Sam Tamblyn of Urban Property Australia says changes to the Victorian land tax valuation process may shock property owners.
It is that time of year again as the Victorian State Revenue Office issues land tax assessments for the 2020 land tax year and Urban Property Australia Founder, Sam Tamblyn, said there will be some suprises.
"With a notable softening of the Victorian property market, many expected that this year’s assessments would show little, if any, increase in the site value of land (which is the basis for assessments)," said Mr Tamblyn.
"However, we are seeing quite the opposite with many taxpayers being shocked at significant increases in Victorian land tax assessments."
For the uninitiated, you pay land tax if the total taxable value of all the Victorian land you own, individually or jointly, as at 31 December, is equal to or exceeds $250,000 ($25,000 for trusts).
Exempt land is not included in the total taxable value of land you own.
The rate of tax you pay depends on the total taxable value of all your taxable land.
Exemptions
Why has my land tax liability increased this year?
The taxable (site) value of land can increase as a result of the acquisition of additional property, the removal of an exemption that applied to the land or the value of the land increasing.
In 2017 the Andrews Labor Government announced “fairer and more consistent” valuations would, from 2019, be conducted annually by the Valuer-General instead of by local councils every second year.
The identified value of your land as at 1 January 2019 is reflected in your 2020 land tax assessment.
Can I object to my land tax assessment?
You can object to your land tax assessments for a number of reasons. These include:
You have 60 days from receiving your land tax assessments to lodge an objection.
If you’re outside of the 60-day time-frame, you can make an application for an out of time objection (although the SRO is not bound to accept it).
Should I object to the land site values?
"If you would like to object to the land site values contained in your 2020 land tax assessments you will need to consider whether the values identified are reasonable," said Mr Tamblyn.
Some initial factors to consider may include:
"At UPA, we can check your property’s land value, to ensure you’re paying the correct amount of land tax," said Mr Tamblyn.
"Our professional team will review your assessments and highlight any errors in valuations.
"Remember, if you pay too much, that money is unrecoverable, so it makes sense to contact us as soon as you receive your assessment."
Generally people affected by escalating land tax bills have multiple assets and are generally quite well off, Mr Tamblyn told WILLIAMS MEDIA.
"Land tax is becoming burdensome for some people," said Mr Tamblyn.
"In some instances land owners are being inadvertently forced off the land due to the escalating costs of land tax."
For more information on land tax you can visit the VSRO
For help understanding your land tax bill you can visit UPA
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