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Land Tax |
Most of us are aware that the State Revenue Legislation Amendment Act 2004 passed by the NSW Government in April this year, introduced significant changes to state taxes, including the abolition of the premium property tax. However, the Act introduced changes to Land Tax assessment from the 2005 land tax year (which commences on 1 January 2005) with the removal of the Land Tax threshold and the introduction of a progressive land tax scale. |
The removal of the Land Tax threshold will result in a substantial increase in the number of land owners that would otherwise be liable for Land Tax. The Office of State Revenue (OSR) obtains data from Notices of Sale lodged at the Land Titles Office to establish land ownership. Accordingly, this can result in some purchasers receiving notices of land tax assessment from the OSR in relation to exempt property, ie their principal place of residence. This would occur if the property was not specified as the Purchasers' address at the time of lodgement of the Notice of Sale. It may therefore be necessary, if clients have received letters from the OSR suggesting that Land Tax is payable on the property (when the property is in fact exempt), to correspond with the OSR, noting that the property is exempt so as to prevent the OSR proceeding to issue a Land Tax Assessment. |
Assessments will commence to be issued by the OSR from 17 January 2005 and will continue to the end of March 2005. |
If assistance is required in relation to Land Tax Assessment or other correspondence concerning Land Tax received from the OSR, please contact Mark Nicholson of our office. |
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