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The Victorian Government has introduced a Bill to be passed shortly containing new provisions concerning Land Tax and Trusts which will apply to assessments for the 2006 year and beyond.
The provision will impose a surcharge rate of tax of 0.375% on land held by a trustee. This will apply to all trusts, including discretionary, fixed and unit trusts, unless specifically excluded from the provisions. In addition, the tax-free threshold is reduced to $19,999.
The surcharge rates for the 2006 year are as follows.
|
$ |
$ |
Tax Rates |
|
0 |
19,999 |
Nil |
|
20,000 |
199,999 |
$75 & 0.375% of the taxable value that exceeds $20,000 |
|
200,000 |
539,999 |
$750 & 0.575% of the taxable value that exceeds $200,000 |
|
540,000 |
899,999 |
$2,705 & 0.875% of the taxable value that exceeds $540,000 |
|
900,000 |
1,189,999 |
$5,855 & 1.375% of the taxable value that exceeds $900,000 |
|
1,190, 000 |
1,619,999 |
$9,843 & 1.875% of the taxable value that exceeds $1,190,000 |
|
1,620,000 |
2,699,999 |
$17,905 & 1.706% of the taxable value that exceeds $1,620,000 |
|
|
2,700,000+ |
$36,330 & 3.5% of the taxable value that exceeds $2,700,000 |
For comparison, the ordinary rates of land tax for 2006 year are as follows.
|
$ |
$ |
Tax Rates |
|
0 |
199,999 |
Nil
|
|
200,000 |
539,999 |
$200 & 0.2% of the taxable value that exceeds $200,000 |
|
540,000 |
899,999 |
$880 plus 0.5% of the taxable value that exceeds $540,000 |
|
900,000 |
1,189,999 |
$2,680 & 1% of the taxable value that exceeds $900,000 |
|
1,190,000 |
1,619,999 |
$5,580 & 1.5% of the taxable value that exceeds $1,190,000 |
|
1,620,000 |
2,699,999 |
$12,030 & 2.25% of the taxable value that exceeds $1,620,000 |
|
|
2,700,000+ |
$36,330 & 3.5% of the taxable value that exceeds $2,700,000 |
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