In February 2014, Gadens provided an update (link here) on the commencement of the Victorian State Revenue Office’s 2014 land tax cycle and the fresh opportunity to object to 1 January 2012 site valuations. Most landowners should expect to have received their 2014 land tax assessments by now, with the cycle proposed to be complete by the end of April. For those landowners who received their assessments in February, the strict 60 day timeframe to lodge an objection to values is coming to an end. In addition to consideration of values, it is important that landowner’s carefully review their 2014 land tax assessments within this 60 day timeframe to avoid the imposition of penalty tax. Since the 2010 land tax year, landowners have been required to notify the Commissioner of State Revenue within 60 days of receiving a notice of any error or omission in their assessment relating to:
- additional land they own which has not been included in their assessment;
- the receipt of two or more assessments for different lands which are solely owned by the one landowner and thus should appear in one assessment; or
- the grant of an exemption on land which the land / landowner was not eligible for.
Failure to notify the Commissioner of such errors or omissions within the strict 60 day period constitutes a ‘notification default’ and exposes a landowner to a potential liability for penalty tax. Such penalty tax may range from 5% (in the event the error or omission is notified out of time prior to an investigation commencing) or 75% (in the event the landowner intentionally disregarded the law) of the landowner’s land tax liability. Gadens can assist you pursue your objection rights, professionally review your land tax assessments to determine any availability for an exemption or advise on the most efficient property holding structures to maximise land tax savings.