2005 State budget
Summary
Land tax
For the 2006 land tax year a $330,000 threshold will apply to owners of liable land. There is no threshold for non-concessional companies and special trusts.
The land tax rate for 2006 will be 1.7 per cent (plus $100) on the unimproved value of the land in excess of $330,000. If your land tax liability is less than $100, no land tax will be payable.
Exemptions and concessions: There are no changes to the current land tax exemptions. The concession for non-income earning land, however, will cease after this year and will be unavailable in 2006.
The land tax liability for 2006 is based on all liable land owned as at midnight on 31 December 2005.
There have been no changes for 2005 – all liabilities remain payable.
Vendor duty
Changes to the principal place of residence exemption
Retrospective from 1 June 2004, if a person is in care away from their home (for example, in a nursing home, hospital or other approved premises) they may be able to claim the principal place of residence exemption from vendor duty. This also applies where the property is sold by the estate.
To claim this exemption, the home must have qualified as a principal place of residence before the person left it. If this condition is met, any time spent in care is disregarded. The owner may also rent out their property while in care.
Homeowners who fit into this category and who have paid vendor duty on the sale of their home on or after 1 June 2004 can apply to OSR for a refund.
This change will operate as a variation to statute until a legislative amendment is made.
Changes to the definition of the vendor acquisition date for land-related property held by the vendor subject to a trust
Where land-related property is held by the vendor subject to a trust, the vendor acquisition date is the date on which a dutiable transaction in respect of that property was last chargeable with ad valorem duty.
This amendment applies to transactions entered into on or after 24 May 2005.
Land rich provisions
Disposer acquisition date for trustees of a trust
Where the disposer of an interest is the trustee of a trust, the disposer acquisition date is when the beneficial owners first became beneficially entitled to the interest being disposed of.
This amendment applies to transactions entered into on or after 24 May 2005.
Duty on general insurance policies
From 1 September 2005, the duty rate on some types of general insurance will increase from 5 percent to 9 percent.
Duty on refinancing loans
From 1 August 2005, the mortgage refinancing concession will be capped at $1 million. The concession will apply to the amount of the earlier loan or $1 million, whichever is the lower. Duty of $4 per $1,000 will be payable on the amount of any excess.
Note: this cap does not apply to refinancing land used for primary production or aquaculture.
