Some taxes/Levies are an established part of the planning and subdivision process. Some examples of these being the
- Metropolitan Planning Levy,
- Developer Contributions Overlay,
- Growth Area Infrastructure Contributions (GAIC),
- Servicing Authority Contribution Levies,
- Public Open Space Contributions, etc.
Cultural Heritage, Native Vegetation Offsets, Melbourne Strategic Assessment (MSA) are not taxes/Levies, but are the result of adopted Government planning policies that can result in significant costs to a subdivision or development project, once they are triggered by the application or a condition of the permit.
An experienced Licensed Surveyor can provide consultancy as to how or when these taxes/Levies may be applied in relation to your subdivision and development project, and which if any are applicable and need consideration. We are not taxation experts, so your accountant of financial advisor may be an integral consultant for your project in managing these possible taxable events.
Stamp Duty & Transfer of Land Tax fees will be payable at the time of registration of the plan of subdivision, for plans that include land Not-In-Common-Ownership (NICO) for the portions of the site where land ownership is being exchanged. These would be managed and advised by your Lodging Party (Conveyancer / Solicitor).
Taxes like the Windfall Gains Tax (WGT) could be applied to your property without you having actually instigated any development or Subdivision. The Windfall Gains Tax results from the capital value gains that may result from the rezoning of your property by the State Government or Council.
Other Taxes, like Land Tax, Vacant Residential Land Tax, Capital Gains Tax, etc could apply to your property after the subdivision or development project has been completed, and are not a requirement of the project, but rather a “result of the project”. These may arise as a one off tax (Capital Gain), or be a regular ongoing occurrence (Land Tax, Vacant residential Land Tax, etc).
A tax management strategy could be just as important as subdivision consultancy advice, particularly for development of property that is also the “primary residence” of the land owner. Understanding and implementing a taxation strategy, could assist in understanding your cash flow or the financing arrangements for your project.
Licensed Surveyors are not taxation experts, so land owners should seek their own specialist and independent property taxation advice in relation to the possible taxation outcomes that may result long term, from their development or subdivision project.
