All right, so as usual, I'm just going to wait for the timer to start just in case. I have started using a different chat called Claude or different AI, I should say, AI chat called Claude, and it had some cool suggestions in there for like sound effects and stuff. So I'll probably just copy and paste that. Not all of it's relevant. I haven't given any context as to what the podcasts were about. So I need to train it a little bit more than yet because I just haven't done that before with it. But this one's about land tax, which I think I put in the topic. Hopefully it won't go for too long. I put my green screen back up. Next thing on the list is going to get a teleprompter so I don't have to keep turning my head, which would be really cool. Hi there, welcome to another episode of the Stacey M Show. Today's topic is something that is so super fun, so exciting, and it is land tax in New South Wales. So some people might find it really fun. Personally, I don't. I was just trying to make everybody excited about land tax. So land tax is state and territory based. This one is specifically regarding New South Wales land tax. I didn't want to go into all the states and territories rules regarding land tax because that podcast would just be too long and it's not going to be relevant to everybody. So this one is just a basic land tax one on one for New South Wales because It is something that comes up in conversations with clients. So we will have clients who might've come to us from your property guru saying, buy this, buy this, buy this. And nobody's told them about the land tax consequences of that. I'm not saying that's good. I'm not saying that's bad. But that is not fully educated in relation to land tax. So we have clients who are making it on their own and building their own portfolio. We want to make sure that they are aware of that as well because they're conversations they need to have with their accountant, financial advisor, make sure it's still viable. Land tax in the scheme of things is probably a very small amount unless you have a lot, a lot, a lot, a lot of land. And there are exemptions too. So I'll go into some of the exemptions, but I'm not going to go into all of the exemptions because again, that would just make the podcast really long and probably boring and confusing. And that's not what I want. I just wanted a simple land tax one-on-one. As usual, I do have my notes here. I am in the process of getting a teleprompter. So you won't see me like turning my head if you are watching the video of this. So I've broken down this as far as I possibly can just so you at least have a gist. And if it still doesn't quite make sense to you, if you are looking at purchasing, make sure you have that conversation with your lawyer or your conveyancer to see whether this situation applies to you. But at least hopefully after listening to this, you're going to know that it does exist. If you know somebody that's buying or looking to buy, please make sure that you forward this onto them as well. So they're aware that land tax does exist, might not apply to them, but they know that it exists. So how I've described it, and I'll probably just use myself as an example. So say I own my own house. So that's sometimes referred to as a PPR, which is principal place of residence. So it's your home, it's your house, it's where you live. That is exempt. should be exempt. I'm never going to say anything is, just in case something weird happens for the government. That should be exempt. You shouldn't have to pay land tax on that in New South Wales. Now, say I rent my PPR, so my home, and then I buy an investment property. So, you know, that might have been eight hundred thousand dollars, but the land value of that was maybe two hundred thousand dollars. Well, I have my land tax piggy bank here. It'd be cool if I had like a whiteboard or something to draw on this. This is something that's popped in my head. So say this is my land tax piggy bank. If you're listening to this and not watching it, I have my hands up and I'm making gestures with my hands. Like, you know, I'm sitting at the two hundred mark. So again, that's assuming the property is in my name, my personal name. And then say I go to buy another investment property and say the land tax value of that is two hundred again. So I'm now sitting at four hundred dollars in my land tax piggy bank. Now that is going to keep increasing more. You buy a property and the cap of the land tax is just over one million. So if the land value that you hold in those investment properties is over, you know, it's like, it's just over a million dollars. Then that is when land tax will likely kick in for you. Now that's not including purchases that you have under a self-managed super fund. any other trusts, companies, like there's a whole other world of land tax. But personally, in your name, if you own investment properties in your name and the land value, not what you brought it for, the land value of those properties goes over a million dollars. you will likely have to pay land tax. Now, the value of that land tax is probably going to be SFA. It's probably not going to be thousands and thousands and thousands of dollars. It's probably going to be pretty minimal. So in the scheme of things, whatever it is that you're doing, it's probably still likely going to be worth it. Now, with the exemptions, so there can be exemptions, but you have to apply for that with revenue. So that could be, so you're primarily, place of residence your PPR is exempt primary production farms may be exempt boarding houses caravan parks may be exempt super funds and trusts maybe maybe not comes down to the wording in the trust deed and the type of trust so I'm not going to go into that side of it in here just because that's not necessarily going to apply to everybody as well I just wanted to keep it really, really simple that if you have property in your name and the land tax value is, sorry, the land value is over that million dollars excluding your home, that is when land tax is going to start to kick in. So that is something that financial advisors should be aware of, accountants should be aware of. But again, people do come to us and That does not inform that land tax exists. So it'll be at my account is that I have to buy this under a company in trust. Okay. No worries. It's likely going to be land tax attached to that. What's land tax. They never told me about that. So then that client is automatically kind of a little bit pissed. It's like, well, hang on. I wasn't told of that. I wasn't told of the pros and cons. So then, you know, the matter hasn't started off quite exciting as probably what it should have been because they're getting into the investment properties. because they haven't been fully informed. So we always say you have to get accountant and financial advice. We are not accountants. We are not financial advisors. We can just advise you, hey, this is likely going to be something you have to consider. We don't know what property, or unless you're a frequent flyer with us or something, but usually, you know, we probably don't know what your assets are, what your property is, what your income is. None of that. That's where your financial advisors need to let you know the pros and cons, I suppose, of you know, potentially paying that land tax figure. And it also really comes in when, you know, we have those property gurus who, you know, based say, I'll pick Queensland, based in Queensland, and they're getting clients to purchase property all over Australia. They might not necessarily be fully informed regarding the land tax situation as well, or even stamp duty. So, lot of them are but some of them aren't and again when we say hey you probably have to pay land tax they're like what the no one told me about that and then you know buying investment properties and getting your property portfolio is something that should be pretty exciting you don't want to then come to us and we tell you about this thing you've never heard of before and then you kind of you know you're starting off on the the wrong foot because you know all of a sudden something that was really exciting is now like you're cranky because somebody hasn't fully informed you of the pros and cons of purchasing in that state. So hopefully that does assist you with knowing what land tax is. There are other taxes associated with conveyancing. I'm not gonna go into that because again, it's not going to apply to everybody. So for example, if you're not classed you know, if your class was a foreign person buying property, that's a whole lot of kettle of fish. I just really wanted to keep this one really simple for people buying in their own individual name so they know if they hit a certain threshold with the land value of a property that they own, land tax will probably be applicable. So I will be doing some blog posts and some socials on this as well. So that'll be under Aqua's social. farm page and probably the other two businesses that I have as well. But yeah, so it's just a question that pops up reasonably frequently. So I thought it was probably a good time just to do a quick episode on this, just explaining land tax in New South Wales. If you have any questions whatsoever, if you're in the middle of purchasing a property, please check with your lawyer for my answer to see whether land tax is something that's available to you. Sorry, if land tax is something that you're going to have to pay, because you don't want to go ahead and settle on a property, then all of a sudden you're getting a land tax bill and you're like, you know, where's this coming from? I don't know what this land tax thing is. So which happens as well, which is kind of really disappointing. So yeah, any questions at all, please reach out as usual. And, you know, we can't offer legal advice unless you're a client, but, you know, we might better explain the land tax situation for you a little bit more. But That is today's episode. I think that's the shortest one I've ever done. But yeah, thank you for listening. Please forward this on to anyone who might be considering purchasing investment properties in New South Wales. And I will catch you next time. See you.
