Whether you are a supporter of land tax or feel that the NSW government "should get its dirty hands off my property", land tax is an issue that cannot be ignored.
Many of us will be exempt from land tax under the principal place of residence exemption. However, there may be other circumstances where land tax will be payable.
It is important to register for land tax with the Office of State Revenue (see info here: OSR - Land Tax). If you fit snuggly under a warm exemption blanket, then you can declare this on the application form and on the basis that you are correct and your circumstances do not change, then the OSR won't bother you.
If you are liable for land tax on an investment property, then the OSR will send you a land tax assessment notice indicating how much land tax you are liable to pay. This will be based on the valuer-general's valuation of your property for that year.
I regular act for those in rain-drenched but ever so culturally sophisticated Victoria, who are selling property in NSW but have been unaware that land tax has been payable since their purchase. When you purchase a property, make sure that you are investigate and are aware of all the taxation and other governmental charges that are applicable to your property.
You may have enjoyed the principal place of residence exemption in the past but if you are absent from your property for more than 6 years you may lose the exemption and be liable for land tax. Similarly, if you rent out a few of your spare rooms, then you may be hit with a land tax liability proportionate to the percentage of the property the rooms make up. These are just a few examples of situations where land tax may be applicable.
Perhaps our new Premier will scrap land tax. Perhaps not. But in the meantime, get in touch with the OSR and ensure you know where you stand when it comes to land tax.
Jonathan Marquet
Emil Ford & Co.
No comments:
Post a Comment