Land Tax for Owner Occupiers

jwsc on 24/05/2022 - 17:23

Hi,

Does anyone in Victoria have experience in this?
I just brought a property as an owner occupier, the vendor was renting it out previously and had to pay land tax and upon receiving the final invoice from my conveyancer, part of the costs incurred is 'my share' of the land tax from the settlement date until the end of calendar year.

The conveyancer said this was an unavoidable cost and the SRO website says this:
"We do not adjust land tax for property bought, sold or settled during an assessment year. The owner of a property as at 31 December is responsible for paying the land tax assessment for the following year. Your solicitor or conveyancer can advise you about any land tax adjustments that need to be made on settlement."

So I'm not sure if that implies the the vender should be paying for the full year or not…
Has anyone been in a similar situation? Do I just have to suck it up and pay or can I dispute this cost?

Thanks in advance.

Home & Garden

Comments

  • PissLUR on 24/05/2022 - 17:30
    +1

    did you not read the contract? its all in there

  • Ocker on 24/05/2022 - 18:01
    +2

    Happened to a relative (also in Vic).
    They bought a unit in June, settled in Sept.
    Vendor paid Land Tax for the full calendar year and we got charged a portion at settlement - even though we are not liable of Land Tax as it was a PPOR

  • dasher86 on 24/05/2022 - 18:14
    +3

    Your solicitor or conveyancer can advise you about any land tax adjustments that need to be made on settlement.

    Your conveyancer just did.

  • SharedSugar on 24/05/2022 - 18:27

    It doesn't really have much to do with the SRO. You agreed to pay a portion of the previous owners land tax which is a common arrangement.

  • Gratt on 24/05/2022 - 18:47
    +1

    When GST was sold to is as a good thing it was implied that it would replace land tax. What an absolute ripoff. The state government should pro-rata the tax back. How did our governments get so out of step with the wishes of their electors? This maybe how it is, but is it fair?

  • jwsc on 24/05/2022 - 19:33

    damn, so, suck it up it is.
    lol at least now i know to settle in december next time

    • djkelly69 on 24/05/2022 - 20:30
      +1

      Or ask conveyancer to have the clause changed (before exchange) so no adjustment is required.

  • millhouse on 24/05/2022 - 20:44

    Vendor owned it on 31 December last year.

    You bought it after that.

    You're an owner occupier, and assuming like in WA, land tax exemptions exist for owner occupiers, you don't receive land tax.

    Does your contract cover land tax in it? If not, then no, don't pay. If so, you signed it, and that's on you.

  • Iwantthebestprice on 24/05/2022 - 21:25

    So basically the best time to buy/settle a property in VIC to avoid paying some land tax is December?

  • AB100 on 25/05/2022 - 05:20
    +1

    A friend just purchased a property which was previously rented out in Vic. He added a clause to the purchase contract stating that the seller couldn't pro rata the land tax component, which the seller agreed to.

  • EightImmortals on 25/05/2022 - 06:36
    +1

    How much was it?

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