Question about Land Tax and Owner Occupied

lilyesp on 08/12/2023 - 14:59
Last edited 08/12/2023 - 22:23 by 1 other user

Hi all, have two questions about land tax in Victoria would be great if someone can give some answers.

If I buy a previously tenanted house and will settle in February- I know that land tax is calculated Dec every year 31st- so if I move and it becomes an owner occupied property in Feb- does that mean I no longer have to pay land tax on it from February - or I can get an exemption?

More complicated question- Can I still get an exemption if 1st home is in NSW - my elderly parents are living there- small place but rent free but due to CGT benefit rather use that as my owner occupied for tax purposes- but this 2nd home still can be owner occupied because I will formally live there (I thought you can only have one household as owner occupied- for CGT purposes, but for land tax there are considered both non investment properties?)

Thanks

• 

  FoxJump on 08/12/2023 - 15:14

  +3

  Your conveyancers will perform a land-tax adjustment during settlement.

• 

  FoxJump on 08/12/2023 - 15:16

  So
  Home 2: is your PPOR
  Home 1 is not your PPOR

  Land tax is payable on all your land-holdings excluding your PPOR, so .. Home2.
  [land tax , at least in nsw, is a pita to calculate esp if home1 has 2 owners on the title, vs home 2 having 1 owner]

• 

  FoxJump on 08/12/2023 - 15:17

  I think PPOR for CGT is and for Land Tax are separate matters. Idk though.

• 

  Dollar General on 08/12/2023 - 16:58

  I think it depends is NSW SRO share land tax data with Vic.

• 

  freefall101 on 08/12/2023 - 18:58

  -1

  It always blows my mind that people think "I have a question that, if I get it wrong, it could cost me thousands of dollars. I know, I'll ask ozbargain!"

  Regardless of what you're told here, you probably should get professional advice on what to do.

  • 

    AngoraFish on 08/12/2023 - 19:11

    +3

    There are millions of crap professionals giving bad advice due to either incompetence or self interest.

    It never hurts to get a second opinion from people who have no conflict of interest - it's just an extra data point to check against, you don't have to listen to it.

    Also, people like offering their opinions, asking costs nobody anything at all.

    • 

      lilyesp on 08/12/2023 - 22:09

      +1

      thanks- agreed i asked my solicitor and he said i had to pay the whole next year investment land tax even though i'll move into it in march….so they didnt mention reclaiming or adjustment etc….so sometimes good to just ask a question on a forum-

      • 

        JimB on 08/12/2023 - 23:44

        I believe this is the case, however, this should have been noted in the section 32.

  • 

    lilyesp on 08/12/2023 - 22:09

    +1

    -__-
    -that's why there's a finance section on ozbargain…if not why are you in this area.