Date: 29 Jan 2010 Comments: 0

Land Tax Base in SA to be raised from $110,000 to $300,000 with increases in other thresholds to provide savings in the higher end also to index thresholds to average land value inflation to make more certainty for investors.

This is great news for residential property investors in SA, although more could always be done. It appears that as the property market has enjoyed such a great time, there is now incresed revenue for the govt to use, therefore they have announced a reduction in land tax bases in SA.

This is the current Land Tax base.

Total Taxable Site Value Tax Rate SA 2010

Up to $110,000 Nil – To be up to $300,000 nil when enacted.

$110,001 to $350,000 = $0.30 for every $100 or fractional part of $100 over $110,000

$350,001 to $550,000 = $720 plus $0.70 for every $100 or fractional part of $100 over $350,000

$550,001 to $750,000 = $2,120 plus $1.65 for every $100 or fractional part of $100 over $550,000

$750,001 to $1,000,000 = $5,420 plus $2.40 for every $100 or fractional part of $100 over $750,000

Over $1,000,000 = $11,420 plus $3.70 for every $100 or fractional part of $100 over $1,000,000

Here is an interesting point to consider also:

Land held on Trust in SA

Pursuant to Section 13 of the Land Tax Act 1936, where a property is owned by an individual or organisation on behalf of a Trust, the owner(s) (Trustees) can apply to have that property assessed separately from other land owned by the Trustee in another capacity. (Note: you should set up the trust prior to buying the property)

Contact us now for more info and the right properties to consider.