WA Budget

[BLTN]

In case you haven't noticed, land tax increases by ~100% for most people.

Anything from $420K-$1m unimproved value will be a 127% increase.

For higher unimproved values, increase is around 80%, decreasing as you get into the higher thresholds.

e.g. $2m unimproved value, land tax increases from ~$6.5K to ~$12.5K

 

[perthguy]

Anything from $420K-$1m unimproved value will be a 127% increase.

I am in this category. No objection from me. Our land tax rates are low compared to Victoria.

 

[Chomp]

https://au.news.yahoo.com/thewest/business/a/27919567/land-tax-hike-for-property-investors/

 

[D.T.]

Should use a trust, cost less than the 6k you'd save on 2mil portfolios

 

[perthguy]

Should use a trust, cost less than the 6k you'd save on 2mil portfolios

That's true. Remember though that it is $2m unimproved value. Quite a bit I would think. ~$12.5K land tax aside, I wouldn't have thought having that much land in private ownership would be very effective?

 

[Ausprop]

it's a disgrace - levy it on all property if it is such a central feature of the budget.

 

[D.T.]

it's a disgrace - levy it on all property if it is such a central feature of the budget.

Does it effect you?

 

[ipinvestor]

Currently investment property is taxed at a rate of 0.11 per cent of its value above $300,000, at 0.58 per cent above $1 million and at 1.51 per cent above $2.2 million. ( https://au.news.yahoo.com/thewest/business/a/27919567/land-tax-hike-for-property-investors/ )

Last year we paid $9009 on $2,047,000 unimproved land. We added one more prop (same state). Does it mean, we will be paying 1.51% on $2.0M+ @$250K?
Landtax will be @ $34,700

Any adivise? Thanks

 

[knightm]

Any adivise? Thanks

Generate some rent to pay the bill?

 

[INVSTOR]

Generate some rent to pay the bill?

Yeah, that's what I'm thinking too!! Granny flat??

 

[Ausprop]

Does it effect you?

yes, it's a very targeted and astronomical increase (completely off the dial in fact) regarding tax on land owners specifically. what we have is a state government financial disaster that can't be spread across the populace for fear of back lash so they gouge the easier targets.

This $99 idea on vehicles is another hair brained idea. Vehicles don't cause accidents, people do. It should be levied on your drivers licence

the only thing that makes sense is the huge garage sale of redundant assets

 

[Ausprop]

Generate some rent to pay the bill?

if that was possible or made sense it would have already been done.

So much tax and hassle with resi property... just dump it and let someone else pay to put a roof over their heads

 

[Ausprop]

Any adivise? Thanks

yes, brace yourself for the other cost increases you will cop include water and ESL