By now, most entities that own property will have received their 2019 State Revenue Office (SRO) issued Land Tax Assessment Notices.
For many there has been a significant increase on their previous notices. This has raised some questions from our clients so we have put together a summary of the tax, the issues for 2019 and points to consider if you want to challenge the notice.
By now, most entities that own property will have received their 2019
State Revenue Office (SRO) issued Land Tax Assessment Notices.
For many there has been a significant increase on their previous notices. This has raised some questions from our clients so we have put together a summary of the tax, the issues for 2019 and points to consider if you want to challenge the notice.
Land Tax Basics:
• Land Tax is a tax that applies to property with a land value in excess of
$250,000 as at midnight 31 December 2018.
• Increases in Land Tax are a direct result of assessed increases in land values based on sales data and a function of where the values are in terms of the SRO levy scale.
• The Land Tax calculation scale hasn’t changed since 2009 but applies more land tax per dollar of value as you step up the scale. For example: a property at $599,999 = Land Tax of $1,475 while a property at $600,000 = Land Tax of $3,975.
https://www.sro.vic.gov.au/node/1486
Payment Methods:
• The SRO has also changed the payment method i.e. if you are paying the whole amount the date has been brought forward to 21 June 2019.
• If you are paying by instalments, then the dates have been brought forward by two weeks but more significantly, you will need to register with SRO to arrange auto deductions from your credit card or nominated account.
Land Tax Objection Process:
• Objections must be lodged within 60 days of the issue date of the notice.
• Below is a link to the site explaining the only grounds for objections
(ref Section 2 – https://www.sro.vic.gov.au/node/1512)
“At Crabtrees, we are advising clients with significant increases to seek initial reviews via qualified valuers. The cost varies but given the quantum of some of the increases, this can be a significant overall saving if it assists clients through the objection process to a positive reduction.” commented Daryl Collins, Head of Property Management.
“The increases experienced by Landlords, and the potential flow-on effects to tenants, are a challenge in the current market. We are conscious about these effects and will do our upmost to advise our clients the best way forward.”
Contact our team of Property Management experts for more commercial real estate advice.
https://www.crabtrees.com.au/property-management/property-management-team/