A House Tax Assessment is prepared by the Australian Department of Revenue, the states and territories taxation agencies and the property owners themselves. This Assessment is prepared based on a number of considerations, including current market conditions, how much money the owner makes, how much value their property has lost in comparison to other similar properties in the area and what the owner can reasonably expect to receive upon selling their home. If you are one those who have a property that is up for sale, you may be surprised to learn that you cannot prepare your own House Tax Assessment. Your local government agency will not allow you to do this as they would rather see the sale of your property go through as planned.
So what is a House Tax Assessment? It is basically an evaluation of the value of your home based on available information. For example a previous owner of your property might have declared bankruptcy, they might have moved away, built a new home elsewhere or might have transferred the property out of Australia. There are many other reasons why a property might have been sold and the assessment of its value has been made. The onus is upon you to find out if your property has fallen into disrepair and/or there are any liens hanging over its title. It is the job of your local government agency to notify you and the relevant taxing authorities so that they can deal with these matters before making a determination as to the value of your property.
When preparing your House Tax Assessment (THA), it is important to note that you are only being granted an assessment and not a valuation. If the process had to be followed, you would end up having to pay for both a valuation and an assessment. Many people try to get around this by declaring their property as sold and forgoing all further obligation to the taxation department by deed in exchange for a statutory declaration that their property is sold in terms of a land contract. Such deeds of trust are still considered null and void if the purpose of the deed is to avoid paying any kind of taxes. Even if the process is carried out in good faith, the property owner has no protection if the assessment gives a higher value than the purchase price for the property.