1. I let a property on 1 July 2004 for $30,000 per month. Rates for the 3 quarters to 31 March 2005 paid by me amounted to $12,000. How is Property Tax computed for 2004/05? Do I have to pay Provisional Property Tax for 2005/06?
 
|
$ |
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 |
2004/05 Property Tax @16% |
33,024 |
Calculation of Provisional Property Tax for 2005/06 is based on the NAV for 2004/05, but grossed up to 12 months, as follows:
|
$ |
Estimated NAV ($206,400 [see above] x 12 / 9) |
275,200 |
2005/06 Provisional Property Tax @16% |
44,032 |
You will receive a Property Tax demand note that carries two components:
|
$ |
2004/05 Property Tax |
33,024 |
2005/06 Provisional Property Tax |
44,032 |
Total tax payable |
77,056 |
|