We will go through exemptions later in this piece. Our primary focus is on NSW in this article, however we cover the thresholds and rates in each state as the differences can be quite significant. In summary you will generally not be required to pay land tax if the property is:. This exemption from land tax can apply where one of the owners uses and occupies the land as their principal place of residence. The exemption only applies to actual people i. If the main use of the land is for primary production then this exemption may apply, whether or not it is you that is undertaking the primary production activity.
Aside from the above exemptions, if you own or jointly own property that has a total taxable value above the land tax threshold you may have to pay land tax. This includes:. The subject of Land Tax is complicated when you bring in who owns the land and can remove the exemption from the property. Ownership variations include if it is owned by both an individual and a company, whether you own more than one property and the list goes on. Separate assessment notices will be sent for any jointly owned land.
A company is assessed in the same way as an individual unless it is related to another company. In the case of trust ownership it helps to provide a definition. So a trust is an arrangement where a trustee manages or holds a property for the benefit of one or more individuals or organisations known as a beneficiary.
Trusts for land tax purposes can be divided into six categories, each with various taxing implications:. You may be a foreign person if you are not an Australian citizen. A foreign person can be:.
You are required to pay the surcharge on the taxable value of all residential land that you own as at 31 December each year. From 1 July certain visa holders are exempt from surcharge land tax on their principal place of residence if they occupy it for consecutive days in the current land tax year.
If you lease property from either the Crown i. The most notable exception to this rule applies where the term of the lease is less than 12 months, including any period under an option.
There are other exceptions for grandfathered leases and public authorities. As with property you own, the land values for land you lease are determined by the Valuer General as at 1 July in the year preceding each tax year. Where there are multiple lessees occupying a property the land value of the area you lease may be apportioned to you. Foreign persons who own residential land in NSW must pay a 0. For an individual, a foreign person is defined as someone who is not an Australian citizen or an ordinary resident.
A potential trap applies to trusts that own residential land in NSW as the rules also deem the trustee of a trust to be a foreign person if substantial interests are held by a beneficiary who is an individual and is not ordinarily a resident of Australia. For a discretionary trust, every beneficiary is deemed to have a substantial interest and therefore any trust with a foreign resident as a potential beneficiary whether or not they have received distributions will potentially be liable for surcharge land tax.
Therefore it is crucial for all trustees owning land in NSW to review their discretionary trust deeds and consider if any foreign residents fall within the class of beneficiaries. The differences in land tax can be significant across States, with some having a number of threshold tiers. In preparation for the new Land Tax year in NSW, below we summarise the starting thresholds for each state, the assessment dates and provide links to the relevant websites so you can gather more information on the locations relevant to you.
We tend to notice this in the preparation of tax returns. You can enter lots by using up to 50 land description input fields, provided the vendor s and purchaser s are the same for each instance. The area you enter may help clarify the parcel to search. Specifically, you can input measurements in either square metres or hectares, up to four decimal places. To enter John and Jill Smith as a single vendor is incorrect.
If the vendor details on the Office of State Revenue database are incorrect, please check your records to verify your data. If the company name of the vendor or purchaser exceeds 40 characters, it can span the three name fields available.
Keep words whole when spanning the fields. Mostly, certificates will return an instant result. In some cases, orders queue for processing, and the result will be available from the CITEC Confirm inbox within 15 minutes. Please contact the Confirm Service Centre on in this case.
The Office of State Revenue validates information before issuing clearance certificates, liability advices and garnishee notices. This is to ensure all information is consistent with their database. These orders will normally be completed within 10 days from the date of the request. They cannot fax certificates. The status will continue to display the original PDF notice of manual processing even after the certificate has been issued.
You may receive multiple certificates per application. How valuations affect land tax Find out who issues land valuations and why they are used for land tax. Land tax assessments Land tax assessment notices Update your land tax details Land tax reassessments, objections and appeals.
Paying land tax Extended payment option Payment options Land tax clearance searches How to set up direct payment. Deceased estates and land tax Find out who is liable for land tax on deceased estates.
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