How to legally AVOID paying LAND TAX in Australia | Australian Property Investor

We're talking about Land Tax in Australia. You can diversify and pay less land tax in Australia using this strategy across our States!
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[@LJLancaster]

Really great inofrmation mate. Good to see how concise you made it yet easy to understand.

[@lukewiles1]

Good to hear. Thanks!

[@learningsfromgarden4669]

Great video. Thanks 🙏

[@lukewiles1]

Cheers 👍

[@GoceDelcevMKD]

Great video, I guess people are safe doing 1-2 properties per state. That’s plenty in order to avoid land tax and plan for your cashflow.

[@lukewiles1]

Exactly! Great way to build a diversified portfolio and passive income for retirement

[@12345xfire]

Great video Luke, Just wanted to add, if the new Qld land tax changes announced in the budget are passed, you would be paying land tax on your Qld properties after the NSW purchase.

[@lukewiles1]

That's right! I saw the recent proposal re: these land tax reforms. Will be interesting to see if these are passed and what impact that has on profitability/diversifiaction

[@matthewxcountry]

Very informative video. Great to see folks try to legally minimisze their tax, and diversifying between states has other benefits anyways. People setting up new companies every time they buy a property to avoid tax thresholds is a pretty major loophole that the state governments need to rethink. In my opinion that shouldn't be allowed. But people are of course well within their right, as long as its legal.

[@lukewiles1]

Thanks mate! The reason this legal loophole has stayed open for so long is because corporate trustee's are considered to be a seperate legal entity and therefore have their own threshold. State governments are looking at reforming these laws down the track (QLD has a new proposal coming up). I personally think the tax should be assessed/paid based on who ever controls the corporate trustee/trust

[@MyTk89]

@@lukewiles1 don't bother replying to bananas like this. Why should this loophole be fixed Matthew? You want more taxes to be paid to the government? Strip away the small amount of rights we have when it comes to taxes? Personally, I am sick of paying so much tax [100k paid last year!] . I like tax, and it should be paid to improve the standard of living. But we get taxed too much as it is! And now Matthew, wants to remove the little loopholes we have? And to make matters worse, the money is not effectively allocated and utilised by the government.. Why should someone that earns more get taxed at higher rate? Think of it logically, do higher income earners use more public services then lower income earners? Or why should someone that is taking massive risks on property be subjected to essentially penalties by government for buying more (we already pay council rates plus other gov. rates for each property, which fine? Plus we pay taxes of the rental profit.... Will someone pay us investors if it goes wrong?? 🤔 I am an Aussie, and shocks, nay, scares me that we have individuals that think like Matthew.

[@matthewxcountry]

@@lukewiles1 Totally agree. I think tieing the land tax to the individuals controlling the trust totally makes sense.

[@OilBaron100]

@@MyTk89 you sure don't like people expressing dissenting opinions.

[@MyTk89]

@@OilBaron100 I disagree with thay statement. I am all for freedom of speech and freedom of almost anything. In the same breath, I too can voice my opinion that the opinion of others is silly, and they may also do the same with me. I don't care for snowflake, nor am I one. So if someone thinks that paying more taxes is healthy, I will stand by and say that that is extremely silly. The fact is, people that are starting to build their wealth would be more disadvantaged with additional taxes, such as the one in question here. 🙄 It shocks me, that my fellow Australians are not financially literate. It further shocks me that these individuals advocate or voice their opinions. Maybe they are mislead by media and their hyperbole headlines. I would like to hear the arguement for individuals to pay more land tax? Anyone? This video explores the fact that structuring your investment properties in trusts land tax can be legally avoided..which is true.. does anyone know the downsides to trusts? .I think that should he elaborated on...especially around taxes....

[@khanage2011]

Hi mate, What are the current updated land tax thresholds for each state under a discretionary trust?

[@PeterParker-st9ps]

What is the best state to buy in, in regards to avoiding land tacks!?

[@vinnishbaby7222]

Thank you. Good vedio

[@lukewiles1]

no worries!

[@shilcrypto1329]

Hi Luke, great video, you explain the land tax so well and easy to understand with no hidden agenda and plus you take time to read all comments and respond to each with sincerity ….you are a good virtuous man. Now 😊… I have investment property in Brisbane in a discretionary trust and in a process of buying another in Sydney, I like to know which type of trust should be setup to reduce land tax ? Also I would like to hold on to these properties for long period and pass them on to my children….. your thoughts would be appreciated. All the best to you.

[@lukewiles1]

Thanks for the kind words. Generally speaking, accountants will recommend a discretionary (ie family) trust with a Corporate Trustee (ie a company as trustee of the trust) for asset protection, tax minimisation and estate planning

[@engineerahmed7248]

It is annual threshold - maybe means annual income threshold.

[@raywei728]

now QLD add interstate land tax by adding all land around nation wide. that's insane.

[@fofoalex6206]

You can't do that any more. QLD AND SOUTH Australia is now taxing interstate investors for the total land value in whole of Australia. Therefore this video is now useless.

[@lukewiles1]

THIS WORKS: the point of the video is to show the effectiveness of personal names & trust structures with Corporations as Trustees. You can set up multiple companies to hold multiple properties. Land Tax is assessed at the Trustee Level in QLD. If you Own Property in a Personal Name & then own property in a Trust with a Corporate Trustee you will be land taxed at the personal level & also seperately at the company threshold (because it is a seperate legal entity). Therefore buy property in QLD under Corp 123 Pty Ltd ATF Corp Family Trust & your land tax threshold will be $350k before being taxed. If you all ready own all your property in your personal name across all states you will be hit with the increased assessment for interstate investors. *Please talk to your Accountant*