Land Tax - The Good, The Bad and The Ugly - API Article

When you buy your first (or even second) investment property, land tax is likely the last thing on your mind. Even less likely if you’re buying a new family home and have decided to keep the old one and rent it out. With land tax rates skyrocketing in some states over recent years, this can be a nasty surprise.

Land tax is imposed by all state and territory governments in Australia, except for the Northern Territory. It’s based on the cumulative value of all unimproved land that you own, other than your principal place of residence, in any particular state. It’s calculated on the total land ownership of an individual or entity at 31 December each year. Each state/territory government has its own land tax rates and exceptions or surcharges so it’s important to check these and understand what your liability may be. Links to each states rates are at the bottom of this article.

Click on the link below to read more of this great article written for the Australian Property Investor Newsletter by Pat Mannix and Bec Mackie on May 21, 2015.

http://www.gatherumgoss.com/uploads/167/117/Land-Tax---The-Good-The-Bad-and-The-Ugly-20-May-2015.pdf