The South Australian government has extended land tax relief as part of the transition to the new aggregation method of calculating land tax starting in July 2020. More details of the upcoming changes can be found in our previous article How will the South Australian Land Tax Changes affect you.
As part of the changes, the government introduced a transitional fund which is available for taxpayers who have an increase in their land tax assessment as a result of changes in the aggregation of land owned as at 16 October 2019. Relief will not be provided in relation to higher trust land tax rates. To be eligible for relief the following criteria will apply:
- the increase in land tax assessment must be above $2,500
- relief of the following amounts will be available:
- In 2021, 100% of the increase in land tax assessment above $2,500 (was previously going to be 50%)
- In 2022, 30% of the increase in land tax assessment above $2,500
- In 2023, 15% of the increase in land tax assessment above $2,500
- the maximum level of relief provided will be $50,000 in 2021, $30,000 in 2022 and $15,000 in 2023
Any taxpayer with an increase of more than $102,500 will not be eligible for any relief.
Importantly, to receive the relief, you must apply to RevenueSA before 31 March in each relevant year and be up to date with your land tax payments.
The government has also announced that individuals and business with outstanding quarterly Land Tax bills for the 2020 Financial Year are eligible to defer payments for up to six months.