What is land tax, I hear you say?
Land tax is an annual tax payable by owners of land. Land Tax is administered by state or territory government and is applicable in NSW.
So, when does this land tax apply?
Land tax applies to property you own that is not your principal place of residence and if the total taxable value of your land is above the land tax threshold. You may have to pay land tax if you own, or jointly own:
- vacant land, including vacant rural land
- land where a house, residential unit or flat has been built
- a holiday home
- an investment property or properties
- company title units
- residential, commercial or industrial units, including car spaces
- commercial properties, including factories, shops and warehouses
- land leased from state or local government.
Land tax applies regardless of whether income is earned from the land.
Now, for the good news, you don't have to pay if...
In general, you do not have to pay land tax on:
- your home, known as your principal place of residence
- your farm, known as primary production land
- any of your land if the total taxable value is below the Land tax threshold
If you have to pay, here are the rates and thresholds
Land tax is calculated on the total value of all your taxable land above the land tax threshold.
The threshold for the land value changes each year and is applied as follows.
- General threshold: $100 plus 1.6% of land value above the threshold, up to the premium threshold.
- Premium threshold: 2% of land value above the threshold.
- The threshold is published by the Valuer General in October each year and applied to land holdings on 31 December each year.
- Land tax is applied for the full year following the taxing date of 31 December and no pro-rata calculation applies.
Do you need to register for land tax?
If the value of your taxable land is greater than the land tax threshold, you will need to register for land tax.
If you have any questions regarding land tax, please contact our office.