As you will be aware, between February and May each year, the State Revenue Office issues land tax assessments for the calendar year to Victorian land owners (except where all landholding is exempt). The 2019 land tax assessment assesses landholdings owned by a land owner as at midnight on 31 December 2018.
With property prices decreasing you may be surprised to see an increase on your 2019 land tax assessment.
It is important to review your assessment closely to identify any errors, as you have the option to object to your land tax assessment on numerous grounds including if you consider that the site value of the landholdings is too high. The 2019 land tax assessment uses the 1 January 2018 site value of the land. Ordinarily, objections to valuations are undertaken when Council Rate Notices are issued in the prior year. However, for land owners who may have missed the deadline to object to values on time, the good news is that the land tax assessment provides an opportunity to challenge the site value by lodging an objection with the State Revenue Office that is then passed on to the valuation authority.
Objections to land tax assessments must be lodged within 60 days of receipt, and the time limits are enforced strictly.
In our experience, the most common grounds for making an objection to a land tax assessment include:
It is important to note that in addition to the right of land owners to object to a land tax assessment, they also have an obligation to notify the Commissioner of errors and omissions, which result in less land tax payable by the land owner. The notification must be made within 60 days, or penalty tax may apply. These circumstances are where:
Managing your land tax is an important consideration for any land owner, particularly if you are unable to recover land tax from your tenants covered by the Retail Leases Act 2003 (Vic).
Our team at Gadens has plenty of experience with land tax assessments and we would be pleased to assist you with your 2019 assessment.
Please do not hesitate to contact us if you would like to discuss.
Biljana Apostolova, Partner
Michael Mercier, Associate
Jessica Merola, Lawyer