Land Tax is payable where you own land over a certain value and is determined based on assets held at midnight on 30 June each year. The value is based on the unimproved land value (which is also used to calculate rates). If you own more than one property the values are aggregated. There are exceptions, including for the primary residence. So what do you need to know?
If you own property over the threshold and aren’t paying land tax, it may be that the OSR doesn’t have all the information they need to correctly assess you. While it might seem like a great outcome, they tend to eventually find the information and a no-one wants 10 years’ worth of assessments to arrive at once. You can check the limits and exceptions on the OSR website.
If you are paying land tax, and are looking to purchase more property make sure you call us before you sign the contract. One of the considerations when structuring for a new property purchase is land tax, and there are often solutions that can reduce land tax while also offering asset protection, better estate planning outcomes and lower income tax at the same time!
Give your accountant a call if you have any questions about your land tax issues.