Land Tax??!?

F

fullylucky

Hi I just got a letter from State Revenue office, what's land tax?? talks about midnight I had land or something!

I've never got any like this before.

Is there a way to minimise how much I have to pay or get out of it completely? :confused:

(I have one investment property and my house that I live in.)

Also I'm already paying Brisbane city council rates already...!:mad:
 
fullylucky said:
Hi I just got a letter from State Revenue office, what's land tax?? talks about midnight I had land or something!

I've never got any like this before.

Is there a way to minimise how much I have to pay or get out of it completely? :confused:

(I have one investment property and my house that I live in.)

Also I'm already paying Brisbane city council rates already...!:mad:
Click to expand...

Its a tax on the amount of non-ppor land you own - over a certain threshold. Sort of like a wealth tax really. In QLD, the threshold for individuals is $600k -see https://www.osr.qld.gov.au/land-tax/about-land-tax/land-tax-rates.shtml

Your one IP must be on some valuable land to be over the threshold, or you haven't told them your PPOR is not an investment, as it would then be exempt.

You need to consider this expense in your investing journey.

A strategy to minimize it to buy in different structures (trusts) or buy in different states as thresholds are reached.

I am sure there are many other threads on here about it.
 
fullylucky said:
Hi I just got a letter from State Revenue office, what's land tax?? talks about midnight I had land or something!

I've never got any like this before.

Is there a way to minimise how much I have to pay or get out of it completely? :confused:

(I have one investment property and my house that I live in.)

Also I'm already paying Brisbane city council rates already...!:mad:
Click to expand...

Surely you joke? Never heard of land tax?

If the property is in QLD you can get a tax free threshold of $600,000 - generally. This is for the land value - how much is your land worth?
 
Was your main home ever rented out?

Sometimes they include that in the land calculation if you don't show that you have moved in.
 
fullylucky said:
Hi I just got a letter from State Revenue office, what's land tax?? talks about midnight I had land or something!

I've never got any like this before.

Is there a way to minimise how much I have to pay or get out of it completely? :confused:

(I have one investment property and my house that I live in.)

Also I'm already paying Brisbane city council rates already...!:mad:
Click to expand...

You are kidding right?

If not then get to work learning about what you are doing pronto.

Seriously !

I mean that in a good way.;)
 
Terry_w said:
Surely you joke? Never heard of land tax?

If the property is in QLD you can get a tax free threshold of $600,000 - generally. This is for the land value - how much is your land worth?
Click to expand...

Hey listen guys I normally consider everything... but yeah had no idea...

for both properties i have, the value of the house is over 600k each but the land value shouldn't be any where near 600k so that means I am exempt?

but the combined land value would be over 600k. since the land is 350k and 350k I believe. so adding that up u'd get around 700K which is higher than 600k threshold???
 
fullylucky said:
the combined land value would be over 600k. since the land is 350k and 350k I believe. so adding that up u'd get around 700K which is higher than 600k threshold.
Click to expand...
Yes, it works on combined land value (if in private name). They send out an assessment around March/April I think, saying what the land is valued at, and you have a certain time period in which to dispute the land valuation. Way too late now, so can't see any way you're avoiding this bill, sorry.
 
fullylucky said:
for both properties i have, the value of the house is over 600k each but the land value shouldn't be any where near 600k so that means I am exempt?

but the combined land value would be over 600k. since the land is 350k and 350k I believe. so adding that up u'd get around 700K which is higher than 600k threshold???
Click to expand...

Your PPOR is exempt. Check your land tax statement and make sure your PPOR is exempt.
 
It goes on the UCV - Unimproved Capital Value. This can be markedly different to market value. Find it on your rates notice but should also be on your land tax notice.

That is why in QLD the land tax savings alone can justify buying each IP in a different trust, depends on individual situation of course.
 
ALL IP owners should always register for land tax in the state they own property. One low value property or ten. This avoids the issue of forgetting to register and if thresholds, values etc change you wont incur penalties.

In every state a land tax clearance certificate is a part of the sale of any land. This is to detect non compliance and panalties can be significant.

Each state OSR does send letters to land owners from time to time which appear scary but reality is its just education to ensure land is subject to land tax and taxpayers know what they must do. Register and you can relax. They wont bug you again.
 
I found the land value it's on the back of the letter...

$335,000 for the property I am living in

and $335,000 for the investment property...

so all I have to do is fill out their form 1 to be exempt??

Since 335,000 isn't over the threshold?
 
What if you own 3 townhouse IPs in a gated complex? How do they calculate the value of the land on each to determine if I am responsible for land tax?
 
jude74 said:
What if you own 3 townhouse IPs in a gated complex? How do they calculate the value of the land on each to determine if I am responsible for land tax?
Click to expand...

There is still a portion of land that is on your title. Even on apartments, their is a small claim to the "land".

The Y-man
 
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