Any land tax for "unoccupied" PPOR?
- Thread starter kennyboi
- Start date
wylie: Hes trying to say this:
kennyboi and his family live in a house, their PPOR. What he wants to do is 'move' (as in not actually move house, but redirect mail etc) to his parents house so hes in a catchment area for a school. So as he has 'moved' (remember he hasn't actually moved, but in theory he has), he wants to claim that his 'unoccupied' (remember it is being made to look unoccupied) property is still his PPOR, thus avoiding Land Tax.
My answer is......if it sounds fraudulent, it probably is.
pinkboy
Couple points.
Land Tax is calculated as of 31 Dec each year for NSW.
(For example, if Person A has an IP which subject to land tax, if they offload (settle) prior to 31 Dec, they won't be subject to land tax on that property. It is not pro-rata).
My understanding (and I could be wrong), you are allowed to nominate a property as a PPR while you live elsewhere and the PPR exemption continues. You are only allowed to have ONE PPR nominated.
Land Tax is calculated as of 31 Dec each year for NSW.
(For example, if Person A has an IP which subject to land tax, if they offload (settle) prior to 31 Dec, they won't be subject to land tax on that property. It is not pro-rata).
My understanding (and I could be wrong), you are allowed to nominate a property as a PPR while you live elsewhere and the PPR exemption continues. You are only allowed to have ONE PPR nominated.
It depends, is the correct answer.
If the land is classified as exempt then it is not subject to tax. There is not an actual "PPOR" test as such. It is one of the exemptions. Clause 2. However if you don't PRINCIPALLY RESIDE for the nominated period of six months you may need to satisfy the Commissioners Rulings contained in Schedule 1 of the Act. There are 16 exemptions / concessions but each must be carefully considered and may require a application to be valid..
http://www.osr.nsw.gov.au/info/legislation/rulings/land/lt082v2
If the land is classified as exempt then it is not subject to tax. There is not an actual "PPOR" test as such. It is one of the exemptions. Clause 2. However if you don't PRINCIPALLY RESIDE for the nominated period of six months you may need to satisfy the Commissioners Rulings contained in Schedule 1 of the Act. There are 16 exemptions / concessions but each must be carefully considered and may require a application to be valid..
http://www.osr.nsw.gov.au/info/legislation/rulings/land/lt082v2
Well you are wrong. Read Clause 2 of Schedule 1 of the LTMA http://www.osr.nsw.gov.au/info/legislation/rulings/land/lt082v2
Its in bold too.
The rule you want is the absence rule. Its not so generous.
Clause 2 also has the joint owner problem. Often found with siblings and friends who invest. Its FORCES the owners to each have just one residence. The OSR often penalise some who inadvertently misunderstand this issue.
What does this actually mean?
If you have an ownersip interest in more than 1 property all of them cannot be your main residence.
If husband lives in the PPOR for 5 months whilst spouse lives for 1 month in separate time. Will the six months rule be counted by adding both period together?
Not necessarily illegal but definitely immoral.
Having just gone through months of paperwork, interviews and reviews to place my Year 7 child in a school that is at capacity where people try to do this sort of thing I am not impressed.
If you want your child to go that school then live in the area. If you prefer to stay where you then have them go to another school.
Chilli, unfortunately it's common practice. At my school we caught one family that paid for someone's electricity in order to get their name on it so they could get in.
Others buy IP's in the area and say they are living there. Only caught out if the tenants kids go to school. Some families try to register all the family's kids.
We have those that turn up on the first day thinking we'll just take the kids and get the paperwork later. Nope- they have to provide the paperwork then we check, THEN they can bring the kids. We've learnt that trick.
Frustrating I know.
Others buy IP's in the area and say they are living there. Only caught out if the tenants kids go to school. Some families try to register all the family's kids.
We have those that turn up on the first day thinking we'll just take the kids and get the paperwork later. Nope- they have to provide the paperwork then we check, THEN they can bring the kids. We've learnt that trick.
Frustrating I know.
Think the rule is not so strict as it allows concession "If the owner INTENDS to use and occupy the land solely as his or her principal place of residence" but the clause applies only in ther periof of 4 tax years immediately following the year in which the person became owner of the land
Haven't heard about those types before but a couple of people that I know have rented out their 'out of zone' PPORs and moved to the rental property in the zone. They are planning to move back to their PPORs after the initial lease terms are up and a kids are established themselves in the school, but at least they legimately live in the area for now.
Also I have heard people renting an apartment in the area but actually living somewhere else and just keeping rented apartment empty.
Its doesn't say "cease to occupy" though does it. The intention to occupy rule is a different concession. All concessions are located in Schedule 1A and have strict rules. See Clause 2 and the rule about continuous occupancy - That's a problem.
Occupancy is a matter of fact. Land tax would be based on the unproved land value and is subject to thresholds. There is a concession for a former PPOR that does not derive income. If its rented its liable to land tax.
