entirely the responsibility of whoever owns it at midnight on Dec 31, which is why there's no adjustment at settlement.
So if the land tax payable is attributable to your ownership at 31 Dec 13, then yes, it's your bill.
(Speaking for NSW) - unless of course the contract of sale stipulates that land tax is to be adjusted at settlement.
See extract from NSW Sale of Land - 2005 Edn
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As nobody will take my word for it 
It's 30 June not 31 Dec (mea culpa)
From https://www.osr.qld.gov.au/land-tax/about-land-tax/index.shtml
As land tax is usually payable around 6 months after the "census" date, it's quite common in QLD for one party to own the property, and the previous owner to be liable for land tax post-settlement.
It's 30 June not 31 Dec (mea culpa)From https://www.osr.qld.gov.au/land-tax/about-land-tax/index.shtml
As land tax is usually payable around 6 months after the "census" date, it's quite common in QLD for one party to own the property, and the previous owner to be liable for land tax post-settlement.
Perp, good pick up that NSW census date differs from the Qld date.
Yes, I think some confusion has been created re "land tax runs with the land". In Queensland, it doesn't; it follows the owner at midnight on 30 Jun.
To clarify the above, land tax is imposed on the owner of the land at midnight on 30 June or the Buyer if the Buyer is in possession at this time.
If the Buyer did not obtain a land tax clearance certificate, OSR may recover outstanding land tax from the owner of the land (the Buyer) as a debt (section 59 of the Land Tax Act 2010 (Qld)). This means that the Buyer may be liable to pay the Seller's oustanding land tax relating to the land.
In Queendsland, a Buyer should always do a land tax search and ensure a cheque is drawn at settlement and paid to OSR for the amount required to obtain a land tax clearance certificate to ensure they will not be liable for unpaid land tax.
