Explaining The Land Tax In 2024

1. Explaining The Land Tax In 2024 With rising property values, managing land tax is essential for property owners in Australia. Nfinity Financials is here to help you navigate the complexities of land tax, ensuring you’re well-prepared to manage your property investments. Get Financial advice at Nfinity financials. What is Land Tax? Land tax is a recurring charge on the total value of all non-primary residence properties you own. It is collected either annually or weekly in places like the Australian Capital Territory. Many investors buy properties with lower unimproved values to reduce their tax bills. Who Needs to Pay Land Tax? You may need to pay land tax if you own: ● ● ● ● ● ● Vacant or rural land Residential properties such as homes, apartments, or flats Holiday homes or investment properties Company title units Commercial or mixed-use properties, including those with parking spaces Land leased from government entities Foreign owners and those whose property values exceed regional thresholds must also pay this tax, regardless of the income the property generates. Exemptions from Land Tax You are typically exempt from land tax on: ● ● Your primary residence, including farms Properties with a taxable value below the regional threshold How is Land Tax Calculated? Land tax is calculated based on the ‘unimproved value’ of your properties using a progressive scale. Once your property’s value exceeds the exemption threshold, you’ll be charged a base amount plus additional fees for each dollar over the limit. How to Secure an Exemption from Land Tax

2. Exemptions may apply if: ● ● ● ● ● You reside in your primary home as of June 30th You are in transition between homes You are constructing or moving into a new residence You manage a deceased estate You have entered a full-time care facility Partial exemptions are also available for properties used for both exempt and non-exempt purposes, like residential and commercial spaces. Land Ownership and Tax Implications Land tax varies depending on the type of ownership: ● ● ● Individual or Joint Ownership: Taxed based on your ownership percentage. Companies: Treated similarly to individuals in terms of tax assessment. Trusts: All trusts are assessed, but eligibility for tax thresholds varies by the type of trust. Land Tax Thresholds You are subject to land tax if your property’s taxable value is over $600,000 as of June 30th. Valuations are carried out annually on July 1st, considering the average of the current and previous two years’ values. Understanding Land Tax vs. Property Tax It’s important to know the difference between land tax and property tax: ● ● Land Tax: Charged on the unimproved value of land to encourage efficient use. Property Tax: Based on the overall value of the property, including improvements, and helps fund local services and infrastructure. FAQs ● ● ● ● Joint Ownership: You are taxed based on your ownership percentage. Trusts: Different rules apply to trusts, with some qualifying for thresholds and others not. Building on Land: You remain liable for tax unless you qualify for an exemption. Exemptions: You can claim exemptions under various conditions, including for primary residences and charitable purposes. For more detailed advice and strategies tailored to your specific needs, contact Nfinity Financials at 1300 GET LOAN. We’re dedicated to providing you with the latest updates and expert guidance for managing your property taxes effectively.