Land tax

[tarah]

Hi all,

As there is the 6yr PPOR rule with CGT, is it the same with land tax? I am living with my partner and rent out all of my IPs so surely I can still theoretically have a PPOR as long as I have lived in it in the last 6yrs??

Thanks!

 

[buzzlightyear]

Firstly, CGT is a Federal Tax and Land tax is a state based, so the rules on how each is applied are different. Therefore, just because you may claim a specific property as your PPOR but rent it out and therefore technically eligible for CGT free sale, has no relevance for how the property is treated for Land tax.

I believe the SA date for Land tax calculation is at midnight on June 30th. There are exemptions available, however, if I am assuming this is a standard rental agreement, your property's site value would be included in the calculation for land tax.

 

[Rob Williams]

I think that's right Tarah. As far as I know, the State Land Tax exemption doesn't have a 6 year rule style provision.
The rules are very clear:
http://www.revenuesa.sa.gov.au
Check out "Exemptions From Land Tax"
Mitigating against a high land tax bill is part of the strategic planning component of property investing. Got to have a plan and a strategy. Got to identify the risks and mitigate against them.

 

[tarah]

Thanks guys! Yes, pity you can't have one as your PPOR for land tax as you can with the 6yr rule!