Land Tax Assessments 2020/21

 

3 March 2021

If you have not received your Land Tax assessment yet, Revenue SA are currently processing these and you should expect to receive these in the post very soon.

For the 2020/21 financial year there are some changes to the way land is grouped for assessment.

Which may result in you receiving assessments in multiple ownerships for the first time.

Due to these changes, if you hold land in a trust, due to higher trust land tax rates, you may find your Land Tax Assessments are significantly higher than the previous year. Please contact our office should you require assistance, as we may be able to assist with reducing this assessment.

Please note exempt land, such as your main residence will appear on your Land Tax Assessment, although it remains exempt and excluded for calculation purposes.


Land Held in Trust (Nominations of beneficiaries) – Must apply by 30th June 2021
For land held in trusts as at midnight, 16 October 2019, land holders have an option to nominate a beneficiary to become liable for the land tax at general land tax rates annually. Otherwise, the higher trust land tax rates apply.

This once-off opportunity to nominate a beneficiary must be made by 30th June 2021.

For more information about how to make the nomination please visit the Revenue SA website https://www.revenuesa.sa.gov.au/landtax/lt_trusts 

i2 Advisory has modelling capabilities to consider your land holding scenarios for your particular circumstances.

Transitional Land Tax Relief – Must apply by 31st March 2021
With the changes to the aggregation of land, there will be transitional relief available for taxpayers who have an increase in their Land Tax Assessment for 2020/21, 2021/22 and 2022/23.

The relief is equal to 100% of the increase above $2,500 for 2020/21.  Reducing to 30% and then 15% of the increase above $2,500 for 2021/22 and 2022/23, respectively.

Can anyone apply for Transitional Land Tax Relief?
Not everyone can apply for the land tax relief.

This relief applies to individuals with multiple joint ownerships and / or companies that will be grouped.

You will not be able to apply for the relief, if your increased assessment is a result from application of the higher trust rates that are payable for land held in trusts.

Am I Eligible?

Eligible

You will be eligible if the increase in  2020/21, 2021/22 and 2022/23 Land Tax Assessment is:

  • Above $2,500; but
  • Less than or equal to $102,500; and
  • Increased assessment due to aggregation changes;
  • Land you owned, or partly owned, as at midnight, 16 October 2019.

Not Eligible

  • the increase in your land tax assessment is above $102,500; or
  • the increase in land tax is a result of the application of the higher trust rates that are applicable to certain trusts;
  • if you have outstanding land tax obligations relating to prior years’ liabilities (note: you must have entered into a payment arrangement with Revenue SA

How to Apply?

Applications are now open. They must be completed online on the Revenue SA website link here.

Applications for the relief must be made by 31 March 2021.

If you have any queries or require assistance please do not hesitate to contact your usual i2 advisory contact via phone 8132 6400 or email admin@nulli2advisory.com.au.