Land Tax is imposed by each State’s Office of State Revenue and is levied on the owners of property that is not their principal place of residence.
Who needs to pay?
You may need to pay land tax if you own, or jointly own, any property in NSW that is not your principal place of residence (your home) or other exempt land as at midnight on 31 December and the total taxable value of your land is greater than the land tax threshold.
What types of property are liable?
You may have to pay land tax on:
- 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.
Rates and thresholds
For tax year 2016 the threshold is $482,000.
The rate is $100 plus 1.6% up to the premium threshold.
If the total value of your taxable land is greater than the land tax threshold, you will need to register for land tax. You must register by the 31 March in the taxing year.
Once you register, OSR will send a notice of assessment based on the information you have provided. The land values supplied by the Valuer General are used to value your land as at the 1 July.
The value of your land for the current tax year and the land values for the previous two tax years are used to calculate the average.