Land Tax – The Waiting Game
There are significant changes to land tax which were announced in the state budget in June and are proposed to be implemented from 30 June 2020. At this stage, we have no clarity as to if the changes are going to be passed, with both the opposition and some government members opposed to it.
The changes will impact the way land is taxed if owned in company or trust structures, as well as individuals that have part ownership interests of multiple holdings. The rates of tax will change, with a significant reduction in the top rates. The threshold for having to pay any land tax will increase for properties not owned in trusts and significantly decrease for land held in trusts (with some minor grandfathering provisions.) For some, this will mean a reduction in their land tax and for others a significant increase.
With further amendments made last week, keeping up with how this may impact taxpayers is continually changing.
If the legislation is passed, land holders will need to review their situation prior to 30 June 2020, to ensure that they are informed how the changes will impact them and have the optimal outcome for their situation.
By Sarah Lennon, PKF Manager