Land Tax!

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From: Shelly R


G'day all,
Went to my solicitor yesterday to sign a
sales contract on my third investment property.
He said I will now be paying land tax!
Can someone explain to me about land tax.
I heard about it but thought I had to have
many properties before it applied to a small timer like me.
Also asked my solicitor about stamp duty because the topic had just come up here last week.
He said my lender will expect me to pay it before settlement.The three months wait is only for those not borrowing funds.Can't recall the explanation.
Cheers Shelly
 
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Reply: 1
From: Nigel W


Shelly the reason the stamp duty has to be paid before settlement is so that the transfer of the property to you can get registered and then the mortgage to your financier can get registered.

The titles offices in the various states won't register a transfer that's not stamped.
 
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Reply: 2
From: Duncan M


Stamp Duty and Land Tax are STATE Taxes, when discussing these State Taxes you should tell us what State you are in so that more accurate replies can be posted.

Regards,

Duncan.
 
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Reply: 2.1
From: Shelly R



Thanks Duncan,
N.S.W
 
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Reply: 2.1.1
From: Waverly Bay


Hi shelly

Check out the link at

http://www.osr.nsw.gov.au/taxes/info_lt.htm

FYI - Land tax was introduced in 1910 to provide defence for the nation and prepare the nation for an increase in migration.

The tax was also targeted at wealthy landholders who were unproductive with their massive land holdings. By imposing the tax on these landowners, it was hoped that they would subdivide to more productive settlers.

Times have changed indeed for the land of oz - and the original policy rationale for land tax is outrageously long-gone irrelevant in our modern day setting. But you probably know the saying - the only things certain in life is death....and taxes.

So Shelly I hope u settle quickly into your new life of land tax filings. Cop it on the chin, its a cost of playing the IP game.

It is tax deductible ....
A tax ? - what... deductible? what was the policy rationale behind that? Lets not start.

Cheers

Waverly
 
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