Changes to the rules around land tax in the ACT will impact investors who own multiple properties. Here’s what it means for you.
Earlier this year, the ACT’s land tax liabilities changed, a move that affects anyone who owns property besides their family home.
These new measures under the Land Tax Act 2004, mean that investors who own multiple properties will now have to pay land tax on any properties that are not their primary residence, regardless of whether they are vacant or not. The rules also apply to properties that investors have an interest in, not just those they own outright. So what does this mean for investors?
The biggest change for owners will be that they are now liable for land tax if their property is vacant at the start of a quarter. This could be because they’re waiting to find a new tenant, carrying out renovations on an empty property or preparing for a sale. Previously, owners were only liable if the property was tenanted at the start of the quarter.
There are also implications here for investors when they change the status of a property. If they decide they would like to convert their primary residence into a rental property, they will have a 30-day window to inform the ACT Revenue Office.
If you’re in doubt about how these new changes are being implemented and what they mean for you, There’s also the option to get in touch with the ACT Revenue Office.