We have recently received a number of land tax assessments for the year ended 31 December 2022 for client’s principal places of residence (PPR), where the land value has exceeded the threshold. As you know, your PPR is not liable for land tax, so it is very unusual to be receiving assessments for properties which are exempt from land tax.
It would seem that Revenue NSW has decided to have every property in NSW registered for land tax and assess properties for the same, and then rely on the property owner to advise them that the property is the principal place of residence and therefore not liable for land tax.
We have received assessments with client ID’s that have been created and issued by Revenue NSW for clients who solely own one property (being their PPR). After speaking to Revenue NSW we have been told that you need to register for Land Tax and apply for the Principal Place of Residence exemption once a client purchases a property otherwise they are going to be issued an Assessment if the value is above the threshold. This will mean there is administration time needed to advise Revenue NSW of the facts in relation to your PPR.
Revenue NSW has changed the way they interact with taxpayers and their advisors. The old Land Tax Online login has disappeared so as long as we have a Client ID and Corro ID we can still access your Land Tax Account via creating a Services NSW account.
If you receive an assessment directly from Revenue Australia for your PPR please be aware of the above. You will either need to advise them that the property is a PPR or let us know and we can do it for you. Please let us know if you need our help.
If you have any queries in relation to the above don’t hesitate to contact your client manager.
Author: Michael Goodrick
*Correct as of 30 October 2023
*Disclaimer – this article has been produced by Kreston Stanley Williamson as a service to its clients and associates. The information contained in the article is for general comment only and is not intended to be advice on any particular matter. Before acting on any areas contained in this article, it is imperative you seek specific advice relating to your particular circumstances. Liability is limited by a scheme approved under professional standards legislation.