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kmslaw
kmslaw, Solicitor
Category: Australia Law
Satisfied Customers: 195
Experience:  I have 15 years legal experience behind me and I graduated from the University of Sydney with First Class Honours in Arts/Law.
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Our land is 9.8 hectares we have two houses on it and the

Customer Question

Hi Our land is 9.8 hectares we have two houses on it and the department of mines and natural resources value each house separately using a fictitious 1 hectare of land for one house as the state government has blocked any redevelopment and therefore we
only have one title .Yet we get charged separate rates for each house and now land tax as the value of both houses pushes up the value. We feel this is unfair .do we have any options?
Submitted: 1 year ago.
Category: Australia Law
Expert:  Leon replied 1 year ago.

Good Morning

My name is ***** ***** I am a NSW Solicitor. Thank you for your question, and will do my best to assist you with your question. Please understand this is not legal advise Please understand this is not legal advise but a guide to assist you.

Land tax is not calculated on the value of the house. It is on the value of the land.

You would be charged 2 lots of rates because there are 2 houses and there are 2 lots of garbage collections but land tax should only be charged on the property over the 1 hectare as the last clauses 1 hectare as the prinicipla land with one house. The balance is assessed.

You will also have this formula used for CGT if you sell.

Land tax is on unimproved value that means not including the house.

If you believe that the value for land tax is incorrect you are entitled to object.

What state are you in?

Customer: replied 1 year ago.
Queensland.
So you are saying it is ok for the council to charge rates on both houses even though the garbage collection is charged over and above the normal rates and the second house dose not have a title?
Expert:  Leon replied 1 year ago.

Good Afternoon

If you have collections for rubbish for 2 houses then yes they can charge rates for both.

You have 2 houses on title and each has its own bins.

If this is not the case and they only have one bin and the service is for one house then you can complain about it.

If they are overcharging you for the collection you have a right to complain about it.

But land tax is only charged on the 8.8 hectares. The 1 you have is your principal place of residence and is exempt.

I hope this makes sense?

Customer: replied 1 year ago.
Well it dose not make sense to me ,if a block of land cant be sold it has no value we have had the land valued by a valuer and he explained the second house make little difference to market value of the land as it has no title. as far as the land tax the property is owned by three people due to an inheritance so both blocks , the 1 hectare and the 8.8 hectare value are assessed and added in the tax.
Expert:  Jared Pereira replied 1 year ago.

.

Expert:  kmslaw replied 1 year ago.

Hello my name is*****'m a solicitor in NSW who may be able to help you. Why can't the property be sold? I'm not sure that market value is the measure for land tax, I would have to check. What makes you think that all 9.8 hectares have been assessed and added in the tax?

Expert:  kmslaw replied 1 year ago.

Hello. The taxable value of the land is the value that land tax is calculated on. You can read about what makes up the taxable value here. I can't see where Leon's 1 hectare approach is referred to. I'll get back to you about it shortly.

Expert:  kmslaw replied 1 year ago.

The taxable value is the lesser of the Land Valuation Act value of the land for the financial year and the averaged value for the financial year. If the land is non rural land it will be assessed on its site value which you can read about here at Chapter 2 Division 3 of the Land Valuation Act. i still can't see anything about the one hectare in the Act. Are you able to attach your land tax assessment notice so that I can see what has been done? Are you satisfied with Leon's answer about Council levying two sets of rates?

