TipsForReducing LandTax
Understandinghowlandtaxiscalculatedandhaving strategiestominimiseitsimpactisimportantfor propertyinvestorsWithvaryingrulesandthresholds acrossAustraliaknowingyourliabilitiesiskeywhenit comestoprotectingyourreturns
LJHookerHeadofResearch,MathewTiller,said changestolegislationinVictorialastyearhighlighted theimportanceofinvestorsspreadingtheirportfolio acrossdifferentStatestominimisetheimpactofland taxhikes.
“Theincreasedthresholdresultedinsomeinvestors sellingasitwasanunexpectedextracosttheyhadn’t factoredin,butwearenowseeingduetoaffordability investorsstartingtoenterthemarketandadjusttheir strategiestoincludethisexpense,”hesaid Stayinginformedonanylegislativechangesis importantwhenitcomestopropertyinvestingLet’s exploresomeotheroptions:
1.Buyingapartments
Apartmentsgenerallyhavealowerlandcomponent thanfreestandinghouses.Insomedevelopments, theymaypayverylittlelandtaxdependingonhowit hasbeencalculatedThismeansyoumaybeableto ownmultipleapartmentsbeforereachingthe specifiedthreshold.
2.Useaseparateentitylikeafixedtrustfor propertypurchases
Landtaxisoftenassessedonthetotalvalueofland heldbyanindividualorentityByplacinginvestment propertiesinafixedtrust,theholdingsmaybesplit amongthebeneficiariesItisimportanttoseek independenttaxadviceincludingtherulesonhow entitiesaretreatedineachStateorTerritory
3.Considerthetimingofsalesand purchaseoflandandthedateof assessment
Ifyouaresellingaproperty,ensurethatyousettle beforetheLandTaxassessmentanniversaryIfyou aresellingproperty,justbemindfulthatyoumaystill
Needextraspace?
Asalandlord,youcaneasilypreparefornewtenantsor manageexcessitemswithTAXIBOX Throughour partnerprogram,you’llhaveaccesstoasimple,stressfreestorageandmovingsolutiondelivereddirectlyto yourproperty Whetheryou’restoringfurniture, declutteringforrenovations,orin-betweentenants, TAXIBOXremovesthehassle noremovalists,trucks, ortripstostoragefacilitiesrequired
beobligedtopay theLandTax forthefollowing year, if youhavenotsettledbeforethisdate Somestates may offeranexemptioninthisinstance
4.Acquirepropertiesinseveralstates
Ifallpropertieswereownedinonestate,let’ssay NSW,youwouldnormallyexceedtheLandTax threshold.If,however,youspreadyourinvestment propertiesoverseveralstates,thentherewouldbe lessLandTaxtopayAlwaysseekindependenttax advicewhensettingupapropertyportfolio
RememberthatinmostStates,landtaxrequiresselfregistration,whichisessentialtobeawareofasmany peopleforgetandthenfindtheyarebackdatedwith debtSo,evenifyouhavenotreceivedanoticeof assessment,makeenquiriesabouthowmuchyou owe
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