Warning for Property Investors Over Land Tax

The NSW State Government has sprung into action after realising they could be missing out on millions of dollars in land tax as a result of the boom in property investment.

The government is now strongly encouraging property investors to register their properties before the deadline at the end of March or risk being charged penalties or interest.

There has been a vast increase in the number of new property investors and landlords, particularly in NSW. This means that many of these people may not be aware that they may be liable to pay land tax.

The Australian Bureau of Statistics data has shown that the value of new NSW property investment loans was $5.5 billion for the month of November 2014. This is the highest this figure has ever been. In fact, this figure represented about half of all property investment loans nationwide in November.

As Sydney property prices continue to increase, more and more investors will become liable for Land Tax. Following the cut in interest rates earlier this month, it is anticipated that property prices will keep rising.

The NSW Office of State Revenue are to begin advertising that anyone with properties with a total land value of more than $432,000 is required to register for Land Tax – this includes any vacant land or holiday homes. However, Land Tax is not applicable to the investor’s main place of residence.

The value of the land is calculated by the Valuer General and the valuations are supplied to the Office of State Revenue for land tax calculation purposes.

It is essential that all property owners who may be liable for land tax registers by March 31.

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If you are thinking about investing in property or for any other matters relating to property transactions or property disputes, contact Szabo & Associates Solicitors today. At Szabo & Associates Solicitors we can advise on all aspects of property law. Call us on (02) 9281-5088 or fill in the contact form to the right of this page.