Wednesday, 21 March 2012

Land TAX NSW explained -trust -no trust How is land tax calculated?


Land TAX NSW explained -trust -no trust
How is land tax calculated?

Who needs to pay?
If you own any property that is not your principal place of residence (your home) as at midnight on 31 December, including a holiday house or unit, you may be liable to pay land tax. This includes property that does not earn any income. 

Land tax is calculated on the combined value of all the taxable land you own.


The land tax threshold for 2012 is $396 000
This means your land tax assessment is calculated on the combined value of all the taxable land you own above this threshold. The amount of tax is $100 plus 1.6 per cent
of the land value between the threshold and the premium rate threshold ($2 421 000) and 2 per cent thereafter.

Note: where land is owned in partnership, one threshold applies regardless of the number of owners. That is, where land is owned in partnership, the threshold would still be $396 000.
An individual’s interests in a partnership may also be assessable if that owner holds other land individually or with other partnerships.
If the combined value of your land is equal to or below the threshold, no land tax is payable.
Special trusts: If land is owned by a trustee of a special trust the land tax threshold does not apply and land tax will be charged at a flat rate of 1.6 per cent of the taxable value up to the premium threshold, and then 2 per cent thereafter.
Non-concessional companies: Where the concessional or joint concessional companies' land value exceeds the premium rate threshold, the land
value of each non-concessional company is assessed at 2 per cent of the taxable value.

Where the concessional or joint concessional companies land value does not exceed the premium rate threshold, but exceeds the general threshold, the land value of each non-concessional company is assessed at 1.6 per cent of the taxable value.