Australia: Property investors warned on land tax
17 February 2015
Posted by: Author: John Collett
Author: John Collett (The Sydney Morning Herald)
The boom in property investment has sparked action from the NSW State Government, which could be missing out on millions in land tax.
The government is urging property investors to register the properties they own by the end of March or risk being charged penalties or interest.
The huge growth in the number of new landlords, particularly in NSW, means many property investors may not be aware that they could be liable for land tax.
Australian Bureau of Statistics data shows the value of new NSW property investment loans was $5.5 billion for the month of November 2014, the highest-ever.
That was about half of all property investment loans nationwide in November. More investors will be liable for land tax as Sydney property prices continue to surge.
Prices in Sydney are expected to keep rising following the latest cut to interest rates earlier this month.
In ads in media outlets tomorrow, the NSW Office of State Revenue says those with properties with a total land value of more than $432,000 are required to register for land tax.
NSW properties liable for land tax include vacant land and holiday homes.
Land tax does not apply to the principal place of residence.
Land is valued by the Valuer General with the valuations supplied to the Office of State Revenue for land tax purposes.
All property owners who may be liable for land tax must register by March 31.
This article first appeared on smh.com.au.