The land tax valuation system is once again under fire as properties are being over priced by the NSW Valuer General causing greater tax rates for investors.
Although a person’s principle place of residence is exempt from this tax, according to the Office of State revenue land tax is calculated on the combined value of all land owned above the land tax threshold of $396,000 for 2012.
The rate of tax is $100 plus 1.6 per cent of the land value given by the Valuer General between the threshold and the ‘premium rate’ threshold which is $2.3 million, and 2 per cent thereafter.
But according to the Sydney Morning Herald, 170 objection cases had a variation of more than $5 million between the initial valuation and the valuation after landowners took court action.
This variation can cost investors thousands of dollars a year per property.
The valuer general’s office refused to comment, pending the release of the report from the general meeting in NSW parliament on Monday.