Beware of land tax grab

Beware of land tax grab

THE Real Estate Institute has warned homeowners to keep up to speed on the tax laws after one homeowner was hit with a surprise land tax bill of $14,000.
Real Estate Institute of Tasmania president Martin Harris said the property owner had left the home to go interstate for family reasons but did not want to leave their home vacant and insecure for insurance and peace of mind reasons.

“Friends stayed at the property for a nominal rent and did the right thing by completing a rental bond form,” he said.

“After a six-month period the owner was promptly billed land tax for over $14,000.”

Mr Harris said the REIT had approached the Department of Treasury and Finance for clarification on the
tax matter.

“Some Tasmanians may feel aggrieved about the fairness of this taxation rule, but the nature of taxation is invariably black and white, and government officials rarely if ever have discretionary powers to waive laws and individual circumstances,” Mr Harris said.