Bills, bills, bills, when you’re a property owner, they never seem to stop. From utilities to council rates to body corporate levy if you happen own a strata property.

In this article, along with reducing the burden of council rates and strata or owner corporation fees, we discuss land tax to make sure you’re not being taxed inappropriately.

Reducing your council rates

Your council rates, ensure that your garbage is picked up, sewerage is managed and all the neighbourhood services you depend on are carried out. And though these are important services, council rates can be a significant financial strain on a household budget.

To work out your council rate levy, the council looks at the value of your property. If you experience a sudden jump in your rates, this is likely due to an increase in the valuation of your property.

The main avenue you have to reduce your council rates is by objecting to the valuation of your property being used to be inappropriately high and hence your rates are inflated.

Land valuations are governed by the Valuation of Land Act 1916 and overseen by the Valuer General in your state or territory. Generally, you have 60 days to lodge an Objection to Valuation with your local council if you disagree with the valuation of your property.

A corrected valuation can save you hundreds if not thousands of dollars where you own multiple properties.

If you’re having trouble paying your rates, contact your council immediately. Some councils offer alternative arrangements while you work through a financial hardship. Otherwise, make sure you pay your rates on time so you don’t incur late fees.

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Managing strata and owner corporation fees

Different types of land titles govern different types of properties. Generally, a freestanding home is governed by a Torrens title and apartments or unit blocks are governed by a strata title. Other titles governing units and apartments include company titles and stratum titles.

As an owner of a unit or apartment, you have to contend with strata or owner corporation (body corporate) fees, which cover the costs of maintaining the complex’s common areas and general management.

These can amount to significant figures depending on the level of ongoing maintenance the building requires. It is important you don’t accept strata spending or fee hikes without understanding their basis.

You also have the right to contest upgrades, repairs or renovations that you don’t deem necessary. Strata committees and approval processes differ, but if you’re unhappy or disagree with the management of your building, review your strata guidelines and learn about your rights.

Your local fair trading or consumer affairs office is an important resource. They handle strata and owner corporation disputes and mediate through tribunals. If you want a greater say in the running of your building, look to become a member of the managing committee.

By buying your apartment or unit, you automatically become a member of the strata, but members are then elected to the managing committee. Once you’re on the committee, suggest an audit of your building’s strata insurance premium to ensure it’s competitive as well as the buildings energy efficiency.

Land tax

Across Australia, a land tax levy is applied annually to vacant land, holiday homes, investment properties and primary production land that isn’t exempt.

Your home (primary residence), transitional home or land used for certain types of primary production are generally exempt from land tax. As a homeowner, you should be able to obtain land tax exemptions from your state or territory government.

The threshold for land tax levies varies between the state and territories, and in 2021 for land under a certain value (for example, below $755,000 in New South Wales, $250,000 in Victoria (waivers and discounts offered for 2021, refer to Victorian state revenues office) and $600,000 in Queensland) you will be exempt from paying land tax.

The land tax rate is scaled to the value of the property and calculated as a percentage of its taxable value. Valuations are conducted annually and can be contested if you believe it is unduly high. There are property valuation firms that specialise in land tax valuations. You should always use an accredited valuer.

For more information, check with your region’s state revenue office to ensure you’re not paying unnecessary land tax.

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This article does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.