Hi everyone,
I'm after some guidance or a point in the right direction around land tax for a NSW property
Situation
Property purchased in a business name July this year.
Yes I am aware if we hold if on the 31st December it is subject to land tax.
My question is if there is a contract of sale on the property (unconditional) with settlement due for completion 20/1/17
About the new owner:
- buying in their personal name
- will be their primary place of residence.
Can we get an exemption?
Thanks , I will update
Talk to the solicitor/conveyancer who is acting for you on the sale - they should know this, and should have all of the relevant information on hand.
A business can't own land, so I assume you mean it was purchased in a company's name.
There is no exemption that covers your situation.
Hopefully your solicitor/conveyancer marked on the contract that land tax is adjustable. In that case (and despite what the Purchaser may be doing with the property) land tax will still have to be paid for the whole year (assuming you are liable) but the Purchaser will reimburse you 345 out of 365 days land tax.
Have you looked at the new land value threshold for next year ($549k)? Will you be over this?
Thank you yeah it is what we worked out today. (Sorry should have also mention it is an existing property/house)
Because it is owned by a business there is no threshold unfortunately.
Thanks again for your help
Because it is owned by a business there is no threshold unfortunately.
Who told you this? I am not certain, but according to the OSR website here:
A company is assessed in the same way as a sole owner unless it is related to another company.
It then specifically talks about the general threshold applying to some types of companies.
So unless the company is related to other companies or the property is owned through a special trust, you should still be entitled to the threshold.
Land tax varies by state.
Assuming you mean NSW, take a look here:
http://www.osr.nsw.gov.au/taxes/land/factsheet/overview2016
Perhaps read through that and rephrase your question more clearly? If you are a property developer, then I don't think you will qualify for an exemption.