Effects Of Land Tax On Investments
Land that is deemed taxable is:
* Vacant land
* Land that is built on
* Lots in building unit plans
* Lots in group title plans
* Lots in a time share scheme
* Lots owned by a home unit company
How is land tax assessed?
The unimproved value of land is assessed quarterly on 1 July, 1 October, 1 January and 1 April. These dates are what are called the ‘liability dates’. Land tax is assessed for a whole quarter and that is a set figure with no pro-rata calculations.
Tax assessments for 2009-2010 are made quarterly on the Average Unimproved Value (AUV) over the years 2007, 2008 and 2009.
Can assessment be changed?
There are two times when the assessments could be changed:
1. A residential property has not been full let for the year. Note that a property must be vacant for a ‘full quarter’ before any adjustment will be made. It that is so the owner should notify the commissioner for ACT Revenue in writing that the property has not been rented for that quarter and request an adjustment.
2. If an owner of a property is clearly not happy with the new property value that has been assessed they may lodge an objection to the current rates assessment, which if changed will affect the tax assessment value as well. It is not the tax assessment that an objection is to be placed against, but the value of the land on which the tax is calculated.
In January keep a look out as we talk about the land tax in each state of Australia.
Filed Under: Tax Tips
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