All Topics / Help Needed! / Land tax help

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of JohnJohn
    Participant
    @jcar11457
    Join Date: 2010
    Post Count: 23
    January 18, 2011 - 8:51 pm

    Morning all

    I have rented my newly bought property in Dec 2010 and noticed the ACT revenue office
    Today I have received the quarterly rates notice for the property and not the land tax.

    One may be stupid question, do I pay rates and land tax if the property is rented? or land tax only

    if I pay both, when do I receive my land tax notice?

    I am in ACT by the way

    Thanks

    Profile photo of xdrewxdrew
    Participant
    @xdrew
    Join Date: 2010
    Post Count: 479
    January 18, 2011 - 9:29 pm

    Land tax remains an accumulative tax based on how many properties you own and the assessed land value of the whole portfolio. However, it is assessed on a state level and not a federal level, meaning you can own properties in different states and not have the whole value affect your land tax bill too much.

    If your land tax assessment reaches a stage where its worthwhile .. they will send you a bill for land tax. Otherwise they just dont waste the paper sending you a 'you owe us nothing' for land tax.

    On a rented property, you will pay rates, water service bills (not usage), any community bills. And you should have a house and contents insurance policy for internal damages. 

    Profile photo of JohnJohn
    Participant
    @jcar11457
    Join Date: 2010
    Post Count: 23
    January 18, 2011 - 9:35 pm

    Thanks for the reply, still not quite sure about it.

    I thought you suppose to notice your state revenue office if you have rented your property then they will send you a land tax notice depend on the days of renting?

    I have only got two houses, one under my name and one under me and wife's name, we have rented the joint owned property.

    Cheers

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    January 18, 2011 - 10:04 pm

    If you have a rental property, you are obliged to notify the Office of State Revenue in your state/territory, penalties may apply if you do not notify the OSR. A threshold does apply as pointed out by xdrew – it is available on their website and it is likely that you will fall below the threshold.

    Land Tax is assessed as at midnight 31/12 each year – if the property was a rental at this date, then you may be liable for land tax for the entire year (going forward).

    Your own home is generally exempt from land tax but theland value of the IP will not.

    Profile photo of JohnJohn
    Participant
    @jcar11457
    Join Date: 2010
    Post Count: 23
    January 18, 2011 - 11:23 pm

    Thank you, I have noticed the revenue office about this.

    so I pay both rates and land tax on the IP and rates only for my home?

    I thought I only pay land tax not the rates on IP, or maybe I was wrong?

    Cheers

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    January 19, 2011 - 1:56 am

    Hi jcar

    Yep, you have to pay land tax and rates on your IP. It's a special little ACT thing :)

    On the flipside, you can claim your stamp duty within the first year of purchasing the IP. So that property you purchased in December 2010, you can claim all the stamp duty in your 2010/11 tax return (again, this is special to the ACT).

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of JohnJohn
    Participant
    @jcar11457
    Join Date: 2010
    Post Count: 23
    January 19, 2011 - 3:19 am

    Thanks for the response! Cheers

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