Tax Obligations when Buying Property.

What a minefield land tax is, heres a few examples that may apply to you.

Example 1
A client left Australia to work and leased their principal place of residence with a market value of around $2.5 million and after three years received a Land tax bill for the past three years! Ouch, that hurt!

Example 2
We recently purchased a property for a client. The property is currently an investment property. As part of our due diligence and the skill of a very good property conveyancer, we saved our client around $3,000 in land tax.

Land tax covers a calendar year and if you buy a property class that has unpaid land tax after you settle you may have a Land Tax liability!

Example 3
If you are a seller and buyer at the same time, it’s also advantageous to keep the two settlement dates as close as possible because you MAY receive a Land Tax assessment for the time you own two properties!

The State Revenue Office has a Land Tax Calculator. An example using the calculator of $1.5 million Site Value shows nearly $7,000 Land Tax.

For any questions of a general property nature call ela Property Advocates Guy Angwin 0412 22 998 or Geoff Briscoe 0419 740 351. Legal advice from a specialist property conveyancer/solicitor is essential!