LAND TAX ON CANBERRA PROPERTY

All states and territories impose quarterly land tax on residential rental properties except the Northern Territory.

In the ACT, there is no land tax exempt lower threshold, meaning that you pay land tax from the first dollar of land value. There are few opportunities to minimise your exposure to this tax except at the beginning or end of a rental period – e.g. when your main residence becomes a rental property, or when your rental property becomes a main residence.

This is because land tax liability is based on the status of a property on the first day of each quarter, i.e. 1 July, 1 October, 1 Dec and 1 Mar. That means that if your property is rented until 4th July, you will be liable for land tax for the whole July-September quarter. A better plan would be to negotiate with the tenants for them to vacate prior to 30 June. Likewise, if you’re planning to rent out a property for the first time, consider delaying it until after the 1st of a quarter, so that you won’t be liable for land tax that quarter.  Each state has different rules regarding the date that land tax is levied from.

Talk to your accountant for further information.

ALSO ON THIS TOPIC

ATO Data Matching

ATO DATA MATCHING The ATO uses data matching to determine whether or not an audit is required.  Data matching compares data from different sources against lodged tax returns.  If there is a discrepancy, the ATO may escalate the tax return for further investigation....

Inheriting Property

INHERITING PROPERTY There are no death taxes in Australia. This means that if you receive a property from a deceased estate, no tax is payable on that transfer. However, tax may be payable if you sell it down the track. If the property was a main residence before...

Property Loans

PROPERTY LOANS Interest on a loan to buy or build a rental property is tax deductible. While the property is rented, or available for rent, you can also claim interest charged on loans taken out to purchase assets, for repairs and for renovations. So far, so good. If...

Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!