NSW Land Tax

[Kathryn]

Hi all,

Can anyone tell me if I have to initiate the lodgement of a Land Tax Return form or will I get one in the mail automatically? I bought a property in NSW that settled in December, so as of 31 December 2002 that brought me over the threshold and I will have to pay land tax this year. I checked the OSR website but it's not clear whether I have to make the first move or not. It says the following:

"If you own land or have a legal or beneficial interest in land at midnight on 31 December 2002 and you are liable for land tax in 2003 for the first time, you have to lodge an initial land tax return. This initial return must be delivered to OSR on or before 30 April 2003 unless you receive an assessment notice or a letter from OSR before this date"

It's not clear to me whether I should just "know" that I have to pay land tax and contact them....or whether they should "know" that I'm now over the threshold and send me a notice.

If it wasn't for the forum I wouldn't have even know about land tax to begin with. Any help would be appreciated.

Cheers,
Kathryn

 

[Owen]

Hi Kathryn,

If you ring the Land Tax Office on (02) 9685 2155 and give them your properties lot number and strata plan number if it's an apartment (see your rates notice) then they will give you your land value over the phone.

If it's above the threshold ($261,000) then you are up for land tax ($100 + 1.7% for every dollar over this value). If you are, then download the appropriate form from the website and send it in to the OSR.

You can also just fill in the form and send it in anyway and if you are up for tax they will bill you, if not you have nothing to worry about. I like to be able to plan ahead though and I have my form already filled out and ready to post in the last week of April. I hope this helps.

 

[Sim]

Well that's a little silly if you have to just know that you must submit a "land tax return" - surely when you first become liable for land tax they would send you out a notice of such ? That's how it works in SA... bill just shows up - no forms to fill out, it's all documented and explained on the bill what you owe ! Do they not do that here in NSW ?

 

[Macca]

They don't start it , you have to. If you fill in the form they will assess it and send you back a notice listing all the properties. If you owe them money you get a bill, if not, it shows no tax payable.

Each year they send you out a form asking has there been any changes in ownership. If you don't register and get caught they check when you bought each property, calculate each year's holdings then bill and fine you.

Just your usual friendly Government department

 

[rickmick]

Gee, I wonder how many thousands of people out there don't know they should be paying land tax.

This sounds a bit weird to me, I'm sure most people, just like Kathryn have never heard of land tax.

Rick

 

[Owen]

Macca's right. The current form asks whether you have lodged a land tax form in 2002. If you have then you answer a different set of questions to those if you haven't. I never thought that they would then process your return from then on as this is the first year I am liable.

My account sends me a reminder at the start of each year and we discuss what to do so it's never been an issue for me.

 

[Kathryn]

Thanks for your replies everyone. I guess I'll download the form and submit it. I don't want to get hit with penalties later. I would have thought though that the OSR would contact you once you qualify. I know ignorance is no excuse, but I'm sure they get that excuse all the time.

Cheers,
Kathryn

 

[Alan H]

Kathryn,

Yep. Self notification has been my experience too.

I simply used the Land Valuation on my Council Rate Notices as a guide but keep in mind I was told that the land valuation that OSR uses is different again...........

 

[handyandy]

Not only do you have to initiate the lodgement but they get it wrong from year to year

Whenever we add properties to the return they stuff it up. The last was where I purchased three identical townhouses, submitted this to the OSR as a variation, two of the townhouses came back with the same valuation and the third was 1/2 the value. Phoned them up to be told "they never make a mistake".

One of the returns this year is missing 3 properties, two houses that have been on the return for 3-4 years and one of the townhouses mentioned. Go figure, more work to rectify an idiotic tax.

But remember if you don't declare the property/ properties than when you go to sell you will face an enormous lax tax bill including penalties for no declaration.

Cheers