Customer: replied 1 year ago.
Hi Klyie here is the history so you are up to date.The main house on the block was built by my father in 1981. In 1992 we built a second house on the land so I could live close and take care of my father who passed in 2008.From the beginning the new house was classified as a care taker cottage with out a title of its own ,how ever the council started charging two sets of rates, classifying the second house on a fictitious hectare of land for that purpose.Upon my fathers death in 2008 I was directed as executor of his will to investigate the option of spiting the second house off on to its own title so I would own it out right as the whole block was left to me and my two sisters in the will as equal partners.Please see the response I got below.
As you can imagine the local and state governments now value the original house on 8.8 hectares and the second house on a fictitious hectare for the propose rates and now land tax witch add a lot of value to the original 9.8 hectare that dose not exists.The sum of the two fictitious blocks equals more than the whole.
Further more both blocks rates are charged as residential A 1a not rural residential as the response suggests.
We feel this is unfair and would ask if there is any thing we can do about it
Customer: replied 1 year ago.
Dear Mr EdwardsFurther to my request issued on your behalf to City Planning, the following response has been provided by the Senior Town Planner.The subject site is contained within the Park Living Domain pursuant to the Gold Coast Planning Scheme 2003. The purpose of this domain it provide for low density residential activity within areas of semi-rural landscapes and maintain a parkland living environment.The subject site is included within the Rural Residential Zone (Rural residential landscape and environment precinct) of the draft City Plan. The purpose of the Rural Residential Zone is to provide for sustainable rural activities, protect/manage environmentally significant areas, and allow for very low residential density that does not impact on the rural and scenic values of the area.As such the land use designation under the current and proposed planning scheme do not indicate that the subject site has been included within a "residential a " zone.The subject site is contained within the Rural Landscape and Rural Protection Area (RLRPA) of the South East Queensland Regional Plan 2009-2031. Pursuant with Part F - State Planning Regulatory Provisions - Division 3: Subdivision, Table 3A, Column 1 - Subdivision compliant with Division 3.1 - point (2) the subdivision results in lot of 100 hectares or greater. Subject to Table 3A, Column 2 - Subdivision which may not occur: Development not identified in Column 1.As such, a proposal to subdivide lots contained within the Rural Landscape and Rural Protection Area (RLRPA) to any size less than 100 hectares in area is not identified in Column 1 and is therefore considered to be prohibited development. As the subject site is only slightly larger than 9 hectares the further subdivision of the site is precluded by the requirements of the SEQ Regional Plan.The RLRPA protects land from inappropriate development, particularly urban or rural residential development. The SEQ Regional Plan is the main instrument that protects land nominated within the RLRPA and overrides the requirements of any Local Authority Planning Scheme. As such, the requirements of the Gold Coast Planning Scheme 2003 relating to subdivision are not applicable to the subject site.The SEQ Regional Plan was implemented in July 2009, as such any development proposal after this date would be subject to the requirements of the Plan as outlined above.With reference to the smaller lots located to the east of the subject site, the estate referred to as Mt Nathan Park Estate was established via a Rezoning approval (560/20/2928) and subsequent subdivision approval (555/12/2356) approved by Council in July 1999. As such, the estate was already in existence at the time the SEQ Regional Plan was implemented. The estate consists of Park Residential (acreage) style allotments for the purpose of low density residential living with a minimum lot size of 4000sqm provided that the overall yield of the subdivision does not exceed 8000sqm.Therefore whilst the subject site and the adjoining properties to the east are contained within the Park Living Domain of the Gold Coast Planning Scheme 2003, the implementation of the SEQ Regional Plan in 2009 has restricted the further subdivision of the subject site.Queries concerning potential changes to the SEQ Regional Plan should be directed to the Department of State Development, Infrastructure and Planning. The Department can be contacted via the following:Phone: 13QGOV (137468) or 3227 8548Email:***@******.***Postal: PO Box 15009, City East, QLD, 4002Council does not have involvement in the assigning of land tax valuations, the Titles Office of the Department of Natural Resources and Mines may be able to assist in this matter. The Titles Office can be contacted via the following:Phone: 13 QGOV (137468) or 55831700 (Robina office);Postal: PO Box 15216, City East Qld 4002.I trust this clarifies the matter. As further subdivision is restricted by the implementation of the SEQ Regional Plan in 2009, you will need to contact the Department of State Development, Infrastructure and Planning for advice on any potential changes.Kind regards10372 Cr Gilmore Em#4C40999
Customer: replied 1 year ago.
My ResponceDear Tracey
we would ask you clarify some points made in your response
1The subject site is included within the Rural Residential Zone (Rural residential landscape and environment precinct) of the draft City Plan. The purpose of the Rural Residential Zone is to provide for sustainable rural activities, protect/manage environmentally significant areas, and allow for very low residential density that does not impact on the rural and scenic values of the area.As such the land use designation under the current and proposed planning scheme do not indicate that the subject site has been included within a "residential a " zone.We refer to the attached scan of our last rates bill which clearly states that the land is classified “category1A residential 1”.2As such, a proposal to subdivide lots contained within the Rural Landscape and Rural Protection Area (RLRPA) to any size less than 100 hectares in area is not identified in Column 1 and is therefore considered to be prohibited development. As the subject site is only slightly larger than 9 hectares the further subdivision of the site is precluded by the requirements of the SEQ Regional Plan.Could you please tell us who is responsible for the fictitious subdivision of our land which you use for the proposes of issuing two sets of rates for the two houses on our land which is clearly in breach of the SQE Regional Plan,andWhich the state Government now uses to issue land tax to us. More over how can you value a parcel of land that can not be sold.? It appears to us that this is solely for the purposes of raising revenue for the council and state government but discriminates against us to have the same right?We would also like to point out that the combined value of the valuations on our rates bill is more than current market value of the block including houses as per a recent valuation, as part 1 has little value because it has no title.We feel this situation is very unfair .***** *****
Expert:  kmslaw replied 1 year ago.

Hello. Thanks for this. Can you attach the land tax assessment notice as well? This matter is complex and requires me to conduct further research. I will offer you a further service so that I can properly help you with this. Can you give me the address too so that I can do a title search of the property? Thanks.

Expert:  kmslaw replied 1 year ago.

I think you should also attach the two rates notices. Thanks