1. I let a property on 1 July 2014 for $30,000 per month. Rates for the 3 quarters to 31 March 2015 paid by me amounted to $12,000. How is Property Tax computed for 2014/15? Do I have to pay Provisional Property Tax for 2015/16?
|
$ |
---|---|
Rent for 9 months ($30,000 x 9) |
270,000 |
Less: rates paid by owner |
(12,000) |
|
258,000 |
Less: 20% allowance for repairs and outgoings |
(51,600) |
Net assessable value (NAV) |
206,400 |
2014/15 Property Tax @15% |
30,960 |
Calculation of Provisional Property Tax for 2015/16 is based on the NAV for 2014/15, but grossed up to 12 months, as follows:
|
$ |
---|---|
Estimated NAV ($206,400 [see above] x 12 / 9) |
275,200 |
2015/16 Provisional Property Tax @15% |
41,280 |
You will receive a Property Tax demand note that carries two components:
|
$ |
---|---|
2014/15 Property Tax |
30,960 |
2015/16 Provisional Property Tax |
41,280 |
Total tax payable |
72,240 |