NSW Land Tax - Watch Out

[BUNDY]

I agree whole heartedly. It is a disgrace. The when you contact you local councillor asking for some footpaths so mothers can push their prams and not get bogged in sand, you'd think you were asking for a 20 lane freeway!!!!!

Last year one of one of my valuations jumped from $270K to $680K. I put in an objection, and was sent a new valuation dated OCT02 at $730K.

I have received another assessment in Feb03 with it ALSO DATED OCT02 with a valuation of $1.2M which I will be taxed on in July 03. I dare not object again!!!!!! This is only one of my properties.

Not only do you get slugged with LAND TAX!!!!, your rates are also jacked up due to the new valuations. I cannot see one improvement in the areas my properties are in in the last 5 years.
2 Whacks of the big stick.

Where does this money all go. Oh that's right - terrorist information packs, Brisbane city Godwill foot bridges, New Council Chambers - All the vital things in life. Don't worry about footpaths, street lighting, rubbish bins. I'm sure our Politicians live somewhere else but Australia!!!!!!

I'd back any idea to rectify the current Government trends!!!

BUNDY

 

[Jacque]

The thing that really riles me is that whilst you get slugged with these bills, the cash isn't exactly "available" to pay out, as all the equity is in the property! So you might have done really well in the boom period, holding and maintaining a well selected and growth property, only to be given a large bill for the privilege. Just not right, if you ask me. The govt has a lot to answer for here. By the way, does anyone know when the land tax rates came into being and how they were determined?

 

[investor]

Originally posted by michaelg
Hi,

Wouldn't be nice to write to your lender and say;

"Dear Banker,

Today I received a bill from the OSR for a request to pay my land tax. According to my last loan statement I have 20% equity in my home, according to this, you still own 80% of my property.

I have calculated the tax bill and have determined your 80% portion to be $x, please indicate how you will be paying for this, you may either send the cheque directly to the OSR, or ask that included your cheque when I submit my own.

Note, you have 7 days to respond to this letter of demand, failure to comply with this request may incur a penalty fee.

Your Joint Venture Partner
xxxx"

Just a thought
Michael G

Hi MG

Don't know about that buddy because your kind banker may send you a letter as follows :

Dear 20% home owner,

Since you claim that I own 80% of your property, I have calculated the 80% portion of your rental to be $x, I expect this to be paid to me weekly with no delay. I have also calculated 80% of the depreciation to be $y so I will be claiming that from now on. Now let's not forget the 80% of CG which accured over time which is MINE.

Note, you have 7 days to respond to this letter of demand, failure to comply with this request may incur a penalty fee.

Regards

Investor

 

[Rowan]

Hi folks (nice site btw)...

Paying Land Tax, and Rates, and Stamp Duty here in the ACT wouldn't hurt so much if we at least got something back out of it...

When we had the bushfires, I had flames 50 metres from my front door, choking smoke and a shower of embers. Armed with a pathetically inadequate garden hose, I stood scared s**tless but defiantly at my front door, prepared to hold off the embers until the firey's arrived. At the peak of the fire, the water coming out of the hose was literally blown back into my face...

They never did turn up but it's not the firey's fault - god bless all the firey's and SES volunteers, but they never had the numbers to do anything much beyond protect themselves and many of my friends (and firey's for that matter) lost the lot - so much for the council rates and fees going back into the community. Sure it will be 1000 firemen this week, or 100 extra police another week, or 100 extra shifts of electricity workers....etc, etc, but something has to be done to at least give something back other than green wheely bins.

We have black holes in our suburbs where houses used to be and the local government sees it fit to reward the inhabitants of Canberra (er, those who haven't been rendered homeless anyway) with an extra premium on the rates for this year, to account for the bushfires! Beaut how it comes around that way, isn't it?!

Rowan

 

[geoffw]

Rowan,

Is that a premium on rates ON TOP OF the average 30% increase in land values used for calculating rates and land tax?

 

[Rowan]

Correct

Exact figures I do not have, but you better gird your loins for a decent whack from the untouchable Chief Minister, who one suspects is about to cash in his popularity chips...

Rowan

 

[Cherry]

Certainly hit a raw nerve here!

Just one question though. You mentioned not to use the rates notices as an indication for land value. Is this correct? My understanding is that this value is what land tax is based on. You can then challenge the value, but from what I have heard rarely does one succeed.

 

[Kathryn]

Hi Maria,

The rates notices are only updated every couple of years, but the Valuer General sends an updated value every year to the OSR. If you're unsure you can ring the OSR, give them your DP and Lot number and they can give you the current value. Or, you can just download the form from their website and register with them. If you're under the limit you won't get a notice to pay, but at least when you do hit the threshold you'll get an assessment notice and avoid paying late penalties.

Cheers,
Kathryn

 

[cam]

Originally posted by Kathryn
I rang the OSR (Office of State Revenue) yesterday to clarify a few things about land tax and what I found out is:

- It is calculated on the total value as an entity...in other words, if you own jointly with your spouse you don't use half the amount per person, you use the whole amount (contrary to QLD which is based on individual ownership).

- It is based on what was owned as of 31 December each year and has nothing to do with filing your tax return, it operates on its own.

- You must initiate the land tax filing. As the OSR relies on several other govt agencies to give them the info they can't possibly keep track of who owns what so it is up to the landowner to "know" that they have to file a return.

- Do not go by the land value that is on your rates notice as they are only updated every few years. This is what caught me by surprise....my property that was $165k land value on my rates notice is now $233k! You only need one or two ips and you're up for land tax. You can ring the OSR and give them the lot number and DP number and they'll tell you the current land value.

The state government is out of control. They've virtually doubled the land values and are laughing all the way to the bank. I went from "possibly having to pay land tax" to "ohmigod..how much am I up for?"

Anyway, just thought I'd let you know what I found out because there are probably a few unsuspecting ip owners out there. If you're not sure, ring the OSR and get a value on your land. But make sure you do it before the end of April as that is the deadline to file.

Happy Filing,
Kathryn

Thanks
Do you know if a couplr own many properties 50/50 can each have a PPOR so no land tax on 2 properties?
ta
cam

 

[Cosmo]

I moved into my IP on Sydney’s north shore back in the 80’s on the 3/1 and was told by my accountant that the full land tax was payable because it was rented as of the 1/1! He said the bill was not proportioned for the time it was rented in that year.

Needles to say I gave the tenants a refund back to the 31/12.

 

[ZMan]

Nick,
I'd appreciate a draft of your objection letter. Can you please p-mail me if that is ok.

Thanks in advance
Zman

Originally posted by NickM
Guys

i advocate that each and every one that receives a land tax assessment lodges an objection.

You should still pay the assessment so as to not incur interest charges.

The objection should be along the lines of the property being overvalued.

If every land tax payer takes this action hopefully the authorities may realise the extent of the problem.

I have also submitted a letter to Alan Jones addressing land tax and stamp duty in NSW. He has been a strong advocate against land tax and hopefully he will keep running with it.

Letters to local members and the opposition may also rustle some feathers.

NickM

(If anyone wants a "draft" obejection please email me and i am happy to provide one )