A discussion on Land Tax for property owners in NSW with small business accountant Sydney
Land Tax, as the name suggests, is a mandatory tax levied on land owners, which is applicable at the end of each calendar year. Whether or not income is derived from the land is inconsequential, as land owners are subject to tax nonetheless, as long you are not holding exempt land. Today, the small business accounting in Sydney is here to discuss what Land Tax could mean to property owners in NSW.
The different types of properties that are liable to land tax include but are not limited to vacant land, a holiday home, residential or industrial units including car spaces, land where a house or unit has been built and investment properties.
As for the tax that is payable, in 2016, if your property is valued at $482K, the minimum amount payable is $100, plus 1.6% up to the premium threshold, which is 2.947 million.
If your property value is above this premium threshold, the minimum payable is $39,450 plus 2% over the value of the premium threshold. If your property falls under the above criteria, it is eligible for land tax.
You can register by completing the online form, calling the OSR or posting the same form by mail by 31 March of the taxing year. As is with any compliance obligations with the ATO or OSR, penalties and interest applies on any late lodgements.
You will receive a yearly notice of assessment once showing the total tax payable. If you think this is excessive you can submit an objection within sixty days of receiving this assessment. We suggest if you are a land / property owner to get in touch with your small business accountant in Sydney to determine if you are eligible for land tax, and stay up to date with your obligations.