Andrew Shields, general manager REISA writes to members regarding their responsibilities with the land tax reform in South Australia.
With the ticking over of the new financial year, South Australia began the practical operation of their new Land Tax Reforms.
COVID-19 has thrown challenges into the lives of many, and there will be long-term economic effects that won't be disappearing any time soon.
For this reason many individuals will look to minimise any additional financial impacts that eventuate from the pandemic.
In a letter to SA property owners, REISA General Manager Andrew Shields advised those engaged in property investment that now more so than ever land tax is at the top of the list of holding costs that people would look to manage and minimise.
Andrew Shields, general manager, REISA. Photo: REISA
"Unfortunately this is not easy, as the Land Tax Reforms are a complicated package of laws which seek to significantly change the manner in which land tax is assessed on investors holding multiple properties," said Mr Shields.
"Whilst the new laws are now operating, there remains a number of considerations for owners of multiple properties in order to best manage their Land Tax."
"No doubt many of our members may have received letters from RevenueSA, prompting individuals to notify the Commissioner of State Taxation of their ownership structures.
"For those property owners who are unsure as to how to complete their RevenueSA portal information, Commercial & Legal have been offering their services to help complete the portal
requirements and provide ancillary information and advice."
For people who own properties through a trust, beneficiary nominations can be made until July 31, 2020.
Mr Shields said planning ahead includes, but is not limited to:
• Understanding who to nominate given the limitations on retracting and replacing nominated beneficiaries; and
• The limitation in the number of beneficiaries to nominate, given that providing a nomination could see an individual’s interests being aggregated with other property ownerships.
There will be certain concessions available to property owners and developers.
Concessions are intended to be administered as an Ex Gratia Scheme, although they cannot be accessed prior to 1 July 2020.
Concessions that are due to be available are:
Othe concessions available include the COVID-19 Land Tax Relief for non-residential and residential landlords in response to COVID-19.
Landlords who provide tenants, impacted by COVID-19 with rent relief, may be eligible for a 25 per cent reduction on the land tax payable on a parcel of land in the 2019-20 Land Tax year.
Third and fourth quarter Land Tax instalments can be differed and the land tax reform transitional relief will be increased from 50 per cent to 100 per cent of the land tax increase, in an eligible landowner's 2020-21 land tax assessment.
Find out more about the SA Land Tax Reforms here.
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