Reminder: NSW Property investors warned on land tax

From SMH website:

The boom in property investment has sparked action from the NSW State Government, which could be missing out on millions in land tax.

The government is urging property investors to register the properties they own by the end of March or risk being charged penalties or interest.
The huge growth in the number of new landlords, particularly in NSW, means many property investors may not be aware that they could be liable for land tax.

Australian Bureau of Statistics data shows the value of new NSW property investment loans was $5.5 billion for the month of November 2014, the highest-ever.

That was about half of all property investment loans nationwide in November. More investors will be liable for land tax as Sydney property prices continue to surge.

In ads in media outlets tomorrow, the NSW Office of State Revenue says those with properties with a total land value of more than $432,000 are required to register for land tax.

All property owners who may be liable for land tax must register by March 31.
More on land tax can be found at www.osr.nsw.gov.au.
 
Assuming you used a competent conveyancer, how would you check if your property has been registered for land tax? Also, does this apply to apartments or houses only?
 
The owner has to register for land tax - it is not up to your conveyancer or solicitor as they may not be aware of your land holdings

Land tax attaches to the land component of property - both houses and units. You will get more bang for your buck with units ;)
 
Many moons ago, I heard about a system which collated names on titles and residential addresses of owners to try to determine if people were liable for land tax. They duly sent out letters to people they found fitting the criteria. This resulted in a big noise raised in the state parliament.

The premier of the state, and his son with the same given name, lived at the same address.
 
so what happens if you own IPs but for many years did not register and pay land tax?

what is the implication?

They will find out when you try to sell. You won't be able to settle until you pay it and you may not be able to claim a deduction for assessments related to previous years. There could even be fines and interest.
 
I called up OSR for a new online account about 4 weeks ago to register for land tax.

Then I received my land tax assessment 2 weeks ago. Nothing to pay.

I think property investors should be sophisticated enough to call up OSR to register for land tax themselves. Otherwise they should not be investing.
 
Is the following scenario correct when considering land tax in NSW?

Say for husband/wife, the land values and names on titles are:

IP1 - husband only, land 10k
IP2 - husband and wife, land 20k
IP3 - husband and wife, land 25k

Is the value for land holdings = 55k for the husband and 45k for the wife?

i.e. the land cannot be apportioned/split when both names are on the title.

Thanks,
 
Is the following scenario correct when considering land tax in NSW?

Say for husband/wife, the land values and names on titles are:

IP1 - husband only, land 10k
IP2 - husband and wife, land 20k
IP3 - husband and wife, land 25k

Is the value for land holdings = 55k for the husband and 45k for the wife?

i.e. the land cannot be apportioned/split when both names are on the title.

Thanks,

No it is not.
 
Thanks Terry, hopefully this is right:

As husband and wife we are joint tenants,
Husband land holdings = $32.5k
Wife land holdings = $22.5k
But.... As JT we are assessed under the one threshold and we split the liability 50:50?
 
Close.
You have 3 entities.
1- husband and wife = $55
2- husband= $32.50 (half of joint properties + single owned property)
3- wife = $22.50 (half of joint properties)

If you pay in both single and joint entities you get a rebate from your single owned one.
So make sure you don't go over the threshold in properties you hold together. Ie entity 1. Buy some in single names to avoid extra tax. We made that mistake. Sold 1. Will sell another and buy in single name.

Its a RELLL ridiculous way they calculate it. 2 people can have the same amount of property in personsl name and pay totally different land tax.

The first year I was eligible to pay land tax I just got a bill. Never notified anyone.
 
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