Land tax is a state tax and is one of several charges you may be required to pay when you buy property. This tax generally applies to those who own, or jointly own, a property in NSW that is not their primary place of residence, or that is not exempt and is above a certain land value threshold.
We go through all the details below.
Land Tax Exemptions
You are generally not required to pay land tax on:
- your home (primary place of residence)
- your farm (primary production land)
- land you own with a total taxable value below the land tax threshold (listed below)
Land Tax Key Points
- Land Tax is payable on property you own with a total taxable value above the land tax threshold and can apply to vacant land, commercial premises, investment properties or holiday homes
- Land tax is assessed on 31 December each year on unimproved land you own
- Land owners need to self-assess and register for Land Tax if required
Land Tax Thresholds
Land Tax is a state tax where thresholds change every year so you need to be aware of the rates and limits in each state where you hold property.
- 2019 General land tax threshold is $692,000
- 2019 Premium land threshold is $4,231,000
- Individuals, most partnerships, companies and superannuation funds are generally entitled to the threshold
- ‘Special Trusts’, including most discretionary trusts, are NOT entitled to the threshold and taxed on the total value of their property
- If the combined value of your land does not exceed the threshold, no land tax is payable
- Land tax is calculated on the total value of all your taxable land above the land tax threshold
- Land Tax for general land is calculated at $100 plus 1.6% in excess of the land value threshold, where the premium land attracts a higher charge of 2%
If you are registered for Land Tax you will receive your Land Tax Assessment in January, outlining properties that are liable and whether they qualify as general or premium land. If you disagree with any land values used in your assessment, you can submit an objection within 60 days from the date of issue.
Find out more about NSW Land Tax here, and if you would like to discuss your property situation our team is happy to assist you. Get in touch with BLG Business Advisers online or by calling (02) 4229 2211.