How is your game going?  

Have you collected all three of the green properties and started on acquiring houses? (Or as always happened at my house, knocked the board off the table and walked off in tears?)

The name of the game was property accumulation. Then you picked up a Chance card and had to pay that pesky property tax.

Looks like the lunchroom game at NSW Treasury turned on a few lightbulbs, resulting in the recent budget announcements.

The Land Tax threshold for NSW will remain at its current level of $1.075M for the foreseeable future, as the yearly indexation will cease.

So in a few years, even holding those two purple properties just after the Go square could result in having a liability.

It is not uncommon for Land Tax to be overlooked in SMSFs.

Especially Trustees forgetting to consider the combined land value of indirect holdings in property companies and trusts.

Given the new announcement my suggestion is to register the SMSF for Land Tax, even if currently below the thresholds. 

You’ll then get a nice reminder each year of the Fund’s position – or a notice to go directly to Jail…  

As always, I'm happy to answer your questions. Please do get in touch and we’ll see how we can help.