Land Tax Reassessment - Have not moved into first home

Viewing 7 posts - 1 through 7 (of 7 total)

KindOfNew
Participant
@kindofnew
Join Date: 2009
Post Count: 12
July 4, 2011 - 1:58 pm
Hi There,
I bought a property in late 2009. The tenant moved out 5 months later and the property was vacant for 2 months. My wife and I had the intention to move in (hence the property was empty for so long), however, we have received a good job offer and decided to stay.
Now, 1 1/2 year later, OSR has sent me a reassessment notice, requesting me to pay the difference in land tax (between first home owner and property investor) plus hefty interest charges (12%).
Does anybody know if there is a way out? I haven't got that kind of money lying around and to make matters worse, property values have decreased.
Your help / ideas are appreciated.
Regards
Kind Of New
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 4, 2011 - 11:34 pm
What State is the property in?
I doubt there is a way out as Land Tax exemption is only available for main residences. It is usually assessed on 01 Jan too.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
KindOfNew
Participant
@kindofnew
Join Date: 2009
Post Count: 12
July 5, 2011 - 4:38 am
Thanks for the quick response. The property is in Queensland. I know I can dispute the assessment but I am concerned that they will charge me more after the reassessment. Already got a 75% discount which still ends up costing aud4,000 in interest and charges. Any help is appreciated. Regards s
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 5, 2011 - 6:18 am
Sorry I am not familiar with QLD law. You would have to look at the Duties Act QLD and try looking at the rulings on the OSR site. Sounds like a generous discount.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
July 5, 2011 - 8:56 am
Is there any way that you can claim/prove that you were living at the house as your ppor?
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
July 5, 2011 - 9:02 am
I knew one guy (who was an idiot btw) who had his main residence owned by a company (hence idiot!) and he was hit with land tax (naturally). He claimed to be a primary producer because he had one bee hive and thought this could get him off. OSR sent him a long letter asking him how much honey he produced, where he sold it, etc etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email Me
Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
KindOfNew
Participant
@kindofnew
Join Date: 2009
Post Count: 12
July 5, 2011 - 12:46 pm
Scott No Mates wrote:
Is there any way that you can claim/prove that you were living at the house as your ppor?
I can't proof it. We had the house empty, move a couple of pieces of furniture in (no evidence though) and intended to connect electricity which we did not end up doing.
It is a though one. The penality tax and unpaid interst is close to $4k plus the $7k we did not pay as duty; maybe I am better off taking my losses.
I am concerned that they will come back and waive the discount, which would cost me another $4k.