Land tax can be complex. You want to ensure that you are only paying the amount of land tax you are legally required to pay.
Land tax assessments are not always correct. In many cases you can legally reduce your land tax by providing the Victorian State Revenue Office with the appropriate information by referring to specific legislative provisions and making appropriate submissions in support.
Primary production is defined in section 64 of the Land Tax Act 2005 (Vic) and has 5 defined categories.
The primary production exemptions found in sections 65, 66 and 67 have differing legislative requirements and apply based on the specific location of land in Victoria.
The charities, sporting clubs and Not-for-Profits land tax exemptions/concessions are aimed at providing concessionary land tax treatments to land owned by relevant entities.
The exemptions/concessions are premised on ownership but also on the particular use of the land, which in general are required to accord with the objects/purposes of such entities.
An absentee owner can be an absentee person, a corporation from outside Victoria, or a trustee of a trust where the beneficiaries are absentee owners.
The AOS is calculated based on the combined value of all the land in Victoria owned by absentee owners.
Vacant Residential Land Tax (VRLT) applies to land located in inner and middle Melbourne suburbs.
VRLT is separate to land tax and AOS and is assessed each calendar year.
In broad terms, VRLT applies if land is vacant for more than 6 months in each calendar year.
The Principal Place of Residence (PPR) exemption applies to land that is used and occupied as a landowner’s home.
Importantly, unlike the rules for income tax, the land tax PPR exemption applies based on physical use and occupation. That is, the exemption does not apply based on “nomination” but based on the landowner physically using and occupying a property as their PPR.
The main PPR exemption is found in section 54 of the Act, however, there are various other extensions to the exemption applying to various factual scenarios that arise in the ordinary context of using and occupying a property as your PPR.
The land tax trust surcharge provisions apply to land held in trust. In broad terms, land held by trusts are assessed at the trust surcharge rate, which is higher than the general rate of land tax.
There are special land tax rules that apply to such trust landholdings, including trustee notification requirements, nomination of beneficiaries and nomination of PPR beneficiaries.
Land tax is assessed based on the site value of land.
Site value of land is the unimproved value of land, which means it excludes capital improvements such as any building or dwelling on the land.
Our Victorian Land tax lawyers have a deep understanding and experience in handling disputes and advising clients on their land tax assessment or disputes. Land tax legislation is state specific and we can advise and represent clients Australia wide.
We provide clear advice both in terms of front end advice about the tax treatment of transactions and in relation to tax disputes. Getting advice early will ensure that you are well informed and understand the legal issues regarding land tax and the assessment and enforcement process.
If you require land tax advice speak to our tax lawyers on 1300 907 335, or fill out our online contact form on this page.
You want to know that you are getting advice and real solutions. You not only want a lawyer who has strong experience and knowledge in legal matters, but a lawyer who can also navigate you through the commercial realities.
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