Who pays land tax?
If you own, or jointly own, any property in NSW that is not your principal place of residence (your home) and the total taxable value of your land exceeds the land tax threshold, then you may need to pay land tax.
How is land tax calculated?
If your total land value exceeds the threshold of $549,000.00, then you will need to pay 1.6% of any amount that exceeds $549,000.00, in addition to the flat fee of $100.00.
If your land is valued at $3,357,000.00 or over, then you will need to pay 2% of any amount that exceeds $3,357,000.00, in addition to the flat fee of $45,028.00.
What do trusts have to do with it?
The land tax threshold does not apply to special trusts, which means that if you have a special trust (e.g. family or discretionary trust), then you will need to pay a flat rate of 1.6% even if the value of your land does not exceed $549,000.00.
Contact Peter McNamara today to discover the best way to structure your property holdings.