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Land and Investment Property Tax

Land and property tax is an annual state government tax that needs to be paid by the owner of the property or investment property based on the land value of their combined investment properties. Land tax applies in all states and territories except the Northern Territory.

Each state and territory is responsible for administering it's own tax laws and there are variations so you should visit your state or territory’s website to obtain the rules applicable in your state.

How is land tax applied?

Land tax can be included as an expense for your property investment or included as part of your cost based for capital gains tax - please speak to your accountant to advise you on the best way to handle land tax on your tax return for your personal situation.

Land tax in all states is applied to the unimproved land value of all investment property you own in the state (excluding exempt land) as at a certain date. For example, in NSW this date is midnight on 31 December of the year preceding the year of assessment.

In most states the house you live in or principal place of residence is exempt from land tax. However, note that in some states like NSW, if you rent out your principal place of residence for 6 months or more of the year, this property is then also included for land tax purposes.

For more information on land tax in other states including the tax free thresholds and assessment dates, please visit the relevant State Treasury website:

NSW - www.osr.nsw.gov.au
QLD -  www.osr.qld.gov.au
VIC -    www.sro.vic.gov.au
WA -    www.dtf.wa.gov.au
SA -     www.revenuesa.sa.gov.au
ACT -   www.revenue.act.gov.au
TAS -   www.treasury.tas.gov.au

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